There may be times in your economy where you need a short-term financing solution. A private loan may be a good solution, but there are some things to keep in mind before you press the button.

Find out if you can afford it

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Getting the money in feels good now, but it can feel heavy later when the loan is due. Keep in mind that you are borrowing from your future. Will your future give me the thumbs up for this?

To be able to assess it, you need to know what the loan costs.

It’s not just the interest rate that costs

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In addition to interest on the loan, various types of fees are normally added, such as a one-time setup fee and an administrative fee (each month). Make sure you know all the fees, including late fees and interest rates if you miss a payment.

Find out the actual cost of the loan. How many kronor less will you have in your wallet on the day the loan is paid off compared to if you had not borrowed?

You also need to find out what the loan will cost each month, and see if you can afford that expense. Remember to have a small margin in the budget, for unforeseen expenses, cost increases and reduced revenues.

Fight a for a low interest rate

Fight a for a low interest rate

The interest rate you are offered depends on many factors. What you can influence is both the choice of lenders and your credit rating. Before deciding on a loan, you should compare with other lenders and see where you get the best interest rates and terms.

You can save time and energy by letting a lender do the work for you. You get a direct idea of ​​what options you have. In addition, you risk not deteriorating your credit rating by drawing on many credit information.

Improve your credit rating

Swedish banks like customers with high credit ratings and below you will find some factors that banks and other financial players look at when assessing creditworthiness.

The banks like customers who:

  • Has low leverage
  • Have few loans
  • Has permanent employment
  • Owns his accommodation.

Other lenders also take into account your credit rating when setting interest rates, so it’s a job that is always worth the effort.

How to improve your credit rating

You can do a lot to get a better credit rating, which gives you lower interest rates and allows you to borrow at a lower cost.

“The surest way to maintain a good credit rating is to keep down the number of credit inquiries and to be careful about paying the bills on time. Managing the economy improves the chance of being approved the day you want to apply for a loan. “

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