Loans: demand also growing in March

Rising loans in 2015 . The credit sector regains dynamism and returns to grind, with positive effects and repercussions on the entire economy. After months of regressions and sector reports accompanied by the ‘minus’ sign, the sector is growing again, driven also by the new digital media which, in recent years, have achieved an increasingly profitable synergy with the universe of financing. Online institutions have extended the alternatives and portals for comparing loans such as Yes Borrow allow families to investigate the market with greater awareness.

 

Loans: Loan market highlights

Loan market highlights

The latest Lite Lending Barometer relating to the trend in the loan market highlights how the crisis, although it cannot be defined behind it, is at least starting to make the banks and credit institutions less afraid. The good news comes from the demand expressed by households for finalized loans and for personal loans which, overall, in March showed a growth of 6.9% on an annual basis. In the first quarter of the year, the increase in requests is even more significant and stands at + 7.8% . Between January and March 2015, the average amount requested was $ 7,724 .

In the first three months of 2015, the applications for finalized loans show at + 8.9% , for an average amount of 5,044 dollars ; those for personal loans is + 6.6% compared to the period January-March 2014, with an average requested amount of 10,913 dollars .

 

The most requested amount between 5 and 10 thousand dollars

loan request

Analyzing the demand more specifically, more than half of the requests presented in the first quarter of the year (52.4%) did not exceed 5,000 dollars , an increase of 2.8% compared to the same period of 2014. Down loan applications for amounts between 5,000 and 10,000, down 1.7% and equal to 18% of total requests. Just 0.1% of requests exceed $ 75,000.

 

The demand among the under 35s is decreasing

loan demand

Although slightly (-0.8%), the demand from young people under 35 is decreasing. The 25-34 age group absorbed 17.3% of the requests, 4.8% of the total is less than 24 years old . Loans in the over 65 range , on the other hand, grew, representing 9.5% of the total. The 35-44 year old cluster represents 24.7% of the total number of applicants, the 45-54 age group 25.7%.

 

Less lasting funding is sought

credit loans

Loan applications of less than one year are up 3.0% and amount to 24.5% of the total. Loans lasting more than 5 years , on the other hand, fell to -1.4% and 20.2% of the total. The remaining part of the loans sought by families has a duration of between 1 and 5 years.

When it’s worth taking out a loan?

Today we are going to talk about that money that we take from someone else and then return with interest: the loan. Tell me: when it comes to which team you are on: of those who feel a chill down the spine just by hearing that word or of those who take all the money they offer without thinking about tomorrow?

Like everything in life, each case is different and what matters here is balance. Shall we meet him together?

 

You don’t have to panic over a debt

debt loans

Like overdraft and card revolving. In many cases, the loan may be the best way to get out of it. “But, how am I going to get out of debt by taking another one, girl?”, You will ask me. I explain: you get a loan with the same amount, but with lower interest rates than the debt you already have. So, you pay off the first one and, in the end, spend a lot less money, since you will pay a lot less interest.

Do you know that crucial moment in your business when it either goes or splits? This is where a loan can also go very well, thank you. It can be the little push needed for your company to get the momentum it needs to take very high flights. But some bills need to be done before signing the contract because we don’t want anyone falling over the edge, huh.

There is also the time of horror when that car crashed, the pipe burst, a health problem appeared and you are paralyzed without knowing how to get out of this problem. In such unexpected cases, if you don’t already have an emergency reserve, the loan can be a great ally. However, you must have both eyes wide open. Despair is not a good advisor, so don’t take the first option that arises because it can become another problem ahead. Always research rates and payment terms to choose the best option for your pocket.

 

Now changing from sadness to happiness

loans

Let’s talk about a good thing! Sometimes there is no money to make a trip that has been dreaming for some time, take a nice course, buy the car that a friend is selling. In these situations, how about a loan? Before I answer, I have a question for you: can this course, trip, car be purchased at another time or is it a unique opportunity? If you can do it later, it may be more worth saving some money a month or trying to make extra money to make your dreams come true without leaving debts waiting for you at home. If it is a unique opportunity, the loan can be a good one.

