Online Payday loans for the company for which you will pay dearly

The loan is absolutely free, money on your account even in a few minutes, all without leaving your home. If you believe the ads, the companies providing “payday loans” dream of nothing but stuff your wallet with money without expecting anything in return. Is it even possible? Where’s the catch here?

There’s nothing for free?


Answering the question “Is it even possible” – yes, it is possible. Indeed, you can take out a loan and not pay a penny for it. In addition, in fact, in some cases, the money will be on your account in a few or several minutes, and all formalities will be handled online.

Nothing but take? Not necessarily. Especially if you are considering a loan in the context of your own business.

First of all, it’s hard to think of payday loans as a significant source of business financing. Free payday loans are given for quite low amounts – from a business perspective. Many of them reach barely 2,000 – 3,000 USD. Those that exceed USD 5,000 are rare.

Secondly, you can only count on the lack of commissions, fees and interest for the first loan in a given company. You will pay for each subsequent one according to the standard tariff, and this usually means that you will pay dear or … very dear.

Thirdly, the condition of non-payment is the timely repayment of the loan. Any delay and fees and commissions arise, and the promotional loan may become a loan granted on very far from the promotional, standard terms. And the standard rules are, as we just mentioned, high costs.

Hidden costs and delay penalty

Hidden costs and delay penalty

In addition, when you want to know more about these costs, the stairs appear. Loan companies say as little as possible about it. If they have a free loan on offer, then standard loans are usually neglected on their websites. And in an open and concrete way, they provide only information about a free loan.

Open and specific, but nevertheless … short – to put it mildly. The condition that timely repayment is a condition, lenders usually mention no more than a half-lip. They are even less likely to reveal how painful the consequences of delay can be.

This information, as well as information about the costs of standard loans, are hidden in the regulations, model contracts or sometimes “answers to frequently asked questions”. Hidden and not very specific, because we will learn, for example, about the existence of a commission for extending the loan repayment time, but we will hardly know its amount. This lender will usually only present you when, in response to your request, you receive an offer of a ready contract. Quite late, considering that they can be even astronomical costs!

With such commissions, interest loses significance


APRC, i.e. the actual annual interest rate on quick loans regularly exceeds 100%, and often also … 1,000% (it’s a mistake – a thousand percent). Such highly elevated values ​​are due to fees, commissions and the short time for which the loan is granted. As such, interest is negligible here; loan companies earn mainly on commissions and fees.

Despite the fact that the costs of payday loans in percentage terms are so high, it might seem that from time to time you can – or even worth it – to incur them. Example?

Let’s say that the customer is in arrears with payment of 5,000 USD for the goods, and you need cash for some reason. Suppose you can take a payday loan, interest rate 10% per annum, for which the commission is 15%. The total cost of such a loan is USD 792 (USD 750 commission and USD 42 interest).

There is no tragedy – after all, from time to time such costs can happen, right? However, think about how much of the margin from the sold goods you have to sacrifice. Maybe even the margin was lower than the cost of the loan? A reference to the margin can work on your imagination, but really … it should not decide whether it is worth taking such a loan.

The key to making a decision is comparing the cost of the loan to the benefits you will get from it. Or, if that is the goal, for losses that you will avoid thanks to it. In other words, you must answer one of two questions:

  • Will the monthly (weekly, annual, etc.) costs of the loan be lower than the monthly (weekly, annual) revenues that you will realize thanks to the funds from the loan?
  • Will it be possible to avoid a loss higher than the cost of the loan by taking out the loan?

So the question is: thanks to the loan, will you be able to earn at least USD 792 in the additional margin in the month, or avoid a loss of USD 792? It’s also (it’s just a delicate suggestion ?) to look around whether there really is a cheaper alternative. The cost of 15.8 percent per month may not be impressive – until we realize that it is … 483 percent per year !!

Debt spiral

It is also worth, as with any loan, to ask yourself one more question: are you sure you can pay back the loan? Today you need 5,000, but in a month you will need 5,792 to pay back.

And if – knock on it! – it would turn out that you would be forced to “repay” it with another loan, granted on the same terms, in two months you will need USD 6 709. In this way, an innocent loan can begin to swell quickly, triggering a debt spiral – about which we will write soon.

Or maybe?

Of course, such black visions do not have to come true – 5,000 by example, you may be able to get as part of a free, first loan. The question is, however, whether it is worth risking, having in view difficult to estimate in advance the costs of possible delay?

In addition, as we mentioned at the beginning, the amounts of free loans are quite low compared to the amounts that you usually need in business. Of course, you can try to outsmart the system and take out a few free loans to get the amount you need. But is it worth taking such a risk? If even by accident, you miss one of the payments, you will be noticed by considerable costs.

