7 Myths on Short – Term Loans
There are many rumors and misconceptions about short-term loans, payday loans or installment loans that are simply not true. We hope to debunk some of these myths and clarify the truth about short-term loans. Do you have any additional questions?
High and earning interest
Many people think that companies that offer short-term loans charge higher interest rates than other lenders. This is because interest rates can be confusing. For legal reasons, interest rates on loans are presented as an annual interest rate (APR), which can seem extremely expensive. What you need to remember is that a short-term loan is for a shorter period of a year, so the real interest rate you will pay will be much less than the annual cost rate, depending on the term of the loan.
Fast loans are taken by naive students and adolescents
The average age of Gerantum customers is 35-40 years. As a responsible lender, we are not inclined to lend to persons under 21 years of age.
Short-term lending companies are not regulated
All consumer credit companies are governed by the applicable law of the country in which they operate.
You can borrow without checking your credit
Gerantum always checks the credit indebtedness in the Central Credit Register. As a responsible lender, we do not give credit to people who will not be able to afford it.
Short-term loan companies only target specific groups
We do not advertise to specific groups of the public and do not use customer data to target a specific audience. Gerantum operates according to specific advertising and information regulations. It is the responsibility of the credit company to collect data that shows a clear picture of the applicant’s financial condition and ability to repay his loan. When deciding on a loan, we only consider data that meets our basic requirements.
Unpaid quick loans end with a bailiff
Most people who take out quick loans are able to pay off their loan successfully and take advantage of quick loans with a short maturity as an alternative to other forms of lending.
Customers find themselves in an endless cycle of debt
Gerantum has a limit on how many times you can extend your loan to ensure that consumers do not accumulate more debt than they can repay. The fast Gerantum loan is a short-term solution and should not be used to manage long-term tasks.