Before you apply for a loan, you have to answer several questions, which also affect the selection of a particular offer.
How much do I need to borrow?
Beware, do not confuse the question “How much do I need to borrow?” With the question “How much can I borrow?”
It is advantageous for a loan company to lend you as much as possible if you show interest. I recommend borrowing only what you need.
What is the highest monthly installment you can afford?
When determining the possible monthly installment, do not forget any expenses you have (rent, food, energy, schools …). After deducting all possible expenses, also deduct a decent contingency reserve, leaving you with an approximate amount that you can repay monthly.
How long do I want to borrow?
The longest possible repayment period is not always the most advantageous. In particular, see RPMN – the annual percentage rate of charge, which should be much more important to you than an ad-printed interest rate. More about RPMN can be found eg. in our article What is RPMN and why it is important.
Check the company you want to borrow from
This is very important, especially so that you do not fly to various cheaters. Spend ample time on the Internet, ask friends to make sure that the company you are borrowing money from is serious. It should be a legal entity, have a specific registered office, operation, contacts that work. Don’t be afraid to call and ask for anything you can think of.
Create a financial reserve
It is said that it is important to have a financial reserve of at least 3 monthly loan installments. I also recommend more, because you never know what the situation will happen. You may lose your job, you may stay long term PN, you may lose some natural disaster and you will need a lot of money to repair, etc. That’s why it’s good to insure a loan.
Insure a loan
Today, you can insure a loan against job loss, long-term sick leave, disability or death. I strongly recommend loan insurance, it is often offered directly by the company from which you apply for a loan.