Monthly Archives: November 2019

Loan or payday loan – when to choose a bank loan and when to get a quick loan?

Credit? Payday loans? Which of these options is better? It depends on the situation we are in and our specific needs and expectations.

Ease of receiving money

Ease of receiving money

Unlike loan companies, banks are public trust institutions and their operation is strictly regulated by banking law. Hence, they cannot grant loans to people who may have a problem with repayment. First they need to verify and assess the customer’s creditworthiness. Therefore, granting a loan takes more time than taking a payday loan.

Repayment Time

Repayment Time

One of the basic differences between a loan and payday loan is the repayment time. As for the payday loan, the name itself clearly tells us that it is a short-term financial commitment. Most often, the full amount should be repaid within 30 days of receiving the money. In some cases it is 60 days, but this is the maximum period.

Credit is a long-term commitment – it can be taken not only for many months, but even for years. The repayment is divided into installments, in contrast to the payday loan, the amount of which must be paid in full at once. This means that credit can be a better option for those who are afraid that they might have problems paying back payday loans. Repayment more stretched in time and spread over installments can certainly be an easier and safer option for many.

Small Amount

Amount of Amount

How much can you borrow? Taking a payday loan, we can usually borrow a relatively small amount, usually in the range of 3000-7000 USD. That’s what such loans are based on – we borrow small amounts for a short period of time. The loan gives much more possibilities in this respect. It can be granted for up to USD 200,000.

Therefore, if we need a larger amount, payday pay will not be a good solution. Credit is a better option if you are planning a large investment.

Expense

Expense

In the case of loans and credits, we must not only repay the entire amount granted to us, but also make additional payments. Banks and loan companies want to earn money. Everything that we will have to pay except the loan or credit amount itself, and therefore interest and commissions, among others, are the costs. Due to the short repayment time, they are higher in the case of payday loans.

However, the differences in costs are not as great as they used to be. Payday loans are lower than just a few years ago. This is because of the new regulations governing the rules for granting loans. Certain limits have been imposed on interest and commissions, so loan companies cannot screw prices unlimitedly at their own discretion. This means that payday loans and loans are now more similar in price.

In addition, payday loans can be profitable in one respect. Some lenders offer the first loan for free. This means that if we take a payday loan from a borrower for the first time, we will only have to pay back the amount borrowed, with no additional fees. Of course, taking more payday loans from the same borrower, we will have to bear some costs.

How do you get a mortgage at low income?

For many people, owning a flat or house is an unfulfilled dream, sometimes the mortgage option becomes unreachable because of too low income. What to do to get a mortgage earning little?

How much do you have to earn to get a mortgage?

How much do you have to earn to get a mortgage?

The sums of our monthly salary directly affect creditworthiness in the eyes of the financial institution. The bank offer of housing loans does not impose the requirement of multiple earnings, a lot depends on what real estate we want to buy, in which region of Poland, the location of the house or flat is also important.

If we are trying to finance real estate in large agglomerations, in the city center we have to earn much more than when we want to buy our future nest in small towns. Currently, with a net income of USD 2,000 a month, we can count on a USD 160,000 mortgage, earning around USD 4,000 net we will receive about USD 300,000 .

The amount of mortgage that we can receive depends largely on our income. However, the bank always takes into account the whole of our situation, even at minimal rates we can apply for a mortgage.

What can you do to improve your credit standing?

What can you do to improve your credit standing?

When we earn little and want to increase the chance of dream four corners, we need to improve our credit standing. For the bank, a stable financial situation of the future borrower is important, the basis of income is of great importance. It’s good to think about it and try to negotiate with the employer a form of employment in the form of an employment contract, preferably for an indefinite period, low wages will compensate for regular and regular income.

Before applying for a mortgage, it is also worth taking up additional work to support your home budget. When applying for a loan for an apartment, you should opt out of credit cards and limits granted on your personal account. Earning little you also have to minimize expenses, because the bank always checks what amounts we spend on monthly maintenance.

How to get a mortgage earning little?

How to get a mortgage earning little?

Having a loan against real estate in perspective, it is good to pay off all debts so far and settle financial obligations. A positive credit history is always a big advantage in the eyes of the bank.

A good solution is to take out a mortgage with a high creditworthiness, it’s good to look for a trusted person who will agree to vouch for the commitment. You can also consider a loan for a house or flat with a co-borrower, it is good if you have high creditworthiness, in which case it significantly increases our chances for the necessary funds.

It is also worth starting negotiations with the bank and applying for a maximum loan period, which may be 35 years, which will reduce the amount of monthly mortgage installments.

How much credit do I get?

Nowadays, most major purchases are financed by a loan. How much credit the individual gets depends on various criteria. First and foremost, it’s about what the loan should be used for. We a normal consumer loan apply different criteria than for the car purchase or possibly real estate financing.

Banks or savings banks must ensure that the borrower is able to repay loan installments and interest over the entire term. The higher the credit, the higher the security requirement.

Which factors influence the loan amount and who gets a loan?

Which factors influence the loan amount and who gets a loan?

The banks always check in individual cases how much a borrower is able to raise for the installments. The income must be in a healthy relationship to the expenditure and the capital still available. Before applying for a loan, everyone can use a household account to determine in advance how much capital will remain from their salary after deducting all expenses. There must still be enough scope here for the desired credit rate.

Those who have an income below the statutory garnishment limit have little chance of getting a loan at all. The amount of income is in any case decisive for the decision on the amount of the loan to be granted. Those who have items that can be attached in an emergency improve the chances and the amount of their credit line. This is the case for real estate loans right from the start, because here the bank has the real estate as security. The same applies to car loans.

The preferred group of banks when it comes to lending is workers, white-collar workers and civil servants. Since these generally have a secure income, there is a low risk of payment. The situation is somewhat different for those who can not prove a permanent employment relationship.

These are self-employed, housewives, freelancers, trainees, students, unemployed or Good Lender recipients. This group finds it particularly difficult to prove creditworthiness at banks. In general, only other collateral helps, such as assets, real estate or a surety.

Examples of the different types of loans

Examples of the different types of loans

For a consumer credit that is freely available, the banks require a regular income and a credit check from Credit bureau, where they have no other security. However, a second borrower significantly increases the chances of getting a loan. This also has a major impact on the amount of the loan.

The car loan is a dedicated loan and therefore provides greater security for the banks. That is why people also get a car loan who might not get a consumer loan. Here the bank still has the vehicle as security. The car only becomes the property of the buyer when the loan has been repaid in full. This is how long the bank keeps the vehicle registration.

The situation is similar with real estate loans. Here, too, the bank has the property as collateral, but this is about slightly higher amounts and therefore similar standards are used as for consumer credit. Here, too, the question arises: “How much credit do I get with my salary?” The question cannot be answered in general.

This can only happen after the documents have been checked. This includes proof of income, Credit bureau information and the financing requirements for the property. The willingness to take out a mortgage or mortgage also helps to increase the loan amount. But be careful not to overestimate it, because real estate loans generally have a long term and there must be enough left to live on.