Incurring a financial commitment in one of many loan companies is a serious decision that is worth thinking through. There are a lot of non-bank institutions on the market, but not all of them on clear and transparent terms. The actual costs of installment loans are also very diverse. So how do you choose the best entity? What to look for when analyzing loan companies’ offers?
First of all: review the available installment loan offers
Before we proceed to analyze specific offers, we will know in advance how much room for maneuver we have. We can choose from entities with offices in our area, as well as those that base their lending activities on online sales channels.
Is borrowing online safe? The procedure looks exactly the same as when you take out a loan in the office, but applying is much more comfortable, and it is possible at any time of the day or night. What’s more, choosing a loan via the Internet, we will handle all formalities remotely – from submitting the application, finalizing the contract and ending with the availability of funds.
Fears that may accompany us, primarily related to the need to share your personal data online, are completely unnecessary – thanks to double identity verification, applying for a loan online is in many cases as safe as applying for a loan at an outlet.
Secondly: choose the best installment loan offer
Since we already know how large we have the possibilities to choose a loan company, let’s move on to the next step, i.e. the selection of the best offer for us. When deciding to incur liabilities in one of the loan companies, we usually count on a faster credit decision than in the bank or more flexibility in the assessment of credit risk. When analyzing the available offers, let us pay attention to those factors that are of the greatest importance to us. A different offer will work for a person looking for the cheapest installment loan, and a different offer for the one who depends on time or a positive credit decision, despite having a poor credit history.
However, the basic selection criterion is always the price, i.e. in the case of cash loans – the amount of APRC (Actual Annual Interest Rate). Analyzing dozens of offers on your own would be a difficult and time-consuming task, which is why it is worth using the help of calculators and comparison of installment loans. We can easily find them on the Internet without much difficulty. They will save us a lot of time and will allow us to compare a huge number of competing products in a very short time. Let’s focus our attention on those offers that rank at the top of the list.
Is the cheapest installment loan always the best one? Not necessarily. Low-interest rates are usually a consequence of high formal requirements and low-risk appetite for a loan company. If our credit history is not crystal clear or we want an express loan online, we must take into account that the real cost of installment loans will be correspondingly higher. With this in mind, be sure to verify not only the amount of APRC, but also other parameters of the offer that are important to us, and on this basis, make the final selection.
Third: check the company that offers the installment loan
The final step in choosing the best loan offer will be checking the selected non-bank company in publicly available databases and registers, which will give us confidence that it operates legally and in accordance with applicable law. It is worth looking primarily at the National Court Register and verifying the presence of the selected loan company in the register. The register of lending institutions is also kept by the Polish Financial Supervision Authority, which is why it should also be helpful to us.
How to check if a company is reliable and trustworthy? The Internet comes to the rescue again. In the network, you will find a list of warnings containing information about companies about the operations. Opinions and recommendations that clients of individual entities share on dedicated websites or discussion forums will also be helpful. Reading them will allow us to be convinced that we have made the right choice.
Although it would seem that the selection of a loan company and its proper checking is an extremely long and time-consuming process, the reality shows that it is completely different. We will deal with this task without much difficulty in a few hours. Let us bear in mind, however, that incurring any financial commitment is a serious decision with many consequences, which is why we should not hurry with the decision and definitely do not choose random companies.
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