Our advice before entering into a loan

During your life, you will often be offered to satisfy your wildest desires and projects through consumer credit … often accompanied by a short-lived and unmissable offer. You are tempted, you think about it, you educate yourself, compare via comparators, … but what to do? Go? Is it risky?

The best thing to do is undoubtedly to continue reading this article which will allow you to make the best decision or to follow the video of our Coach. Here is a list of criteria that will allow you to identify which borrower you are and make the best decision.

 

Is this an absolutely necessary credit?

credit loans

You do not have the choice. You need money to pay for studies, university fees abroad, yours or those of your children. You have to insulate your house which no longer retains humidity and cold, you have to buy a motorbike or a car to go to the job you just landed, you have to pay important medical costs… The list is also long and unexpected than a lifetime .

The advantage of this criterion is that it presents an easy decision to make. This is an investment that needs to be made.

If you’ve identified how you can pay back without getting in trouble, then compare the deals and sign up for the best deal without remorse.

To help you manage your credit well, don’t hesitate to also read our article “How to manage your consumer credit?”.

 

Is it a selflessness credit?

loans

This is the most difficult conscience case to resolve in the area of ​​credit. You do not want to satisfy your own desire, but to please someone who is dear to you without having the means immediately.

The examples are endless, taking your children on vacation, offering a jewel to your fiancée for this famous request, paying for your wedding and offering a memorable day, playing too generous Santa Claus in your large family, or helping a loved one in a difficult situation,…

In this case, this is no longer an investment, but an expense on which you will have no financial return and will find nothing in return except the inestimable gratitude from the person who receives it.

Our advice is then to give in to this desire or this madness only if you have taken the time to estimate your repayment capacity, but especially if you think that this expense is perfectly exceptional and should not happen again in the coming months.

The risk on this criterion is not on the first credit, but on the second or third credit that you risk to chain. It is often the accumulation of credits that creates complicated situations.

 

Is it a self-reward credit?

self-reward credit?

What could be more legitimate? You work, you save, you start to dream. Financial institutions tell you that you can already claim property or leisure right now, when you thought you would have to save for several more months. So that’s it, you can start to consider a vacation in New York or Bali, you can push the door of a scooter dealership, you can test the latest smartphones, you can, you can,…

We are here in the most classic criterion. The banking establishments simply offer you to save time in exchange for the monthly interest payment.

In this case, do not rush … right away. Take time to think. First identify the amount of due dates, because this is what you will have less to make you happy every day. See far and not only when the project is due, but when the interest is due. A trip lasts two weeks, three weeks, a month but the deadlines last several years.

 

Is it a small supplement credit?

supplement credit?

The vision is great, the project is immense. You borrowed to buy your house and obviously included all the work. All of them? No… you saw a little right and the complete renovation of the bathroom is still missing.

Is it necessary to borrow for additional work?

Our advice is simple. You already have a mortgage, you have already done a lot of work that has already given you all satisfaction. In this case, we advise you to take the time to save. You can reassure yourself on your ability to repay your mortgage.

 

Is it facility credit?

facility credit?

You have noticed that your income does not always cover your daily expenses. You then observed “cash flow gaps” which created “agios”. If the situation has tended to renew itself, your banker may have offered you a “revolving credit”. or “revolving credit”.

This type of credit is more and more widespread. Simple to use, it’s a line of credit to use whenever you want, with a maximum amount of use. It costs you nothing if you don’t use it (if not any management fees). This credit has the advantage of being reimbursed very easily since there are no penalties for early repayment.

This is rather reassuring when you have little money in your current account and no savings, because in the event of the unexpected, you have the ability to pay at any time, without calling your agency, day or night.

The danger is that the response to a one-time event can very quickly turn into continuous use of a loan with a high interest rate.

We therefore advise you to subscribe to it if you may have low and ad hoc cash needs, which if necessary would lead you to overdraft situations. But always be vigilant. The worst reflex would be to use the maximum reserve for reckless needs and never manage to repay it. You will then pay significant interest, be unable to cope with unexpected events, and may even be overdrawn again and … will have reduced your debt capacity.

 

What borrower are you?

What borrower are you?

So which borrower are you? 1? 2? 3? 4? 5? If you manage to locate yourself, you will be able to borrow (or not) knowingly. If you are embarking on a loan, we suggest that you use our credit comparison tool.

Instant loan with instant approval.

The instant loan with immediate approval without Credit Bureau from abroad. When is it worth taking out a loan with an instant commitment? What are the advantages of instant loans over banks? Instant Credit does what it promises, online banks advertise with an Instant Credit, which is also known as an instant or express credit. The borrower has the impression that his application is processed immediately and therefore very individually.

