Online loan platforms aka virtual credit providers have sprung up in various countries. However, there are still many people out there who are trapped in illegal online loan offers until they end up in unexpected debt. Then, how do you owe a good one using the services of a virtual credit provider?
Check out 4 ways not to avoid online loan traps:
Look at the platform
Don’t always be tempted if you accept an offer to borrow money from a virtual credit provider. Before trusting the platform, you should find out the platform.
In addition, you can also check on the official website of the Financial Services Authority. The official site will display the registered legal platform. The registered platform is obedient to the existing rules such as interest rates for customers and so on.
Know your needs
Before borrowing, make sure you know your main needs. If you really don’t really need it, it’s better to avoid debt in the service of a virtual credit provider. If you don’t need, don’t need to borrow.
Pay attention to the amount of interest
Don’t forget to pay attention to the amount of interest given by the loan service provider. The interest of virtual credit service providers is usually higher than the interest of conventional financial services. But still, the interest was not higher than the ceiling determined for fintech. Usually, good debt is a debt that only ranges from 30-40 percent of total salary. If more than that, then your finances will be disrupted.
According to thebalancesmb.com, online loans are known to have higher interest rates, especially when compared to traditional loans.
Pay debts
After borrowing, don’t forget the obligation to repay the debt. In addition to being responsible, this also helps you get rid of debt faster and save money because there are no more interest due to late payment.
Read more: 7 Trusted Loans Online Websites