What is loan brokerage?

When it comes to credit brokerage, it is a relatively new term. Your own bank is usually the first point of contact when it comes to lending. However, the house bank cannot always help you, which is why the question of loan brokering arises. It is a company that, according to the wording, provides loans to consumers. The activity itself is subject to the Union Consumer Directive and has been regulated since 2008. It is important to know that credit intermediation does not itself grant loans to consumers, but only mediates them.

The task of brokering a loan

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A credit agency takes care of the borrower, and equally the credit institution, and brings both parties together. The placement agencies charge a fixed fee for the bureaucratic tasks involved. Loan seekers and borrowers, therefore, conclude a contract with the credit institution and previously one for the loan brokerage. If there is a payment, i.e. the actual lending, the loan brokerage was successful.

Important: Fees for the brokerage are only due when the loan has been paid out by the bank to the borrower. Before that, the legislation prohibits the intermediaries from charging fees.

Hidden terms behind loan brokerage

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Anyone who has never heard of credit brokerage until now may listen to the following statements: “Credit without credit company!”, “Express credit” or “Lending in just 48 hours”. Behind all of these terms and statements, there are often sophisticated credit intermediaries who advertise with quick and uncomplicated processing. The data can also be easily passed on by email and a query from the credit company lender is not necessary. At this point, many people are tempted to get a loan through such loan brokers if their own bank has had to refuse.

But: Loans are never granted without a credit company query. The phrase “loan without credit company” means that the loan taken out is not entered in a credit company. This has nothing to do with the fact that the lenders check the creditworthiness in advance. In order to find a reliable loan broker, one should rather look around the market carefully. Hidden processing fees are often hidden behind apparently serious offers.

How does credit brokerage work?

How does credit brokerage work?

But if all banks and credit institutes query credit company and the house bank has rejected the loan request for precisely these reasons, how can the loan brokerage be successful? Most credit agencies use foreign banks, which do not provide credit company information and use current income to calculate whether the borrower can pay the current installments. In addition, reputable credit intermediaries have other methods to bring lenders and borrowers together.

However, if you couldn’t get a loan from your house bank, you shouldn’t go blue-eyed at a loan agency. Very often, borrowers are later unable to cope with a current loan and are in debt, which their bank wanted to avoid in advance.

A good financial advisor and loan broker valued on the labor market

The economy in Poland is getting better every year. This carries the riches of society. Year after year, more cash flows into our wallets. Getting rich is also more likely to spend and take loans. However, it is worth getting into debt wisely.

Wisely means with a plan and future perspective and not blind consumerism. Specialists such as a financial advisor or credit intermediary come to help in this activity.

Bank credit advisor

Bank credit advisor

You do not need to have a specialized education to work as a bank credit advisor. In most banks, a 2-3 week job preparation course is sufficient. As a rule, higher education is required although this is not the rule. Therefore, when we apply for a loan and go to the bank, we don’t know who we will find there.

Or not, for example, an employee who is still learning the profession. Is such a person reliable to help us with financing for the development of the company even for USD 600,000 spread over 10 years? Of course, we do not assume that everyone in banks is green, but it is worth choosing experienced bank advisers.

Self-employed credit broker

A person who deals with credit brokerage also doesn’t need to have relevant experience. The only thing that must be entered into the register of credit intermediaries kept by the GFIC. That is why it is worth choosing experienced credit brokerage offices in order not to find someone who may lack knowledge. Good Finance will undoubtedly be a recommended credit brokerage company in Poland.

Credit broker and credit counselor as they must be

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Patience and friendly contact with clients are probably the 2 most important attributes of a specialist in credit. Of course, the element of knowledge and experience is obvious, without it you cannot be a good and reliable specialist in the field of obtaining loans.

The credit intermediary must have information about the current bank offers. These change every 2-3 cities and with a dozen or so banks it is a real feat to keep up with them.

Credit broker experience

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As mentioned above, the consultant’s experience is an extremely important element. If experience is combined with logical thinking skills and factor analysis, we are talking about a competent advisor.

Credit intermediary sales skills

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The approach to the sales competence of credit intermediaries is different. Some companies are sure to maximize sales and will pay attention to them. Companies with a reputation on the market such as Good Finance will not pay attention to this.

More important than whether the broker will squeeze the loan to the client will be how he approaches him or whether he correctly diagnoses the client’s needs. Selling loans that will not be beneficial to the customer will not be a reason to be proud.

The most common mistakes borrowers have, how to avoid them

When applying for a bank loan, it is worth remembering that the current move will have an impact on the next few years. That’s it, because even up to 12 years it can take a bank loan repayment period (unsecured loan, mortgage obligations can of course be much longer).

It is worth earlier to realistically assess your options for paying the installment. In the article we will present the most common mistakes made by people applying for a cash loan or consolidation loan . Borrowers’ mistakes, please read.

Borrowers’ mistakes: Working under time pressure

Rushing to apply for a loan will be the worst advisor. Customers who care about time are not fully familiar with the terms of the loan. After some time, they notice that their loan has had an interest rate increase , or that their loan insurance is inadequate to meet their needs. It is never recommended to rush in the process of applying for a cash or consolidation loan.

Similarly, a bank or credit advisor has no right to put pressure on us, until the next day or within a few hours the offer that the institution has offered to us will certainly not be missed. It should also be remembered that banks give a 14-day deadline to resign from the credit agreement we have signed . If something does not agree with the previously proposed conditions, you can exercise your right.

Suggesting credit ads and promotions

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The purpose of the advertisement is to attract as many borrowers as possible for the bank. The conditions presented in the offer, bank’s advertisement are usually directed to the best group of customers. Yes, the banks have very cheap loan offers , unfortunately targeted at quite small groups of clients with the best credit standing.