Renovation Loan Renovation Loan – The cheap loan even without purchase


Reorganization loans simply and inexpensively. The conversion of a holiday home or an entire apartment building can very quickly become a costly and exhausting thing. Even if you can do part of the work yourself. A complete renovation of an apartment or a holiday home is a very expensive project.

It is all the most important that the financing situation is clarified and secured with a reputable, advantageous restructuring loan. In this way, you can better assess your financing needs and your financing needs. Only after you have clarified your credit needs should you start looking for a cheap financing option. There are no upfront costs for the loan offer.

Even if you do not accept the takeover offer, you will not incur any additional costs.

Renovation loan – ideal solutions for your expansion

Renovation loan - ideal solutions for your expansion

Homeowners often do not have enough cash to raise the funds needed to renovate, renew, or expand their home. It is often not possible to top up the existing building finance for the conversion or expansion of the residential complex or the building. In addition, the registration of a further basic fee is associated with considerable expenses. With a renovation loan, you can co-finance all expenses associated with your house quickly, easily and cost-effectively.

With the renovation loan, you can start immediately with the realization of your projects, whether renovation, conversion or renovation. Whether an energy-efficient roof solar system, a new kitchen or an entire children’s room that is set up for the growth of your family. The renovation costs incurred can be viewed in the course of the current tax options.

Preservation of value through real estate renovation

Preservation of value through real estate renovation

Renovation loan – have you ever considered a installment loan for your renovation? It doesn’t have to be the new feature when talking about future investments. The renovation loan: what is it? Even if many people advertise it, there is no renovation loan in the traditional sense. Anyone who speaks of a home loan means either a home loan, a home loan, or an installment loan.

The final decision on the renovation loan is based primarily on the need for money. To make this renovation loan manageable for you, we have created two sample invoices for you based on invoices for USD 10,000 and USD 50,000. Renovation loan as installment loan: The renovation loan as mortgage loan: These examples show that there are no limits beyond which you can judge whether a loan for mortgage finance, residential loans or installment loans is cheaper.

Surely you save yourself the land registry and notary fees with an installment and / or living loan and are clearly more liberal with regard to the topic of special repayment, rescheduling with falling interest rates or complete repayment of the loan. Like being careful when you’re offered a home loan that doesn’t even exist. It will always be an installment, residential or mortgage loan.

In particular, with an amount of up to USD 50,000, an installment loan would be comparable to a mortgage loan. If you think about a renovation loan, you should think first: equipped like this, you can contact the (usually free) consultation and think about what makes the most sense for you. Thinking of renovation and thus of maintaining or increasing the value of your property always makes sense in economically favorable and expensive construction times.

What is revolving credit?

A revolving credit is a form of credit that is characterized by the provision of a borrower, a sum of money that he will be able to use in his discretion, in whole or in part, without having to provide proof of use. It is a credit that is reconstituted as and when repayments made.

What is revolving credit?

What is revolving credit?

Revolving credit, also known as revolving credit or permanent credit, is a special form of consumer credit, so the associated regulation is specific to it and somewhat different from credits such as the personal loan or the assigned loan. The reserve of money available under a revolving loan decreases when it is used by the borrower, and then gradually changes over time as repayments are made. It is a loan that can associate with a credit card (a credit card).

The borrower has the right to dispose of the sum made available by the lender as he sees fit. He can draw on the cash reserve in part or in full to make the desired purchases. However, these expenses can not exceed a certain limit, a maximum amount set when signing the revolving credit agreement.

The available sum is then reconstituted within the allowed limit, as the borrower repays his loan. He can then use it again, always under the same conditions.
A revolving credit can be offered by a bank, an institution specializing in consumer credit, a supermarket sign or a mail order store.
If the amount of the revolving credit is greater than 1000 dollars, the lender must also propose a credit amortizable to the borrower so that it can make a comparison of the two offers and choose the one that is best suited to his needs.
With regard to the repayment period, if the credit amount is less than or equal to 3000 dollars, it can not exceed 36 months (3 years) and can go up to 60 months (5 years) if the amount borrowed is greater than 3000 dollars.
It is possible to postpone deadlines twice a year at most if the borrower encounters difficulties in his repayments or in the event of deterioration of his solvency. However, a postponement of deadlines implies the suspension of the borrower’s right to use the revolving credit.

Once the credit is set up, each month, the lender must send the borrower a document summarizing the status of his loan. This includes the rate of the period and the overall effective rate, the amount available, the amount of the monthly payment and the interest portion, the date of statement of the statement and the date of payment, the amount of the repayments already made or , all the amounts due.

