Monthly Archives: January 2020

Good Credit History Saves Your Car

A snapshot of your credit history can cost as much as a new car or home repair. According to estimates from the Good Finance Institute of Personal Finance, the mortgage interest paid by a person with a poor personal credit rating over the entire period may be as high as $ 40,000. higher than those that have maintained good credit history.

According to Odeta Bložienė, Head of the Good Finance Institute of Personal Finance, although credit history provides tangible financial benefits and is at least as important as customer income in assessing creditworthiness, Lithuanians still do not attach sufficient importance to it. The statistics also show that last year the number of persons who overdue their debts increased every year in all municipalities, leaving no one with a lower than average salary. In addition, in some municipalities, the average overdue debt is close to 50 thousand.

It is often mistaken

It is often mistaken

To think that credit history only concerns those who already have a loan. In fact, it is most relevant only to those who intend to borrow. Credit history demonstrates the ability of a person to manage their money, their cash flow, meet their obligations or pay for services on time, and is therefore one of the most important criteria when deciding whether to grant a credit. Meanwhile, a bad credit history increases the risk that the borrower will not repay the loan under the terms and conditions, which is likely to affect higher interest rates, shorter loan repayment periods or a negative creditor response, ”commented Bložienė.

Anatoly Kisiel, a lawyer with the Good Finance credit bureau, notes that for residents, credit history is often associated with credit installments. “People forget that credit history even covers covered debt for electricity, telecommunications, internet, cable and many other services. The consequences are caused even by seemingly small debts, and sometimes a couple of years ago. For example, in some cases, a bad credit history may result in the loss of the ability to enter into a communications service contract, rewrite an Internet contract on your behalf, or purchase a television by leasing, ”says Kisiel.

Credit history can become one of the most important factors

Credit history can become one of the most important factors

Determining the interest rate on a home loan. Good Finance’s Institute of Personal Finance estimates that 200,000 people will be unemployed. The interest paid by a person who has taken a home loan for thirty years over the loan period may vary by as much as $ 30 or $ 40, depending on whether their credit history is good or bad. litas. More or less the cost of a new car or home repair. In addition, credit history is also significant when borrowing smaller amounts, such as buying a car. A person who has a good credit history for $ 25,000 $ 5,000 less interest than a person with a bad personal credit rating.

Meanwhile, young people should not only care about their credit history, not only about the possibility of borrowing a home or car in the future but also about continuing their studies. The State Studies Foundation refuses to grant a government-sponsored student loan if the liabilities were not properly discharged. However, according to Good Finance, more than 10% are currently in business. students are not properly fulfilling their financial obligations.

Credit history should not be ignored

Credit history should not be ignored

Even with financial obligations. ‘Where the borrower decides to transfer the loan to another financial institution for better conditions, or upon request to change certain conditions as a payment method or period, the individual’s financial situation and solvency shall be reassessed. At the same time, credit history data is updated, so if a person’s credit rating deteriorates, the loan terms will change accordingly, ”explained the head of the Institute of Personal Finance.

“It is clear that a good credit history opens up more opportunities and lowers borrowing. So how do you have one? First of all, I would advise you to look at it and review your credit history report at least once a year. Debts sometimes arise through yawning. And, as the bank’s analysis has shown, the interest paid for this inattention could be $ 40,000. It is also important not to over-commit and over-commit, and under no circumstances to cover one loan over another. In the event of difficulties in settling, one should not panic, but rather cooperate with creditors and establish a mutually beneficial settlement schedule, ”explains Mr Kisiel.

Bad credit payday loans -Get up to $1000 with an online payday loan for bad credit

This year, the family will spend an average of USD 720 on Christmas. However, not every family has gathered the middle for this purpose. Where is the best borrowing for the holidays?

We have a fairly large selection. We can choose a payday loan, bank or loan from family or friends. It depends only on us what we decide. I do not hide that in my opinion, the best choice is a fast online loan. There is a huge selection of payday loans on the market and everyone can find the right offer. Especially since the loan company can repay the loan at any time during the contract, without incurring any additional costs.

Get up to $1000 with an online payday loan for bad credit

Why can an online loan be better than a bank loan?

Availability has been one of the reasons for years: online payday loans for bad credit from GreenStart are quick and convenient. We don’t have to go to the branch of the loan company, we don’t have to queue for hours at the bank. Online loans are safe. And definitely cheaper. We can reach for them anywhere, anytime. All you need is a computer, tablet or phone and Internet access.

What to consider when choosing a loan company?

Credible loan companies can be found on the list of the Association of Loan Institutions. We can also check reviews on the Internet, although remember that often comments leave unfair competition. A lot about the company will tell us the certificates it has. The Reliable Company Certificate or Loan Institution of the Year are important awards – not all companies receive them. Let’s check if the company uses website security certificates: whether our data is protected by an SSL certificate. When choosing a company, let’s pay attention to how much time the company operates on the market. The most reliable companies have been on the market for several to several years. Let me remind you that from January 2018 each loan company will be registered by the Financial Supervision Authority. In addition, on May 25, 2018, the new ordinance will apply. GDPR, i.e. a regulation on the protection of personal data that will increase the security of customer data.

Should people be afraid of payday loans? What do you pay for with such a loan?

The first loan for free is granted without any commission and interest is not subject to repayment of interest only if it is repaid on time. On the other hand, subsequent loans are payable, although they should not exceed the maximum amount of non-interest loan costs in accordance with the Consumer Credit Act of March 11, 2016. For example, with a loan of USD 1,000 The cost of the loan for USD 12 months will be a maximum of USD 550 (i.e. 55% of the loan amount per year). So even cheaper than at the bank. It is also worth noting that, unlike a credit card, a free loan is not burdened with any fees or commissions.

