Every day we hear different opinions about fast credit: some are positive, people are enjoying and enjoying these services, while others are extremely negative.
Sometimes people who have never used instant credit services have a prejudice. This time, we want to cover the main and most common myths about fast credit and try to deny them.
By taking a quick credit, you pay huge interest
“You’ll take instant credit and pay 10 times what you took,” a saying we’ve heard repeatedly that we rush to deny. The interest rate applicable to quick credits is governed by the law, which strictly determines the applicable interest rates, so any lender operating under the laws of the Republic of Lithuania must comply with the applicable terms.
It is also important to appreciate the fact that quick loans provide short-term financial assistance, so taking a month or two to pay is relatively small. These credits are a great way to borrow a certain amount for the short term. Then you will get the money you need quickly and pay little interest.
Credits are issued to anyone without a solvency assessment
This myth can also boldly rank among the most popular. A person seeking credit is checked in numerous databases, their solvency is assessed, their incomes are assessed, their past and present debts with other institutions, and it is only after these and many other criteria are assessed whether a person is eligible for credit.
Only the unemployed and people with various affiliations take loans
In fact, persons who do not receive any official income do not have access to credit. And most are borrowing short-term, unexpected expenses, when a particular item or service is needed “here and now” and waiting a few days or weeks to get paid. Imagine a situation where you suddenly have a car tire, you have no spare, and you are far from your salary.
Of course, you need a car every day (commute, take children to school, etc.). By taking the credit that will be credited to your account the same day, you will be able to buy the tire you need and continue to live at your own pace.
Credit granting companies change the terms and increase the amount paid during the term of the contract
All details, terms of payment, interest, and additional charges, if any, are stated on the credit agreement, so be sure to read the agreement thoroughly before accepting credit and contact your credit representative for any minor questions.
Credit companies operate in Lithuania unchecked
The activities of credit companies in Lithuania are regulated by laws and the Bank of Lithuania is subject to very strict supervision: supervision of customer solvency, regulated interest rates, and various promotional campaigns.
Taking out fast credit is a straight way to bailiffs
Most people think that after a loan is taken, the company will do anything to stop the person from paying it and to transfer the debt to a bailiff who would demand even more. In reality, this is not the case, companies tend to cooperate, negotiate installment payments, and the transfer of debt to the bailiff is the very last step companies take when they fail to otherwise negotiate their debt.
Therefore, even in times of financial distress, we urge you to communicate as actively as possible and seek mutual agreement on how to pay off your debt as soon as possible.
Credit protection companies do not guarantee data protection
All companies providing instant credit comply with the Law on Data Protection of the Republic of Lithuania and take all possible measures to verify the identity even when applying through electronic means.
All myths are destroyed by knowledge. If you don’t know something, don’t be afraid to ask questions and interest, don’t just follow the comments on the internet or the opinions of people you don’t know. Remember, every situation is different and people get caught up in myths, usually because of ignorance.