Before touching the fountain pen, make sure you know everything you need. For example, the amount of APR, possible sanctions and the trader himself.
Maybe you need a loan. Money that would fill the empty space in your budget and help bridge a difficult situation, pay a washing machine or a broken car. Whatever your reasons, follow caution. Don’t go after the first loan you encounter. On the contrary, choose carefully and sign only the most advantageous offer. We have summarized 10 points for you, which are the most important, according to banking specialists.
Borrow only from banks or known non-bank companies. This eliminates the risk of encountering a fraudster. These include most often small and unknown companies or individuals who often do not have a website or their own office. And at first glance it seems very unreliable.
The basis of everything. According to interest, you can quickly see at a glance how the loan is compared to the competition. It’s usually the first value we’re interested in. And, the smaller – the better.
Even more important than interest is the APR – the annual percentage rate of charge. It shows how much we actually pay for the loan. In addition to interest, it also includes various charges that the provider sometimes forgets to tell you.
4. Trade Contract
I don’t know what I don’t know. This is the golden rule of borrowing. Read carefully what the lender has prepared for you. It should fit with what he promised you. Do you get any high amount or do you find any sentence incomprehensible? The other side will be happy to explain what it means.
5. Terms and Conditions
The contract is not the only thing you should focus on. Perhaps even more important are the business conditions that hide all information about the loan and the provider. You will need to find out what happens when you abstain from payment or how much you pay for early repayment.
6. Fees and penalties
As you already know, the loan can cost different fees. For example, for concluding a contract, keeping an account or transferring money. Try to find a company that has these services for free. They exist. And on that occasion, ask for sanctions – for example, to send a reminder. Yes, even someone charges hundreds of crowns.
7. Possibility of repayment in advance
You never know if you will receive more money in the future to pay the rest of the loan. Therefore, for sure, also be interested in what are the conditions of early repayment and how much it would possibly cost you. It’s not always free of charge.
8. Amount of installment and length of repayment
Before you sign your contract, think again whether the loan amount and repayment period are really good for you. Since we usually have the ability to determine these items ourselves, think rationally. If you have a lower income, pay for smaller amounts for a longer time. So you can be sure that you will always have enough money to pay the installment.
9. Conditions for obtaining a loan
We lend to everyone, promise non-bank companies. Nevertheless, you better know if it is suitable for you. Some might mind a strict inspection of debtors’ registers, others may be obliged to reside in the Czech Republic. What do you meet all the conditions?