Do not pay for a loan in advance

When a lender wants a high fee in advance, you probably don’t have the honor of being solvent.

When someone wants money for the service in advance, we should be wondering what the business is. In the non-bank lending segment, such behavior is even very suspicious, bordering on a brazen attempt by a fraudster who only wants to turn you for money. Therefore, be careful and certainly do not give money a chance if you do not know who you are honored with. Thanks to the Internet, you can easily verify everything in just a few minutes.

 

Why pay for something that goes without saying?

loan payment

You don’t need to pay for air. Nor is it necessary today to pay in advance for a non-bank loan. The only exception is a verification fee, which shows that this or that account is really yours. In this case, but it is a single dollar, so of course, you will not lose anything, the fee is, moreover, refundable. Therefore, also beware of loans from private individuals, where you can not effectively verify many things. Advertising in the press or on the Internet is often just a phone number or name, you do not see the ID number and other details of the provider otherwise provided by non-banking companies or banks on their websites. Finally, there is no reason not to be completely transparent and not to show that potential clients have nothing to fear. However, private lenders often do not calculate this.

 

What does a typical unfair loan look like?

What does a typical unfair loan look like?

You can see the opaque offer literally today and daily. They are mostly loans from private individuals. How do they manifest themselves? And what does its providers say? Similar things are literally similar to eggs eggs, it is usually said that.

  • Provider does not mind that you do not work. Confirmation of income is required for solvent firms – it only shows you that you have to repay in the future without any problems.
  • You will not be exposed to unnecessary questions. Certainly, even non-banking companies today have administration to a minimum, but income needs to be verified and basic personal facts about the applicant as well.
  • You will receive a fairly high sum of money without a guarantor or material pledge. And it is not just about a few thousand dollars, as with ordinary micro-credit – but rather hundreds of thousands.

And, of course, we could go on, you can usually find similar offers in online discussions as a standard post where you don’t have to pay for advertising – and the provider is essentially anonymous. In the vast majority of cases, this is a private person, not a standard business person with an ID number, who has a personal website, let alone a company that deals directly with non-bank loans. Although the new legislation tightens the conditions for loans and meets the needs of consumers, it is true that our company will have to deal with this problem for a long time. Namely, private lenders respond to the long-term demand of those who do not have a job or live in hostels and so on.

 

There are also nonsensical charges

loan payment

Loans from private providers are characterized by fees that do not sound rational at first sight. Usually they are in the order of thousands of dollars, which you have to pay in advance – to learn that you can not get the loan for some reason. Thorough screening of the applicant, credit intermediation, verification fee, all of this can require a lot of money. But you have no obligation to pay them, because putting money in advance is very risky, not only in the world of non-bank loans. Much better will be the classic non-bank variant, with which you have money in your account. Minimum administrative formalities, but above all also confidentiality from the wider surroundings. Nobody needs to know you’re taking out a loan, right? Such a thing should stay in your apartment, on your computer monitor.

Unfortunately, you will not get a loan with execution

If you are in the middle of a distrainment procedure, the loan options are really scarce.

In the Czech Republic annually increasing share of foreclosures and it certainly does not seem that he should turn this trend. If you are going through some execution, we may not be pleased, because you can practically forget about a loan in the banking and non-banking sector. Frozen bank account, close supervision of the executor over all financial flows, execution on salary. Unfortunately, there is no alternative in this case.

 

Arrange a repayment schedule with an executor

Arrange a repayment schedule with an executor

If you want a bank loan, the client’s creditworthiness is crucial. Therefore, you do not come here at all, so it is completely unnecessary to act like this. Moreover, the execution takes quite a long time and the maneuverability is limited. Even the non-banking sector will not help you, you cannot get through this condition. Simply, you can be in the debtors register because of the unpaid bills for the phone, but the execution procedure is already too strong coffee. There is no guarantee that you can repay the loan in good order, so unfortunately every application will be rejected.