Instant credit with Social Welfare credits 

Instant credit with Social Welfare credits 

Some experts believe that there is no immediate credit with Social Welfare. The economic situation in which a Social Welfare receiver finds itself is certainly not ideal in order to be classified as creditworthy. It should not be overlooked, however, that Social Welfare recipients do not choose this situation on a voluntary basis.

As a Social Welfare recipient, you will hardly be able to independently adapt your lifestyle to your new financial situation. So nothing is more obvious than the loan request despite Social Welfare, because in this life situation you are dependent on financial help like in no other and are often suddenly and surprisingly surfaced.

Unfortunately, however, many credit institutions do not face these facts, but rather pay more attention to maximizing their own profits. Granting an instant loan with Social Welfare should not help you. The securities are missing bank details from Social Welfare recipients. However, these are all points that a Social Welfare recipient can only prove to a limited extent legally. In the end, one is often forced to use potential savings before receiving unemployment benefit II.

At this point, however, you should check how far your precautionary measures go, if you have taken them, Social Welfare is invested safely and can now be made available to you as a Social Welfare receiver. An instant loan with Social Welfare can also be your life and pension insurance, for example, which you can add up to 16,250 in addition to your office money. 

This way you can see that there is an opportunity to get an instant loan with Social Welfare, even if it was not granted to you by any of the banks.

Online credit with instant commitment

Online credit with instant commitment

With Credit Scout, you can search for your online loan as a cheap quick loan or an instant loan with immediate commitment. Make the comparison What lies behind the instant loan of many service providers who advertise online loans and are always one step ahead when it comes to creditworthiness comparisons.

Legitimacy on the spot. With an instant loan, you can take part in new circumstances at any time and without complications, without delays.As an online loan with immediate approval, the amount of money is quickly approved for you and with a lightning credit you also have the payment to the instant loan, the payment is already after 24 hours, because after a shortened credit check you will receive the immediate approval with acceptance. We will collect your credit immediately and completely, from the non-binding instant credit comparison including early online switchover.

All about auto credit

Are you thinking of buying a car and looking for a car loan suited to your needs? Start by finding out about the characteristics of this financing granted by banks and financial institutions in the form of an installment loan which will allow you to obtain the necessary budget, and this, with repayment terms fixed in advance.

Everything you need to know about the car loan.

Learn the jargon related to car credit

Learn the jargon related to car credit

As of the phase of research on the internet, you will be confronted with vocabularies specific to the medium of the auto credit and it is better to inform you before the phase of negotiation with the banker who will grant you this auto financing. Thus, you will receive a prior offer of credit after the online simulation of your car loan.

This document must include your contact details and those of the credit institution, specify the nature and the price of the car to buy, present the characteristic points of the credit which are inter alia the amount borrowed, the repayment period, the effective annual rate. global or APR, insurance costs, the date of submission of your prior offer and the number and cost of installments.

For individuals wishing to subscribe to auto financing, financial organizations often offer an assigned loan contract, that is to say that the funds granted to you will only be used to acquire a specific property, in this case a car whose brand, category and type are specified in the order form or the invoice which will have served as proof of purchase.

Why do car credit simulations?

Why do car credit simulations?

Many car loan offers are available on the Belgian market, so it is essential to compare them to find the best offer.

This step is made easier thanks to the arrival of online simulation tools, comparators which act as virtual calculators to calculate your car loan according to the amount you want to borrow and the repayment duration that suits you. Thus, you will only have to indicate this data to obtain quotes from credit institutions and you will only have to choose the one at the most advantageous rate.

Credit with online decision – go with the right decision.

Taking out a loan is an important decision. If a loan should go relatively quickly, an instant loan is probably the right decision. The decision is made within a few seconds. There are some providers in Austria that specialize in making a particularly quick decision for or against lending. Comprehensive credit check the credit decision and your loan agreement.

Finally comes the ski tour.

Conclusion: Since the election on September 21, 2018 with the clear no of the Liechtenstein population, the topic “Tour de Ski in Liechtenstein” has finally appeared on the market. Apparently, the municipality of Vaduz, together with an unknown donor, helped the Liechtenstein Ski Association (LSV) plan a turnaround with surprising…

Therefore, at the end of the 300th anniversary of Liechtenstein at the end of 2019, a tour de ski stage will take place in the Warsaw region. Because the loan from the municipality of Weduz is “only” 100,000 USD and the remaining 300,000 USD will be taken over by the anonymous donor, no referendum can be carried out against this decision.

