3 reasons that explain why it is the best time to ask for a loan

If you are thinking of applying for a consumer loan, this could be the best time to do so due to the changes made by the sector.

For many, 2018 will be the year in which they realize some dreams, fix something at home, go on a trip, etc., and thanks to the changes that have occurred in the financial sector, achieving it could be easier than you think .

In the last months, the conditions for the credits changed

credit loan

This became valid for the different types of credit, but the ones most affected were consumer loans. The modifications that have taken place, in one way or another, end up benefiting the applicants, making this time a good time to request financing.

But why is it said to be a good time?

But why is it said to be a good time?

1. Interest rates were reduced 

1. Interest rates were reduced 

Among the main decreases is that of Banco Falabella, which reduced its interest rate by 3.8 points; Colpatria, which made a reduction of 3.21, and Citibank, which went from 28.21% to 26.21%, that is, two points less.

2. The payment term was extended 

This, for many, may not be a better condition, since in the long run it pays greater interest; However, for many it is the only way to access a loan, since they need low fees. Ideally, find a balance to avoid choosing too long a term.

3. Grace periods were restructured 

In this way, this element will benefit customers, and there will be no surprises after a few months due to misunderstandings or hidden clauses.

If you are thinking about requesting financing, this could be the right time, since you can take advantage of the changes that have occurred in the credit sector. Remember that the ideal is to compare the alternatives to find the option that suits you best.

Tips for comparing loan conditions

If you have not tried to apply for a personal loan before, you surely do not know the importance of knowing the exact conditions of the loan that you are requesting. In the market there are many online and physical financial institutions that specialize in giving loans to their clients; but not all of them are clear when reporting the conditions of each credit.

As the saying goes: “information is power”, for that reason you should make sure to review the Terms and Conditions of the financing you are about to receive. Also, the loan contract itself to avoid being a victim of a scam. We know that it is not easy to review the information of all available personal credit offers, so we offer some useful tips that will facilitate the process.

Tip 1: Use a loan comparator

Tip 1: Use a loan comparator

When you do not know which personal loan to choose or the conditions that explain online credit companies are confusing, the best thing you can do is request the assistance of a loan comparator. These types of systems, such as Boris Godunov’s, work from the web, and are responsible for finding the best loan offer based on the information that the client provides.

Tip 2: Evaluate the nominal interest rate (TIN)

Tip 2: Evaluate the nominal interest rate (TIN)

To apply for this loan you must have a property in your name; it can be a land, a commercial premises, a house or an apartment, the essential thing is that it is in your name.

In case you prefer to compare the loan conditions yourself, start by evaluating the TIN of each offer. This fixed percentage represents the amount of money that the financial institution will charge depending on the amount you have requested. The TIN can be monthly or annual, and it is important to know this information because a nominal monthly interest rate is usually cheaper than an annual one.

Tip 3: Review the fees associated with the loan

Tip 3: Review the fees associated with the loan

Most credit companies usually include a commission percentage in the contracts of their financial products. These commissions can significantly affect the amount to be paid for the credit, review each offer well, compare, and opt for the institution that does not charge commissions, or whose percentages are minimal. There are opening fees, early repayment, late payment, etc.

Tip 4: Compare the annual effective rate (ASD) and opt for the lowest

Tip 4: Compare the annual effective rate (ASD) and opt for the lowest

The Annual Effective Rate is the interest rate that calculates the cost or expected value of interest over a period of one year. Either calculated based on a year of 360 or 365 days.

That is, the TEA percentage evaluates all the factors that affect the requested personal loan (conditions, loan term, etc.); The higher the TEA, the more expensive the financing payment will be.

Tip 5: Try to avoid loans that include linked products

Tip 5: Try to avoid loans that include linked products

Loans that include related products (insurance policies, direct debit, among others) are not very common among online loans; But if you are considering requesting a loan from a bank, try to opt for those that do not impose the linking of other financial products.

Medium Business Loans

cash

Medium-sized companies are entities with certain characteristics and with limits in terms of their size, volume of business and personnel set by the States in which said companies are established.

They are independent entities with great entrepreneurial spirit that predominate mainly in the commercial sector, since the limitations set and the lack of investment do not allow them to access the industrial sector.

