June 24, 2024

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What should you know before taking out a fast personal loan?

3 min read
fast personal loan

Did you get a loan offer without proof that you can sign quickly to carry out a project? Beware, however, of a few precautions that you must take before you start.

If the personal loan is a form of consumer credit that is totally viable and recommended in certain cases, it is however necessary to master its operation to avoid unpleasant surprises. We detail here for you the points that you must watch out for before giving your consent.

What rate for your project?

An unassigned personal loan is fast and without proof

The advantage of the unrestricted personal loan is that it can allow you to finance a good or a service without having to communicate the use you make of the sum. This credit without any proof can reach the maximum sum of 75,000 € and thus be used to buy a new car, to finance an extension in your house, or even to offer you a dream trip.

You use the sum as you see fit. Of course, the sum obtained can also help to deal with an unforeseen event in life, such as illness or the disappearance of a loved one.

There are fast personal loan offers offers that require very few supporting documents. Sometimes, you will not even have to justify your level of income or your place of residence and your future debt ratio by subscribing to credit. Real freedom? Yes, but also risk taking.

Beware of offers that seem too profitable and for which the number of supporting documents requested is not sufficient. You can probably see it as a real time saver, but it is also a potential danger for you and your financial situation.

Indeed, financing institutions are required to check the solvency of borrowers.If their assessment of your file is approximate, and the credit is granted to you when it will put you in a difficult situation, you may well embark on a spiral of over-indebtedness.

The non-allocated is very practical, because it allows you to have a sum immediately and to use freely. But this relatively flexible credit without proof requires real reflection and real wisdom on your part so as not to commit yourself without full awareness.

What rate for your project?

The limits of the unrestricted personal loan and the precautions to take

An unallocated loan does not require proof of use of the funds , and is therefore not linked to the purchase of a specific good or service. Concretely, if the good or the service acquired using the non-allocated loan is not delivered or proves to be defective or even non-compliant with the initial order, you will not be able to invoke the protection associated with the credit to stop or even put pause the repayment of your monthly payments.

This protection exists with an “assigned” loan.

You must also be extra vigilant on the pricing conditions offered to you and in particular on the rate of your loan. In addition to the nominal rate offered to you, there are also various costs such as application fees, registration fees, but also any insurance premiums when this is imposed by the lender.

With a rate displayed on a very promising advertisement, and a rate that ultimately turns out to be much higher and less attractive than a classic consumer credit, it’s up to you to think about it.

Personal loan rates are set in a completely free manner by banking establishments , within the limit of the rate of wear.

If the previous points do not block your choice and you still want to use the non-affected, think about securing your loan by using insurance formulas. In the case of the personal loan, death, disability and incapacity insurance is optional.

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