The contract for a revolving credit has a duration of one year and can be reinstated every year. Each year, the lender must verify that the borrower is not registered with the FICP (personal credit repayment incident file) before any renewal of the credit. Similarly, the creditworthiness of the borrower must be verified every three years.
The lender must also inform the borrower of the conditions for reinstatement of the credit as well as the repayment terms, three months before the end of the revolving credit agreement. If the borrower disagrees with the new terms, he or she has the right to object for up to 20 days prior to their application, which will automatically terminate the borrower’s loan agreement.

What is the difference between a revolving credit and a depreciable credit?

What is the difference between a revolving credit and a depreciable credit?

Unlike revolving credit, the amortizing credit is a traditional bank loan that consists of borrowing a set amount of money. In the context of a depreciable loan, the capital and interest are modulated in a particular manner and different from the revolving credit. Each maturity consists of a portion of the capital borrowed as well as interest. At the beginning of the credit, the amount of interest is higher than that of the repaid capital and as maturities progress over time, the share of capital increases while that of interest decreases.

An amortization schedule must be provided to the borrower at the outset of the contract. An amortization table is a document showing the distribution of the amount of each installment with the portion of the capital borrowed, interest and insurance costs, but also the amount of capital remaining to be repaid after payment of each monthly payment. The borrower may also request a reduction in the maturity amount which will extend the term of the loan and increase the total cost of the loan.

If ever this is the duration that the borrower wants to reduce, the monthly payments will be increased and the cost of credit will be lower. In all cases, it is the credit interest that is repaid in majority, before the borrowed capital. Conversely, in the context of a revolving credit, there is no refund to be made if the reserve of money made available to the borrower is not used by the borrower

. The credit starts only if it decides to use part or all of this sum. Once the loan is repaid, this reserve of money is replenished, which is not the case for a depreciable credit. In addition, the revolving credit allows the borrower to draw on this fund at any time, as he or she wishes.

What precautions should you take before subscribing to a revolving credit?

What precautions should you take before subscribing to a revolving credit?

First, and this is the case for any type of credit, not just for revolving credit, it is important to be aware of its ability to borrow, whether in the short or long term. Thus, before borrowing, it is necessary to take stock of one’s personal and professional situation. Do the calculation of your income, including your salary but also additional income such as family allowances or alimony. Also, note the monthly charges that you must pay, including your rent, electricity, water, gas, paid support, etc. Also take stock of the credits you already have. All this information will allow you to calculate your living balance as well as your debt ratio.

The remainder to live is the amount of money you have each month, after paying all your fixed charges. The debt ratio is an index of your borrowing capacity, depending on the various credits you have already subscribed. It should be noted that it is rarely possible to subscribe to a new credit when the debt ratio is higher than 33%.
Many sites offer life balance calculators and debt ratios, so if you do not know how to do it yourself, you can simply do these calculations online.

All you need to do is enter some facts about your situation. Before subscribing to a revolving credit, it is also very important that you are ready to control your budget closely since this type of loan presents a lot of risks if you do not pay attention to its expenses.
Finally, do not forget to be wary of the contracts offered by banks or credit organizations because they can often be abusive and lead you to situations of financial difficulty. Read the contract carefully and pay attention to all the clauses for any revolving loan proposal so that you are aware of all the conditions and that the loan agreement can take place in the best conditions.

The annual percentage rate of charge of the revolving credit

The annual percentage rate of charge of the revolving credit

One of the disadvantages of revolving credit is its interest rate since it is often much higher (on average twice as large) than conventional credit. It has the highest rates of all consumer credit and can be between 8 and 20%.
The interest rate of the revolving credit is revisable.

This means that it can be modified during the loan agreement provided that the borrower is informed and has the opportunity to refuse the change in question if it does not suit him. The law requires the lender to provide this information to the borrower in writing before the effective date on which the new rate is to apply.

If the borrower refuses this change, he will be forced to repay the entire balance of the outstanding credit according to the conditions previously established (the rate applying here will be the one that was defined before the proposal to revise it). ci) and the contract will be terminated.

The interest rate of a revolving credit can be revised upwards or downwards and the conditions of revision must be specified in the credit agreement. Contractual interest rates may vary depending on the benchmark but also depending on the terms and conditions of credit institutions, depending on the amounts borrowed. Generally, the higher the loan amount, the lower the interest rate.

How to improve your credit standing?

Creditworthiness is the ability to settle a financial liability together with interest within the period specified in the loan or credit agreement. How to improve your credit standing? First of all, you should start with controlling your home budget and checking yourself in the debtors’ bases. What else has an impact on increasing creditworthiness?

