Finnish citizens have a very low level of confidence in financial institutions. In particular, many are wary of credit companies. From the very moment of its appearance until now, online lenders have been causing heated discussions.

Why are consumers afraid to use their services? Which borrowers' fears are justified, and which are myths? We will try to understand these issues in detail.

The main concerns of borrowers

It is unusual for most citizens that money can be obtained without certificates, collateral and guarantors. In credit companies, they are looking for some kind of trick, so they try to resort to them only when absolutely necessary.

We will look at several common fears that prevent people from choosing a profitable alternative and cooperating with credit companies.

1. Reading ads about the possibility of obtaining a loan at 0% without documents, users often believe that these are offers from scammers or illegal firms. In fact, credit companies are registered legal entities whose activities are controlled by the state. Information about them is available on government portals.

2. To get an online loan, a person must provide the following data: passport; identification code; bank card. Some organizations require copies of documents. This usually scares inexperienced users. If the company is officially registered, has the appropriate licenses and permits, then there is absolutely nothing to be afraid of. Finnish credit companies use reliable personal data protection systems and do not have the right to transfer them to third parties.

It should also be taken into account that it is very difficult to use someone else's documents for selfish purposes in our time. Banks require a personal presence to apply for a loan, or the user is identified through the Banking ID.

3. Unlike banks, credit companies issue loans at a high interest rate. But the loan term is much shorter here. During this time, the overpayment will be insignificant if the borrower pays off his obligations on time. In addition, today many credit companies offer big discounts, promo codes and promotions that allow customers to save significantly. And this helps companies to compete effectively in the lending market and maintain consumer interest.

4. Penalties for late repayment of debt are applied by all financial institutions: banks, credit unions, pawnshops and others. Credit companies also charge fines and penalties. The interest on them is indeed higher than the standard rate. But indiscipline costs the most to those who maliciously evade their obligations and ignore the calls of the lender. 

If the borrower for some reason is not able to repay the debt on time, you just need to warn the lender about it. The client may be offered a loan extension. Then you will have to pay only the accumulated interest, and the contract is renegotiated on the same terms. Such a loyal approach allows you to use financial resources longer and keep your credit history clean.

Today, most credit companies in Finland prefer to resolve disputes in court. This is also not to be afraid of. The terms of the loan can be revised, and the consumer will have the opportunity to reduce the amount of the penalty or achieve installment payment of the debt.