Anything you say when negotiating a loan can be used against you. Therefore, avoid even small lies, not granting an older outstanding loan, keeping children nourished, or just a little higher than you actually receive. Indeed, a false or incomplete filling of a loan application can lead to your prosecution for credit fraud.

The basic rule for borrowing money is – not borrowing for uselessness, not beating out one loan for another and carefully choosing a lender. It is equally important not to conceal important information on outstanding loans from the provider, or to fix in the revenue statement. According to statistics, 40 people out of 100 commit this behavior.

Fraud, even if you repay it properly

Whoever gives false or grossly distorted data when negotiating a loan or conceals important information, commits a credit fraud for which there is a sentence of imprisonment of up to two years. You do not have to do any harm. The penalty rate increases when the loan is not repaid and the amount of the loan is higher.

It is also true that where there is no plaintiff, there is no judge. In practice, fraud comes most often when the client is not properly repaying and the provider, or creditor, starts checking the data in the application.

It is worth paying for both income and expenses

Lenders want to know your monthly earnings. Banks require employers to submit receipts from the employer, and from entrepreneurs to return for the last tax period and, for example, retirees need to be retired. Most of the time, non-bank companies are content with the information you provide on the request. Therefore, it is relatively easy and tempting to increase your revenue by a few thousand. However, this puts the applicant at risk of prosecution for credit fraud even if it repays its obligations properly. However, credit companies are not only interested in your earnings, but are especially interested in your creditworthiness, or the ability to repay. Creditworthiness does not only mean what your income is, but also what is your regular spending on living, food, etc.

Do not conceal other loans

Banks shall be verified by each of the applicants in the credit registers and in the registers of debtors. However, there are still a lot of non-bank companies that lend without consulting the registers and still advertise it in their ads. This practice could be changed by the new Consumer Credit Act effective from 1.12.2016, which introduced stricter rules for credit providers.