The business network of medium-sized companies in Spain

The business network of medium-sized companies in Spain

As many of you will already know, more than 99% of the country’s business fabric (99.8% according to data from the last report on SMEs produced in 2015) is made up of small and medium-sized companies. These represent nothing more and nothing less than 65% of GDP and 75% of total jobs for the State. These data place small and medium-sized companies in the first place in terms of the percentage of SMEs, even in Germany and the United Kingdom, which, in the same way as in the Spanish case, show a percentage of SMEs close to 100%.

Before continuing to delve into the different economic factors of small and medium enterprises, we will differentiate between them. The number of workers is the determining factor to know what type of company it is, so we will talk about:

  • micro companies , companies that have a number equal to or less than 9 workers.
  • Small businesses when the number of workers is between 10 and 49 workers
  • medium enterprises when it exceeds or equals 50 workers and does not exceed 249.

Once this fundamental differentiation is made, we can see that our SMEs have great export potential and that there are already many companies that are expanding their market in different countries.

Another of the fundamental factors and in which Spain seems to be at the tail compared to other countries, is the innovation of its processes and the implementation of technology in its companies. This directly affects the financing since, as we know, thanks to the evolution of the Internet, online investment and financing platforms have appeared that make it possible to request loans for medium-sized companies and say goodbye to the financing problems they face as these types of companies very dependent on the banks and banks (with very high interest rates)

Loans for medium businesses

Loans for medium businesses

Derived from the above and referring to the data released in recent years regarding the financing of medium-sized companies, we find that despite the fact that financial institutions grant a larger amount of loans for medium-sized companies every day – in comparison With those approved during the financial crisis – there are many problems to access it.

What is this about? In the first place we find the distrust derived from the financial crisis itself by banks and savings banks, which have tightened the conditions for granting this type of financing for medium-sized companies.

Another point that we have already briefly referred to in the previous point is the lack of adequate technology for the evaluation of this type of companies.

And finally, one of the most important reasons for the approval or not of this type of private financing is the belief by banks that medium-sized companies are at greater risk.

The conclusion that we can obtain with this is the following one: the increase of the restrictions to determine the approval of a loan for medium-sized companies, has caused that the conditions harden much and that the interest rates were raised still more generating a dependency of the medium businesses to these financial entities.

Crowdlending as an alternative to banks for medium-sized loans

Crowdlending as an alternative to banks for medium-sized loans

Although the financial system is not up to date in terms of technology, there are many companies that are. Companies like Good Finance who have seen on the Internet the perfect ally to put into operation investment platforms that allow the financing of SMEs with credit needs.

Now, medium-sized companies should look for more agile financing alternatives with less difficulties that allow them to continue with their projects and that is where crowdlending platforms operate.

Good Finance is a Crowdlending company that acts as an intermediary between companies that seek financing to carry out their projects and private investors who want to lend their money.

How to Calculate the Loan Interest.

Interest rates in this case are called interest rates during the year. The interest rate includes the calculation of interest days and the calculation of various values ​​such as interest, capital, duration in days or interest rate. How is the annual percentage calculated? Interest rate, as the interest rates have to be recalculated constantly.

You really need to know that

You really need to know that

These are older than cash and you will encounter them when taking out a loan or investing funds on your bankbook: interest. What rates are, what types of interest rates there are and how the rates converge, we will tell you here. The interest is the remuneration paid by the debtor to the lender as a debt consideration. On the other hand, you will also be charged default interest as soon as you invest your assets in a house bank.

At this point, you become a vendor and the house bank debt. When borrowing, the interest depends on the type of interest, your economic situation and your creditworthiness. What interests are there? The term interest comes from the Romance linguistic usage and denotes “estimation”. In our current use, the interest rate is the borrowing fee.

You borrow at a house bank for a larger facility. So the house bank lends not much capital – she wants to take some of it. In addition she calculates default interest. When borrowing you not only have to repay the capital raised, but also make the agreed interest.

In the opposite case, the same law applies as soon as you make a deposit on a savings account. Basically, you lend the house bank money at this moment, which then use this again for other investments. In return, you will receive from the house bank an interest on your “borrowed” capital. Incidentally, not only private individuals and consumers, but also companies and countries have to pay lending rates.

