Before starting your personal loan application, it’s worth defining three key points. This prevents you from accepting an expensive offer just because the monthly payment “seems” affordable.

Define the minimum amount you actually need

Avoid asking for “a little extra” on impulse. The higher the loan amount, the higher the total cost—since interest applies over a longer period and a larger base.

Define the maximum comfortable monthly payment

A safe installment is one that fits with ease—even in difficult months. If the payment stretches your budget to the limit, one unexpected event could lead to delays, which often add penalties and increase the loan cost.

Define the maximum acceptable term

Longer terms typically reduce monthly payments—but increase the total amount paid. The goal is to find a balance: a term that fits your budget without unnecessarily extending the debt.

The logic of a personal loan is similar across traditional banks and digital platforms: the institution assesses your profile, defines the terms, and formalizes a contract.

What changes is the channel (app, branch, phone) and the approval criteria.

1) Organize your basic information

Have clarity about:

A common mistake is to “test the market” without knowing what you can afford. That increases the chances of accepting an unsuitable loan offer.

2) Gather essential documents

Documents may vary, but usually include:

The idea is simple: the clearer your payment profile, the easier it is to receive a sustainable personal loan offer.

3) Do a pre-comparison based on total cost (not just the installment)

Before sending a formal request, compare 2 or 3 offers using the same criteria:

This helps you avoid offers with “attractive” installments but high final costs.

4) Apply strategically (instead of applying everywhere)

Applying for loans from multiple places at once can create confusion during analysis. A smarter path:

5) Read the contract focusing on what affects your life

Before signing a personal loan contract, confirm:

6) Set up your payment to avoid delays

If possible, enable automatic payments and set reminders. Delays are one of the fastest ways to turn a reasonable loan into an expensive and stressful problem.

To safely take out a personal loan, you need to understand one concept and three key numbers.

The Concept: CAT Is the Most Useful Comparison Tool

In Mexico, the CAT (Costo Anual Total) is a published indicator that helps compare credit costs. Simply put, it shows the annual cost of a loan, including interest and relevant fees.

Practical rule: When comparing personal loan offers, start with the CAT and total repayment—not just the “promotional” rate.

Number 1: Net amount received

Some offers include fees that reduce the actual amount deposited into your account. Confirm how much you’ll receive net.

Number 2: Monthly installment

The installment should fit your budget with ease. If it’s a tight fit, the risk of late payment increases.

Number 3: Total repayment amount

Always ask:
“All included, how much will I pay in the end?”
This number simplifies the decision and helps you avoid misleading comparisons.

Below are CAT averages and interest rate benchmarks officially published by banks (with calculation dates and valid-through dates). They serve as a guide—not a promise. Your actual rate may be higher or lower based on your profile.

Here are illustrative simulations using consistent calculations to show how term affects cost.

Assumptions: standard amortization (Price table), reference rate of 25.68% p.a. (without VAT), no commissions, no insurance, and no VAT.

In real life, your personal loan may include additional costs—use these examples for comparison, not as guaranteed quotes.

Use this reasoning:

Comparing two or three offers properly is better than reviewing ten superficially.

For each offer, write down:

Some features can make a loan more expensive without being obvious:

This section is your final filter. Before signing, confirm:

If there’s a setup/contract fee:

If there’s insurance:

Confirm:

Ask clearly:

A well-managed personal loan tends to cost less overall, because you avoid delays and can plan to repay early when possible.

Priority #1: Avoid Late Payments

Delays add costs and can hurt your credit. If your budget gets tight, take early action (cut expenses, explore alternatives) rather than waiting until it’s a problem.

If You Have Extra Funds, Consider Paying Off Early

In many contracts, early repayment reduces interest since you’re shortening the time you use the money. But rules vary—that’s why it’s so important to ask before signing.

Don’t Create a Second Expensive Debt Along the Way

If you took out a personal loan to organize your finances, avoid going back to credit cards or short-term debt. Otherwise, the benefit of reorganizing disappears.

Getting a personal loan can be straightforward when you follow a plan: define the amount and term responsibly, compare by CAT and total repayment, and review the contract carefully—especially commissions, insurance, late payment terms, and early repayment.

Official CAT references help guide your comparison, but the final decision should be based on the actual proposal for your profile.

Editorial Note: This content is for informational purposes only and is not affiliated with banks, lenders, or platforms. Criteria, rates, terms, and conditions for personal loans vary by institution and applicant profile and may change over time. Always validate the final figures in the official proposal and contract.