Recently, the market is teeming with offers from short-term loans. However, not all these companies offer the same conditions to their clients.
If you are thinking about a short-term loan, do not be tempted by advertising slogans and study the conditions carefully. A fair company should have the terms and conditions listed on its website. Do not borrow money from a company that conceals its terms and conditions.
In particular, the terms and conditions should be comprehensible, both in terms of length and number of abbreviations or foreign terms. The terms of some companies may have up to 50 pages, so it is difficult to know them. Conversely, it is an advantage if a company, such as the lending company, adds a glossary to its terms.
The conditions also differ in the amount of interest on late payments.
This means that if you delay your payment, the penalties for different companies will be different. Some unfair companies even try to impose default interest on their clients beyond what is required by law. The cost of a single late payment may also vary. So choose a company whose sanctions are fair.
The price of the loan is also important in case of proper repayment.
Many companies can check the loan price on a loan calculator. One can be found on the lending company.
Beware of the installment requirements. Some companies try to impose a large number of mandatory repayment requirements regarding frequency, deadline, form of payment, etc., and failure to meet any of these conditions is then assessed by the company as non-repayment with all sanctions.
So if you choose your short-term loan without reconsideration, it can ultimately become very expensive. The so-called “predatory index”, which should reveal the disadvantage of loans, could help you with your selection. This index was published by non-profit organizations People in Need and Consumer Defense Association.
- The contract must contain a clear definition of both the creditor and the debtor, including all the particulars (eg address).
- The loan parameters must be stated: eg APR, amount of individual installments, their number, exact timing and other costs and penalties associated with the loan.
- The terms of the contract and the contract itself must be legible and understandable.
- The length of the conditions should not exceed 20 standard pages.
- The consumer’s personal data shall be used only to the extent necessary to negotiate the conclusion, amendment or performance of the contract. If not, this must be stated clearly and comprehensibly in the contract.
We wish you every success in finding the right short-term loan!