Do you think there is a risk with the payday loans that you will have to pay back the amount borrowed several times after Christmas?

Do you think there is a risk with the payday loans that you will have to pay back the amount borrowed several times after Christmas?

Patches of “expensive” and “with hidden costs” have been glued to quick online loans. But will we get a loan on better terms? Not necessarily. I will give an example of the proven domain, which has been on the market for over three years and offers the first loan up to USD 3,000 for USD 0, i.e. the client borrows 3000 USD and gives the same amount on time. It’s hard to find a better offer on the market.

How do the verification of the client and his income with online loans look like?

A reliable loan company will never get you to borrow more than you need. She is interested in minimizing the phenomenon of redirection. The cash limit that a customer can borrow is set mainly on the basis of credit history, meticulous analysis of consumer data and history of earlier repayments of liabilities. The companies use Big Data to verify customers: financial scoring, use BIK and BIGs. They process a lot of different customer information to see if they can pay back the debt.

Debt loans! When is debt restructuring useful?

Lately you have heard more and more that you should reschedule your loans, but does that really make sense? Of course, there is also the question of what exactly debt rescheduling is and how it can help.

One can easily explain the debt rescheduling. The lender is simply changed and money can be saved. The interest rate level of the loan is therefore kept as low as possible. Debt restructuring can be very useful, especially for bank customers, because interest rates are extremely high. In this case, debt rescheduling is a good option and reduces costs.

 

When is debt restructuring useful?

debt restructuring

Debt rescheduling is the replacement of the current loan with a new loan. At first that sounds pretty complicated, but it is actually very simple. This measure will pay off especially for borrowers if the new interest rate is significantly lower than the previous interest rate.

The greater the difference between the old and new loan, the greater the savings on debt restructuring. As a rule of thumb, you can remember: the greater the remaining debt and term of the loan, the more worthwhile it is to reschedule the old loan to a new provider. Debt rescheduling can also be useful if you have multiple small loans and want to combine them into one large loan. In the same way, rescheduling is advantageous if your own overdraft facility is used permanently, but the overdraft facility interest is higher than the interest on the installment loan.

 

Debt Loans – A Small Example

Debt Loans - A Small Example

The debt rescheduling will definitely pay off. Here is a small example. If a consumer took out a loan of $ 10,000 with an effective annual interest rate of 9.0 percent and a term of 60 months in 2012, you can carry out a debt rescheduling. With new financing, a residual debt of 5.5 percent and savings of up to 238 dollars are possible. Interest savings are even greater if the loan has a larger amount. So if you took out a loan of 20,000 dollars two years ago, the current interest rate will be replaced by an effective interest rate of 5.5 percent. Thus, the interest payments are reduced by an impressive 496 dollars.

 

How does debt rescheduling work?

debt loan

If you already have a loan, you should check the current interest rate. It is equally important whether the interest rate is variable or fixed. In general, variable interest rates adjust independently in the event of changes. This is not the case with a fixed interest rate. Borrowers with fixed-rate agreements should therefore contact their house bank and negotiate with it. In some cases you can achieve better conditions without having to repay loans.

You must also keep an eye on the deadline for rescheduling. In principle, current loans can be canceled at any time after a three-month notice period. However, the earliest date is six months after the loan has been paid out. When changing to a new bank, the new bank usually takes out the termination of the old loan. If this is not the case, you have to take over the termination yourself. Simply inform in advance whether the new bank would carry out the termination.

 

When is debt restructuring not a solution?

debt loan

Of course, rescheduling can help in many areas, but this is not always a good option. If you are already completely overwhelmed with the current loan or the respective loan has even been canceled or due, then rescheduling does not make much sense anymore, Also, rescheduling will not help you if you already have a negative Schufa entry. Often, you will then no longer be granted any loans and therefore you will not be able to use the services.

Buy a car and resort to a financial yes or no? – Request a loan

When it is time to change cars and once the model, power and other features have been decided, the next step is to choose the payment method. Currently, in Spain you can do it in 3 different ways: paying the full amount in hand or requesting a loan, either to the financial one of the dealership where you buy the car or to a bank.

Find a lender to finance your new car

Find a lender to finance your new car

Since the majority of people who buy a car cannot pay cash, since it involves disbursing a large amount of money at once, the most chosen method is financing. However, this raises the dilemma of doing so with the bank or with the concessionaire’s own finances.

Both options will make it easier for you to access a car with a price, that if you had to make the payment in hand, it would be quite difficult. Therefore, before choosing one or the other it is best to know the pros and cons of each one, make numbers and once you have everything clear, tell you which one offers you the best conditions.

Variables that influence the final price

car loan

As in any other loan, whatever type, you have to know that there are a number of variables that directly affect the total that you will have to pay back and that you have to take into account whenever you seek the financing of a third party to acquire a good.

Once you have them clear, there is no more to make accounts so that you have no doubts about how they will affect the total amount owed.

What is a Nominal Interest Rate (TIN)?

car loan

TIN: The Nominal Interest Rate (TIN) reflects the cost of financing, that is, what the bank charges for performing the operation and lending the money.

What is aAnnual Equivalent Rate (APR)?

What is aAnnual Equivalent Rate (APR)?

APR: Annual Equivalent Rate (APR) in addition to the cost of financing, it also has other expenses, such as:

  • Commissions: Commissions are included in the APR. These are the expenses that come from the opening, cancellation or study prior to the granting of the loan.
  • Related products: In some cases, it is mandatory to hire other products for the bank or financial institution to grant the loan. An example of these products is the default insurance.
  • Return term: The return period is also very important, since the shorter the return time, the less interest it will charge.