Payday Loans

Are online loans and payday loans safe?

What to look for when applying for a loan or payday loan? How to choose a loan company? Checking how the borrower verifies the borrower What institutions and regulations regulate the activities of lenders? Checking lenders’ opinion How to take a loan safely so as not to be exposed to the consequences? Read for a critique

It cannot be denied that online payday loans provided by non-bank companies are more readily available than bank cash loan offers. Unfortunately, a secure non-bank loan is usually more expensive than a bank loan.

However, this does not discourage those whose loan applications have ended in failure, as well as those who are in a crisis situation and need financial support right away. How do you take out a loan so you don’t run into problems?

What to look for when applying for a loan or payday loan?

What to look for when applying for a loan or payday loan?

Many online loans raise fear and concern. Usually, suspicions about financial products of this type are completely unjustified. To make sure that the loan will be granted in accordance with applicable law, use the services of a proven company. Therefore, before you apply for a loan, check the opinions about the selected non-bank company. You will find them on websites or on thematic forums.

A secure loan is one where all information is public and can be easily reached. It is also worth knowing that every lender has the legal obligation to provide the applicant for the loan (even before signing the contract, an information form) which will contain such information as:

  • the total cost of the loan,
  • interest,
  • commission amount,
  • costs of any delay in repayment,
  • registration and preparation fees, etc.,
  • insurance,
  • costs of requests for payment,
  • debt collection costs,
  • costs of SMS and paper prompts.

Remember to read carefully each document where you will have to sign it. If you have questions about the provisions contained in the contracts, please contact the representative of the loan company and ask for their clarification.

How to choose a loan company?

loan company

A significant number of companies providing non-bank services are reliable and honest, but there are also those that deliberately cheat on their clients. What should make you vigilant? First of all, excessive fees and a lack of transparency in the provisions contained in the contract. Therefore, before you decide on a loan, take the time to find the right lender.

If you have doubts about the selected entity, please contact a representative of the Polish Association of Loan Institutions who will answer all your questions. What can be a sign of the lack of professionalism of a company providing online payday loans? The fact of granting loans without checking customer data in BIK, BIG, and other debtors’ registers.

A company lending money to unreliable contractors risks a lot, which can affect its overall condition. In addition, the higher the risk, the higher the cost of the loan.

Checking how the borrower verifies the borrower

borrow money

Most loan companies verify the identity of the client before issuing a positive credit decision. This verification can take place in several different ways, e.g. based on an ID card or bank transfer.

If you want to take a loan online, it is best to look for companies that verify potential borrowers for their credibility and ability to repay their liabilities. If a given entity meticulously checks borrowers, it is information for us that it is serious about both customers and business.

What institutions and regulations regulate the activities of lenders?

To check whether a given loan company is operating legally and its activities are lawful, all you need to do is look into the National Court Register. The company can also be scanned using the websites of the Polish Financial Supervision Authority or the Register of Loan Institutions.

Pursuant to the provisions of the amended Act of 23 March 2017 on mortgage loans and supervision of mortgage brokers and agents, loan companies must be entered in the Register of Loan Institutions. The presence of the selected company on the list shows that it conducts its business legally and you can use its services without fear.

Checking lenders’ opinion

Checking lenders

You are still wondering if online loans are a safe way to get cash? To find out, ask friends or search for information on this topic online. The Internet is a real treasury of knowledge. You can easily find the opinions of people who have already had contact with a given loan company.

Search industry forums and websites related to financial issues. Take the amendment, however, that not all information found on the web must be true, so use only trusted sources.

How to take a loan safely so as not to be exposed to the consequences?

How to take a loan safely so as not to be exposed to the consequences?

A secure loan is one that you won’t get into trouble. All you have to do is follow a few rules and the use of payday loans will always be safe. Get a loan only in urgent situations when you really need the money. Before signing the contract, read the terms of the contract, the total costs, and repayment rules.

Specify the loan amount not only in relation to the needs but also in real possibilities. When choosing a repayment period, remember that a longer repayment period generates higher amounts. Plan your budget for the time of loan repayment. Analyze how much you need to pay bills, keep your home and pay off your current obligations.

What remains should be enough to pay off the loan installment. If taking into account all the monthly expenses, the budget is successful, this fact may indicate that you can cope with the loan repayment on time, without denying anything.