The decision of which bank or online company you would like to borrow from for individual purchases is closely linked to the question “What are bad loans? “
What Are Bad Loans?
Private to private
Shortly after around 2008 many online providers offered loans from private to private, the uncertainty about such portals increased because many critics opposed them. However, we can only recommend taking a somewhat more complex and comprehensive view of such loans. And that includes the necessary know-how.
In the following, we give you a brief insight into which loans from private to private are not or are recommended.
As a rule, providers are very dubious where you have to pay money before a loan has even been approved. Since it is usually less than 10 dollars, many customers do not see it as closely and pay the amount required to get access to the credit brokerage portals from private to private.
However, you should know that usually only 5% of all required loans are approved by such portals, that is, in order to really get enough money for your request, you usually have to make requests to several such portals. The money that you pay as an admission fee adds up and you lose a lot of what you need so badly.
In contrast, there are private to private agents who only collect the processing fee and the like when a credit agreement has been concluded. You never pay unnecessary fees, which is why these portals are highly recommended in contrast to the above.
In addition, there is a third category of companies that offer loans from private to private. There you will only be given contact with a possible creditor and these providers will stay out of the actual credit negotiations.
We would also advise against this, because then you have to manage the interest negotiations and all the formalities yourself and, in case of doubt, pay too much interest because you are dependent on the creditor.
Read all terms and conditions and comments of other users on all private to private credit portals. Although this is often time-consuming, it is incessant to get a good overview of the reliability of the provider.
What Are Bad Loans?
Unfortunately, all bank loans are no longer trustworthy, and here too you should be careful about which deal you are getting into. Especially when advertising with quick and easy loan processing, you often pay very high interest.
Many banks also calculate that their customers need the money now and quickly and therefore charge interest that is far above the actual interest level. To rule this out, it is always advisable to consult a bank advisor.