Without a doubt, the ability to apply for loans online is essential, especially for those looking for a fast loan. However, you need to pay attention to some aspects in order not to make the wrong choice. Here are some tips for evaluating the best loan.
Safe Online Loan Request: 5 things to evaluate
Thanks to the digital world and the infinite possibilities offered by it, finding safe online loans is certainly easier. In addition, you have the convenience of not having to go to banks or credit institutions.
The elements to be evaluated to choose the most suitable solution are different.
The possibility of applying for a loan online can cause the applicant to lose sight of some key aspects, such as the TAN, i.e. the Nominal Annual Rate.
This value determines the interests and varies from institution to institution based on the type of financing. With this parameter you can have an idea of the convenience of the loan, however it must be analyzed with the APR.
The Annual Global Effective Rate takes into account all expenses related to the loan, such as:
- the TAN, the nominal annual interest rate ;
- the preliminary costs;
- ancillary costs;
- tax charges, such as stamp duties.
The possibility of extending the loan can be an evaluation criterion, as the longer the amortization plan, the cheaper and safer the online loan will be.
An idea with respect to the incidence of incidental expenses that are borne by the loan is given by the APR. However, it is necessary to carefully read the information sheets, that is the Secci Form, made available already online by the bank or financial institution.
Loan granting authorization
Before filling in and sending the online contact form for a loan application, it is also advisable to check the authorization for the loan from the bank to which the application is being sent.
Apply for secure online loans: beware of credit brokers
We dedicate a separate paragraph regarding financial intermediaries. In fact, before relying on a market operator, it is advisable to check that it is registered in the register of credit brokers or agents in financial activity.
The mediator often charges commissions for his mediation or consultancy activities, however, the compensation must be treated and communicated to the client before the conclusion of the contract. It is important that it appears in writing.
Finally, operators who request advance compensation before disbursing the loan should be avoided. It may be expected that the expense will remain with the intermediary even if the loan is not disbursed. And this is where the possibility of scam starts.