What interest categories are there?

What interest categories are there?

In principle, interest rates can be divided into two classes: monetary interest is a fee that must be paid to the lender as a fairy when borrowing. So a database z. For example, you can enter a sum of money in another database. You can not only borrow money, but also things.

In all these questions one speaks of a return on the capital in kind. If you invest your capital on a giro, savings, time deposit or call deposit account, you will receive interest. To put it another way: your capital loses its importance despite interest. This decline in the buying power of money causes consumers to lose their capital.

Basically, the disposition is a very expensive balance, which is terminated within a short time. The overdraft interest due in this case is up to 19 per cent, depending on the house. When you borrow, the nominal interest rate is the sum of the interest rate. The lower the fixed interest rate, the cheaper the fixed interest rate is, as the credit institutions are taking on the central bank.

However, a low interest rate implies an increasing risk of inflation and thus lower interest rates on financial assets. With many long-term investments, you will encounter compound interest. The interest due on fixed dates is credited to your credit and is interest-bearing in the future. What do you calculate the interest on investments? Are you thinking about investing your capital? With the time deposit account you have no access to your capital for a certain period of time, but receive a higher interest rate.

The money market account is the other way round: you always have access to your capital, but the interest rates are not that high. Suppose you want to invest your capital in a time deposit account. They receive from the respective house bank an interest of 1,5 percentage points per year and a period of two years.

To what extent are the default interest calculated? In this example, after two years, you will receive EUR 300 as interest on your invested fixed-interest deposit of EUR 10000. Your capital would have lost more value in one year than you have due to the interest rate. For another two years, you are investing around EUR 10,000 in a call money account with 1.5% interest, which is calculated once a year.

Thanks to higher interest rates, larger investments and longer maturities, you will still notice the benefit. It also makes sense if the interest payments do not occur once a year but every six months or even monthly. As a result, up to EUR 801 in interest income per year is exempt from tax. What should I look for when paying interest? We would like to give you a few tips at this point before you decide to take out a loan.

Very few people meet the requirements to get such a loan. Some banks also try to offer you other items in addition to the credit, which you do not always need. It is best to spend as much time as possible to evaluate offers and find the perfect loan for you and your life situation.

Think about what credit you can afford. Further information on how to help save interest can be found here. What is the purpose of interest rates? The interest initially serves as remuneration for the borrowed capital. When a lender grants a loan, it always enters a certain residual risk that the borrower will not repay the loan.

Therefore, the lenders charge an additional premium for any risks, the so-called risk premium. The inflation leads to a loss of monetary value. If a lender grants loans over a longer period of time, the loan value at the end of the loan period may be lower than before the loan was granted. A vendor can meet these depreciations from the debtor by paying interest payments.

If a customer is in arrears with the repayment, the vendor suffers a disadvantage. If a lender borrows his capital, he has no access to it at this point and can not spend it profitably. This lost profit is referred to as opportunity cost and can be driven by the debtor with interest.

When will there be interest?

The interest rate is higher than that of the money. The original name is the credit, the more seed is the interest. The long interest history can also be proven by the ancient Romans and Greeks.

Ultimately, this tendency led to interest rates as we know them today. In what connection are creditworthiness and interest? When applying for a loan from a house bank, the creditworthiness is checked. The score is calculated from different information, such as current litigation, your previous payment term or the frequency of your trains.

The second data source is provided by the National Bank itself. Based on this information, the central bank calculates its own rating, which is offset against your creditworthiness. On this basis, the house bank determines if and on what terms you will receive a loan application. Put simply, if you have a good credit rating, you are very prone to a loan.

If your creditworthiness can be improved, you may be denied access to the Internet. The better the conditions in terms of low interest rates, the better. The FinFitness function calculates your financial strength, just like with credit institutions. You will only receive pre-approved credit offers that suit you and your economic situation. In this case, you can contact us.

How to Calculate the Loan Interest.

Interest rates in this case are called interest rates during the year. The interest rate includes the calculation of interest days and the calculation of various values ​​such as interest, capital, duration in days or interest rate. How is the annual percentage calculated? Interest rate, as the interest rates have to be recalculated constantly.

