Where to take out a loan? What rules to follow in order not to fall into the trap of some companies? Below are the rules by which you can be sure that you have completed all precautions.
It happens that banks, proposing close to zero or even zero interest, simultaneously receive other, additional fees in the form of very high commissions or expensive insurance. Thus, the total cost of the loan may be higher than for the offer with interest at the “standard” level.
When deciding on a loan agreement, consider whether buying an insurance policy is really necessary. Some banks treat it as a mandatory element of the loan agreement, but in many it is only an option for which we do not have to decide. Theoretically, it is meant to protect the borrower, for example in the event of job loss or illness. In practice, often insurers avoid paying the benefit, citing various “tricks” included in the contracts.
At present, we will take out a loan not only in a bank, but also in a loan company. Currently, there is a law that specifies an acceptable limit for the costs of such a loan, so we do not have to worry about hidden fees or high interest rates. The costs are comparable with the banks’ offer, but the formalities are much simpler. Usually, the entire procedure takes place online.
There are more and more new private companies on the market offering cash on the spot without database, without the need to confirm that we have creditworthiness. Sometimes, these are loans granted, for example, against housing or other real estate. We avoid such offers with a wide arc, it is safer to take out a loan in a company that belongs to the SDR organization, eg CashMan.
Before you decide to take out a loan for the purchase of, for example, electronic equipment or new furniture for the kitchen, check whether it would not be profitable to buy in installments. With this form of purchase, we can often avoid additional costs, such as commissions or insurance.