In an age when we are all struggling to make ends meet, are in overdraft and are dealing with large and important expenses that are difficult to reduce, taking out a loan sometimes seems like a convenient solution that will give some breathing room, at least for the next month.
Offers of loans for any purpose pop up to us from all sides, advertisements appear on the Internet even when we were not at all interested in taking a loan, and text messages that sometimes seem to attack our mobile phones are received literally every day. All of this can cause us to take out a loan recklessly without thinking deeply about whether this loan is what we need-really-need-right now.
Do you really need a loan? Just before you consider taking out a loan, it is worth remembering that loans must be repaid and that taking out a loan will leave less money for living in the first month of taking it. So if you’re having trouble making ends meet, taking out a loan won’t provide a solution but will only exacerbate the problem.
Still considering taking out an online loan?
Before you make the click, you should do the following:
Take time to think
Do not decide in haste on taking a loan online. Dig into the offer and read the fine print before confirming acceptance. If you fill in details on a landing page for selling a loan, the next step is to contact a representative by phone to close the deal, ask them for all the terms in writing, and take the time to read and understand all the details before agreeing to take out the loan.
Make sure your business is legitimate
If you’re looking to buy a financial service, ask for a copy of the merchant’s license information. By law, business owners are obligated to carry a business license for the sale of financial services. This law does not apply to regulated entities (to which other laws apply) such as banks, credit card companies, and peer-to-peer lending companies. There will be loan sellers who will try to convince you that they have various types of approvals, some will even boast of approval from the Ministry of Finance – there is no such approval, if a business owner presents you with such approval, it is a dubious entity. Beware!
Make an informed decision
Ask for a copy of the loan contract and understand all the conditions: what amount you will receive, how much you must pay as a file opening fee (part of the loan amount may be required to pay at the moment of signing as a file opening fee), how long it takes to repay the loan, what is the monthly repayment amount and most importantly – how much does the loan cost you in a total calculation. Don’t hesitate to ask questions and ask for a second opinion.
All in writing
Beware of verbal promises and demand to have everything in writing before signing. Make sure that every promise made in the conversation is written into a contract or agreement to avoid future disputes.
Compare with other suggestions
Purchasing a service online is similar to purchasing a product in a store and in order for you to get the best offer, it is necessary to compare offers given by different companies.
Check the terms for changing your transaction
Make sure you understand the conditions for early repayment of the loan and whether there is a penalty for doing so, as well as check what might happen if you are unable to repay the loan on time.
