What offers should you avoid choosing a loan?
Not every financial liability offered by banks is attractive and will provide you with a trouble-free repayment period. Parabanks and banks often reach for ways that increase the fees that the borrower must take into account.
Therefore, before you start looking for the right cash loan, find out all the hooks you need to watch out for when considering a loan.
A good contract
Should be completely understandable to you. Before you sign a contract, always read it carefully, even several times. In case of any doubts or unspecified points in the document, contact your bank advisor.
It is the responsibility of the institution’s employees to provide you with access to the information you need to make the final decision. You will learn, among other things, what the APRC is exactly and whether the bank requires the borrower to pay fees for early repayment.
Hooks and stars – watch out
Only the total value of the loan will allow you to know the amount you will be forced to pay to the bank’s account. Those interested in loans usually check only the nominal interest rate, which allows you to know only part of the costs.
By learning all the terms of the contract you can easily compare whether they are more favorable than other services available on the market. Thanks to this, you will avoid too high fees that are beyond your capabilities or are simply unfavorable to recipients.
If you want the cash loan
To meet your requirements and support you need, avoid a few factors that indicate that the bank is not offering you the best offer.
The commission for granting a cash loan can be even twice as high as the standard interest rate. Especially now, when the interest rate is affected by low interest rates of the National Bank of Poland, institutions willingly reach for higher commissions that are able to compensate for their financial losses.
The setup fee is not as popular as the commission, but it can also be a great way to increase your total debt cost. It is therefore worth asking or checking in advance whether the bank requires such a fee, which may reach up to several percent of the loan value.
Many borrowers must take advantage of other bank services where they apply for a loan. Among them are, among others an additional paid personal account or debt insurance. Each of these products will affect the amount of your installment.
There are also fees that will interest you in exceptional situations, e.g. in the case of early loan repayment. This is a way to avoid some interest, but it is not always beneficial because the additional costs may exceed the planned savings.