 

First, execution, then non-bank loan

bank loan

You must have everything resolved and completed before you can start thinking about a non-bank loan. It is simply impossible to get financial help when you are going through a difficult execution – at least by a conventional bank or non-bank form. Forget about lending to a private lender, as a similar step would mean an early fall into a debt trap that you may not get out of at all. You don’t usually know anything about that person, and it’s definitely not wise to put your trust right here. Consider the so-called personal bankruptcy, which will be a long-distance run, but you will see a bright light at the end of the tunnel. You can then easily borrow money if you need it.

 

The entire procedure can take months

Execution is simply for a long time, it is known to all who have someone around them just about – or go through a similar matter, so to speak, firsthand. It is a huge onslaught on the psyche, even for the rest of the family, who is undergoing a similar process with the debtor. For each provider it would be a very risky investment, so you understand that a similar chance is completely zero. The loan will only be possible when you finally settle your debts, including personal bankruptcy, which will, however, last for several long years. What else should you know about the execution procedure?

  • It is governed by the currently valid Civil Code. His novel was published four years ago.
  • You are entitled to one-time withdrawals from your account every month, up to 6820 Czech dollars.
  • Upon agreement on the repayment schedule of debts, the bailiff can re-unblock your account.

The first free loan will not apply to the execution on your neck, but if you wait a long time and solve all current problems with debt, you can certainly use it in the future. Its charm lies mainly in the fact that you do not have to deal with the interest rate – you simply borrow money as a new client and pay it to the dollar precisely by a specified date. Yes, that’s right, you only pay the principal.

 

As for the register, we do not address it at all

loan register

However, a loan without consulting the registers is possible with us! So if you have an entry in the debtors register for a phone or electricity bill and you’re afraid of not getting a loan, you’re fortunately wrong. Money spent on extracts from the register generally does not pay much to non-banking companies, especially when it comes to a loan of several thousand dollars. It is sufficient to support everything with permanent income, or to submit the last three monthly statements of bank account and everything can soon be confirmed.

Loan without proof of salary and private credit checker.

A loan without proof of salary and private credit checker is only granted under particularly restricted conditions. The approval criterion for a loan at German banks is the positive private credit checker information and a regular income in connection with an unlimited employment contract. If these facts do not exist, no credit institution in Germany will grant a loan. Good lender loans are also irrelevant since no proof of income can be presented. It is not only problematic to mention online shopping when it comes to lending.

Get a loan without proof of salary and private credit checker

Get a loan without proof of salary and private credit checker

Despite the poor starting situation, a loan without proof of salary and private credit checker can be obtained. Providing collateral is considered a safe promise. Loan protection means, other than income, can be real estate, real assets, land or loanable life insurance. Anyone who cannot provide this security, but is still in a positive financial position, has the opportunity to bring a guarantor into the lending business.

This situation often arises with self-employed people who have a substantial income but cannot prove this with a salary certificate. In order not to completely exclude self-employed persons when granting a loan, these alternatives can be used to secure a loan.

The guarantor and his tasks

The guarantor and his tasks

If a guarantor is found, he must have a good credit rating, he must not have a negative private credit checker entry and should have a permanent job. It serves as a hedge for the loan applied for and must be able to bear any risks of non-payment. He should also be aware that he may no longer be able to claim a loan without a surety through his guarantee. The guarantee can reduce its own creditworthiness. If such a guarantor is found, a loan can be granted without proof of salary and private credit checker.

Find private lenders

Find private lenders

If you want to save yourself the trip to the bank, you can look for private money investors on the Internet. There are corresponding portals. But it is not only on the Internet that people can get in touch with friends, often with success. Such lending can bring advantages. So the interest rate is low. If a friend or relative provides the desired amount of money, a personal loan should be consolidated with a loan agreement. This is the only way for both parties to adequately protect themselves.

