However, if clients find themselves in a situation where they need money relatively quickly and possibly even in a situation where their creditworthiness is not in the best shape, they are often inattentive and make some of the most common mistakes associated with withdrawing a loan. Which are they? People who monitor the loan market agree on the following seven errors in their reports.
As with goods and services, clients can compare prices and fees for different types of loans. Just visit the website of one of the online comparators, where everything is clearly presented and where it is then easy to choose for the client’s best loan.
But many people make the basic mistake of not comparing prices and loan conditions too much. And then they wonder if they have to pay half their interest and fees more than they would with a similar loan, but from another credit company.
The big mistake is the concealment of important financial and property information. Anyone who conceals important data is an untrusted partner or client. As a result, this may lead to a denial of service, that is, to the credit approval, however small it may be.
And how can concealment be discovered? Banks and non-bank credit companies have a lot of resources to find out the real state of affairs. These include, for example, past or unpaid obligations, possible repayment problems in the past of the client, family circumstances in terms of credit history, and many other matters.
Moreover, many people looking for a loan are often too comfortable to read the terms of the contract in detail. And after some time, they often wonder how they could have been so reckless and signing such a disadvantageous loan without hesitation.
In the area of loans, the basic rule is: read, read and read again. And if the client does not understand the text, he should ask, ask for an explanation. The representative of the credit company is legally obliged to explain to the client the terms of the loan so that the client can understand them.
Sometimes people go too far in loans. Getting used to an annual luxury holiday or to quality and modern furnishings is easy. Securing all this financially is no longer so easy. And not at all in a situation where we pay the holiday or furnishings from a loan.
A similar mistake arises when a client takes a quick loan without thinking, which must be repaid within 30 days. These loans are generally quite expensive. And every day of default is very clear on the resulting repayment amount.
Those who cannot work with Internet banking, where they set the due dates of payments to be left from their account, must wear a calendar in their head. And it’s not always easy because the amounts paid are sometimes quantum. Starting with gas, electricity, continuing television, mobile and ending with loan repayments. Many forget to pay in time. And then they pay unnecessary penalty fees – money they could enjoy for themselves.
Communication becomes the most important at a time when the client has a problem with repayment. And many people do not realize this, according to lending market research. If they do not have to repay at all, they will not respond at all, they will stop communicating and let the situation go to the extreme, ie until the declaration of execution.
And in most cases this is completely unnecessary. Both banks and non-banking companies are managed by professionals who are able to make proposals for solving repayment problems and make sure that they can access their money in a more convenient way – that is, in the form of client repayments. Even if the installments will be lower for some time.
When a client takes out a loan, he usually starts by looking at the bank offers. In general, there is nothing wrong with a client with impeccable payment discipline, high creditworthiness and excellent credit history. However, as soon as there is a complication with the client, even after a lengthy approval process at the bank, a positive result may not occur.
Therefore, it sometimes pays to rely directly on a non-bank credit company. Many of them already offer conditions similar to those of a bank. And they are more open to their clients. Nor are the first free loans, which may eventually be even more advantageous than a bank loan.