We also cannot forget about unplanned and urgent needs such as rehabilitation, post-accident surgery or private hospital surgery. Sometimes we spend a lot of money not only on ourselves but very often to help our family and friends.
Despite the general reluctance to get into debt, even a quick cash loan does not have to turn out to be a financial hangover for months or something we will be reluctant to repeat in the future.
What’s more, referring to many statistics and surveys, about two-thirds of Polish households do not have current savings, so the remuneration of even both spouses is usually sufficient until the end of the month. Anyway, even in the case of unexpected financial surpluses, it is very easy for us to spend and consume these savings for much more or less needed current needs and temptations.
When deciding to use a cash loan
we must pay attention to the two most important parameters – creditworthiness and of course the price. It is worth it before the first meeting with a financial advisor to be completely sure what exactly amount we need to achieve the planned and thoughtful goal.
We often consider it a success to obtain a positive credit decision in the amount of the requested amount, but when we obtain information about creditworthiness for a much larger amount, we tend to think very quickly and not necessarily what we will need the borrowed capital for.
There are many factors that influence the price of a loan
The obvious ones are e.g. the amount of accumulated savings, education or source of income. In addition, in the process of granting a loan, the bank will want our marital status, place of residence or the fact of having a car (in one bank the fact of having a car definitely affects the minus as a cost of living, and in the other hand the car is treated as an asset that we can quickly sell in the absence of funds for the repayment of the current loan installment).
It should be remembered that the bank estimates the risk of credit granted in accordance with the recommendations and guidelines of the Polish Financial Supervision Authority imposed top-down for all banks, however, it still has very wide possibilities for its own interpretation of the risk of a given client or a group of clients so as to grant loans more often to e.g. a selected professional group or e.g. (1) extremely strictly assess sole proprietorships.
There is no “golden mean” in the final choice, which bank is best to go first
There is no ideal customer profile that will be confirmed in each bank. Sometimes a very risky customer at bank A may turn out to be the preferred customer at bank B or C. However, a very important fact that borrowers are not aware of is that each creditworthiness test is preceded by interference in our Credit Checker assessment system by asking about our credit history and thus the number of points accumulated so far.
Each inquiry lowers the level of points, so despite good intentions, checking the initial offer in many banks at the same time can be a reason for lowering our level of so-called bank scoring. This may cause that every final offer will be more expensive than the standard one, and in exceptional cases, it may even be the reason for a total refusal to grant us any loan.
The solution to the above problems will definitely be a meeting with an experienced financial advisor who knows exactly which banks in a given client’s individual situation will initially offer a favorable offer, as well as in which bank the credit request will be pointless, as it will only lower the Credit Checker rating.