How to choose a bank for a consumer loan?

The volume of consumer lending is growing at an accelerated pace, and many people are drowning deeper and deeper in the debt bondage of consumer lending. At the same time, both clever representatives of banks and credit institutions themselves can act as fraudsters.

Nowadays, when obtaining a loan, you cannot trust either the bank’s reputation, or the advice of friends (who, by the way, can receive a bonus from the bank for their advice), or the confidence of a loan specialist who aggressively convinces you of the reliability of the scheme. Better trust common sense, be careful. Perhaps it is better to limit your needs for a while, but pay the entire purchase amount without a loan, than to fall into the clutches of dashing businessmen. At https://finanso.com/us/ you can learn more about financial transactions. 

What are the main tricks that banks and their unscrupulous employees resort to when deceiving the population with loans?

1. Interest-free loan with interest

When you purchase something in a store with an installment plan, the seller will certainly promise you an interest-free loan from the bank. Why is a loan interest-free? The store simply pays the interest for you. However,  some banks are cunning by slipping in interest in the form of so-called “insurance”, etc.  That is, in the end it turns out that the store will pay a certain percentage, and the bank will receive a bribe from you. It may be beneficial for the seller to have the customer bear the burden of the “interest-free” loan, so he will recommend an appropriate credit institution. Sometimes bank representatives get involved in the deception on their own initiative.

Sometimes a bank actually offers an interest-free loan, however, for the sake of its personal benefit, its employee also imposes “insurance” on the client. This strategy is beneficial to both the bank and its employee, who receives their bonuses from every transaction and every deception. At the same time, the bank representative, with a trained eye, keeps an eye on who can be imposed unfavorable conditions and who cannot. If you agree to be deceived, then the next client after you may well receive a truly interest-free loan. And if you suddenly find out about this, then with a calm expression on his face, a bank employee will tell you that the bank allowed him to give this client an interest-free loan, but not to you. However, excuses are very different. In any case, remember that working in a bank initially implies a willingness to deceive and an intention to profit at the expense of others. Therefore, you should never trust the kind eyes of loan officers by hearsay. By the way, pay attention to the characteristic glassy shine in the eyes of seasoned loan officers - there is no soul left there anymore.

2. Unnecessary credit card

Nowadays, it has become a common practice among credit institutions to impose a credit card. Moreover, credit cards are now issued not only by classical banks, but even, for example, by large retail chains.

The bank, as an experiment, is offering you a credit card on unusually favorable terms, borrowing on which, with due responsibility, is completely free.  Know that they want to make money from you in this way. However, you should not trust the big name of the bank. What difference does it make to you: whether you are deceived in a large bank or in a microcredit organization. It’s just that a big bank  will have more opportunities to leave you without a car, apartment and livelihood.

3. Big commitments in small print

In many credit institutions, the text of the loan agreement is deliberately printed in small print. Sometimes individual provisions of the contract are written in small letters. The calculation is very simple: the client will not be able to read the text carefully, will not notice the catch, and will quickly agree to sign the contract. Usually, in this way, banks disguise information about huge penalties, inconvenient payment methods and terms, or simply do not want to show the client how illiterate the agreement is. Unfortunately, many ordinary citizens think only about the benefits that he will receive from purchasing this or that product, his attention is switched, his vigilance is dulled.

Therefore,  when you see an agreement printed in small print, without a moment’s doubt, refuse to cooperate with such a bank.  If the contract is fair, then there is no point in making it unreadable. An alternative to fine print is multi-page contracts written in incomprehensible language. It is difficult to understand such a text; one does not have the patience to read it to the end. Know that in such agreements the catch is hidden somewhere near the end. It is better to read such an agreement not from the beginning, but starting from the most important sections. It is better to take the contract home before signing and carefully study it in a calm, familiar atmosphere. Even after reading the contract, try to clarify how much you will have to overpay in the end, when and in what way the payment must be made so as not to incur penalties. It is important to consider the possibility of early repayment. Banks do not want to miss out on their profits in any case, but you may want to get rid of financial bondage early and finally breathe deeply.

If you agreed to credit “slavery” voluntarily, then no one (police, prosecutor’s office, investigative committee, court, etc.) will save you later. Pay attention to bank representatives: reliable banks carefully select personnel. If you see that an employee of a credit institution answers inappropriately, is confused, or is nervous, politely stop the conversation and contact another bank.