In recent years, credit activity in Bulgaria has been developing in a positive direction. Compared to past years, the level of good (repaid) loans has risen and fast loans have seen unprecedented growth. According to financial sources, non-performing loans have been reducing for three consecutive years. This, on the one hand, means that the economic situation of the Bulgarians is stabilizing. On the other hand, confidence in most fast-paced credit companies and credit companies is rising.
According to the Chairman of the Commission for Consumer Protection (CPC) – Dimitar Margaritov – in the beginning of 2018 there are 50 registered companies for fast loans in Bulgaria. This figure is 100 less than the information that was given in the summer of 2017 by the BNB. Another question is whether the number of companies performing this activity is higher than the aforementioned. Each user can investigate whether the business they are working with is registered. This can significantly reduce the risk of abuse and the possibility of hidden clauses in contracts.
Rise of the financial sector in Bulgaria
According to the CPC, most fast-paced companies adhere to the conditions set by the Commission. This is good news in view of the lack of trust in many of the institutions, which has been observed in our country since the advent of democracy. This year the Bulgarian financial sector expects to further increase its assets. Interest rates on loans are also expected to increase. Banks are very healthy after the 2014 CCB crisis, and the emergence of such a precedent is not so strong.
Even Gross Domestic Product (GDP) and money supply have grown in the past year – something our native economy has long been dreaming about. This may be due to the fact that interest rates have fallen well below their real value, and very often banks lend businesses with 2% interest.
Can you sign a home loan agreement?
Speaking of fast-paced companies, we can say that they are not as oriented to the corporate sector as to individuals. Last year, these companies served the Bulgarian households with the amount of BGN 2.157 billion, which is slightly more than 80% of their users. The rest of them are businesses and businesses.
Drawing an online credit is a common practice in today’s reality. As you can pay your bills and buy goods from the Far East online, you can also download a loan online. Almost all large and not so well-known credit and fast credit companies have well-organized websites on the Internet. Here, in a very convenient and visual way, they present the parameters that the consumer prefers. The details of the contract can be specified on the mobile phone, then the online form is completed and the application is completed.
When something unclear arises, you can contact the creditor representatives for clarification. The company should give you the most detailed explanation of the credit you would be interested in. The websites of various fast-tracking companies and credit companies also offer promotional offers for an interest-free loan. Before choosing this option, check what the default terms will be. In general, it is important to get detailed information on all terms of the contract.
How do the technologies affect the credit business?
Credit business is very closely related to technology development and economic growth. It has not passed the non-banking lending sector, which has been too intensely involved in internet marketing. Online technologies, websites and communications have allowed businesses to reach more people and visualize their services in front of the monitor. The speed of services increases and consumers often receive the money within 15 minutes of approval. After completing an online form, your application will be reviewed by credit specialists. They may be contacted by you to identify you and make sure there is no scam. You will then be notified by phone and sms of the opinion of your request. This saves time from office to consumer and creditors.
The convenience of working with fast-paced companies is great because you can get money even after the end of bank hours or on weekends. This can happen if you apply online for a quick credit. If you are approved within the lending company’s working hours, you can get the money in a bank account and you can download them at any time from an ATM. Many of the fast-paced companies also offer more than just the EasyPay safe deposit box.
Are there people who can not get credit?
Yes, there are those who would not approve credit and credit companies. These are minors and minors up to 18 years of age for obvious reasons. For these reasons, such persons are not allowed to borrow money. Others, which often can be denied approval, are people with bad credit history. There are companies that lend to them, but the terms of the loan are not particularly beneficial to the consumer. It is advisable not to use such services as they could bring you further deterioration in your financial condition. Be careful not to accumulate a bad credit rating, because it can be a stumbling block in many ways.
What Dangers Can You Expect?
We mention this issue because of the complaints that citizens make to the CPC for cases involving fast loans. According to Dimitar Margaritov, Chairman of the CPC, these letters are only 4% of all, which indicates that the market is not so “polluted”. Despite the monitoring exercised by controllers, unscrupulous creditors often violate ethical rules for dealing with the client. Problems are particularly noticeable with companies that do not have a well-established name on the market and include in their contracts unregulated clauses with a smaller font. Other tactics are too high notification fees for overdue debts after maturity. The CPC received blank contract data sent by post to an adult user.
In view of such allegations and signals, it is good for everyone wishing, before withdrawing credit, to carefully read the contract that he signs. On the other hand, you can choose the more well-known and established companies in the market. They have already built a good name and you can rely on their loyalty. Most of the danger is with companies not registered with the BNB who have no established practice in the country.
Of course, if you miss the money back in time, you may expect an increase in your debt, which we advise you to avoid. To do this, read the revenue you expect before targeting loans from fast-paced companies. When you work with a certain company, you are aware of everything under the contract and you are loyal in the return of contributions, do not worry about credit problems.
What is the optimal withdrawal amount for fast credit companies?
Most fast-paced lending companies mainly grant small amounts. It is best to withdraw amounts up to $ 1,000 or just over $ 1,000. Again, it depends on your own financial options for the month and what cash receipts you expect. For larger loans, it is better to look for a longer repayment term and this involves higher financial risk. You will not be wrong if, if possible, you give back the amount in shorter terms, but this is not always possible. This will reduce your due amount.