Do you know what microcredits are and what their advantages are? These are credits that have lower values than those usually practiced in the market.

Therefore, they are called “micro” as they cause less financial impact on banks. The good news is that you can also turn to them when you need extra money!

So, to help you learn more about this financial option, we put together this article with everything you need to know about the subject! In addition to what microcredits are, we will also answer other questions.

For example, you will see who can have access to them, the advantages they offer and how to hire them! Incredible, right? So, continue reading and follow along!

As we said, the value of microcredits is usually much lower than that charged for personal credit. Likewise, in housing or car credit.

Therefore, although the value varies, it is possible to say that microcredits are loans worth between 500 and 2,500 Euros. Therefore, these are small values.

Each bank can change the rules to customize them, but the common thing is that the limit does not exceed this amount. And that is precisely why microcredits have so many advantages, as you will see below.

In general, individuals and small companies can obtain it. However, this condition may vary according to the rules of each bank that offers the option.

Therefore, it is important to research how each bank deals with this type of credit granting. This way, you can notice age, income or other limitations and will be able to choose the best alternative for you.

There are several advantages that you can find when looking for microcredit. Check out the main ones in the items below.

Because they refer to smaller amounts, microcredits are generally also easier to obtain. This occurs precisely because the grantor's risk is lower.

After all, this is a smaller amount that he would lose if the customer defaults. Also, the installments tend to be smaller, which makes it easier for the contractor to pay.

This does not mean, however, that there is no credit analysis. The bank still needs to make sure that the individual is solvent.

In this case, what usually happens is just the analysis of whether the subject is registered on the Banco de Portugal blacklist. Therefore, the score and other issues are less influential.

This is precisely because microcredit requires a lower grant amount, which reduces the banks' risk.

Because they refer to smaller amounts that, in turn, present lower risks to banks, microcredits also tend to have lower interest rates.

Interest rates normally arise precisely from this risk. They serve, in addition to replacing the amounts to the bank, which stopped using the amount for investment, to pay off the risk it assumed when granting the credit.

Therefore, when we talk about reduced values, the risk is also reduced. Therefore, it is possible to have lower interest rates and consequently smaller installments.

Because it is a smaller credit amount, microcredit also has the advantage of being paid off faster.

After all, there is no need to take out dozens of installments to make paying the amount possible and within your pocket.

Since the amount of credit is already smaller, it is possible to opt for fewer installments without them having a high value that is impossible to bear on a monthly basis.

Microcredit has as one of its main advantages the fact that it gives a boost to small achievements, especially those in everyday life.

Note that even though the amount is low, it helps to achieve, for example, that renovation in a specific room. Or, painting your house, purchasing a course or travel package.

Check out some tips to put into practice when taking out microcredits. So, have access to their benefits safely!

The first step could not be any other. Before taking out a microcredit, it is essential that you know how much you need.

Therefore, outline not only your objective with credit, but also what amount it needs to make it happen. 

Once you have the necessary amount in hand, also think about the maximum amount you could commit, from your income, to pay off the installments.

Remember that the larger the portion, the more it will weigh on your effort rate. Therefore, consider other credits pending payment and how the new obligation may weigh on the budget.

The main objective of microcredit is to obtain lower interest rates and payment facilities. So, take this into consideration when analyzing your needs and possibilities. 

After stipulating the amount you need, use credit simulators. With them you know exactly what conditions are offered by each bank.

It is possible to use bank simulators, on the institutions' pages, one by one. On the other hand, you can also use a simulator that gathers multiple data at once.

Today there are several platforms that bring together information from more than one bank and help you analyze the best conditions. 

With the simulation results in hand, compare rates and conditions to analyze the total amount of each alternative and the applicable rates. 

Finally, know that the larger your microcredit, the more it will force the effort rate. Therefore, in these cases it is interesting to increase the number of installments.

As a result, the effort rate for your household decreases. In other words, it becomes easier to afford the monthly installment within your budget.

However, if you realize that microcredits are not for you, you may need other alternatives. Perhaps a larger amount to borrow? In any case, our tip is for you to find out more about credit right away.

Below, then, we leave a text that tells everything about this option: click on it and find out how to get it, requirements and where to search and look to obtain it. Follow along below!