There is a wide selection of installment loans online on the Polish market. Discover their benefits.
Did your washing machine, fridge or oven break? You do not have money to buy a new device, and it is necessary for running a household? Or maybe your car urgently needs repair or you need to buy a new one, because the current one is not suitable for driving? How many times have each of us found a similar situation. At the moment when our account is scary and the list of immediate needs is growing, we are thinking about the best way out of the financial hole. Most of us then come up with the idea of taking a small but quick loan, commonly known as payday loan.
People of all ages apply for loans. There is really no rule in this respect. The financial crisis can happen to anyone, regardless of the date on which he was born or gender. Loan companies are increasingly meeting clients’ expectations, and so-called installment loans have recently become very popular. What are they, what are the benefits for the borrower and what should be considered when taking them?
Customer safety and comfort
Despite the increase in the number of clients of individual loan companies, Poles are still afraid of reaching for money from non-bank institutions. They are not convinced by the arguments that in some cases so-called payday loans are a better solution than bank loans, which are also subject to the risk of accruing interest for late repayment of receivables, and even bailiff enforcement. The industry of popular “payday loans” has become much more transparent and modern in recent years. In order to compete with banks, these companies must offer consumers similar, if not better, conditions. Myths about the operation of non-bank institutions are slowly becoming a thing of the past. Evidence that these companies meet the expectations of customers are just introduced to the offers of most of them installment loans.
Tailored installment loans
The first and the resultant advantage of this type of product is the fact that the company spreads the loan repayment over a longer period than with ordinary payday loans. Short-term liabilities are usually incurred for 30-60 days. The option of taking out an installment loan means that the repayment of receivables is divided into smaller parts and even for several months. The terms of each loan are determined individually, if we are talking about installments, the client can arrange with the company their amount and total number. However, he must assess his financial capabilities well . Installment loans are therefore an interesting option for customers who cannot boast of high monthly revenues and prefer to pay their liabilities longer and with small amounts. Companies usually offer a very flexible period, which ranges from 3 to even 48 months.
Chance for more money
The extended repayment deadline and its dispersion into many installments also means that the borrower can borrow more than with a traditional payday loan. The installment loan is therefore an ideal solution for customers who have low creditworthiness. Companies look with greater confidence at borrowers who will have to pay their debts over a long period of time. Then, there is a greater likelihood of repayment of the entire debt.
Installment loans – costs
Unfortunately, there is nothing for free in life. The main issue that needs to be emphasized, however, is that the longer the repayment period, the higher the costs will be charged. The loan company, in exchange for quick, efficient assistance and the ability to settle obligations in installments, requires customers to pay more than the payday costs. The first installment loan is also characterized by the fact that it is not free, as is the case with short-term loans. Each of the clients must think carefully about their choice, check the offer of many companies and choose the one that seems best suited to their needs.
Installment loans for those in debt
Most companies do not check our creditworthiness, do not ask about financial obligations already incurred or do not ask for income certificates. Therefore, if we are indebted and want to take another loan, it is worth checking if the institution from which we want to obtain funds checks its clients in this respect. For example, many of them already include the following information about available products in their offers: “Installment loans without BIK!” By the same they indicate that among their clients are also people who already have some sort of commitment on their account. What is BIK? It is the Credit Information Bureau, i.e. an enterprise which, pursuant to banking law, collects, processes and provides companies with the information they need in the process of granting loans, credits or sureties. One thing is certain – in the thicket of so many offers and loan companies, there will be many that will offer installment loans even for those in debt.
Installment loan – is it worth it?
This could be discussed for hours. First of all, you need to accurately identify your needs, especially the purpose for which the loan will be allocated. The next step should be to determine when and how much money we will be able to give back to the company. The borrower must really choose between a long, and therefore comfortable for the psyche, but burdened with a large fee, repayment period, and payday payday, where the fees will be lower, but will have a maximum of several dozen days to return all the money.
For the sake of the customer
We must remember that there is a way out of every situation. Even if we lose our leg and do not collect money to pay the installment, do not panic. Banking and non-banking institutions, in the face of increasing competition on the market, are fighting for every customer. They are characterized by a pro-consumer attitude. If we know that we will not pay the amounts due on time, we should immediately contact the customer service and provide information about the problem. Certainly, together with him we will work out a solution satisfying both sides, and at the same time we will show that we can talk about our financial problems and fight for a second chance. The worst thing we could do in this situation is not to pay the installment and not answer the phone from the consultant. We lose credibility and damage ourselves at our own request. Many companies provide for the possibility of extending the repayment period, which in the case of installment loans means a reduction in the amount of the next installment. This will definitely make it easier for us to pay.