Interest rate on the loan: decisive for the credit costs

 

If a person deals with the topic of credit, one topic will be of particular importance for him – the interest rate. The interest rate is decisive for how expensive or cheap a loan will ultimately become over the entire term. This value is always set in percentage points and gives the borrower information about which loan is ultimately the most optimal for him.

The calculation of the interest rate

The calculation of the interest rate

The interest rate is often referred to as the rate of return, which can lead to slight confusion for the borrower. However, there are often cases in which the rate of return and the interest rate are clearly distinguished from one another and a distinction is made between the values. In order to understand how the interest rate is formed, the borrower must first think of a relatively understandable formula. This is as follows:

Interest rate = capital multiplied by interest rate numerical value multiplied by interest days divided by daily dividers.
What sounds complicated at first is understandable when viewed in detail and makes it easier for the borrower to understand how the interest rate is formed.
As a basis for measuring the interest rate, banking is generally used annually, i.e. annually. However, in order to be able to use the interest formula correctly, the daily divider is important – especially for loan periods of less than one year. There are different calculation methods, whereby the so-called banking year consisting of 360 days is the usual practice. Only for loans in Great Britain is a calendar year consisting of 365 days assumed. However, the first day of borrowing is usually not included in the interest calculation.

types of interest

types of interest

In banking – when lending to private individuals – a distinction is made between two different types of interest. These are the nominal interest rate and the effective interest rate. The base rate of the Lite Lender is used as the base rate.

A nominal interest rate is the so-called pure interest rate, which is the basic calculation for the interest amount. The nominal interest rate is based on the year and it is the pure amount that is due for the repayment of the loan. It does not include the bank’s method of calculation or the ancillary costs arising from the loan. At the monthly loan installment, the borrower will pay the amount consisting of the fixed repayment and the nominal interest rate.

The term effective interest rate includes all annual costs arising from the loan, which are related to the total term of the loan. The amount of the effective interest rate is determined from the nominal interest rate, the fixed interest rate, the repayment and the payment rate.

The effective interest rate is of little help when comparing different loan offers, since only offers with the same fixed interest rate can be compared with each other. However, since other factors such as loan fees, repayment-free years, nominal interest and processing fees are included in the mathematically correct loan comparison, it is difficult to determine the optimal loan with the most favorable terms based on the effective interest rate. However, the effective interest rate should make this possible for the borrower. Therefore, banks are also legally obliged to state this interest rate in their loan offers. It is also important for the borrower to know that the effective interest rate only includes the actual values ​​and no estimated costs such as commitment interest, credit account management fees and partial payment surcharges and a possible prepayment penalty. In contrast, however, it gives a good percentage overview of what the loan will cost the borrower in a year, provided that the borrower carries out the contractually stipulated period for the loan repayment in accordance with the contract.

What few borrowers know is that they don’t even have to go to the bank to get a loan. Large electronics retailers advertise that they offer financing at extremely low interest rates. Anyone who has taken advantage of this offer will know that it is nothing more than an installment loan, which can ultimately be more expensive than the actual product was worth. Especially if there are currently no special offers for large purchases in the respective market, it is extremely important to compare the interest rates exactly before signing, since these electronics markets usually work with certain banks, whose interest rates can be much higher than it would have been the case with the house bank or another smaller bank. A lot of people still believe that this kind of financing is done through the electronics market, which is ultimately a misconception.

It can often happen that banks advertise with particularly low interest rates in order to attract as many borrowers as possible. In the past, however, it often turned out that the actual loan interest was significantly higher than what was advertised. Ultimately, these increased costs were clearly reflected in the percentage points of the loan interest rate, so that a large proportion of the borrowers did not benefit from these favorable loan conditions.

