Rules for taking loansUncategorized
Loans are the most popular way of financing when we have a budget problem. One of their main advantages is quick access to cash, which is often the reason for hasty choice of offer.
Difficulties with repayment of obligations often result from an ill-considered decision. That is why we have prepared rules that will help you to take a loan reasonably and safely, which you will be able to pay back on time:
Check your creditworthiness
If you plan to spend more and need extra cash, it is better to consider a bank loan. This option is often associated with much lower costs than using payday pay. Banks are associated with very restrictive verification of each applicant, which is why many people give up such a solution for fear of refusal.
Of course, your request requires an analysis of your financial situation and confirmation of your credibility. Do not assume, however, that you will not receive a loan. By turning to the bank, you don’t risk anything, and you can significantly reduce your loan costs and ensure greater transaction security.
Compare offers from several companies
Remember that when it comes to money, never act hastily! Do not decide on the offer of the company, which you will only be able to find first. Before you decide on a loan, make a thorough market analysis and gather more offers from various companies.
Compare them in terms of costs, contract terms, available promotions, etc. A combination of different proposals requires your commitment, but will give you a better guarantee of choosing the right offer.
Check the company carefully
If you have already decided on one of the offers, do not rely only on a cursory analysis. Before you sign anything, carefully check the facility. Unfortunately, there are dishonest companies on the market that exploit naivety and customer ignorance. Don’t let financial hardship put your alertness to sleep. Negative effects of taking loans are often hidden, e.g. in the form of small prints or simply dishonestly left unsaid. It will be best if you use known and proven companies.
Read also the opinions of other borrowers on the forums, they can provide you with more reliable knowledge about the facility than you read on the website, leaflet, advertising folder, or hear at the representative.
Borrow only real amounts to pay back
At a time when we can gain quick access to cash, often the desire to take a higher loan amount is very tempting. It seems that since we are taking a loan, more money will be useful and the surplus can be used for other purposes. Never do that! Precisely calculate what amount you need to meet your needs, and then analyze whether you are able to pay the installments on time.
It is worth taking a smaller amount and settling it on time instead of extending the repayment period later. This brings additional costs that are difficult to calculate at the moment, which may prove beyond your capabilities. Set an amount that will allow you to spend part of your monthly budget on paying off your debts without risking problems with paying off your debts and having to borrow again.
Negotiate contract terms
If the offer presented to you contains elements that are uncomfortable for you, do not be afraid to negotiate. Loan institutions are often very flexible and can be individually tailored to the client’s needs. You can try to set more optimal installments, more convenient payment dates, lower margins. Use it and organize better contract terms.
Read the terms of the contract carefully
The basic mistake of borrowers is not to read the contracts. Parabanks usually earn their clients’ ignorance and, using professional vocabulary or small print, hide the negative consequences of borrowing. Do not be fooled and carefully analyze all contracts and capture the so-called “Hooks”. If you do not understand something, look for a specialist who will check them for you. Do not sign the contract until you are 100% sure that it is beneficial for you.
You can get to know a good loan company by providing the client with the so-called consumer credit information form. It is a document required by law that allows you to quickly and objectively compare the cost of a loan. If the lender does not want to share this document before signing the contract, this is a warning that we are dealing with a dishonest company. We wrote more about this in the article How to not be fooled by banks and choose a loan wisely.