What to Watch Out for a Loan

You may have heard of the horrible experience some clients have taken from the relationship of a credit company to a debtor. How to choose a trusted credit company and not get burned when choosing a loan?

The credit product market is very diverse, and while some companies find honest and professional services, others can rip your hair for many years after signing the contract. What warning signals should you pay most attention to when negotiating a loan?

A special way of marketing promotion

A special way of marketing promotion

Leaflets on lampposts luring a good loan. In 99 out of 100 cases, this is an unfair loan from a usurer. If the company uses such primitive ways of promotion, there is probably something wrong with it and do not expect a serious approach from it.

Websites that need information

Most reputable credit companies have information on their site about the amount of money they borrow, what interest will be and the APR rate. The standard calculator is also an online calculator, which can be used to find out how long the loan will be repaid and how much it will pay for it.

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Most of the time, a credit company has sites with very insufficient information. In addition to being a great, awesome … just don’t get the BEST loan, you won’t find anything on the site. Usually, there is only a telephone contact or an email address on such pages. When the client contacts them, some companies “willingly” bring money up to the client without having to send him a contract for inspection. The client will then see the contract for the first time only when the money is handed over personally, when he / she does not have enough time to read all the provisions.

Fee in advance

Obviously, neither chicken nor chicken is free. However, a reputable company will automatically include the loan fees in installments, so you don’t have to pay anything in advance. Undertakers often require to pay a certain amount of money in advance to provide a loan. Mostly, however, it is a scam and the applicant only loses money without ever having a loan.

Loops in the contract

As mentioned earlier, some less reputable companies do not give the client enough time to study the contract. They simply bring the document together with the money to their place of residence. The client often signs something he does not understand under time pressure.

What provisions in the contract can be dangerous? Always focus on a variety of sanctions. What are the conditions if you delay your payment or repay the loan early? Some companies make money when the debtor sends the installment late. Sanctions for several days of delay may be higher than the installment itself.

If you find any suspicious loops in the contract, you should not sign it and look for another credit company.