Fortunately, the legislator has reacted to this fact and, with Directive 2008/48 / EC for consumer credit, Section 6a PAngV, the so-called advertising for loan agreements, has passed a regulation that banks are only allowed to advertise at the lowest interest rate, which two thirds of all borrowers really do Could claim. This was due to the fact that at many banks the principle of credit-dependent credit interest still prevailed when determining the loan interest rate, which was however prevented. Nowadays, when it comes to lending, the interest rate is largely standardized so that private customers can benefit from favorable loan terms.

In advance

In advance

Incidentally, it is worth paying close attention to the news and European economic developments before taking out a loan. Especially in the time of the euro crisis, which is still prevailing economically, the Lite Lender lowered the key lending rate, which had a noticeable impact on the lending rate. So if you wanted to take out a loan for a larger purchase, you should do this in times of economic crises, because in this way a lot of cash can be saved through the low interest rates.

However, it remains questionable whether the banks will actually grant these loans in the end, since they too have become economic entities that ultimately aim to make a profit. However, it can help a lot if you already have a good knowledge of the loan interest rate and its importance, as well as the way in which it is ultimately formed, before borrowing. As in almost every area of ​​life, it is worthwhile, especially with loans, to make a comprehensive comparison and do some careful calculations in order to ultimately get the best conditions for yourself.

Real estate loan repurchase.

It is possible that you have taken out a mortgage for the acquisition of your property at a rate higher than that currently in force. It is therefore in this kind of situation that a loan buy-back can become interesting.

How it works?

How it works?

Before launching into the repurchase of your mortgage, it is essential to determine if this operation will still be profitable for you even after the deduction of the financial costs annexed to this type of operation. In summary, the total cost of your loan must be attractive enough to be able to cover all costs relating to refinancing.

Thus, among the costs inherent in real estate loan repurchase operations, there are the indemnities in the event of early repayment, also called IRAs or penalties. This amount may certainly not exceed 3% of the capital remaining to be reimbursed, but they include the total of the six months of interest following the redemption request.

It is also relatively difficult to escape this type of fee except by having negotiated a cancellation of these fees in the event of redemption or reimbursement by your means, when you took out your loan from your banking establishment.
However, if the repurchase of your credit is carried out by our organization, it is impossible to cancel the IRA even in the case stated above.

In addition, you must also take into consideration the cost of the guarantee since you are taking out a new loan. The cost of this new warranty will vary depending on the current warranty you have.
If you have for example a mortgage or IPPD, the costs of raising hands will be your responsibility and a new guarantee will also have to be put in place.

In the case of a surety, for example with a Housing Credit, 0.75% of the mutual guarantee fund that you had paid when you first took out credit belongs to you. This will allow you to cover the costs of the new warranty.

Note also that you can renegotiate the rate of your credit with your current bank which can make an effort not to lose a customer! That said, it is likely that this negotiation will not lead you to take out other investments, insurance, etc. …
Even if in this case, you will not pay the IRA fees, handling fees and guarantee, your rate will certainly not be the lowest on the market. This is why the competing banks make you benefit from very attractive rates to have you as a new customer: this is what is called the “call offer”.

The procedure for buying back your mortgage

The procedure for buying back your mortgage

In order to save money while taking into account the market rates and fees mentioned above, it is essential to properly assess the costs and benefits of the mortgage buyback operation.

First, it is essential to take stock of the remaining amount you have to repay as well as the remaining term by consulting your schedule.
So, if you decide to keep the same duration for your new loan while reducing your monthly payments, several scenarios arise:

  • If you are, for example, in the first third of repayment, a new mortgage with an interest rate with at least one point below the current one is necessary to make the operation profitable.
  • If you are in the second third of repayment of your current loan, the new rate will have to be two points lower than the current one in order to be able to save money.
  • Finally, if you are in the last third of your loan repayment phase, know that a credit repurchase will be totally uninteresting for you. This option can nevertheless be considered if your income has increased since the subscription of your loan and you can afford a shorter repayment period and less debt.

It is therefore essential to be attentive to the total cost of your loan as well as the costs of real estate refinancing so that your transaction is interesting.

