Cash credit is one of the most popular ways of indebting Americans. We are happy to lend for various purposes – for holidays, for cars, for the education of our children. The level of earnings in Poland does not allow us to finance it all from savings, because in principle Poles do not have such savings. Banks still make it easier to get into debt, because everything can be done online without leaving home. However, it is necessary to have an adequate creditworthiness. Banks carefully analyze our earnings and financial obligations, and also examine our credit history in office. Despite more exorbitant requirements than in the case of instant loans, bank loans are very popular as a relatively safe financial product. Thanks to the KNF’s control, banks conduct a strictly regulated credit policy. In order to choose the best credit offer, it is necessary to compare them in terms of the RRSO parameter. If you want to find out more about cash loans, please read this article.
Cash credit
What are the characteristics of cash loans? First of all, it should be mentioned that the money you will receive thanks to the loan can be used for any purpose that is not related to running a business. The rules on which banks grant loans are specified in the provisions of the Banking Law Act. These rules are quite restrictive. Additionally, banks in the USA are also subject to control by the Polish Financial Supervision Authority. It is an institution that imposes on banks prudential norms in the form of recommendations, which banks are obliged to comply with.
What conditions must be met in order to receive credit?
In order to receive cash credit, a number of requirements must be met. First of all, you need to have an ID card. Age of majority is a necessary condition. The bank will certainly require us to present a certificate of employment and earnings. If you are a pensioner, you will need to present the document on the basis of which you are granted the benefit, as well as a receipt of the last transfer. If you are an entrepreneur, you will have to submit a certificate of no arrears with contributions to the tax office and the Tax Office. It is very possible that the bank will also request your tax return for the previous year.
On the basis of these documents, the bank analyst will assess your creditworthiness. Theoretically, there are two ways to complete this process. The bank will send you a receipt stating that you are unable to repay the loan or will positively assess your financial standing and grant you a loan. However, there is still a third option available. The bank may decide to grant you a loan if it is subject to additional conditions. In this case, the bank may request credit insurance or surety. In the first case the cost of credit will increase, in the second case you will have to find a trusted person who will agree to be your chandelier.
Cash loan costs
What are the costs of taking out a cash loan? The basic cost of a loan is interest. Their amount results directly from the interest rate of the loan, which the bank provides on an annual basis. The interest rate cannot be higher than four times the lombard rate. The Lombard rate is set by the office. The interest rate not only affects the total cost of the loan, but also shapes the amount of the monthly installment, it also has a direct impact on the condition of our finances.
In the next order, the loan costs will be generated by a commission. It is often included in the loan amount. Sometimes banks also offer credit insurance. Its contribution will be included in the monthly installment. It should be borne in mind, however, that credit insurance works primarily for the benefit of the bank. The insurer will pay the debt in the event of your death or inability to work.
How do I calculate the total cost of a loan? First of all, you should look at the Annual Percentage Rate of Charge (APR). This is a parameter that includes not only the interest rate of the loan, but also any other additional charges – commission, margin or preparation fee. The method of calculating the APRC is uniform for all banks. So it is a perfect tool for comparing credit offers.
Remember, you can resign from a loan
However, after signing the loan agreement, you will come to the conclusion that you have made a decision too hastily, you can still withdraw from it. It is allowed by the provisions of the Consumer Credit Act. You have 14 days from the date of making a financial commitment to do so. Resignation must be in writing. Of course, you are obliged to return the entire amount of the loan granted. You have 30 days to do so from the date of submitting a declaration of withdrawal from the credit agreement.

Cash credit
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