Whatever the situation, the essential is to give that analyzed in the options to choose the best one for you.

How to get out of unpayable debt

We always say that the best alternative to pay off a debt is to reorganize expenses, strictly follow good planning and exchange it for a credit with lower interest rates. But we cannot generalize. When the monthly pending is already greater than the amount that goes into the pocket, this solution is not the most effective. In these cases, the customer is over-indebted and needs more help to get out of this! But before looking for that little hand, it is necessary to identify if this is the situation . There is over-indebtedness when your monthly income is totally compromised by basic needs and there is no slack in the budget to pay at least part of the debt. Thus, it multiplies with interest and paying it off seems something more and more distant. If that’s your case, don’t despair! Many times, we let the financial situation rule our emotional, but this is not usually very positive when we need determination to regain control of the money. Know that even a super debt has a solution and we will give you all the steps to reach it!

 

Understand the true size of debt

debt size

Accounting for how much you owe is one of the fundamental first steps. Consider all interest, penalties and fees that have been levied on the amount since it is pending. If you have more than one debt, do it with all of them and also know what the total amount is.

 

Analyze your finances calmly and in detail

Analyze your finances calmly and in detail

Before making any decisions, you must know exactly where your money is going. See what percentage you spend on bills for the home, market, transportation, health and all other categories present in your day to day. Doing this makes it easier to determine which habits can be changed.

 

Cut spending

Cut spending

Analyzing your spending, you realized that almost all income is committed to basic spending. But even then, it may be possible to save money. A good tip is to go to the market with cash and not take a card. That way, you commit to buying everything you need with just that amount. How about also trying new and cheaper brands? You keep your lifestyle, but spend a little less – and every penny makes a difference!

 

Sell ​​some goods

Sell ​​some goods

Even if it is a little sad, it is worth considering selling some goods when we are in need of a little money. If you have a lot of clothes hanging in the closet, you can sell the pieces at thrift stores. Selling the car and appliances is also a good thing, as they usually have a higher value.

 

Negotiate with the lender

debt loans

Now that you know how much you owe, changed some consumption habits and did what you could to improve finances, it’s time to try to negotiate with the creditor. Ask for a discount and propose a deal that fits in your pocket. A good alternative is to use a portion of the money you received from the sale of the goods to offer an entry in exchange for more advantageous terms in trading. But be careful not to accept a portion that you will not be able to pay! 

 

Look for public agencies that offer support to the over-indebted

Look for public agencies that offer support to the over-indebted

If the creditor does not offer an agreement that is good for your situation, do not feel obliged to accept it! Some public agencies exist precisely to provide help in these situations. The Public Defender’s Office is one of them. It aims to defend the rights of people who are unable to pay expenses and a private lawyer when opening a reconciliation process with the creditor company. In some states, the debtor can also rely on the Lite Lenders Support Program for the Super-Indebted (PAS). He conducts a series of interviews with the consumer to understand the size of the debt and his day-to-day habits, offers lectures with financial guidance and also mediates with the creditor through a conciliation hearing. If you are over-indebted, the most important thing is to focus your attention and new habits to get out of this situation. Postponing this, in addition to keeping your name dirty for longer, will make the necessary changes ever greater. Be sure to follow these tips to regain control of your financial life.

Do you know what credit score is?

Those who are looking for a loan or have had to ask for a little help of this type have certainly heard about credit scores – that famous phrase “Sorry! Your credit score is very low ”. It is easy to know how important it is in these cases, but understanding what it means and how to consult it is not such a simple task. As the name implies, this is a score used by financial institutions to analyze their client’s ability to pay before granting any type of credit. This applies to loans, financing and even to release limits on overdraft. But just knowing the definition is not enough. That is why we have separated some important tips on the topic so that you can see why understanding these two words well is so important. Keep reading!

