Personal loans for young people

Personal loans for young people

As of June 2020, young people between 15 and 17 years old can open a bank account to process their debit card and receive bank transfers.

This can be helpful when applying for a loan online, since one of the requirements is to have an account with a bank. However, most of these institutions admit only people over 18 years of age.

Although it is a good decision to start operations from an early age, as one of the reasons why the Government decided to approve the banking of this sector was to speed up the payment of scholarships offered to young people.

And is that in case of an emergency, personal loan companies can deliver a monetary amount in less than 24 hours and many have no objection to providing a sum to the student, since they do it remotely and without so many requirements.

Requirements to apply for a student loan

Most request three important details: be 18 years old, have an account number to deposit the money and have a stable income, which may be the scholarship that the young person is receiving.

So it is not necessary to have a job or a guarantee or have a credit history. In fact, there are several companies that lend without checking the credit bureau. Nor will they request advances.

It should be noted that it is very likely that you will have to fill out a form to request such a loan, in which you ask the amount you want to obtain, the reasons why it is needed, the amount and the occupation.

Subsequently, full name, CURP, gender, cell phone and email are entered.

In what situations should you resort to a loan as a student?

A personal loan must be a conscious decision and the pros and cons have to be analyzed and, especially, the needs that can be the following:

• Registration payment: es one of the most important reasons, especially when it is necessary to face the term of enrollment of a higher degree such as university or postgraduate.
• Additional courses: workshops or additional preparation that allow the student to update and have more solid knowledge of their career.
• Trips: in some careers there are situations in which you have to go on a trip as part of the subject or to do research work.
• Equipment for the race: To speed up learning and have more tools, it is sometimes necessary to acquire some computer equipment.
• Emergency: simply for some unexpected situation such as illness, accident or to support the family in an event of this type.

What to take into account before applying for a personal loan?

When choosing the entity to receive the monetary support, it is essential to verify the interests and the Total Annual Cost (CAT).

The CAT is a percentage that integrates all the costs of collecting a loan such as commissions and interest, so that the higher the percentage of this term, the final payment that will be disbursed will increase.

It is very likely that when requesting a loan without credit bureau, CAT increase, as if the income of the person concerned is not sent. This is because it implies a greater risk for the institution that the young person does not finish paying off the financing.

To do this, it works to review the interest and CAT percentages of various companies that offer this product.

The personal loan comparators they are an alternative to finding on a website the majority of financial companies that have student financing. In addition, the loan can be contracted directly with the institution on the same platform.

Some loan companies are Kiwi, Kueski, Credy and Kubo Financiero. It is necessary to verify that this entity is regulated by authorities such as the National Banking and Securities Commission (CNBV) and by the National Commission for the Defense and Protection of Users of Financial Services (Condusef).

Advantages of acquiring a personal loan

There are several but the ones that stand out the most are:

• Instant money: they can offer an amount needed to pay for an emergency or rush. For example, if you need to pay for a plane ticket, you ask the loan company and it is delivered almost instantly.
• Comfort: As many of these companies have their websites, the young person will not have to leave their home because they can order it from their computer and the money is deposited into their account.
• Transparency: These loans provide all the necessary, clear and accurate information for any individual to understand.
• Deadlines to choose: You can select both the necessary amount and the terms to settle the entire amount.
• Have a credit history: By paying on time, the young student will start with a good grade in his Credit Bureau, which will help him to have better credits in the future with other institutions.

Questions before requesting a personal loan

One of the main questions that everyone should ask before requesting the loan is: How am I going to pay it? In case you are not clear about how it will be solved, it is best to avoid asking for the loan and look for a family member or friend who can help, because otherwise, you would be paying more for delinquent interest, than for what was borrowed.

Other questions to ask yourself before are:

• How much do I really need ?: It is important to determine what it is needed for and, for example, if it is for travel, consider not only transportation costs, but also lodging and food.
• Do I have my finances in order ?: So it will be essential to make a budget before requesting the loan, in which both the expenses and income that are each month must be noted to know if a debt can be acquired.
• Will the money help me in my academic training ?: It is time to reflect on whether this financing will be an investment for the academic future, and if it will pay for a course, it will really help to grow professionally.
• I fulfill all the requirements?: among which the bank account and the fact that the interested party is of legal age stand out.