It would seem that getting a loan is not a problem. Most of us will not have any problems with it, but it’s worth knowing that even minor mistakes can cause us to get a negative decision. Here are the 4 most common mistakes made by borrowers and recipes on how to avoid them.
1. Making too many loan applications at the same time
Of course, we can make as many requests as we like, but we must remember that when we deposit them too much, it can work to our detriment. Admittedly, when we prepare only 2-3 applications, it will not have major consequences, but if there are already more than 5, it may affect our chances of getting a loan.
This is mainly due to the fact that banks and non-banking institutions check their clients in databases such as BIK. These databases contain not only information about debtors, but also about other customer activities, including the number of applications submitted. Therefore, the lender may withdraw, because he will come to the conclusion that we have already received a loan somewhere and will refuse us for fear of so-called credentials.
2. Complete lack of credit history
Both the negative credit history and its total lack can be a problem in obtaining a loan. This applies in particular to loans for larger sums, for example for renovation and car.
Bank or non-bank institution do not know if they trust us because they do not have access to any information about our credit history. To make it, it is worth using some small cash loan in the bank or take something in installments in the store, and then pay off the liability on time.
3. Choosing the wrong offer
Bank and non-bank loan offers vary considerably. In one institution, we can borrow money on very good terms and cheaply, while in the second we will pay much more in general. Therefore, it is always worth taking the time to check different offers.
In order to choose a suitable, tailor-made loan offer for ourselves, we can use special websites with the latest loan rankings and loan calculators. At the same time, we should look at both the costs of the loan , including interest, commission and other costs, such as preparation fees, but also the terms that the lender dictates to us. Then we will be able to quickly select such offers that will be able to meet our expectations in full.
4. Failure to sign loan agreements and other documents
The last, but very serious mistake made by borrowers is not to read loan agreements and other documents related to the loan, including regulations, lists of fees. When we submit your signature, in this case we agree to the records in the documentation. So let’s check what is really in these magazines that we need to sign.
When, afterwards, the lender may be charged with additional fees or has other requests that were included in the documentation, we will not be able to prove that we did not know them because they were in the letters we signed.