The holiday season is approaching, and as you know, it is also the time when money runs out of our wallets faster. Many of us wonder then how to save our budget and borrow money for Christmas expenses. As it turns out, just the pre-Christmas months are the ones in which non-bank institutions receive the most loan applications.
However, before you apply for a loan and indulge in Christmas shopping, it is worth checking how to borrow money in a safe and proven way. Analysis first, then action.
Timeliness – the most important thing
It turns out that taking a loan teaches us regularity. This is due to the need to comply with contractual terms and repay loan installments. You should pay monthly installments regularly, as this affects our credibility as borrowers. Our credit history goes to the Credit Information Bureau.
Usually these are positive data confirming our credibility. It also happens that our story is negative because the commitment was not paid on time. This may be a warning to us, so it can be concluded that loans teach us regularity.
Reasonable credit decisions
Before we decide to take out a loan, we should think carefully about this decision. Borrowing money always has some obligations, so you should carefully consider the situation. Before making a decision, there are a few important aspects to note.
The most important thing is to measure your intentions. This means that before making a decision, we should analyze the home budget to make sure that we can pay the agreed installments. In this situation, it is best to also consider various random situations that may prevent us from paying back the loan.
Keep your head cool, which is very difficult during Christmas. A multitude of promotions and opportunities tempt us to spend money, which in turn makes it easier for us to make a loan decision.
It is an institution to which data on the credit history of bank customers and non-banking financial services are sent.
It is also good to prepare for the processes that accompany taking a loan. The first thing is our history in BIK , which confirms our financial situation. Before you get a loan, it is worth checking what opinion you have at the Credit Information Bureau.
There have been cases where the borrower has forgotten some debt and, as a consequence, the credit history was negative. It also happened that the borrower’s data was used by another person to obtain a loan.
All these situations show that it is worth checking if you have a so-called “clean account”. You can get your own credit history in the form of a report for which you have to pay the appropriate amount of money. Many institutions use information contained in BIK. These are, for example, banks.
Parabanks usually do not use this type of reports, which is a consequence of their own credit policy. Applying for a loan is not the end of the whole process. The institution must decide whether the loan will be granted or not.
Loan companies are competing in offers, and using them is not a sign of our thoughtlessness. Everything is for people, but in this case it is best to rethink the decision not to leave installments and remorse after the Christmas fever. It is equally important to check the bank or other institution where we are applying for a loan.
All so as not to become a victim of fraud. You should read the contract carefully, looking for the smallest tricks. In addition, the borrower should be sure that he will be able to pay the installments in a specified amount and date, as delay is connected with interest. It is also worth checking whether the loan company is on the list of public warnings by the PFSA.
Reason is the best adviser
When borrowing money, you can’t break away from reality. Yes, money allows us to make our dreams and plans come true, but we must remember that the loan is responsible for us. If you keep a bit of common sense and do not let yourself be absorbed by opportunities and promotions, then we have a good chance of avoiding financial problems.
One simple rule should be remembered, reason is our best advisor in this situation.