Loans: simple rules for informed credit access.
Consumer credit is a loan for purchasing goods and services for oneself or one’s family such as a car, an appliance, a trip; or to obtain liquidity to meet expenses that you prefer to pay in installments to weigh your family budget. But the offer of financing products with different characteristics can create some doubts. Here are some simple information to consider when choosing the financing solution that best suits your needs.
1) Evaluate your repayment ability well
The key thing, before applying for a loan, is to make sure of your ability to meet the costs that it foresees and to check if your income is sufficient to repay the installments over time. If you already have other loans in progress, pay attention to the sustainability of the installments before hiring new ones. To calculate in a few simple clicks the installment that best suits your needs, you can use the Best Bank personal loan simulator.
2) Finalized loan or personal loan?
For the purchase of a good or service, you can choose between targeted loans and personal loans. The finalized loan is a type of loan directly linked to the purchase of a good or service and is often taken out directly in the store. The personal loan instead is a type of financing not necessarily aimed at a specific purpose, which provides for the payment of the amount financed directly to the applicant without the intermediation of a reseller.
In this second case, you can contact one of the over 1,500 branches of the Good Credit Banks affiliated with Best Bank throughout the country. Find the one that is most convenient and closest to you with the practical branch search
3) Evaluate the true cost of a loan.
The lender or the credit intermediary must provide the consumer with all the information to evaluate his offer and compare it with the other proposals on the market, he must therefore always deliver the SECCI (European Basic Consumer Credit Information) form to the applicant free of charge, a summary document with a standardized format which must indicate:
the main characteristics of the loan such as the type of contract, the amount, the duration, the installments, etc.
information on credit costs: interest rate and APR with details of costs included and not included and a representative example.
other legal aspects, for example: consultation of a database, right to receive a copy of the contract before signing, right of withdrawal, early repayment, consequences in the event of non-payment of one or more installments.
additional information in the case of marketing of products at a distance.
You can find all the contractual and pre-contractual documentation relating to Best Bank financing products in the Transparency section
4) Attention to advertising.
The promotional messages and advertisements allow you to have a first orientation among the credit offers, but must always indicate the essential information in a clear, concise and highlighted form compared to the rest. Particular attention must be paid to the “zero rate” formula which may not correspond to a real “zero cost” of the loan. The real and useful indicator of the total cost is only the APR, which includes, in addition to interest, all other expenses.
If you have any other questions on consumer credit, you may find it useful to consult our FAQ section, where you will find other useful information for a conscious and responsible access to credit.