Loan process – how to get a loan?

Currently, there are several banks and over a hundred loan companies in Poland. Each of the Banks offers credits and loans. Non-bank companies sell single and multi-installment loan products. This together gives several set of different credit products sp

Institution, Internet, Credit Advisor – pros and cons

Institution, Internet, Credit Advisor - pros and cons

Let’s imagine that I need a credit or loan of $ 10,000. I would like to go on vacation for this money. I already have some loans, I can’t quite say if I will get another one at the Bank.

Option 1

Naturally, however, I am heading towards this institution as the first. At the Bank I receive information about the product, I decide to submit an application. Waiting for decision, I receive decision. It is positive – great, the question is whether it is the best offer on the market.

So I go to the next Bank to compare my offer with another one. And how is the decision negative? The question arises, what next? If this Bank rejects me, will I get a negative decision in everyone? What bank would accept my loan application. Or maybe only the non-bank market remains? If so, where should I look for financing now and in which company? Unfortunately, there are so many questions in this process that I will take a long time to answer.

Pros Minuses

unfortunately there are no pluses in this process. One would think that credit directly at the institution will be cheaper – but this is only one of the myths. A loan always costs the same regardless of where I take it. At the very end, the institution must always pay someone for acquiring the Customer and their service – Advisors in the Bank pay the payment and commission for the sale, on the Internet bears the costs of advertising, and the Credit Broker pays a commission on the value of the product sold;

I waste time looking for financing by visiting each institution individually;

I do not know if the fact that one Bank rejected me means that I will not receive any money. Should I go to another Bank that will ‘take’ my risk profile;

I have to compare offers on my own. I waste time wondering which offer is the best;

I often submit several applications to various companies, which significantly reduces my credit standing;

Option 2

I am looking for money on the Internet. I enter in the search engine ‘10,000 $ loan’, click ‘search’ and … magic happens. There are hundreds of possibilities before me. Everyone wants to give me money from every side. Banks compete in the best offers, non-banking companies tempt me with financing in ‘5 minutes’, and comparison websites promise reliable information about the offer. What does reality look like?

I will have to go to the bank in person anyway, because it is usually required by the banking process – and here I really go back to option 1. I have over 100 non-bank companies so either I will check at least some of them or apply to the first better – and then it is the lottery or I will receive reasonable financing. The Internet comparison website usually compares representative examples to me, so I won’t find anything – I have to conclude in the process to get a real offer. What should I do then? It is difficult to make the best decision. Of course, if I have knowledge, experience and most of all time, I can try to choose something for myself. But the choice will not be easy.

Minuses

I have the whole market at my disposal, but I don’t really have anything;

I would have to devote a lot of time to pick out the best financing for me from all the Internet information;

I need to have a lot of knowledge to be able to interpret what the market has to offer;

I still have to really go to the bank’s headquarters to complete the loan process;

Option 3

I’m going to a credit advisor. A Credit Advisor is a person who has knowledge of the majority of good credit products available on the market. Therefore, the advisor will interview me and immediately save my time by refusing to apply in some companies that do not fit my need or risk profile. A credit advisor also called an agent or credit intermediary will therefore help narrow down the selection to several companies. The agent will also help you submit the application and guide you through the whole process up to the start of the loan.

Pros Minuses

we have the support of a person who knows the credit market well;

I don’t have to go from place to place and look for a loan;

minimizes the risk of making a wrong decision or making a mistake;

sometimes I can’t do everything in one visit, because the decision-making process in different institutions can take a while;

What should the client do, i.e. summary …

What should the client do, i.e. summary ...

Analyzing the pros and cons of each of the described options, we come to the conclusion that it is definitely best to use the help of a Credit Advisor. The consultant will perform a number of activities for us, thanks to which we will save time and minimize the risk of taking the wrong or too expensive product for us. And in this process, you could look for opportunities for improvement. Sometimes, we don’t do everything with the Agent with one visit.

Bank came with the solution to this problem. At Bank, the customer fills out an electronic application from anywhere, from a computer or smartphone. What’s more, Bank aggregated the applications of many companies in one form. In this context, Bank is a sort of virtual advisor who will write an application with us and send it to various companies.

As a result, the customer will see a comparison of offers on the screen – but not those of representative examples, but those resulting from the assessment of the customer’s creditworthiness. And here comes the best – up to 10 minutes after sending the application by the Customer a Credit Advisor will call – one of the network of over 3000 Agents cooperating with Bank. In a telephone conversation, the loan broker will analyze the offers received by the customer and help choose the best one. What’s more, it will determine all the steps necessary to complete the process – that is, signing the contract and withdrawing funds.

Bank is a revolution on the financial intermediation market, because it solves one of the biggest contemporary problems in this market – it gives the customer the opportunity to receive offers from many institutions with one application, but does not leave the customer alone in his choice. And most importantly, the Customer does not talk to a central helpline employee, but to a real Credit Agent who is located in the place closest to the Customer’s place of confusion.