Why avoid online credits?

 For several years now, online loans have been on the rise. They appeal to both first-ascendants and seasoned investors. Digital banks want to compete with traditional banks with increasingly comprehensive services. On their platform, you can find both a mortgage, a personal loan and other consumer loans. But is it really a good idea to use the services of online banks? Nothing is less sure.

Risk of over-indebtedness

Easy access to online banking services increases your risk of over-indebtedness. In fact, it only takes a few clicks to apply for a loan. And despite the standards imposed by the new consumer law, some institutions do not check borrowers' debt capacity before granting them credit.
To avoid complicated financial situations, it is important to always follow the different steps for an online consumer credit. In particular, you must go through a credit simulation, then a comparison before signing a debt contract with a bank. Always remember that a debt holds you until it is fully paid. Otherwise, you will have to pay off your debt with the auction of pawn shops.

Credit not as fast as it seems

Online banks particularly insist on the speed of their service. And in a way, it is. You no longer need to make an appointment to qualify. In a few minutes, you will be finished filling out your application form. You do not have to travel to hand in your documents and supporting documents. In addition, establishments of this type guarantee you a response in principle in just 48 hours.

But beware, this is a "principled response". That is, banks still need to do an in-depth analysis of your profile before giving you a definitive answer. This step may take some time.
Not to mention that now, all banks must respect the mandatory reflection periods of 14 days after signing the credit agreement before releasing the requested capital. This means that in the end, you may not be getting the amount you need for 3 or 4 weeks. And again, it all depends on the quality of your borrower profile and the repayment guarantees you offer to the bank.

No prepayment penalty if you pay out of your own pocket

In particular, online banks keep praising the merits of their offer without repayment penalties. According to some, this explains the low APR rates offered by them. But what is it really?

According to the accountant Ixelles in Belgium, one should be wary of this offer. And for good reason, it is only valid if you pay for everything out of your own pocket. In other words, if you have recourse to a consumer credit buyback, you should still take into account the penalties for early termination of your contract.

Lack of experience

You should also know that online banks are recent. Compared to traditional banks, they are very inexperienced. This can impact your risk of over-indebtedness according to the accountant in Saint-Gilles. With a traditional bank, you could benefit from good support and good advice on how to manage your loan contract.

Namely, the majority of online banks are first generation. That is to say that they are attached to a physical bank, generally of great renown in Belgium. In particular, you can contact the latter to manage your loan request.