PRIME. Before choosing a loan product, you should find out your credit rating, said Ella Boxer, head of online lending at the Sravni financial marketplace, in an interview with RT .
According to her, this rating affects the likelihood of approval and the conditions for a loan that banks will offer. When calculating the rating, it takes into account how long the client has been using credit products, whether he has allowed delays, what share of loan payments now occupy in income – that is, the debt burden.
The expert added that to improve the rating, you can get a small loan or, for example, buy goods in installments and make payments on them in a timely manner.
“If you have credit cards that you do not use, close them. This will reduce your credit burden and increase the likelihood of a new loan being approved. In addition to your credit history, there are a few more nuances to consider when choosing a loan. First, look at additional payments – banks often charge a fee for services such as SMS alerts or card maintenance. When signing an agreement, you can refuse such services, “the specialist said.
Sometimes a low interest rate on a loan can mean a debit card or a lawyer is required, Boxer warned.
“Secondly, check the conditions for credit insurance or other additional products. As a rule, the loan rate depends on their presence or absence. At the same time, I recommend not to refuse immediately, but to carefully read the conditions. Such services can help in situations where you will have problems with the payment of the loan or with health,” she said.
You should also pay attention to the date of payment – usually this is the day the loan is issued.
“Compare the date of payment and the date of receipt of the advance/salary. If it is inconvenient for you to make a payment, then it is worth discussing with the bank a change of date before signing the contract. In some banks, after issuing a loan, it can only be changed for money,” the expert said.
Just in case, you need to check the fine that the bank charges for delay, she recommended.
“Find out if it is possible to arrange a loan holiday or defer payment. This information will at least help you feel more confident. It is worth remembering that a delay of more than three months will lead to problems with obtaining loans in the future,” the expert explained.
According to her, one of the main mistakes in obtaining a loan is the incorrect calculation of one’s own strength.
“Before you take out a loan, calculate whether you have enough income to make monthly payments. Consider not only the interest rate, but also other indicators that affect the size of the payment. In addition, I recommend postponing the transaction if the payment exceeds 40 percent of your income “Do not rush to immediately sign the agreement received from the bank. You have five days to study it. During this time, the bank cannot change the proposed conditions. Therefore, it is better to carefully read the document and find out all the incomprehensible points,” the expert emphasized.
After repaying the loan, it is imperative to ask the bank for confirmation that the loan is closed, Boxer reminded.
“Sometimes there are mistakes when repaying a loan on time, for example, it can be listed as open and affect the credit rating,” she explained.