You really need to know that

You really need to know that

These are older than cash and you will encounter them when taking out a loan or investing funds on your bankbook: interest. What rates are, what types of interest rates there are and how the rates converge, we will tell you here. The interest is the remuneration paid by the debtor to the lender as a debt consideration. On the other hand, you will also be charged default interest as soon as you invest your assets in a house bank.

At this point, you become a vendor and the house bank debt. When borrowing, the interest depends on the type of interest, your economic situation and your creditworthiness. What interests are there? The term interest comes from the Romance linguistic usage and denotes “estimation”. In our current use, the interest rate is the borrowing fee.

You borrow at a house bank for a larger facility. So the house bank lends not much capital – she wants to take some of it. In addition she calculates default interest. When borrowing you not only have to repay the capital raised, but also make the agreed interest.

In the opposite case, the same law applies as soon as you make a deposit on a savings account. Basically, you lend the house bank money at this moment, which then use this again for other investments. In return, you will receive from the house bank an interest on your “borrowed” capital. Incidentally, not only private individuals and consumers, but also companies and countries have to pay lending rates.

What interest categories are there?

What interest categories are there?

In principle, interest rates can be divided into two classes: monetary interest is a fee that must be paid to the lender as a fairy when borrowing. So a database z. For example, you can enter a sum of money in another database. You can not only borrow money, but also things.

In all these questions one speaks of a return on the capital in kind. If you invest your capital on a giro, savings, time deposit or call deposit account, you will receive interest. To put it another way: your capital loses its importance despite interest. This decline in the buying power of money causes consumers to lose their capital.

Basically, the disposition is a very expensive balance, which is terminated within a short time. The overdraft interest due in this case is up to 19 per cent, depending on the house. When you borrow, the nominal interest rate is the sum of the interest rate. The lower the fixed interest rate, the cheaper the fixed interest rate is, as the credit institutions are taking on the central bank.

However, a low interest rate implies an increasing risk of inflation and thus lower interest rates on financial assets. With many long-term investments, you will encounter compound interest. The interest due on fixed dates is credited to your credit and is interest-bearing in the future. What do you calculate the interest on investments? Are you thinking about investing your capital? With the time deposit account you have no access to your capital for a certain period of time, but receive a higher interest rate.

The money market account is the other way round: you always have access to your capital, but the interest rates are not that high. Suppose you want to invest your capital in a time deposit account. They receive from the respective house bank an interest of 1,5 percentage points per year and a period of two years.

To what extent are the default interest calculated? In this example, after two years, you will receive EUR 300 as interest on your invested fixed-interest deposit of EUR 10000. Your capital would have lost more value in one year than you have due to the interest rate. For another two years, you are investing around EUR 10,000 in a call money account with 1.5% interest, which is calculated once a year.

Thanks to higher interest rates, larger investments and longer maturities, you will still notice the benefit. It also makes sense if the interest payments do not occur once a year but every six months or even monthly. As a result, up to EUR 801 in interest income per year is exempt from tax. What should I look for when paying interest? We would like to give you a few tips at this point before you decide to take out a loan.

Very few people meet the requirements to get such a loan. Some banks also try to offer you other items in addition to the credit, which you do not always need. It is best to spend as much time as possible to evaluate offers and find the perfect loan for you and your life situation.

Think about what credit you can afford. Further information on how to help save interest can be found here. What is the purpose of interest rates? The interest initially serves as remuneration for the borrowed capital. When a lender grants a loan, it always enters a certain residual risk that the borrower will not repay the loan.

Therefore, the lenders charge an additional premium for any risks, the so-called risk premium. The inflation leads to a loss of monetary value. If a lender grants loans over a longer period of time, the loan value at the end of the loan period may be lower than before the loan was granted. A vendor can meet these depreciations from the debtor by paying interest payments.

If a customer is in arrears with the repayment, the vendor suffers a disadvantage. If a lender borrows his capital, he has no access to it at this point and can not spend it profitably. This lost profit is referred to as opportunity cost and can be driven by the debtor with interest.

When will there be interest?