 

What is credit score?

credit score

As we have already said, it is basically a tool by which financial institutions, retailers and banks decide whether or not to grant credit to their consumers. The score is a score from 0 to 1000 in which information on how the consumer would behave when paying their debts is analyzed. To calculate some items are analyzed, such as: records at Fine Bank and Across Lender Group;

  • acts;
  • income;
  • marital status

Based on this information, a static calculation is performed and the system automatically reports a score to the consumer. The higher the amount calculated, the better it will be for your financial resume. On the other hand, the low score means that your default rate is the chance that you will default on whoever is granting you the credit is high. The scoring of the score works as follows:

  • up to 300 points is a high risk of default;
  • between 300 and 700 is the average risk of default;
  • above 700 is low risk.

 

Why is having a low score bad?

credit score

As it is the main factor analyzed by institutions to grant credit, you can already imagine that having a low score is not very favorable. Certainly few people would lend money to a bad debtor, don’t you think? The same is true for banks. After all, if a consumer has a low score, he probably will not be able to meet the payment terms of his debts. That way, if you don’t have an attractive score usually set by the financial institution – you will hardly be able to release the credit. What’s more, when you do, you will probably have to pay dearly for it, since the risk of not paying off the debt is high.

 

I want to know my score!

credit score

Learning how to consult the score is essential to understand how it influences your credit goals, to understand where your mistakes are and to be able to plan your expenses better. Currently, many sites have made it possible to access it, such as the Across Lender Group Score and the Fine Bank consultant. They require a registration and, based on their personal data, analyze information such as the payment of bills on time, the history of negative debts, the frequency of searching for credit in the market and the updated registration data. Other portals also offer the service, but charge for it, so stay tuned !? If your score is not as desired, know that it is possible to improve this situation! Check it out:

 

How to increase the score?

credit debt

It is essential that you know that the score is not something fixed and is evaluated at the time the consultation is made. Therefore, there are some actions that can improve your score:

  • pay your bills on time;
  • update your data on Across Lender Group;
  • pay off your arrears;
  • pay your debts in advance;
  • invest in financial institutions;
  • prove income.

 

To worry about your credit score is to worry about the image you are seen by financial institutions. Therefore, it is ideal that you do not neglect your financial planning and remember all our tips to always keep your score playing on your side.

Low score? See how to improve the grade

At some point you have needed (or will still need to) install a purchase, get a loan, or have a credit card. And it is difficult for banks or financial institutions to fulfill this request immediately.

These companies usually use the time to think to give the answer to do a kind of scan of customers’ pockets. And in this radiography they seek information about the payment history of those who asked for the credit or intend to split the account.

Their goal is to avoid, as much as possible, being passed over. That’s right, just like you or me, nobody wants to take a default, stop being paid, whatever the explanation.

And in the case of companies, the solution is to seek support in the credit score. Score is a kind of note to assess the ability to pay, the possibility of the person honoring (or not) the commitment made.

 

How is the score calculated? Can I increase it?

credit score calculated? Can I increase it?

There is no single way or simple formula for this. Usually each place adopts a very specific system. The common ingredient of almost everyone is public information coming from companies that work with exactly this.

You may have heard of these places. These are called credit bureaus. Quite strange name. Difficult to even speak. But if I tell you that Fine Bank, Credisure Group and Lite Lending are examples of bureaus, the conversation will be much calmer, right? 

The score usually varies between 0 and 1 thousand points and the higher it is, the lower the chance of the person being in default:

  • 0 to 300 points – high risk of default;
  • 301 to 700 points – average default risk;
  • 701 to 1 thousand points – low risk of default.

Another advantage of having a good score? Imagine the same situation. The person wants to split the purchase, asked for a credit card or needs a loan. If the company consults her name and checks that score very high, the treatment is usually different.

There’s even a red carpet The tendency is to release a higher limit on the card, split the purchase more often, or allow the loan to be paid in more installments and at a lower interest rate.