The vast majority of customers will be presented with completely different price conditions. Therefore, it is worth the bank to provide us with various offers to suit our situation. Instead of blindly believing in advertising or unique offers of banks, it will be much better to pay attention to the real cost of credit , possible changes in cost over time.

Emerging bank offers are another issue. This applies, for example, to free credit offers , most often they are up to USD 4,000 spread over 12 months, where the APRC is 0%. Here the bank does not introduce customer categorization, the offer is either available to the customer or the customer will be refused.

Offer recommended by family and friends

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Quite a common practice in the process of looking for a bank loan is to suggest the opinions of loved ones . This is obviously a good way because the offers are recommended to people we trust. They certainly wouldn’t want to hurt us by packing us in usury offers.

It should be remembered, however, that banks set the costs of their products individually. The costs depend on the assessment of us as a client, our scoring. Not necessarily the loan offer, which was very cheap for a neighbor, will also be the same for us. Already a difference in the number of children, the condition of the apartment, and the length of service may result in different loan price conditions.

It will definitely be better to ask an experienced person who knows the credit industry. In this way, we will be able to get the cheapest loan possible taking into account our credit assessment and scoring.

Borrowers’ mistakes: No comparison of bank offers

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In order for us to have a reference point, it is worth comparing bank offers in advance. The Internet resources are teeming with various comparison websites and loan calculators. It is worth using them to give us an idea of ​​which banks are proposing costs for the amount we are applying for. However, credit comparison websites should not be an indicator of what offer should be absolutely used. Banks change their offers too often for such tools to keep up with them.

In addition , they only provide estimates . The actual cost of a bank, cash or consolidation loan will always depend on the assessment of our creditworthiness. The cost may differ from the one previously calculated in the credit comparator.

If we are already comparing loans, it is worth doing it on the same parameters, i.e. the same loan periods. The mistake that customers quite often make is comparing loan installments, not paying attention to the fact that one of them is in 96 cities and the other in 120. The installment will be lower for a longer loan, but the total amount to be repaid is not necessary. It is also worth remembering about such details.

Too many credit inquiries

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An officially submitted credit inquiry occurs when the bank requests from us proof of data and sensitive information, address, mother’s maiden name or marital status. Then the bank has enough information to generate an official credit inquiry . It is done by reading the Credit Information Agency database.

When there are too many queries (more than three in the last two months), the banks lower our scoring. Many inquiries are a signal to the bank that the client goes to other institutions for some reason.

Banks do not see why the client was making inquiries, they have no idea whether he was refused or just wanted to compare offers. When there are too many inquiries, customers are refused credit because of other credit inquiries.

In order to avoid the problem, it will be better not to generate official queries in banks, but only to ask about the possibility of lending. Only after gathering the necessary information, choose the best bank, where we will make a credit inquiry.

Good Finance loan and personal data security

Information about a data leak from the Good Finance database for several days was number one in the media. Many Poles were afraid that when a criminal gains possession of their data, he could easily take a loan in their name.

Is there really such a threat? What did the alleged leak from the Good Finance database really look like?

Security of personal data in the Good Finance database and the alleged data leakage

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It is worth starting with the fact that no leakage from the Good Finance database occurred and data security was not at risk. Contrary to appearances, hacking into this system is not easy.

The Good Finance register stores the most important and best kept personal data, such as name, surname, date, and place of birth, ID number, address and finally the Good Finance number. Only selected entities have access to this data, including courts, prosecutor’s office, police, and court bailiffs.

Recently, the number of inquiries directed to the Good Finance database increased, in addition, they were submitted at night. This drew the attention of specialists. However, no leakage took place. It turned out that the reason for all the confusion was large bailiffs’ offices, collecting information on debtors.

This time the alarm turned out to be false. However, is personal data in the Good Finance database safe? Can they be taken over by the hacker? It turns out that the probability of committing such a crime is negligible. Computers with the Good Finance database are not connected to the Internet. They work on dedicated connections. The computer through which the authorized entity downloads data also has no right to be connected to the network. So even the best-trained group of hackers can’t get to the base.

Let’s assume, however, that you want to trace whether recently no one has downloaded information about you. You have the right to do this.

Twice a year you can check who has applied for your data and for what purpose. To do this, you must submit an application to the Ministry of Digitization. You can also contact the Credit Information Bureau and check if someone took a Good Finance loan or loan in your name.

Security of personal data and the possibility of taking a loan for Good Finance

cashThe criminal does not have to perform breakneck stunts by hacking the Good Finance database to steal information about us. It can come into possession of personal data in a simpler way, for example by capturing a scan of an ID. Suppose someone has taken over your data. Should you start to worry that an unauthorized person will take a loan in your name? It turns out that phishing a Good Finance loan is not easy. That the cash goes to the right person is also in her interest, as is the security of clients’ personal data.

The first method to verify the identity of the person taking out the loan is to transfer the registration fee (the amount of such fee is symbolic). This fee must be paid via a transfer from an account you own. If the name of the transfer sender differs from the name of the person applying for the loan, registration will be rejected. Thus, even a person who has your data but without access to your account will not be able to take a loan in your name.

Another method of verifying the identity of people taking out loans is confirming the data using the INSTANTOR system. In this case, there is no need to make a transfer with a registration fee. Thanks to this system, your data will be verified much faster and you will receive money instantly.

Loan company

It is also worth being prepared for the fact that during the completion of formalities the loan company will ask you to present a certificate confirming receipt of income. This can be, for example, the GFIC print, a statement of earnings or a bank statement from the last three months. Such documents will not be able to be presented by a third party, even if it acquires all of your personal data.

Phishing a Good Finance loan is not a simple matter. The security of personal data is protected by appropriate security features of the Good Finance database, and a good loan company additionally checks whether the person lending money is surely the owner of the personal data provided.