For many Poles, using bank and non-bank loans may be a necessity. Others help them realize their dreams and goals that they would not be able to afford under normal circumstances. Still others finance their personal development in this way. Regardless of the reasons why we borrow money, it’s worth knowing what to look for before making a decision. Here are 5 key aspects.
People who use loans sporadically and do not quite know how to interpret costs may encounter unpleasant surprises – especially in the case of banking products. The interest rate is only one of the factors that determines the final cost of the loan. Others include commission and insurance. In the non-banking sector, the matter is usually clearer – the costs result primarily from commissions. Before we make a decision, we should know the exact cost of the loan, find out what it consists of and pay attention to the amount of possible installments.
We often borrow smaller amounts in the non-banking sector, because applying for a loan in this way involves fewer formalities. These types of loans are much more easily available. As for the repayment terms, we have offers on one-off payment (usually after a month) or spreading the loan over at least several installments. Usually, the first solution is a bit cheaper, but it is worth remembering that it involves considerable risk. Although during the month we can expect substantial inflows to the bank account, unexpected expenses may well surprise us. In other words, installment loans are a more flexible solution with a much lower risk.
We often take loans online. This is an excellent method because of its convenience and speed. Currently, it is difficult to find dishonest loan companies on the Polish market, but you should be careful. By using an encrypted connection, which is standard in companies offering financial services, we can be sure that nobody will steal our sensitive personal data. However, entities that are not registered in Poland should be avoided.
The credibility and experience of the loan institution
In addition to the cost of the loan, repayment terms and security, it is also worth paying attention to the credibility of the lender. Companies that operate on the domestic market for many years have been appreciated by customers not by accident. It is worth to read the opinions of existing borrowers. This is the best testimony to the integrity of financial institutions.
Speed of decision
It cannot be hidden that when we borrow money, we usually want to get it quickly. This is, among other things, the success of online loan companies. A minimum of formalities and a quick decision-making process are very desirable features of the lender. If all you need to get a loan is to complete a short form, a transfer verifying our identity and a short wait for a decision, everything is fine. After all, our urgent needs, plans and dreams should not wait too long.