But and for a slightly different situation. The score is low. Is there a way to improve this faster? Take note of the Guiabolso tips for this:

 

Avoid getting your name dirty and pay the bills on time

credit score

Also remember to renegotiate debts if they are a little higher than desired and escaping the budget. Patience also needs to be used here. It will take a while for your status to change after everything is right, all in blue. It is not as fast as in the social network that is just updated and everyone already knows.

 

Try to increase income

Try to increase income

Usually when the gains increase the score also gives an up, it goes a little up there. A way to earn a little more? How about a beak or a freely exploring your professional skills? 3 – Use credit lines well
It works like this, if the person manages the credit lines well, it is a sign that he has enough organization to conduct his own financial life well.

Another valuable tip for the score to get better? Seek credit at various institutions and with certain regularity. The habit shows the concern to simulate the best option to not let things get out of control. On the other hand, entering the overdraft or revolving card and not leaving there, or using a bad check take you in the opposite direction and make your score go downhill.

Loans for university, how much do they agree?

More and more young people are also making use of university loans in Italy. In America they are widespread, but there is a risk that the accumulated debt is too heavy.

Due to the economic crisis and the significant reduction in the purchasing power of families, more and more students are applying for loans to finance their studies. This practice has been affirmed for years in the USA – where studies are much more expensive – while only recently it has been gaining ground in Europe and Italy. For young consumers looking for a credit offer to access studies, it is possible to compare the most convenient loans by taking care to select the options of the banks dedicated to the categories of under 30 and students.

 

Student debts

Student debts

Lately the American model, however, is showing the first potential flaws. The debts accumulated by students who have requested to take out personal loans, in fact, have grown exponentially and some see this as the risk of a bubble bursting. The New York section of the Federal Reserve has recently estimated the amount of this debt at one trillion, against which the default rate is also increasing.

In Italy the system is very different, also because the burden of studies and all related expenses is much smaller. However consumers association has calculated that it amounts to about 9 thousand dollars per capita per year, a figure that for many today is prohibitive and can require the intervention of banks with loans.

 

Formula of loans

student loans

The formula of loans is also different in our country, because instead of real disbursements of liquidity, they are rather openings of credit (of controlled credit lines, in short) contained in current accounts. The set of guarantees also varies: in our case, it is the university that acts as guarantor, based on an agreement with the credit institutions and with the students themselves, who must, for example, maintain a certain average.

Like all forms of consumer credit, however, this too deserves to be carefully evaluated, especially considering that the repayment begins at the end of the studies, a moment not particularly happy for Italian recent graduates struggling with the chronic shortage of work and precariousness.

Mortgages and loans for foreigners in Italy, Romanians first for requests

Obtaining a loan is an indispensable operation for many savers, especially for those belonging to the weaker groups such as temporary workers, students, young parents. In order to find an accessible credit offer for all types of consumers, one possibility is to compare the most advantageous loans of the moment in order to choose the most convenient one for everyone’s pocket.

The “Report on the demand for credit by Italian citizens” presented by the Lite Lending risk center investigated how high the degree of banking and financial integration of foreigners in Italy was. Among the results, the increase in the demand for loans and mortgages stands out, with different percentages according to the nationality of origin.

 

Submission of loan application

loan application

Even a fifth of last year’s total online and traditional loan applications were submitted by Romanian citizens (with over half a million applications), followed by Albanians and Moroccans (with 6.1% and 5.7% respectively).

Unexpectedly, the Chinese community only holds the twenty-seventh place in the ranking of requests for personal loans, despite its growing presence throughout the national territory.

The same goes for the list of entities that require real estate mortgages, with Romanians once again at the top of the ranking with 18% of total applications. In second and third place we find Albanians and Swiss, with 12 and 6% of requests.

 

Finalized loans 

Finalized loans 

Similar situation, at least for the first two communities mentioned in the ranking, which are reconfirmed at the top of the list also for finalized loans (24% of requests from Romanians and 7% from Albanians).

