Are you considering a loan, but are you afraid someone will cheat you? Should you only look at interest? Not. So what is it good to focus on when choosing but also negotiating?
Colonel Brandon.com provides advice and tips on borrowing, but also observes how a non-bank company treats you. You must not only look at interest, which at first glance may seem very advantageous. It is worth watching more things, and above all, how the company will treat you before and during the loan, or even when repayment problems arise.
1) What non-bank company do you want to borrow?
Whether it’s a website or a branch, keep your eyes open and watch. Are all the information clear? Are they written comprehensibly? Are they easy to find? “Too sophisticated and technical terms unnecessarily confuse the client and show that companies don’t care much for the customer to understand how it works,” says Anna Bláhová, Head of Customer Care at Colonel Brandon.com.
2) The most important is the APR
Ask yourself the following questions: Does the company have a visible APR and mentions it sufficiently? It also explains to you what it is, what it contains and why it is important to be interested in it? Trustworthy is a company that does not hide the APR, but rather warns it, “does not only push” its interest because it is not all. He is interested in exposing his customers all the costs associated with the loan.
What is APR?
APR stands for annual percentage rate of charge. It is expressed as a percentage and basically shows how much you will actually overpay on the loan. All expenses that include fees are added to the rate:
- for concluding a contract
- for account maintenance
- for credit management
- for money transfers
- for inability to repay insurance
- and more.
Unfortunately, a lot of those interested in consumer credit of any kind then ignores the APR and rather focuses on the lowest possible interest. But this is a mistake. With a cost percentage, you will always come up with a more accurate result in the calculations, plus it can be used to compare individual bids on loan comparators.
3) Viewing the Debtors Register for Loans
How does the company verify customers? It is good to see which registers the company looks at – the fraudulent ones do not have such thorough checks. They give the loan to everyone, and then people get into debt. A responsible company has access to more registers – it is clear that they are interested in whether a client really has a loan.
What are the registers of debtors?
- BRKI – banking register
- NRKI – Non-banking Register
- Solus – Register of defaulters. It is mainly used by mobile operators, energy suppliers, etc.
4) To whom does the company lend?
Check to see if the company also lends to people with financial problems. If it approves loans to a person in execution, clients with more serious problems with repayment, has loan repayments, or lends a person shortly after insolvency, it is a clear signal that he is making money from people who fail to repay. And so that the loan will be repaid and will go into recovery.
5) How difficult is it to settle the loan?
How much time does it take to process, how many forms need to be filled out and must you take something away? “Companies that care about customers do their best not to burden customers with unnecessary administration, and they are always willing to offer them advice – for example, a non-robot telephone line that they do not have to wait for and talk to a real person,” Bláhová from Colonel Brandon adds.
6) Consumer credit agreement and deposit
Remember that the contract is always signed when you have the final bid approved, never before. It should be clear, with little or no complex expression. If you don’t understand the contract, how does the company treat you? Do you have the opportunity to contact someone who will advise you?
Does the company want you to make a deposit before signing? Does it generally have any conditions before the loan is processed? “For example, we have come across a client who has learned from another company that he has a pre-approved loan offer for him if he promptly pays a one-time settlement fee of several tens of thousands of crowns,” says Tomáš Hubatka of Colonel Brandon.
7) Review, inability to repay and extraordinary installments?
How does the company treat you during the loan? What are the prepayment fees? And what if you are left with money and want to send an extraordinary installment? Will the company allow you to reduce your burden free of charge by sending the installment, which will reduce your principal from which interest is calculated, and so will you pay less?
It is also good to know in advance how the company starts to behave when you are having repayment problems. Check it out as much as possible and read the reviews on the Internet. “It is not important whether customers brag about praise, that would be strange, because people are more likely to complain about social networks. What is important is whether the company is responsible for the contributions and how, ” adds Hubatka. For example, the proof that a company neglects to communicate with a customer is by having unanswered posts or social communications from October 2016 when it is already 2018.