Credit agreement – what do we need to know before signing?

Undoubtedly, when deciding on a cash loan, we must be aware that we have been bonding with the bank for several months, or even for a few years. Therefore, before signing any document or contract, we should first of all read them very carefully, and then if we do not understand something, in a conversation with a financial advisor, we should dispel all our doubts.

Unfortunately, as reality shows, few of us read the content of the loan agreement before signing it. Few Poles also check fees and commissions and read text written in a small print. Few also try to dispel their fears and doubts by asking a bank employee what this or other concept means.

Then we are surprised, we blame the bank, try to explain or make a complaint when we feel cheated by the bank or its employee. The number of complaints received by financial companies is huge. Of many several hundred thousand complaints, and almost half were resolved in favor of the borrower.

The majority of complaints in favor of customers are settled by payment intermediaries.

Therefore, to avoid problems, you should read the most frequently asked questions about loans.


Why am I entered into the BIK after signing the cash loan agreement?

Numerous credit inquiries reduce our credit standing

Everyone who signs the loan agreement is entered into the BIK. Therefore, by signing the loan agreement, we agree to the processing of personal data by BIK. If we pay the loan on time or in arrears, banks have access to our credit history. BIK is a collection of all information about borrowers.


How long is the data processed by BIK?

The data is kept in BIK for 5 years. Of course, we can at any time request the deletion of data, or the introduction of correction, in the case of:

  1. withdrawal of consent to the processing of data on loans already repaid,
  2. when 5 years have passed since the loan was repaid,
  3. when our credit history contains outdated data.

With the request to delete or correct our personal data in BIK, we must go to the financial institution in which we incurred the financial commitment.


Numerous credit inquiries reduce our credit standing

credit score

All credit inquiries are recorded in BIK, which reduce our credit standing. By submitting a lot of inquiries to many banks, the client exposes himself to a decrease in his creditworthiness.

Therefore, applications should be submitted to a maximum of two banks at the same time. If we do not receive a positive decision on granting the loan, it is good to suspend the submission of subsequent applications for some time.


Can I opt out of the loan?

The customer has such a right within 2 weeks of signing the contract. He does not have to state the reason for the resignation (withdrawal) from the loan. In order for the withdrawal to be effective, the customer must provide the bank with a statement of withdrawal. This can be done at a bank outlet or by registered mail. Within one month of resignation, the customer must repay the entire amount borrowed.


Can I suspend loan repayment?

credit debt

Any customer can submit an application for suspension of cash loan repayment. However, we must remember that banks approach each such case individually.


Can I repay the loan faster?

The customer has the right to faster repayment of the loan before the period for which the loan agreement was concluded. However, it is worth checking first whether such early repayment can pay off.


The difference between the amount of the commitment and the amount paid?

payment loan

The amount with a cash loan is reduced by additional costs that the customer must repay, e.g. insurance costs, commissions. The amount of money paid depends on the way we chose to pay off these costs.


Cancellation of credit insurance during the contract

The customer may opt out of additional credit insurance at any time during the loan agreement. However, we must remember that this may involve additional costs.


Am I obliged to repay a loan taken out by my spouse?

Am I obliged to repay a loan taken out by my spouse?

This is a contentious issue, because it all depends on whether the spouses have a property community. If the loan was taken without the knowledge of the wife or husband and the family’s current expenses were not issued, it may not be repaid.


Can credit insurance be resumed without our knowledge?

When signing a loan agreement, we should first of all check the conditions of its insurance, what will be the financial cost of such insurance. The insurance is usually concluded for a year and may be continued for another period, not longer than until the end of the loan agreement.

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