Although the LSV had rejected the International Ski Federation (FIS) after the failed election in October and since then the FIS has been looking for an alternative location, the FIS authorities are hardly going to avoid the decision. “So far, the FIS has not given any free space for Waduz, as the next meeting will only take place in early April.

Open, invest and trade online

 Open, invest and trade online

Get a loan of USD 50 and open your first free direct investment by April 30, 2019. You have created a good basis for investments in investment funds, trust funds, shares and the like. We’ll make your start as easy as possible. Open your direct depot with all the plus points in just 3 steps: Are you already a customer? Not yet.

With our securities savings plans, you can get more out of your assets starting at USD 50 a year. You can invest in investment funds, stocks, ETFs with certificates. Simply our cheap direct warehouse. With our Good Finance you can easily build up your assets with equities, funds & Co. for the next generation. You can even start on the side – whether with a securities savings plan from USD 50 per calendar month or a one-off investment from USD 500.

From now on, you can trade titles comfortably and reliably directly in the application. An improved overview of the portfolio, information on securities and financing instruments as well as the new search support you in finding, buying and managing your papers. Are you satisfied with our direct depot? Now with just one decision to become an investor.

Real estate loans: what will be the trend?

Mortgage loan rates are up slightly at the end of 2019. Will this trend continue in 2020?

Real estate brokers are observing certain signs of an evolution in the behavior of banks at the end of 2019. Indeed, several banking establishments have tightened their conditions for granting credit. What will be the trend in mortgage rates for 2020? Response elements.

 

Probable tightening of loan rates

loan rates

At the end of the year, loan rates remained broadly stable, at 1.05% on average over 15 years, 1.25% over 20 years and 1.45% over 25 years. According to broker Vousfinancer, the slight rate hikes observed at the beginning of November ranging from 0.05% to 0.15% only concern certain profiles, in particular low-income borrowers, and long loan durations. Conversely, other banks that have not yet exceeded their credit production targets continue to grant record rates to the profiles they wish to capture.

Thus, after a particularly dynamic year in 2019, despite the lengthening of processing times and the tightening of credit granting conditions, several brokers including Vousfinancer believe that mortgage rates will remain attractive in 2020.

 

Banks that don’t lend as easily

real estate loans

While they have been significantly relaxed throughout the year, the criteria for granting credit seem to be tightening. In fact, 95% of brokers made this observation in 2019 (64% in 2018) for all borrower profiles (75% of brokers) or only certain profiles (19%).

According to market professionals, most banks are more stringent on personal contribution, available savings after operation and income. Several banks are now refusing to finance certain riskier or less profitable profiles and in particular 110% financing which includes the amount of the property and all of the costs linked to the credit.

 

An increase in application fees

An increase in application fees

Most French banks and regional establishments have unveiled their tariff grids for 2020. While interest rates should remain low, this is not the case for administration fees. Cream Bank and Best Bank have already increased their prices.

Application fees can be particularly high for the borrower. Included in the annual effective annual rate (APR) which must appear on any loan offer, they directly impact the total cost of the credit. These costs are calculated from the amount borrowed and generally represent 1% of the capital. In concrete terms, this percentage will not be revised in 2020, unlike the amounts of the floors and ceilings applied to the application fees. In other words, as of next year, several banking establishments will impose minimum and maximum handling fees on their customers.

The higher the floor amount, the more the low income borrowers are penalized. Cream Bank thus raised this amount from 400 to 500 dollars to free up more margin on the mortgage loans it offers. For its part, Best Bank will increase its ceiling amount by 20% in 2020, increasing it from 1,000 to 1,200 dollars. As for regional establishments, a third of them anticipate an increase in application fees for next year, knowing that not all of them have yet published their price list.

To save money, borrowers can try to negotiate their fees by highlighting their strengths (income, personal contribution, professional situation, etc.).

 

Banks Seek Separation From Brokers

bank

In return for a competitive credit rate, borrowers often pay a high price for loan insurance. Indeed, at the time of subscription, the banks systematically offer their group contract based on the pooling of risks. However, customers are under no obligation to subscribe to it. They can bring competition into play, notably by calling on a real estate broker. Banks thus see their margins decrease in favor of insurers.

A conflict now seems declared between banks and brokers. Some financial institutions have already stopped their partnerships with brokerage networks in order to improve their margins. While some believe that banks have less skills than them to manage mortgage loan application files, others believe that banking players will maintain their partnerships with the most efficient brokers based on the volume of business, the size and quality of the files processed. In this hypothesis, brokerage networks of significant size and structured will be favored.

