Credit for Renovation: How Banks Deceive and How to Fight Back

Read this before going to the bank and save it for future reference: together with a lawyer, we review the most important points when signing a contract.

Yuri Kryukov, an expert, runs his blog on Instagram @vkursedela about the rights of co-owners and apartment owners

How to get a loan without making a mistake?

• Get several offers from different banks with suitable interest rates.

• Ask managers for the credit agreement text and monthly payment calculation for review.

• Review the conditions calmly in detail, as specified in the contract.

• Check the list of services included in the contract, as the bank may try to impose additional services and charge for them.

• Calculate the full cost of the loan based on the interest rate to identify hidden fees.

• Pay attention to penalty clauses for late monthly payments.

• Write down questions you want to clarify, and ask them to the bank employee. If you receive vague answers, consult a lawyer.

• If all the conditions proposed by the bank suit you — you can sign the contract.

• Carefully check your data when signing.

Can changes be made to a credit agreement?

No, so you must decide immediately whether the bank's conditions are acceptable to you.

What if the interest rate turns out to be higher than what the manager said over the phone?

What is said on the phone or written in advertising brochures is not always a final condition. All credit terms must be included in the contract.

What services can a bank impose?

• Life, health and property insurance;
• Bank account management;
• Issuing a bank card;
• SMS notifications.

Evaluate whether the service is relevant to you and how much extra you’ll have to pay.

Can I refuse life and health insurance?

Yes, you can refuse insurance within 14 days from the date of signing the contract. However, in this case, the interest rate on the loan may increase. All conditions will be written in the contract.

Can I refuse property insurance?

Yes, if it is not a guarantee for the loan.

If I missed one monthly payment, will my credit history be damaged?

Information about fulfilling credit obligations is reported to credit bureaus. Failure to pay on time can worsen your credit history.

However, this does not mean you will never get another loan: each bank evaluates history based on its own criteria. Most often, they refuse loans to those who had regular delays.

I sued the bank over refusing to cancel imposed insurance, will this affect my credit history?

Information about court disputes with banks does not appear in your credit history.