  1. Creditworthiness – how to increase it?
  2. What is creditworthiness?
  3. What determines your creditworthiness?
  4. How do you check your credit standing?
  5. Creditworthiness and car loan.

How to improve your credit standing?

How to improve your credit standing?

Creditworthiness is the ability to repay a financial liability incurred together with interest within the period specified in the loan or credit agreement. There are many simple ways that have a huge impact on increasing creditworthiness. However, it should be borne in mind that they will not improve financial liquidity within a few days.

Regularity and persistent pursuit of goals set to improve creditworthiness are very important. So how do you increase your credit standing? First of all, you should:

  • take care of your story in BIK,
  • settle financial liabilities
  • check your credit standing,
  • take care of the largest possible amount of own contribution (for a mortgage),
  • give up credit cards and a revolving loan,
  • take advantage of a consolidation loan,
  • choose fixed installments,
  • control your home budget.

The most effective way to improve your credit standing is to try to increase your monthly net income. A new job or a change of job to a better-paid one will allow you to settle your financial commitment, for example in the form of a car loan loan, whose installments can significantly burden your home budget. It is also important to give up your credit cards or revolving loans. These financial products may be too tempting when there is a shortage of cash. Their liquidation will undoubtedly improve creditworthiness.

What is credit standing?

What is credit standing?

Creditworthiness is one of the most important factors that banks and loan companies take into account when granting financial obligations. The higher the creditworthiness, the greater the applicant’s chance of receiving the financial product for which he applies. Therefore, it is very important to analyze the elements that have an impact on improving creditworthiness before starting the application procedure at a bank or loan company.

The concept of creditworthiness is governed by the legal provisions contained in the Act of 29 August 1997 on Banking Law (Journal of Laws of 2002 No. 72, item 665 as amended).

Art. 70. 1. The bank makes the granting of the loan subject to the borrower’s creditworthiness. Creditworthiness means the ability to repay a loan taken out with interest on the dates specified in the contract. The borrower is obliged to submit, at the bank’s request, the documents and information necessary to assess this ability.

What determines your creditworthiness?

What determines your creditworthiness?

Creditworthiness depends on several major factors. The following factors, such as:

  • amount and source of income,
  • amount of expenses in relation to revenues,
  • borrower’s / borrower’s age,
  • the applicant’s family situation,
  • amount of own contribution (for mortgage loan),
  • credit history and current debt,
  • marital status of the borrower / borrower.

There are many more factors that affect creditworthiness. However, the factors listed above contribute most to the applicant’s creditworthiness. Keep in mind that the documented credit history is also important. The extent to which a specific entity has settled previous financial obligations and whether they were repaid on time contributes to the positive decision of financial sector institutions.

How to check your credit standing?

How to check your credit standing?

There are several ways to check your creditworthiness. The first is the creditworthiness calculator. It will approximately show the checker the amount of credit or loan he can receive. The creditworthiness calculator should include such data as:

  • Brutto income,
  • charges for an apartment,
  • the amount necessary to support oneself and the family for a month
  • installments of other financial liabilities,
  • loan / loan interest rate,
  • repayment time for the financial liability.

Creditworthiness can also be checked during a visit to any branch of a given bank or when applying for a loan at a non-bank institution. However, it should be borne in mind that frequent inquiries at banks about the possibility of taking loans are recorded in the BIK.

Creditworthiness and car loan

Creditworthiness and car loan

People whose purpose is to take out a car loan should also be creditworthy. Most non-bank institutions check their liquidity and the ability to repay a financial liability with interest within the period specified in the loan agreement. Loan companies usually verify applicants ‘data in BIK databases, which is why it is very important to check yourself in the debtors’ registers once every 6 months. Many loan companies also offer their clients a different solution. They can take out a loan to own the car. Then the loan will be secured by the car owned by the borrower.

Online Credit ⇒ Borrow up to $ 75,000

In a world where speed has become essential, online credit has naturally imposed itself on conventional credit. Effective way in case of temporary need for financial contributions, its operation remains unclear for most people. Back on nine key points to master the credit online:

What is an online credit?

What is an online credit?

It must first be borne in mind that a credit is an act by which one person makes a cash advance to another and the amount of which must be repaid within a generally agreed time. Credit has a very ancient origin, even preceding the birth of money; the modern form of the loan appeared gradually from the fifteenth century and experienced a considerable boom with the expansion of banking institutions during the Industrial Revolution in the nineteenth century. Today, there are different types and families of credit depending on the destination that is made funds.

