Myths about bank loans that have long been untrue

Difficult to get a small loan, getting a loan is a tedious and time-consuming process – these are the most commonly heard myths about bank loans that have long been untrue.

Banks do not provide loans (or only for the purchase of a home or car), but do not issue consumer loans for small amounts.

According to Sergey, Head of Consumer Lending at Good Credit, the bank issues consumer loans and offers credit cards for relatively small amounts, starting at $ 300. It all depends on the customer’s needs and the planned use of money.

Applying for a loan at a bank takes time

Applying for a loan at a bank takes time

This is indeed a myth because, for example, applying for a Good Credit consumer credit on the mobile app during business hours (9 am to 5 pm on business days) can take 20 minutes to respond, and a positive decision will only take a few minutes to be credited account. If the application is submitted after working hours, it will be processed the following morning.

“And then you don’t have to go to the bank to sign a contract – you can do it remotely,” Sergey Romanenko says. In addition, the bank also establishes an individual offer for customers with a reliable credit history and regular income, and if necessary, the customer can access this credit limit via the Good Finance immediately, even without the involvement of the bank’s staff.

In order to get a bank loan, you have to go to the bank and go through a complicated bureaucratic process.

“Nowadays, not only consumer credit but also most other loans are processed remotely. Any loan application can be completed through Good Finance. It is also possible to apply for a home loan through Good Finance and receive quality advice remotely.

The bank has the highest interest rates

The bank has the highest interest rates

In fact, the opposite is true and most often the bank offers lower interest rates. To evaluate the real cost of each loan, you need to look at the annual percentage rate (APR). This is a standardized way of displaying borrowing costs because it includes all the credit parameters: the price of the item, the down payment, the commissions paid at the time of the credit, as well as the interest and other charges payable by the consumer while using the credit.

In the non-banking sector, interest rates tend to reach as much as 180%, while bank consumption of financing products, depending on the type of credit, ranging from 9% per annum.

It is difficult to negotiate a change of terms with banks.

To change your credit terms, such as the due date, partial/full credit repayment prior to the scheduled payment, changing your servicing account, sometimes you just need to open your Good Finance, where you can easily and conveniently do it with a few clicks.

The Bank requests clarification on the purpose of the loan

The Bank requests clarification on the purpose of the loan

This, too, is partly a myth, as the bank asks about the reason for the credit just because it can offer the customer the most advantageous solution because, for example, a home loan might be more advantageous to a consumer loan and a credit card for travel.

Calculators created by the bank in the Bank – Consumer Credit, Credit Cards, Car Loan – also focus on the most convenient choice for the client. However, once the credit is granted, the bank does not require you to report on it. The exception is loans that are offered on certain terms, such as a car loan, where one of the conditions is registering the car in the customer’s name.

The Bank does not grant loans to customers who already have a large amount of debt or negative credit history.

This is not a myth, but a responsibility to the client itself to help avoid even greater chances in the future if the loan cannot be repaid. Similarly, it will not be possible to obtain credit if the customer has no official income. “It is also socially responsible behavior towards the customer so that the credit does not become a heavy burden on the customer that is difficult to repay in the future,” explains expert Good Credit.