How to borrow money online safely? Secure loan in 3 steps
Over the past few years, the number of lenders on the market has increased significantly. On the one hand, this is good, because competition between entities often results in more favorable offers for customers, on the other, it creates some risk, because it is increasingly difficult to assess the credibility of individual companies. That is why in the article below we suggest how to check if a given non-bank loan is 100% secure.
Check who you borrow from
Lender verification is the first, most important step to start with. Start by visiting the website of the entity and check what information it shares. After reading the content, answer the following questions:
- Do you know the exact name of the company and what entity stands behind it (who is the owner)?
- Where is her headquarters?
- How long has it been on the market?
- Is it controlled by state institutions?
Then it’s worth checking what other people say, especially existing customers. People share their opinions much more often if the cooperation with the lender was not going well or if it turned out that the offer was not as favorable as it seemed at first. Thanks to such opinions, we gain a valuable tip on who to not borrow money from.
Check the loan terms
When applying for an online loan, we can quickly find the offer that interests us and immediately submit an application to receive a decision after a few minutes. However, it is worth spending a few or a dozen or so additional minutes to thoroughly familiarize yourself with all the terms and conditions of an online loan to see if it is a safe loan. It may turn out that the offer includes, for example, additional, mandatory insurance, which the lender has not openly informed about.
We often give up reading the contract because it is written in very small print, it is difficult for us to read it and we simply waste our time. It is then worth copying the text to the most ordinary editor and enlarge the font so that it no longer has difficulty reading.
Important: If any of the provisions of the contract is unclear to us and the consultant does not want or is unable to explain it to us – it is better not to sign such a contract. When taking an online loan, you should be 100% sure of all obligations that await us in relation to repayment. Only then can we recognize that it is a secure loan.
Evaluate your options realistically
A loan is only safe if you can pay it back without compromising your home budget. Therefore, before you take a loan, check exactly how much it will cost you. Find out the amount of the monthly installment and the total cost of the loan. You must be sure that you will be able to pay the monthly installments and this will not cause liquidity problems.
A trusted lender should clearly indicate the interest rate, commission, installments and total cost of the online loan.
To sum up, to make sure that the selected loan is safe, take at least a few minutes to verify the lender, carefully check all the terms of the offer (read the contract) and calculate whether the given amount of the monthly installment is acceptable for you.