Non-bank loans without a credit check and credit history are increasingly popular in Poland. However, many people are still afraid to take advantage of such offers because they believe in the various myths associated with such loans. Therefore, in this article, we will look at the biggest myths associated with non-bank loans and see if there is a proverbial grain of truth in them.
MYTH 1: If the bank doesn’t want to give you a loan, you shouldn’t take a loan
This belief prevails, especially among older generations. They often believe in the infallibility of banks. However, many people faced a situation where, being in a great financial situation, the bank refused them credit.
The truth is that banks’ activities are often complex and unclear. It’s very easy just not to meet the bank’s requirements. Often, making one minor mistake will result in you receiving an email saying “we rejected your credit application number …”. Unfortunately, in most cases, you won’t even know what you did wrong and why you received this decision.
For non-bank loans, formalities are kept to a minimum. However, if something does not agree, then very often the company granting such loans calls you to clarify the situation.
Myth 2: Non-bank loans are dangerous
A very common argument is “a non-bank loan without a credit check and credit history is dangerous.” At the same time, it is enough to ask how these people know about it. Most often, the source of such beliefs are various companies and series in which people taking loans were harassed by telephones and threats.
However, here you should think about how much this series has in common with reality. Mostly very little. Non-bank loans are the most secure. Today, every company operating legally in Poland has transparent regulations. If you have any doubts about it, just read it carefully. You will understand then that when you take a non-bank loan you have nothing to fear.
Also, remember that every company operating in Poland and granting non-bank loans without a credit check and credit history is subject to the same Polish law as banks.
Myth 3: Non-bank loans are illegal
Since banks, when granting loans, check creditworthiness at credit checker and credit history, it means that companies that do not do so operate illegally – that’s what some people think. At the same time, this is obviously not true.
Non-bank loans are legal and are subject to Polish legal regulations. Although they are not so controlled by the state, you will still find a register of loan companies kept by the Association of Loan Companies on the website of the Polish Financial Supervision Authority (KNF). In addition, the PFSA may take appropriate action in relation to companies granting non-bank loans. That is why such actions are absolutely legal.
Myth 4: We always get a non-bank loan
Some people think that non-bank loans are granted in every situation. At the same time, this is not the case. Although formalities are kept to a minimum, in some situations non-bank loans without a credit check and credit history cannot be granted. An example is a situation in which it is not possible to verify the identity of an applicant for a loan. In this situation, for security reasons, the person applying for a loan will not receive it.
Myth 5: Taking loans outside the bank will fall into a spiral of debt
In fact, falling into a so-called debt spiral (where one loan is paid back to take another) has nothing to do with non-bank loans. It depends more on the person’s approach to life.
You might as well fall into such a spiral of debts by taking loans from banks. However, in this case, such a spiral may reach the amount of even tens of thousands of dollars, while in the case of non-bank loans of several thousand dollars. Of course, when taking non-bank loans without a credit check and credit history, you must remember that you have to give back the money. Failure to pay the loan over time involves additional fees.
Myth 6: Every company offering non-bank loans does not check credit and credit history
Each company that offers payday loans and non-bank loans determines how it offers its services. Some companies do not check credit, others credit history and yet others check both registers. At the same time, each loan company clearly informs where and how it checks the applicant. And if you have any doubts, you can always contact the customer service department and ask if you can take a non-bank loan in this company without a credit check and credit history.
Myth 7: Non-bank loans are expensive
Some people are convinced that by taking a non-bank loan they are exposed to higher interest rates than in the case of a bank loan. At the same time, it is worth remembering that this is not always the case. The truth is that there are many companies offering non-bank loans without a credit check and credit history. There are also many banks offering loans (in addition, there are often different loan offers in one bank). Therefore, it is difficult to explicitly issue a verdict, which is more profitable.
Sometimes the interest rate on non-bank loans is lower than on bank loans. In addition, it is worth paying attention to the fact that when taking a non-bank loan, you can determine the loan amount much more flexibly. Instead of taking a loan of USD 1000, you can take e.g. USD 600. Even if the interest rate is higher (e.g. 8% instead of 6%), the costs associated with the loan will be lower because you have borrowed a smaller amount.
There are many myths about non-bank loans without a credit check and credit history. In this article, we only covered the most important topics. If you have any other doubts about taking such loans, leave a comment under the article and describe your thoughts there.