Every tough guy knows: nothing better than taking advantage of New Year’s Eve sales, right after Christmas. Or buy chocolate eggs only after Easter Sunday has passed. In fact, experience teaches us that when the goal is to save money, there is a right time for everything. As proof, just think of that friend who always enjoys promotions when traveling outside of school holidays. But when it comes to credit, have you ever wondered when is the best time of year to get your loan
As with all other aspects of life, here at Astro Finance we believe there is a perfect time to commit to loan repayments. However, it has much more to do with your planning than specific dates, as we will see below. Know what to consider when deciding!
After all, is there a date when interest rates are most advantageous?
As a general rule, price changes occur according to the law of supply and demand. That is: the more people interested in a product or service, the more expensive it tends to become. That’s why going to the beach on a long summer holiday is often much more expensive than going on the same trip on an ordinary spring weekend. Similarly, the price of drinks goes up during Carnival and so on.
In the case of loans, although it is common to hear about loans at certain times – such as at the beginning of the year for tax payments – they are required all year round. But not only that! In fact, interest rates are calculated based on several other factors. These include the loan repayment term and the risk of default, which changes not only from customer to customer. And also according to the moment of each one. For example, applying for a credit when your credit score is high is more advantageous than applying for the same loan when it is negative.
Answering the question, there is no specific date of the year when interest rates are most advantageous. The best time to apply for credit is one that conforms to your planning and current financial situation.
Tips for finding your best moment
To say that there is no period of the year when rates are most advantageous is different from saying that there is no ideal time to apply for a loan. In this sense, of course, nothing prevents you from doing a simulation at your leisure. However, in order to get the most out of credit as well as to ensure timely repayment of payments, we have separated some situations in which the loan becomes really advantageous.
What is the best time of year to get my loan? When you know exactly what to do with money
In general, when we apply for a loan it is because we have a goal in mind. How to get out of overdraft, clear your name, make a home makeover, pay for school or travel with your family on vacation. But before applying for credit, it is important to do the math and ask yourself how much exactly you need and how (and when) you will apply that money. Otherwise, you risk insufficient money to get your plans off the ground. Or the other way around: you pay interest for nothing for money you didn’t need right now.
What is the best time of year to get my loan? When you plan to pay installments
Thinking of the tip above, the best time to get a loan is when you need and know what to do with it. But it is not in use using credit to clear your name and then wind up with the bills again, delaying the payment of installments. So if you think the loan may be the answer to your problems, the first step is to define how much you need.
Then set up a financial control worksheet, see how much money you have left each month, and ask yourself how long you are likely to continue with the same expenses and expenses. Are you in a stable situation and there are no big expenses ahead or will you be able to afford them smoothly? In this case, the amount of installment should be less than the balance in your account. Remembering that you can always use the spreadsheet to find out where you can save.
When is the best time of year to get my loan? When you have already compared several loan offers
Let’s say you already know what you want to do with the money, have done some financial planning and found a loan with installments that fit right into your pocket. No doubt, this is the best time to close your loan, right?
This can be as long as you have researched it before and make sure it is the most beneficial option in terms of time and CET. After all, as much as the monthly fee fits your budget, it is very bad to pay more for something that could have been cheaper. Therefore, research long before closing a proposal.
Enjoy you are here at Astro Finance and use our platform to get a simulation and receive up to 10 pre-approved credit offers! With a little research and planning, you can make your dreams come true or get out of debt.