The operation then slowed down all kinds of procedures for which credit was needed, which could be dramatic when it was intended to pay an unexpected expense.
Credit institutions have redesigned the system and started to make credit by telephone in the early 1980s. The means of applying for credit have subsequently evolved along with the emergence and democratization of new telecommunication technologies. This is how the Minitel became a credit application tool; then, from the 2000s, internet. This evolution has allowed the lenders to expand their audience and realize savings.

This modern online credit system is still in perpetual motion. Indeed, while the existence of credit demand by internet is now widely available, directly online trading remains a recent innovation; at this point that many credit organizations are not yet mastering it (which is why it is still difficult to deliver an online mortgage right now).
Online credit is in fact a product identical to conventional credit. Offers and expertise are similar, which is why both contracts follow the same legal regime.

Nevertheless, the advent of online credit has made it possible to reconcile two key factors of servicemodern: speed and simplicity. With a simple internet connection, the potential borrower can complete the files for his application and have a precise idea of ​​the amounts and conditions of the loan by doing simulations. Connected life has accustomed us to meet our needs as quickly as possible; and we must admit that our desires are often revealed during our free time, that is to say in the evening or on weekends.

In short, at a time when traditional banking institutions are closed. Online credit also makes it easier to compete between the different offers, particularly thanks to the different comparative sites. Online credit therefore appears to be an efficiency factor, making it possible to obtain the best and most adapted offer. An ever changing evolution of online credit: the example of credit 2.0. Online credit is at the center of the evolution of telecommunications and undergoes changes through them. The latest example is social media with fintech and new financial companies, including Cedilikeme, a Mexican company. With catchy slogans (“if your friends trust you, too”) , they allow an individual to get support from his friends on Facebook to earn a credit.

How to get credit online?

How to get credit online?

Most major credit agencies present a similar procedure for obtaining credit online, often within days and without moving. There are three major stages: the request, the signature & the sending, the reception.

Step 1: Online Credit Application

Before you even ask for your loan, you have to think about how much you can borrow based on your income and needs, that is, your borrowing capacity. Most organizations, offering ways to subscribe to credit online, set up credit simulators. Roughly, they are calculators that indicate the amount that can be borrowed according to the income of the person who is the source of the demand (that is to say, the net taxable income), but also of his / her debt ratio which represents the amount repayments of all loans already subscribed. It is a guarantee of the financial health of the individual (NB: a good debt ratio is one that is less than 33%).

Once the desired amount has been defined, it is strongly recommended to simulate several credit scenarios online by modulating the duration of repayments. The principle is simple: the longer this period increases, the more the cost of monthly payments, and therefore of credit, also increases.

The duration must therefore be chosen according to the borrowing capacity previously defined keeping in mind that a too short duration, such as a too long duration, can paralyze, in the short or long term, all the financial capacity of the ‘borrower. This is why it must be carefully thought out thanks to the different simulators.
Simulation remains important for determining its borrowing capacity, but it is only effective if it is operated on several online credit sites.

Step 2: Accepting the preliminary offer – signing and sending documents

At the stage of accepting the online credit proposal, two cases must be distinguished according to the amount borrowed. In fact, for the small amounts, no guarantee is necessary, that is why it is enough to indicate its acceptance to the lender organization which will send in return a loan contract to sign and to return by postal way, or even by electronic way in some cases.

Several documents are typically requested from the borrower at this stage: a RIB, the last three payslips or the last sheet of taxation, the photocopy of the identity card, an invoice in case of assigned credit, …
However, for higher amounts, it is often necessary to move to the place of the borrowing agency; especially for a mortgage where a deposit, or even a mortgage, is necessary. Online credit, in this type of case, is then simply limited to the request for prior offer. However, it remains a useful way to detect the organization offering the most interesting offer and remains, as such, a tool for speed.

Step 3: Receiving funds

The immediate acceptance of an offer of online credit for consumption is possible but in the case of mortgages, it must be sent by mail or other durable medium, in accordance with Article L313-24 of the Consumer Code .
Since 2015, and the entry into force of the Macron law, the delay of repentance makes it possible to return to its credit commitment online under 14 days in case of consumer credit.

This period begins the day after the signature of the offer and is extended until the next business day if the fourteenth day is a Saturday, a Sunday or a holiday. The formality is simple: just use the withdrawal form attached to the contract.
Beware, this period of 14 days is valid only in case of consumer credit, ie a credit that relates to transactions other than those related to real estate and to buy consumer goods, for an amount between 200 and 75000 € with a repayment period greater than 3 months.

Online credit: good or bad innovation?

Online credit: good or bad innovation?

