Due to the development of the non-bank institutions sector, more and more people decide to take out a loan or credit in the absence of sufficient funds for unplanned expenses. So how do you choose the best lender? Where can I find information about current offers? What to look for so that you don’t regret it later? These and other questions that bother everyone who faces such a choice will be answered below.
Specify the purpose and choose the type of loan
The activities of non-bank institutions have facilitated the possibility for us – the customers, of taking loans faster, because we can apply through the websites of the companies that grant them. The number of lenders is also increasing all the time and the payday loans they offer are becoming more and more attractive.
However, if you want to take out a loan, you must first specify your amount and purpose, which is what you want to spend it on. We shouldn’t rush when looking for the right loan for us. It is important that we look for offers that are tailored to our needs. What’s more, when deciding to take a loan, we should always use the services of proven lenders.
Parabanks usually offer installment loans and payday loans to customers. The first ones work best with financial problems or stable income. Their plus is that we can receive a higher amount than in the case of payday loans and they have a flexible repayment time – even for several months. In turn, payday loans are taken for a short period of up to 60 days.
Before applying for a loan, you must also read the information on the lender’s website. It is worth paying attention to the publicly available list of warnings, where a list of companies that we should avoid when wanting to take a loan and published by the Polish Financial Supervision Authority is published.
Borrowers, the most important for us are low commissions, but also security. When we apply for a loan, we also want to receive the highest amount possible. At present, non-bank institutions can lend us up to $ 2,000, and we receive the decision immediately because they require almost no certificates from us.
When we take out a loan for the first time, the main priority for us is to receive it quickly. However, if we know that we will use the payday loans more often, then it is worth considering the offers of companies that, during prolonged use of their services, guarantee their customers additional bonuses.
When using the services of non-bank institutions, it is worth knowing that they also offer installment loans.
Is it profitable to use the loan comparison service?
Available online loan comparison websites are a great help for those who are looking for them, because in a few minutes they enable us to put together offers of many companies without leaving home.
To find the best, we can also use public loan rankings, which present the current offer of companies. The rankings are primarily based on such data as loan terms, the maximum amount we can apply for, the time allocated for repayment and assessment of borrowers. Sometimes we can also find information about the company that offers the loans. The undeniable advantage of such rankings is the accurate collation of all the most important information that a person wanting to take out a loan needs.
It is also worth looking for information on forums that are created by people using loans, and thus learn the credible opinions of people who took them in specific companies.
Help from relatives and financial advisors
It is also a good idea to consult with family or friends who have already taken loans. They can recommend to us the companies whose services they have used themselves and advise against loan sharks. In addition, you can also use the services of financial advisors who will offer the most favorable loan for us from the wide range of offers available. Such an expert with vast knowledge and experience will certainly be able to advise us better.
Before completing all formalities, we must read the contract and try to really understand it. In a situation where we have doubts or fragments of it arouse our anxiety, we must explain it before we sign such an agreement. Despite the fact that since 2016 the anti-usury act protects us, we still need to be careful. And after signing the contract it will simply be too late to raise objections.
Always pay attention to the APRC
When choosing a loan, you should also pay attention to the APRC, which is the current annual interest rate on the loan, because as it turns out, the loan with the lowest interest is not always the best. But why? Because its total cost includes, in addition to the interest rate mentioned above, also commission, insurance and other aspects that are always specified in the contract. That is why the lower the APRC, the cheaper the loan will be.
It is confusing for customers to take a loan with 0% interest rate, because we often think that it will be cheaper, and it turns out that it is not at all. Institutions granting loans and credits often compensate for lower interest rate by a higher commission.
Search for free loans
Very often we also have a situation when non-bank loans are cheaper than those taken at the bank or even free. When deciding to take such a loan, we will not only have to pay interest, but even commission or insurance. Depending on whose services we use, we will be able to borrow from 1000 to 6000 dollars.
Many non-banking institutions also do not require any documents or certificates from us, unlike banks, and the decision to grant a loan is based on a loan application and ID card.
It is worth remembering, however, that only new customers who have never used the services of this company can receive free payday loans. The only condition for them not to pay any additional fees is the timely repayment of the loan on a pre-determined date.
Think before you borrow
The ease of taking out a loan and the vision of quickly repairing the home budget contribute to the fact that more and more Poles are taking it. Evidence loans are also becoming more and more popular day by day and are eagerly chosen by clients who are in a difficult financial situation and nowhere else can get a loan and by those who want to save time and avoid unnecessary formalities.
However, it should be remembered that such a decision should be carefully considered, because in the absence of repayment of the loan the consequences of our hasty can be very severe. Therefore, even before signing the contract with the lender we must be sure that we can afford it and that we can pay it back on time. To determine this, you need to analyze your home budget, ie simply summarize the receipts and cyclical expenses. Only with this information, we are able to make the right decision for us and avoid unnecessary risk and unnecessary nerves.