Whether you are going to a bank or other financial institution for a high mortgage, a regular consumer loan or a credit card, this should always be preceded by a mature consideration, good market awareness and orientation in the offer. Otherwise, even seeming little things or lack of vigilance in signing a contract can lead to execution and threat to one’s own existence. What is paying attention to when focusing on the loan?
Building a family house, reconstructing and reconditioning a new apartment, buying a new car, indulging the students with a choice of study… Similar life plans have, among other things, the fact that their fulfillment is financially demanding. Usually, savings are usually not enough to realize such life steps – it is necessary to take out a loan and finance the urgent investment from foreign sources. The situation on the financial market is diverse, the offer is inexhaustible and it is not easy for the average consumer to choose the right product. What do Czechs most often err and what mistakes can devastating consequences?
Careless reading of the contract
Up to a third of loan applicants spend only five minutes reading a credit agreement, and another tenth does not even read it at all. Financial experts warn that a cursory, several-minute reading of the treaty is far from sufficient to fully comprehend and understand the expert, let alone a layman, who in most cases does not have the necessary experience. Within five minutes, even an expert, let alone an ordinary applicant, is unable to detect any iniquities and understand the often complicated passages. The biggest problem here is the lack of transparency in the contract, which may include hidden charges for credit management or early repayment. It is also important to thoroughly understand the terms and details of the product. After reading the contract, you should know what the actual credit price is, the interest rate, and the maturity information.
Choosing a reputable provider
In financial distress, a number of Czechs resort to sometimes questionable providers that promise quick, even anonymous processing of the application and payment of money. Choosing a trustworthy and honest partner who will offer you transparent terms, will act with you fairly and will be willing to give you time, is crucial. Fortunately, there are solid providers today, where loan processing is equally prompt, and you will also get the confidence and guarantee of a stable, trustworthy company with a tradition. The advantage of drawing a loan with such a company is also a personal approach and a quality client service, which you will appreciate if you get insolvent or you want to repay the loan prematurely.
Try first to get online or ask your friends and acquaintances with the experience of the selected company. Actively compare the offers of individual companies and carefully consider the options offered.
Big credit for a few missing thousand before payday
Many families and individuals routinely face a few days to pay, but lack money to cover unexpected or urgent expenses. The decision of many people in a similar situation leads to the negotiation of an unnecessarily high loan, which cripples a personal budget for a long time. This specific financial need is met by the overdraft facility Ferratum Credit, which provides the possibility to draw up a financial reserve of up to CZK 50,000, even repeatedly, not only a few days before payout. It allows flexible setting of installment amount and maturity so that it meets the needs of the applicant. No fees are charged for the settlement or maintenance of the service, only the daily interest and the fee for drawing the amount. Compared to conventional micro-loans, you save up to 75% on paid interest.