It is recurring advice that we always repeat. Dozens of calls arrive in Rosalind every day asking about the amount we ask in advance.
There are “ducky companies” that offer very attractive loans for up to millions of pesos without consulting the Credit Bureau only with an advance payment. We have not yet been able to corroborate if there is any serious company that grants credits for large amounts without consulting history.
Therefore our recommendation is not to give any advance under any circumstances. These companies disappear after receiving the advance and never deliver the credit, therefore they keep the money of the users who trusted them.
Another way to find out if a company is reliable is to apply for the credit agreement. A trusted company may share the credit agreement with its users and customers. It will help you to know what your obligations and rights are before acquiring the debtor if it has no abusive clauses.
If the company uses justifications or excuses to not show the contract then distrust and look for another financing option. The companies that we trust are not clear with their processes, nor are they transparent with their service.
The best way to choose the best credit for you is to compare 3 or 4 different credit options. Compare aspects such as the annual rate and the CAT, the payment term, the total amount paid and the additional commissions they charge. It is the minimum you should know each to compare and choose the best credit.
Additional aspects that you should take care of are the obligations or payment facilities. Some companies charge a penalty if you settle your credit early, or are very strict with the payment date and charge you a commission or moratorium interest if you delay one day. It is not necessary to ask about penalties or surcharges.
There are also companies online that offer online loans without checking history in the Credit Bureau, but the amounts are small, perhaps they do not exceed 7 thousand pesos. Granting a very high credit without checking history carries a high risk, so the amounts are usually from 1 thousand pesos to 7 thousand and the payments are weekly or biweekly.
In fact, a company that offers credits of larger amounts without reviewing credit history is cause for suspicion. You will surely ask for an advance payment before granting the credit. And as in point number 1 of this post, it will surely disappear after receiving the money.
However, even if the company is legitimate, we do not recommend accepting credits without reviewing credit history for a very simple reason: companies that review the history make sure that their clients do not borrow more. If you already have debts with late payments and acquire new credit, it will be more difficult for you to pay your credits and you will harm your history.
Losing the good track record closes the doors to financing to obtain a car loan or a house. That is why it is important to be clear about the borrowing capacity we have before acquiring a loan.