Applying for a personal payday loan is an accessible financing alternative available to the vast majority of Peruvians. The requirements to get them are not many and there is a great variety of entities that grant them, so you can always compare the alternatives and choose the one that suits you.
However, one point that you should be clear about before borrowing money is what you will spend it on. Is it something worthwhile? It may be a vacation, renovate part of your home, buy a new appliance, etc. But in which cases is it not recommended? Pay attention to the four reasons for applying for a loan that are not recommended:
Despite having vehicle loans
there are still people looking for a personal payday loan to make this purchase; however, specialized loans have more convenient rates and benefits than those of a personal payday loan.
Pay another credit
Do not enter the so-called “carousel”, which is, ask for a loan to pay another, unless it is a consolidation of debts, that is, ask for a loan to cancel several debts and keep one.
Complete the initial installment of a housing loan
The initial installment should come out of your savings, otherwise not only will you borrow from the personal payday loan, but the mortgage credit could be more difficult, and you would also have to take care of two debts.
Lend to other people
Asking for a loan to give money to others is risky, since it is your financial reputation that is at stake, and if something goes wrong in the money back, you could be qualified as a bad payer.
Remember, before applying for the loan, make sure you can repay it. For that, organize your budget and check how much you can pay on a monthly basis. Also, compare the alternatives using the personal payday loan comparator, which way you will see how much you will have to pay in full for the credit and choose the best option.