To sum up, monthly payments are just as important as the total cost of your loan. In addition to the gross gain that this operation can bring you, you must deduct the various redemption fees such as for example bank domiciliation fees, penalties, guarantees and handling fees in order to obtain the real net gain.

Instant loans? No problem today via the Internet! | Instant online loans

More and more borrowers are now looking for a quickly available and easy-to-apply loan product. Borrowers who appreciate flexible contract options, low interest rates and simple applications are now increasingly using an instant loan. Immediate loans are the loan offers of direct and online banks, which can be offered directly on the Internet and can be applied for “immediately” online. The variety of offers in the instant credit market segment has seen significant growth in recent years with the increase in online banks. For this reason, borrowers who are looking for a powerful instant loan offer now have the option to choose between many offers. The decisive advantage with the wide range of offers can be seen in the low interest rate level. However, the large selection also has a decisive disadvantage, comparability is hardly possible today. Borrowers who want to win the best individual loan offer for themselves cannot avoid a comparison on the Internet.

The effective interest rate

The effective interest rate

When comparing instant loans, borrowers should focus primarily on effective interest rates as the most important comparison criterion. The effective interest rate is actually variable for all instant loan offers and can be individually influenced by the borrower. Although the instant loan depends on the borrowing rate and the bank’s fees, the borrower has the option of influencing the effective interest rate over the term and loan amount as well as his own credit rating. A positive credit rating can make a decisive contribution to ensuring that the borrower can secure the best long-term interest rate. Today’s creditworthiness is measured primarily by income and Credit Bureau information. Ideally, the borrower’s earned income should be high and constant. The borrower can also influence the effective interest rate through positive Credit Bureau information, the same applies to the loan amount and term, which should be short or short. Short terms and low loan amounts are issued by the banks at a lower interest rate, since the credit default risk and capital commitment for the lending bank are lower.

The importance of term and loan amount

The importance of term and loan amount

As such, term and loan amount do not only influence the amount of the effective interest. Borrowers should always select the term and loan amount so that the repayment meets individual requirements and the liquidity burden is not too high. Borrowers with a low income in particular very often run the risk of excessive financial burdens. High rates ensure a quick reduction of the remaining debt and the associated low interest costs, but high rates also quickly increase the credit default risk.

The possibilities of repayment with an instant loan

The possibilities of repayment with an instant loan

Most banks today only offer the option of repayment in installments in connection with an instant loan. Installment repayment has become established for numerous loan offers, since in addition to a constant liquidity burden for the borrower, this also offers a low credit default risk for both contracting parties. When the installment is repaid, the entire loan amount is repaid at constant intervals and in constant installments. The installment repayment offers the borrower a quick reduction of the remaining debt, whereby the total loan costs decrease with increasing repayment. On the part of the bank, the low credit default risk should be emphasized. The bank can already record a certain proportion of the repayment after a long time.

In addition to repayment in installments, other forms of repayment are also possible for the repayment of an immediate loan, such as annuity repayment. In the case of annuity repayment, the borrower pays a fixed annuity at constant time intervals. The amount of the annuity consists of a repayment and interest part. While the repayment component increases during the term, the interest component decreases, and the borrower can make the repayment here in exactly the same amounts. The principle of installment repayment is also followed for annuity repayment; constant amounts at fixed intervals ensure that the borrower has a low risk of default.

Possible uses for instant loans

Possible uses for instant loans

As a rule, the borrower can arrange the use of an instant loan at his own discretion. This enables the borrower to use the instant loan for a wide range of purposes. Among other things, the smava instant loan is suitable for financing a car, as a loan for debt rescheduling, the financing of electronic devices and much more. on.