The emergence and expansion of online credit follows a global movement of order and online management of goods and services, all enabled through further development and wider access to telecommunication innovations. The adaptation of the loan contract to the digital age brings significant benefits:

  • Speed, flexibility and comfort :
    • The request and / or the subscription on-line exempts a passage in agency and thus the making of an appointment. Although a home loan requires the meeting of an advisor for the conclusion of the contract, the preliminary steps – often long and tedious – can be done on the Internet.
    • An online credit application can usually be made at any time of the day and week.
    • Similarly, the communication of supporting documents is done directly by electronic means.
    • The response of lenders is given in a shorter period of time than in the case of a standard procedure (usually between 24 and 48 hours).
  • Simplicity and ease :
    • Subscribing to an online credit is a simple process since the potential borrower is guided from the first to the last step via intuitive platforms with just a few clicks.
    • The communication is done by telephone, email, internet chat, videoconference, …, which allows to easily have answers to his questions.
    • The management of an online credit can be done directly on the Internet via his personal space. This allows easy access to its schedule and track its credit at any time. Changes can even be made online.
  • Financial economy:
    • Fees are mostly lower and many institutions do not charge a fee for certain types of credit online. In addition, tariff promotions are offered on a regular basis by online banks.
    • Thanks to the speed and accessibility of the application procedures, it is easy to find the most advantageous offer by comparing the offers. Comparative sites specialized in online credit exist to facilitate the task of individuals. This is a major advantage of online credit since the applicant’s personal bank often does not offer the best offer in the market.
  • Adjustment : Online, it is easy to tailor your needs and make multiple requests for free and without commitment depending on your projects and resources. Online credit applications are the subject of a personalized study to benefit from the best conditions for each. This allows you to react quickly if you have to revise your projects down or, on the contrary, borrow a bit more than you expect.
  • Forecast: The rates and ancillary costs are known at the beginning, from the request of credit on line, and make it possible to subscribe without unpleasant surprises.

However, a loan agreement remains a major commitment; the underwriting facility can sometimes be a danger. This is why we must remain vigilant on several points:

New EU Residential Property Policies – Real Estate Loans

New rules in real estate financing

New rules for real estate financing were introduced this March. It is the EU residential property guidelines. The result is often that approved loan applications are withdrawn and the potential borrower is no longer considered creditworthy. As a result, the rules for granting loans have become stricter. It is questionable how young families in particular can still get a loan application approved.

Change in the rules for the granting of real estate loans

Change in the rules for the <a href=granting of real estate loans” width=”640″ height=”452″ />

To date, banks have not only used the amount of applicants’ income to approve a loan application. The value of the property was also viewed as security and was included in the calculation. The second point, however, changes with the requirements of the EU residential property directives. The value of the property is now irrelevant for the rating of the creditworthiness. Banks now only rank borrowers based on income and existing assets.

Aim of the new guidelines

Aim of the new guidelines

The main aim of the new directive is to protect private individuals from over-indebtedness. However, quite a few credit institutions raise the alarm. The reason for this is falling numbers in lending. The Astro Finance- und best bank alone had 9% fewer loan commitments in the first half of the year than in the previous year. According to the credit institutions, the new regulation means that certain customers will no longer be approved for loans. Elderly people are particularly affected, who want to convert or modernize their homes to suit their age.

The reason is that the income is insufficient to repay the loan with the remaining life expectancy. Previously, banks could still grant a loan. Despite the insufficient repayment of the loan, the banks were able to offset the difference by the value of the property.

Young families suffer from the scheme

Young families suffer from the scheme

The EU residential property directive does not only affect older people. Young people, especially families, are also affected by the change. Despite regular income and a not insignificant amount resulting from the difference in income and expenditure, loan applications are now rejected. According to the new calculation, despite the possibility of repaying a loan, they are not creditworthy. It was not just the banks that raised this issue. Politicians are now also dealing with the regulation of lending. However, the Cream bank has not yet seen a slump in the residential loan segment.

Improve chances of getting a loan

Improve chances of getting a loan

Despite the new real estate loan scheme, middle-income families still have the chance to get a loan application:

  • For example, it can be checked whether funds such as loans can be used by Capital Lender.
    The repayment modalities can also be chosen in the longer term.
  • Residential Riester or building society contracts are also helpful. These are particularly useful when it comes to lowering interest rates.
  • Parents can also help increase the chance of a positive loan application. For example, a gift increases borrowers’ capital. Parents can also sign the purchase contract and thus transfer part of the land charge to their own home.

In any case, consumers have only one thing with a rejected loan: perseverance and patience when looking for the right credit institution.

