Mistakes Consumers Make in Loan Application

Some of the consumers who apply to banks for housing and vehicle loans, especially consumer loans, have to bear the cost of various errors in this process. It is useful to mention the most frequent mistakes consumers make in loan applications due to the ever-increasing number of errors in consumer loans and what should be done to return from these errors.

Using More Loans than Need

Using More Loans than Need

If the money you need as a result of all the calculations you make turns out to be 10.400 USD, all you need to do is to fulfill the requirements to apply for a loan of 9000 USD, if possible, not 11 thousand USD. Loans used through banks have an interest cost and you have to work to pay the money you do not have to the bank. Since life and work is continuity, you need to request as low a loan as possible to save money in that period.

In addition, while interest rates are gradually increasing in the current period, real income is decreasing. Consumers who have reduced purchasing power use consumer loans up to 2% and demand it for more than they need is indeed one of the biggest mistakes that can be made. For this reason, the use of low limit credit comes whenever possible to return from the most common mistake.

Towards Long-Term Loans

Towards Long-Term Loans

The monthly interest rates of banks and financial institutions decrease as the maturity extends, and some consumers think they have a lighter burden as they will pay with lower interest rates, but this is meaningless because the main thing to pay attention is the annual interest rate, not the monthly interest rate. As the annual interest rate is the most important detail, Good Finance obliged banks to indicate the annual interest rates in the loans they provide and in the sample calculation tables.

For this reason, monthly interest rates should not be observed before using loans, and annual cost rates should be examined. While choosing the most profitable bank, annual cost rates should be taken into consideration. Some banks charge financial allocation fees, etc. Even if it is lending money with higher monthly interest rates than other banks because it does not demand costs, it may offer lower-cost loans for consumers, and there are already dozens of examples of this.

Taking Multiple Credits

Taking Multiple Credits

Especially consumers who want to buy vehicles and housing demand to use general-purpose loans to finance the down payment they have to pay in addition to the loans they allocate, but this should not be done. Using more than one loan and doing it in large amounts will mean a very serious debt burden, it should definitely be avoided.

Not Accepting That You Can’t Buy

It must be understood that some things cannot be bought in the current situation. If you see that after doing your accounting and examining your income and expense status, you need to apply for a loan to buy a good or service, this is mandatory and there is no alternative, you should consider not buying that good. Because, in the simplest form, you must have the capital to finance it in order to claim any good, of course, in low-volume needs and special circumstances, up to a certain amount of credit can be used, but if a 50% credit is used to purchase a good or service, a there is a problem. If you still need to purchase the good or service, it is a good idea to consider different alternatives and postpone the use of credit.

Doing Little Research

Doing Little Research

Except for some familiar banks, consumers who do not research the credit possibilities of any bank also make a big mistake because there is always an opportunity to find a more attractive loan than it is, and it is easily accessible.

Consumers should look at the offers of each bank supervised by the Good Finance and choose the most attractive one before using credit. There should be no worries about the reliability of a bank under Good Finance supervision, even if the bank does not have any branch, the loan allocated and the subsequent process is completely safe. Good Finance supervises all banks and the loans allocated by these banks, so one bank should not be avoided because its name is not known too much, and the name of another bank is well known and it should not be preferred because it has branches everywhere.