The advantage of quick and easy application via the Internet

The advantage of quick and easy application via the Internet

The crucial aspect that should speak for an instant loan is the quick and easy application for the loan via the Internet. Borrowers who opt for an instant loan can make the application quickly and free of charge on the website of the relevant provider. The first step in getting your dream loan is to fill out an application form. In addition to information on the desired loan, the borrower must also provide information on the person and creditworthiness in the application form. Once the information has been provided, the credit check is carried out by the bank. The credit check includes checking the Credit Bureau information. Today, instant loans without Credit Bureau are also offered, here the Credit Bureau information is not checked. If the bank comes to a positive credit decision during the credit check, the borrower can already download, print and sign the loan agreement below. The PostIdent procedure in cooperation with Deutsche Post contributes to secure contract processing. In the PostIdent procedure, the authority of the borrower is checked at a branch of Deutsche Post. The person is compared with an official photo ID (identity card, passport). Once the PostIdent has been concluded and the contract has been received by the bank, the immediate payment of the loan amount is initiated to the applicant’s account.

The position of Credit Bureau in the instant lending

The position of Credit Bureau in the instant lending

As with all other forms of credit, the Credit Bureau information provided by the borrower is rarely dispensed with for instant loans. In the course of the life of every private individual, the protection association for general credit protection collects all relevant data which could be important for taking out a loan. Here, among other things, existing tenancies, contractual obligations, subscriptions or existing or concluded loan liabilities are listed.

Compare instant loans on the Internet before signing a contract – use the loan calculator and save

Compare instant loans on the Internet before signing a contract - use the loan calculator and save

Financial portals on the Internet make it possible to quickly and free of charge compare multiple loan offers. The loan comparison is now often offered with a loan calculator, which enables the objective comparison of loans taking into account individual comparison parameters. In the loan calculator comparison, borrowers can often find information on the desired loan amount, term, use, repayment and much more. integrated. By taking personal earnings into account, the search can be tailored to individual requirements and the best loan offers can be filtered out. The loan comparison with a loan calculator can usually help the borrower to secure a lower interest rate in the long term and to lower the borrowing costs permanently.

Loan with guarantee

 

If you urgently need money and cannot provide sufficient creditworthiness, you usually have to take out a loan with a guarantee. A bank guarantee is usually agreed for bank loans.

A guaranteed loan is a loan that a third party guarantees – or assumes the debt obligation for – in the event that the borrower defaults. Sometimes, a guaranteed loan is guaranteed by a government agency, which will purchase the debt from the lending financial institution and take on responsibility for the loan.

The guarantor is liable either for the entire loan or up to an agreed maximum amount, which includes the commissions, accrued interest and the ancillary loan costs. Due to the great responsibility and the risk that a guarantee entails, it is usually difficult to find a guarantor even in the closest relatives.

Guarantees are often needed in special life situations

Guarantees are often needed in special life situations

After changing jobs, employees are usually in a trial period, which can be arranged for up to six months. During this period, banks usually do not grant loans without proof of extraordinary collateral. However, anyone who can secure a loan with a guarantee from a relative or acquaintance receives a promise in many cases.

In this case, even a temporary guarantee can be agreed between the bank, borrower and surety. If the loan installments are paid on time, the guarantor is released from his liability after the trial period. However, if the borrower experiences payment difficulties during this period, the guarantee remains until the entire loan is repaid.

A loan with a guarantee can be a burden for both sides

A loan with a guarantee can be a burden for both sides

Just as the borrower can have a moral burden in the event of a loan default in addition to the financial burden, a joint and several guarantee could also lead to restrictions for the guarantor.

The guarantee is also noted in the information without a negative feature. However, if the guarantor wants to take out a loan himself, his limited credit rating is taken into account. This can be noticeable when you borrow money with interest premiums, since the guarantee is included in the credit rating.

In the event of unemployment, a surety is also futile

In the event of unemployment, a surety is also futile

The banks do not consider unemployment benefits to be regular income. It is only available to finance living expenses. In these cases, therefore, a loan is not approved even with a guarantee.