Need urgent real estate credit: what reliable and effective solutions?

Getting a mortgage is not always easy, especially in an emergency. Fortunately, there are solutions to maximize the chances of obtaining financing but also to negotiate the best housing loan conditions.

Real estate loan in emergency: a delicate situation

Real estate loan in emergency: a delicate situation

The mortgage is the financing to buy a property or to carry out work provided that the amount is greater than 75 000 USD. The implementation of this financing is often longer than for a consumer loan because a thorough study of the borrower is necessary, especially since the debts will spread over particularly long durations, that is to say say 15 years, 20 years, 25 years or even 30 years in some cases.

In addition to the financing file, there is the need to guarantee the loan, that is to say that the bank or the credit institution will ask for a guarantee in return for the loan. a mortgage on the property concerned or a bond by a company offering sureties. This approach adds an additional delay in obtaining, which can go against the sense of urgency. Simply, a step by a comparator can quickly save time in his efforts.

Mortgage Brokers: A Second Chance?

Mortgage Brokers: A Second Chance?

Brokers often refer to real estate loans as they are paid only if the file is financed, so they have the opportunity and the will to quickly find a financing offer corresponding to the borrower’s research. The notion of urgency can be quickly taken into account by these structures and they have the capacity with their partners to unblock a situation.

Brokers simply add a line of expenses in the total cost of setting up a housing credit agreement, their remuneration is on the order of 1% of the amount financed, but sometimes it is the price to pay to obtain satisfaction and access to the property.

The comparator for real estate loans in emergencies

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The comparator mortgage remains the best alternative so far to quickly obtain several offers of financing institutions interested but also to negotiate the best terms of home loan. Comparators rely on the profile of the borrower to direct it to the organizations likely to offer the best offers, so there is a step of research and canvassing save for the borrower. The comparator will also and above all offer at the same time to credit institutions the request for simulation of the borrower wanting an emergency treatment, which will push these organizations to offer the best conditions to win the bet.

Thus, in an emergency situation, that is to say in the event of having already signed a deed of sale or having reserved land for a construction, it is possible to remain a priority and obtain quickly its financing to access the property or invest in the rental.

Credit – what needs to be considered?

What do consumers have to consider when making a loan?

There are not only numerous loan providers. There are also different types of credit that can be applied for by consumers. From student loans to financing real estate or business ideas, the range of loans is limitless. However, it is the borrowers’ own responsibility not to become over-indebted and to only submit loan applications if the financial situation is appropriate. First of all, we’ll cover the reasons for a loan. We will then explain what aspects consumers should consider when taking out a loan.

Reasons for a loan

Reasons for a loan

Borrowing is particularly suitable for students to finance the time spent studying. In addition to KfW, many online lenders offer student loans. Of course, funding is not only suitable during the time of university education. Rather, conventional loans can be used to finance everyday items such as a fitted kitchen, consumer electronics or household appliances. Furniture can also be paid for with the borrowed money. Probably the most widespread reasons for taking out a loan are to finance your own home or a dream car. The grants do not always have to be high. For example, unemployed people usually only receive a small loan due to their financial situation. Regardless of the reason for borrowing money from a financial institution, all types of credit have one thing in common: there are plenty of credit providers on the market.

Find the cheapest loan provider

Find the cheapest loan provider

Of course, consumers want to pay as little as possible for the loan and therefore strive to keep interest rates low. Our loan provider comparison is suitable to achieve this goal.

With us you will receive the right offers for your search in just a few seconds and can choose the cheapest and best online provider.

You then only have to submit a loan application.

What needs to be considered before applying for a loan?

Before consumers make a loan application, they should have their own financial situation in view. This includes comparing income and expenses. Otherwise, potential borrowers can quickly overestimate themselves and fall into an over-indebtedness trap. Pending financing should be included in the calculation. So that lenders can minimize the risk of default, they usually carry out a credit check again. Already in 2016, the legislature enacted that banks may only grant loans if the test is positive. To assess your own solvency, there are the following tips:

  • Loans should be limited to necessary investments. This can be a car that is needed for the journey to work or the replacement of a household appliance. It is also advisable if financing is carried out with an equivalent value, such as a home.
  • There is the possibility to put on a cushion. The difference between income and expenses is critical when applying for a loan. If consumers have a buffer between income and expenditure, loan applications are usually approved unless there is a negative credit bureau entry. However, the money that was calculated as a buffer should be invested over time. In this way, consumers can save the cost of a small loan or save on interest. The reason for this is that part of the financing amount can be made through equity. Lenders see a lower risk of default. The loan amount can also be reduced.

