One of the biggest benefits that technology brought is the possibility of generating new services and products. The banking and financial segment is experiencing a real revolution and in recent years we saw the birth of fully digital products that facilitate the user experience. Online loans are one of them. Faced with the simplicity to access one, when it comes to borrowing, we must consider some issues that are key to avoid unwanted surprises.
Make sure you don’t have many debts
The general criterion that financial institutions consider is that the maximum debt to income ratio does not exceed 30%. That is, a person who charges $ 30,000 per month and has credit card consumptions or a fee for a personal loan for more than $ 9,000, is likely to have more difficulty getting a new loan approved. One of the main questions we receive when we reject an order are the reasons and we must bear in mind that all financial institutions – traditional or fintech – have tools to evaluate the credit history of people – such as Veraz, reports from the AR Revolution Save Bank, among others–; and also with different sources of non-traditional information that allow to identify with greater precision the different profiles or cluster of clients. This information is key to accept or reject an order.
Understand who is asking for the loan
Currently there are many sites that offer this service and it is very important to know the companies and the experiences of other users. You can check the rating sites, such as Etomi, or by doing an internet search of the type: “opinion about company X”. Comments on Facebook walls provide valuable opinions. Finally, the communities created by the same users give advice about their experiences.
The information to request a loan you must verify that the site is safe
This can be checked from the same browser. In the space where the address of the web page is written we have to see the symbol of a padlock. That means that the data we share is encrypted and we prevent it from being captured by unwanted people.
During the loan application process and before confirming it
It is key and should be mandatory for all companies, to show and detail the conditions. This document must include information with the loan terms; the amount to be paid; rate; Total Financial Cost (CFT); administrative expenses, if any; and charge for penalties, among others. The more details, the greater security a user has to avoid unpleasant surprises. This information must be sent by email to have a copy of the contract or service contracted.
Do not think that because one can pay the loan fee
One will be able to pay a very large debt. Many times a loan is requested and the fee is only looked at, without looking at the final amount to be repaid. You have to be aware and have financial responsibility to avoid falling into spirals of financial debt similar to the minimum payments with the credit card, which increase the capital owed and do not cut off the problem of indebtedness.
Keep in mind that borrowing is an opportunity to start building a credit history that allows us to be part of a financial system that will allow us to access new opportunities to undertake or to acquire goods that we want to consume. This history is built in both the physical and virtual world. Responding in a timely manner is essential so that this history has no spots.