The interest rate is higher than that of the money. The original name is the credit, the more seed is the interest. The long interest history can also be proven by the ancient Romans and Greeks.

Ultimately, this tendency led to interest rates as we know them today. In what connection are creditworthiness and interest? When applying for a loan from a house bank, the creditworthiness is checked. The score is calculated from different information, such as current litigation, your previous payment term or the frequency of your trains.

The second data source is provided by the National Bank itself. Based on this information, the central bank calculates its own rating, which is offset against your creditworthiness. On this basis, the house bank determines if and on what terms you will receive a loan application. Put simply, if you have a good credit rating, you are very prone to a loan.

If your creditworthiness can be improved, you may be denied access to the Internet. The better the conditions in terms of low interest rates, the better. The FinFitness function calculates your financial strength, just like with credit institutions. You will only receive pre-approved credit offers that suit you and your economic situation. In this case, you can contact us.

Execution is still a big problem for many people

Debts should be settled and repaid. That is not the movement. Not every borrower is responsible and has an endeavor to do something. For those who do not want to be responsible, several steps are taken, which are associated with trying to raise money. It is:

  • Telephone reminders
  • Written reminders
  • Payment Order

If none of this applies to the debtor, execution follows. A relatively effective way to recover money from borrowers. On the other hand, it is also a journey that involves high costs as well as significant constraints in everyday life. Yet people still fall into execution. And more than in the past.

Compared to the previous year, a clear increase

Compared to the previous year, a clear increase

Let us look at a year-on-year comparison that is not favorable at all. It shows that the number of executions has increased. This is despite the fact that the domestic economy is doing well, that unemployment is declining, as well as the fact that for a long time there has been a possibility of debt relief, where conditions are becoming more benevolent.

If we look at the specific amount of the increase, we must say that the number of persons in execution in 2017 increased compared to 2016 by 3.4 percent. Although they are only units of percent, in total numbers it is quite a significant increase. Learn more in the following lines.

How many people are in execution?

How many people are in execution?

This number is really alarming and shows that debts are really a big problem in the Czech Republic that needs to be adequately addressed. When we look at persons over fifteen, every tenth person has a distraint. This is a truly menacing number compared to the population. How it looks? The number of people who are under execution is currently approximately 863,000 people. If we compare the given number on a year-on-year basis and calculate with the above-mentioned percentage increase, there were about 30,000 more executions than in the previous year.

It’s not just one execution

Most executions will not be recovered

Legislation is also a problem

Legislation is also a problem

The current legislation may also be a problem in this respect. There are two complications associated with this. The first is associated with the fact that a particular debt can be enforced by any bailiff. Maybe from the other side of the republic. The result may be significantly higher costs than the so-called local executor, who has a few kilometers to the debtor. When there are several executions from all over the Czech Republic, it is clear that the amount owed is significantly increased by the costs, up to an insoluble value.

The second problem is still a very complicated merger of distraint. This may happen, but only at the instigation of the borrower himself, who so requests. Executors are not legally obliged to do so. This is quite clearly related to the above problem. If only one bailiff had all the distraints under him, the costs of the survey would be spread over all the current ones. But now it is happening that all steps, such as finding accounts, income and property, each executor alone, and each increases “their” debt, which he enforces.

Real numbers may be lower

Real numbers may be lower

Finally, even if the numbers are alarming, the real numbers may be lower. This is because the total number of executions includes those debtors who are in insolvency and are undergoing so-called debt relief. The execution may be open for a given period, but the executor cannot recover the money in any way. Here, while the debtor has a distraint, but repays the debts under debt relief. Once passed, the execution will end. It will not be terminated earlier because of the breach of personal bankruptcy conditions, the entire statute may be revoked and the bailiff may resume acting.

How to improve your credit history score

It is very important that you take care of your credit history. Remember that the better your profile as a payer, the greater the number (and the amount) of the loans you can access. Also the interest rates will be better.

When a lender receives a personal loan application, the first thing he does is verify that person’s credit history.

These records are maintained by a risk center and the best known in Mexico.

The first thing you need to do to improve your rating is to know what your credit history is (it’s free).

How can I improve my credit bureau score?

