The process of applying for a mortgage, business loan or cash loan can often take months. Its length is affected by many obstacles that result from the applicants’ ignorance.
Therefore, the advice of a specialist in credit matters will help in learning and skillful solving of credit complexities. How to meet a good credit advisor and what to watch out for? We discover the secrets of this mysterious profession!
Who is a credit counselor?
There is a conviction among many people that a credit counselor is a person who preys on the naivety of clients and, by the way, makes good money. Probably, many people are convinced that anyone can become one – even a person not necessarily familiar with the subject.
This is not entirely true, because a professional credit advisor will help you choose the best loan, and will take all the paperwork on your shoulders. From completing the loan application to concluding the contract. He will also advise you on the selection of an appropriate insurance policy, deposit or pension fund. Often, he prepares individual financial plans at the request of future borrowers.
The order in naming the concept was introduced by the Act on Mortgage Loan and Supervision of Mortgage Brokers and Agents of 23/03/2017. Under it, an independent adviser may be a person who:
- Has a permit from the Polish Financial Supervision Authority to conduct business
- Pays membership fee and third party insurance
- He appears in the register of advisers and constantly develops his skills through additional training
So, according to the law – every credit advisor is also a credit intermediary (but not every intermediary is a credit advisor!). However, for this to happen it is necessary to pass through the state exam, from which only graduates of economics and law are exempt.
Who can use the services of a credit advisor?
There are no age limits or other external factors that would prevent you from taking specialist advice. Therefore, regardless of whether you are a student, pensioner, pensioner, entrepreneur, foreigner or a person who has income in a foreign currency, you have the right to go to a credit advisor!
How much does this service cost? Needing only a single consultation, which is to dispel some doubts in the record of a loan or credit agreement, you can count on free consultations in many companies. Some of them even offer online consultants who provide expert information on special chatbots.
As for salary, in most cases – the rule is quite simple. When you use the services of an advisor, you do not pay directly in cash. After the transaction is completed, the bank shares part of the commission included in the loan agreement with it. So even if you don’t use his help – unfortunately, you won’t save! For example, for brokering loans for 300,000 dollars, the advisor will earn approx. 2-3 thousand dollars
Independent as .., a credit advisor!
Very often the term credit advisor is used as a replacement for a credit expert. However, these are two different forms. A credit expert is usually employed in a credit brokerage company that cooperates with banks. Therefore, he also does not charge fees to his clients, because for each successfully carried out loan, he receives in the form of remuneration, a commission from the bank.
In the case of a credit advisor, the situation is different. They are independent and are not affiliated with banks in any way. Therefore, they receive remuneration for each piece of advice given.
How will a credit counselor help you?
Let’s start with the fact that a credit advisor certainly has more experience than a “fresh” borrower. This translates directly not only to saving time but also money. P will help you choose the best offer on the market at the moment – tailored not only to your needs but also financial possibilities. By asking for advice, he will also explain the unclear provisions in the loan agreement, take care of the formalities after obtaining the loan, and guarantee communication fluency between the bank and the applicant.
Also, remember that the profession of a credit advisor requires knowing the market “inside out” and is up to date with all news. A specialist in his profession, he constantly monitors the financial market, follows changes in legal regulations, but above all “refreshes” his own knowledge about the current offers of lenders!
How do you not cut yourself into a dishonest advisor?
The profession of a credit advisor seems to be seemingly mysterious and quite specific – in connection with which, with his activities, there may be a lot of ambiguities and understatements. Here’s what you should look out for when working with a consultant!
- Before entering into cooperation, check the person who claims to be a credit counselor
- Be careful when you start a conversation with a beginner specialist whose primary occupation is another job
- Be vigilant when you get to sign documents that you were unable to familiarize with at the first interview
- Take a look at how your sensitive data and documents are stored
- If you do not feel trust in a specialist – give up and be calm about your finances!
- Check the range of skills an adviser can offer and whether he is familiar with the offers of many financial companies
- Be careful when an expert pushes and urges you to definitely make a specific offer
- Check whether the adviser can answer your questions competently and does not avoid giving uncomfortable answers
Why use his help?
Each of us is different – we have different needs and expectations, as well as financial predispositions, which without logical thinking and skills can result in a refusal to make a credit decision.
Therefore, the more it is worth relying on the help of more experienced people. This is particularly important if you intend to incur a multi-year commitment for a large amount or consolidate existing loans.