Loan in 24 hours payout without Credit Bureau.

 

If the Credit Bureau shows several loans, if there are loan cancellations or if reminders have been issued until the execution, there will be no loan with payment within 24 hours. The bank considers the default risk to be too high. Immediate loan without Credit Bureau & credit check Immediate approval Immediate payment in 24 hours Direct online loan application Direct loan without Credit Bureau in 24 hours. It is really in financial trouble. To solve this, I need a loan in 23 hours of disbursement without Credit Bureau.

Is there a credit within 24 hours of payment without Credit Bureau?

Is there a credit within 24 hours of payment without Credit Bureau?

In this context, the general question should first be how you want to pay off the loan. At first glance, USD 500 may not be worth much, but it must be possible to give it back to the donor. You can contact the relevant broker or service provider to raise the capital yourself.

You also have the chance to find a guarantor, so you may also be able to get support from your bank. Decide on the first version and want to cancel the loan alone. There are not many options left. Because a loan amount of USD 500 is granted very sparsely.

However, this provider is very special because it wants to get the money back from you within 60 days. So you don’t get a installment loan, but borrow the cash for a certain time and then pay it back in full. In addition there is 7.95% interest, which is retained on the amount of money.

If you choose the second option, you are looking for a guarantor and try your feeling of happiness again at your bank. If you have a solvent guarantor who would be liable to you, it is relatively easy to persuade your bank to increase your disposition. This is relatively quick and you definitely have your own budget within the desired 24 hours.

Is the guarantor liable?

Is the guarantor liable?

However, you must note that you have to take the guarantor with you to your bank as he has to sign the contract. Not only can you claim that you know the Mr. Zy that will help you, but you must of course also introduce the guarantor and its conditions will be tested. As you can see, it is not so easy to have a specific offer for you.

But, if you experiment a little and see a little what is possible, there are options for your credit. However, as a professional, I would recommend that you only put your loan into practice when it is really necessary. Don’t take the small change necessary to buy great things, only take it when you really need it.

They have an unfavorable credit rating and presumably liabilities here and there. 

What credit for your smartphone?

Needless to say, smartphones are expensive and increasingly expensive. To name only the famous Iphones, their prices can reach up to $ 1,329 for the 256GB Iphone X. These products are certainly an increasingly developed technology and their use more and more frequent, the fact remains that it is not always obvious to offer them when one is short of money.

So if Santa Claus did not bring it this year, and if the need to renew it is perfectly essential, there is still recourse to credit. And there are many forms.

 

Financing through consumer credit

Financing through consumer credit

This solution is easy and quick to implement. Since the loan amount rarely exceeds the threshold of $ 1,500, you will generally not be asked to provide many documents. ID and one to three salary sheets should suffice. Before choosing your funding organization, we recommend that you consult the bestfinancer.com comparator, which is very simple to use and will not ask you for any information. Select the category “personal loan”, the duration and the amount requested, and you will have an immediate comparison.

Once you have selected the funding organization and signed a contract, you will receive the amount and can directly buy your new smartphone.

The only additional advice that we could give you at this stage, is not to choose a duration greater than 3 years. We know indeed that the average lifespan of a smartphone is of this order, and it would be a shame to reimburse a product that you have to change (unable to load new applications or update the operating system).

 

Vendor financing

Vendor financing

This solution is not new and even simpler than the previous one. You just need to inquire on the internet to quite easily find physical stores or online stores that offer it. In addition, 0% credits are sometimes offered.

The Finelenders Finance offers for example the financing of smartphones on 3, 5, 10 or 20 monthly payments. On the other hand, we advise you to carefully study the APR proposed according to the chosen monthly payments. This can range from 0% to rates above 10%. It is therefore sometimes much more interesting to make a consumer credit with a specialized organization rather than to subscribe with the seller. This is all the more true as the sellers generally rely on financial organizations, and the procedures for obtaining and underwriting will be more or less the same.

In addition, sellers will often ask you to subscribe to a store loyalty card which you may not always have the use of or control over.

 

Manufacturer funding

credit loans

This funding is fairly new, and one of the first to offer it is Apple. The firm became aware of the effort required from its customers to acquire its products, and the short duration of use of each model. This is why it offers monthly payments that allow both to acquire and retain customers. The minimum order amount is $ 500. As in the case of financing by the seller, a specialized credit organization makes the financing transaction.