How can I improve my credit bureau score?

If you have already reviewed your credit history and you know what your rating is, now you can improve it, keep it or if you do not appear, start it!

Remember that although it is not highly recommended to have many debts, it is good to have some type of credit history to make it easier for lenders to include you among their clients.

Robin offers you some tips to improve and maintain a good credit history:

Before applying for a loan you should read very carefully what are the terms and conditions of the lender. If you have requested several, you should read everyone’s before receiving the loan.

There are many cases in which people receive their first payment invoice and are surprised with the amounts since they did not expect them. Be very clear when and how much you will be charged.

Don’t forget to ask for the Annual Effective Cost Rate (TCEA) that includes all the fees, administrative expenses, insurance and lender fees.

This information must be given clearly and by law is free.

Beware of the loan amounts you ask for

After putting together your budget, you must adjust your expectations about the loan.

You should not request more than 30% of your annual income, otherwise you could put your payments at risk.

Remember that assuming a debt is a responsibility that can impact you legally. That is, you should consider it with great care and responsibility.

Pay all your debts on time

Pay all your debts on time

Schedule notifications on your calendar that reach your cell phone or email.

Always try to pay your debts and bills as soon as they arrive. If you make this a habit, you will never fall into arrears.

Avoid paying a debt with another debt

Avoid paying a debt with another debt

Nor should you pay a credit card using money from another credit card. The interest rates for doing this are very high and can put your financial health at risk.

This is not an intelligent act since what will actually happen is that you will borrow more.

Follow these tips from Robin and you will have more chances to get that loan you want so much!

 

Visa credit card without changing bank | Money and credits

Among all the possible options of the market, there are very interesting alternatives for customers of financial institutions. Among them is the New Bankile Visa, the card chosen as Master Purchase by the OCU in its Magazine of January-February 2015. It is a credit card issued by the Bankile entity for which it is not necessary to change bank and that makes available to the customer a line of credit of up to 5,000 euros.

Free operations

Free operations

The new Bankile Visa fee is free forever and has no commissions when making the first transfer of money between the credit card and the associated checking account, provided that it is made within a period of 60 days from the issuance of the card, be up to 95% of the limit available on the card or a maximum of 3,000 euros.

In addition, there are no fees for deferment or early cancellation in the repayment installments of the line of credit.

With a lot of discounts

With a lot of discounts

 The new Bankile Visa returns 1% of purchases in all commercial establishments, without limits in terms of the price to pay or restrictions of any kind. This refund will be made in the line of credit and will be considered a capital gain for purposes of taxation in the IRPF, although it is not subject to any withholding in said tax.

In addition, the client can access a large number of unique experiences at the Bankile Center in Madrid, participating in raffles for events on this same stage, such as VIP seating concerts.

The customer decides the payment method

The customer decides the payment method

The customer of this card can decide the form of payment that Bankile offers, with the possibility of modifying it as many times as he wants with a single call:

  • Defer purchases up to 59 days without interest (0% APR and 0% TIN), if you decide to pay the entire amount available.
  • Paying from a minimum of 3% of the outstanding balance with a minimum of 7.5%, at the interest rate applicable on the card.

TAE and TIN of the card

TAE and TIN of the card

The nominal interest rate (TIN) of the card is 23.90%, with an APR of 26.70%. For example, for a willing amount of 1,500 euros to be paid in a year, the monthly installments would be 141,77 euros, with a total amount owed of 1,701.20 euros.

Insurance and linked services

Insurance and linked services

In addition to all these advantages, this card offers the client a wide range of insurance and free services, among which the protected purchase, both physical and online, an anti-fraud guarantee, an emergency service abroad and the extension of the guarantee of purchase of the products up to three years.

These insurances will be subject to the conditions, limits of coverage and exclusions that appear in the insurance policy.

Is it a card designed for me?

Is it a card designed for me?

The new Bankile Visa provides great convenience to the user, who does not need to change banks and a remarkable flexibility, since it gives you the option to choose between several forms of payment. In addition, it is useful to pay in commercial establishments, since it applies a 1% discount on all of them, in addition to providing a series of discounts and raffles on tickets to Bankile events, ideal for those who live in Madrid.

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