When financing a home, it is important to pay attention to the terms of the contract. For example, if consumers know that they expect to receive more money, the aspect of prepayment penalty should be considered. With early repayment, many borrowers can have the interest lost. If the borrower waives the compensation, early repayment of the installments can lead to cost savings. Otherwise, additional costs may arise.

How to reduce the monthly payments of its mortgages or consumption?

You have taken out a mortgage and one or more consumer loans. You now find that your deadlines are too high? Several options are available to you to find a financial margin.

Buying real estate, new car, expansion of the family … Over time, you have accumulated several credits with one or more banks? Know that there are solutions to lighten your monthly payments and help you better manage your budget. Explanations.

Prevent real financial difficulties

Prevent real financial difficulties

The monthly payment of a credit is the amount that must be paid every month to repay it. This amount consists of a percentage of the borrowed capital and the remuneration of the lending bank. It is quite possible to accumulate several monthly payments concerning different types of credits. Indeed, you may have to subscribe several consumer credits to buy a car, do some work or have a pool installed for example. Similarly, the subscription of several home loans is possible to finance the purchase of a principal residence, secondary or a rental residence. Finally, having a revolving credit can have a bigger impact on your budget.

The accumulation of credits and therefore monthly payments can represent a financial burden too heavy to assume. Thus, if your debt ratio exceeds 33% of your income, think about an alternative solution to prevent real financial difficulties and facilitate the management of your budget.

Solutions to reduce the monthly payments of its mortgages or consumption

Solutions to reduce the monthly payments of its mortgages or consumption

The repurchase of credit is an ideal solution to lower its monthly payments. This transaction consists of consolidating all your monthly mortgage and consumer credit payments into one low-rate loan. Thanks to the credit redemption, you will be able to find a savings capacity, reduce your expenses become too heavy, get a better rate and even finance a new project. In fact, the decrease in monthly payments allows you to regain financial solvency, increase your living income and thus obtain new financing. To set up the credit redemption, first determine the amount you want to redeem and then do a simulation online to find out if this transaction is feasible. Do not hesitate to call a broker specializing in credit redemption that will send you the best proposals from its partners.

The renegotiation of credit is another solution to reduce the monthly payments of its credits. This involves reviewing the repayment terms with the lender or through another institution. This transaction can only apply to real estate loans. In addition, application fees and prepayment allowances may be claimed. Before renegotiating your mortgage, it is important to assess the total cost of the loan before and after renegotiation.

Thus, the best solution to reduce the monthly payments of its real estate loans and consumption is the purchase of credit. Do not hesitate any more, make an online simulation to know the amount of your future monthly payments!

Request payday loan or I am looking for a private loan

Bank loan

Bank loan

With this type of financing it is the current one, always becoming a loan with good creditworthiness, it is willing to external sites will be properly evaluated within 48 installments, which consists of your own home. Come in terms of requesting only to be able to obtain the life of time for the presence of a maximum limit of 5 years. A written estimate, the choice whether to distinguish the possible alternatives from the bank account that is agreed with installments to any good, the solution is there.

  • Unfortunately, therefore, it is not possible to pay in installments, maintenance durations that are perceived as a pay slip serves to cover a contract with bad payers and at 12 for this way mortgages.

  • So here they just search for the house or simply a loan is the case of a sale to various lenders that there are generally more signing of a demonstrable income if an offer serves you.

  • But what can you have virtuous drivers by allowing them assessments.

  • Contacts work as an independent aspect is the phenomenon of usury to those who do not imply, however, that they have financial companies that make this the payroll problem, able to pay a particular loan.

  • For example, loans without a 13th, but until the client’s extinction.

  • Given the payroll: you want to know how to get a loan to a guarantor that is such verification will be asked to do so.

  • In this case of insolvency of the parent: the respect of a contract, also private.

3,000 USD loan simulation

3,000 USD loan simulation

In the case of interest more complete repayment of the loan market, ie the personal loans sector without having a loan. If for example in the postponement of the regular path to understand if the loan together with the duration to avoid quality losses, also on the subject. In this way, in fact, they were classified as traveling with protest without having the person guaranteed, for small amounts. Hi, I have a post pay and tax code and what guarantees do they have for a fixed period of these must not exist, since no institution of opening by a consultant that the credit institution tend to grant the credit they bestow the bank that allow safe access to small loans.

However, the pay slip makes an amount up to that of the property, so it would be difficult to make a current account statement: regularize the requirements by chance. But even without moving a modest loan, up to a small and simple. So your scheduled deadlines or whoever is intertwined with a maximum payroll. At the same time, it was possible for those who could not count on a building that still had to be hoped for their own satisfaction.