So you can for example order your iPhone or book it now on the Apple website. Apple will offer you a “financing available” line during the purchase process. By clicking on it, Apple will tell you in a completely transparent way the monthly payments that the brand offers and the associated credit rate.

Credit seems easy and simple to obtain, but it will be necessary to carry out the same steps as for a traditional consumer credit.

 

Proposed rate

Proposed rate

Compare the proposed rate at this stage before subscribing directly to the loan presented. It is not necessarily more expensive or less expensive, but you would be well advised to use our comparator at this stage to check that there is not a large variation.

For businesses, Apple offers rental with purchase option (LOA). Entrepreneurs and freelancers can thus choose equipment that they will rent for a certain number of months, and can become owners of the equipment for 15% of the initial amount, or return the equipment and renew it.

You will understand, our advice is always to compare, because the credits, even if they can seem more and more easy and simple to access, always have a cost which can sometimes reach more than a hundred dollars for smartphones.

What is the best credit for giving Christmas gifts?

We are fully entering the Christmas shopping period. This most pleasant period is also sometimes feared because it corresponds to significant expenses.

The average French budget is indeed between $ 50 and $ 200 per child and between $ 150 and $ 500 per adult. If we consider an average family of two adults and two children, the budget can therefore range from 400 USD to 1400 USD , or even more … just for gifts.

To this is added the cost of meals, as well as the cost of all trips to join the family or families, without forgetting all the small expenses such as the Christmas tree, decorations, costs related to New Year,… and sometimes even ski holidays or abroad. In short, the list is long and the bank card is in great demand.

The savings of some may be sufficient to cover these expenses, and the 13th month or the end-of-year bonus for certain employees may bring the last dollars necessary to make up the Christmas budget.

But for some, this will not be enough. One possibility is to take out a small loan to finance these expenses.

 

What credit for Christmas?

credit for Christmas?

The banking establishments do not strictly speaking offer a credit allocated to Christmas expenses. There are three possibilities to give the last boost to Christmas shopping: a sign card, personal credit or revolving credit.

 

The store card

store card

Almost all major brands offer it, the store loyalty card accompanied by payment in installments at no cost or with interest.

This card is very attractive and many subscribe to it for a simple reason. With a few documents (generally identity card and sometimes payroll), the borrower can access it. It is proposed very naturally and removes any constraint of contact with a credit institution. In short, it’s very simple and quick.

However, we will have to be vigilant. Indeed, the store card forces the borrower to make his Christmas purchases only in this store. Avoid taking one card per sign as this only increases the risk of poor budget management.

Although this card is stamped in the colors and brand of the brand, there is always a credit institution that provides funding and management. This is why the borrower must also be careful about its subsequent use after the holidays.

The first use may correspond to a payment in several installments at no cost, but on reading the contract, the borrower may also discover that the following uses will be accompanied by the payment of interest (sometimes high) and possibly administration fees.

Conclusion, the subscription to this card can be saving in the rush of Christmas shopping, but you have to learn to use it using common sense.

 

Personal credit

Personal credit

This type of credit is also often used at Christmas time. Unlike the store’s loyalty card, it gives you all the freedom to buy in any brand or on any site, since the borrower has the amount he requested in his bank account.

At this time of the year, this type of loan can be judicious because it also limits the amount of expenses.

Prior to taking out the loan, the borrower will have agreed with his bank on an amount of personal credit, and he will receive this amount and not one euro more. It is therefore impossible to allow oneself to be overtaken by madness or negligence. The amount in itself is not very large, the loan will be made for a very limited period, ideally 12 months.

However, be careful, there are incompressible deadlines for obtaining the amount from the borrower’s current account. It is therefore imperative to anticipate the request for credit (ideally two months before for more security and less disappointment).

To know the cost of personal credit, you can use our credit comparator which is updated in real time.

 

Revolving credit

Revolving credit

Last type of credit that can be used, revolving credit can be a useful ally. Like personal credit, it is limited to the amount subscribed. There can therefore be no unforeseen overrun of your expenses. It is preferable if the borrower has a very vague idea of ​​his Christmas budget, which can be the case if he has to make frequent stays or a trip. In this case, he will benefit from a reserve which he will use, either in part or in its entirety.

But beware, the interest rate is much higher. For an identical loan amount, it would therefore be better to privilege personal credit. If the uncertainty of the amount of the expense is not too great and the borrower still has a vague idea of ​​the amount of the Christmas expense, it is sometimes better to take out a personal loan, even if it means borrowing too much and not spend, the difference in interest rates can be so great. So don’t hesitate to ask your bank for simulations.