The figures relating to the average amount requested were also processed by Lite Lending: the Dutch came first with 58,387 dollars. Followed by the Spanish (on average $ 37,854), the Austrians ($ 36,138) and the Chinese ($ 25,123). This time we find the Romanians at the bottom of the ranking, together with Filipinos and Moroccans, with amounts less than 10,000 dollars on average.

With a comment on the results that emerged from the report, Stephen Larocchi, Sales & Marketing Director of Lite Lending, said that “the application for credit represents one of the main drivers for the social and economic integration of citizens from other countries”.

Instant loan despite of bad Credit Bureau how possible to get it?

What do you have to take into account with instant credit despite bad Credit Bureau?

What do you have to take into account with instant credit despite bad Credit Bureau?

Most importantly. that the loan can be repaid in monthly installments that are not too high. It is much easier for you if there is enough money left over from your income for other important things. The key to good financing is low interest rates and good conditions. If the loan is flexible enough, you will have fewer problems repaying it. This includes installment breaks for one or more months as well as special repayments at no additional cost. Sustainable financing on the subject of instant credit Despite bad Credit Bureau, all of this should offer.

However, keep a few things in mind so that there are no obstacles to your loan as a pensioner, self-employed, student, trainee, employee or unemployed:

1. Only take up as much money as you really need

In principle, the guiding principle applies: The costs incurred must be realistically estimated when planning with a view to the topic of instant credit despite bad Credit Bureau. It is therefore an absolute must to prepare the issues clearly in order not to experience any unpleasant surprises afterwards. Without a doubt, it would not be wrong to consider a small financial cushion. However, this buffer should not be set too large, since otherwise the liabilities would become unnecessarily high. As a result, it is sensible not to borrow more than is needed. If the need has really been underestimated, follow-up financing in the form of follow-up or top-up financing can be easily compensated.

2. Establish and structure a financing plan

If you want to take out a loan, you should assess your financial situation correctly and have precise control over costs and income – also when it comes to instant loans in spite of bad Credit Bureau spent exactly on what things? So that no hidden amounts of money are overlooked, small expenses, such as standing coffee at the bakery or after-work beer in the pub, should also be taken into account. This makes it very easy to determine where you can possibly save one or two USDos. Regardless of this, such a list also helps to assess the correct repayment rate.

3. Be conscientious and careful

With all information on your creditworthiness and your own financial situation, it is important to be precise, careful and absolutely honest – especially when it comes to instant credit despite bad credit, with all information on your creditworthiness and your own financial situation, exactly, carefully and absolutely honestly. You should allow yourself enough time to carefully compile all documents and evidence. This is the only way to draw a serious, exact picture of your own finances, which has an advantageous effect on the chances for an express or instant loan.

What can a really good mediator do for you?

What can a really good mediator do for you?

The broker will mainly support you in finding a foreign or German financial institution for a suitable “loan without Credit Bureau”. In detail, the help offered can go far beyond pure mediation and can be expanded to include debt advice. A serious loan despite Credit Bureau intermediaries will give you detailed advice on the financing offer by showing you the advantages and disadvantages. He will also support you in compiling all the necessary application documents.

Advantages and disadvantages in mediation

Advantages and disadvantages in mediation

Advantages:

  • Extensive advice before submitting the application
  • Assistance in compiling the documents for the loan application
  • Contacts with lesser known banks and credit institutions
  • Help with arguments in the case of problematic personal circumstances or large amounts of funding
  • Good chances of favorable conditions
  • Procure credit even if the creditworthiness is insufficient

Disadvantage:

  • Doubtful offers are not always immediately recognizable
  • Risk of obtaining overpriced loans
  • Possible fees for obtaining credit

Also worth reading is the Credit at Bank Despite Credit Bureau contribution

Many intermediaries have good connections to lesser known, small financial institutions and therefore the opportunity to negotiate better conditions for instant credit despite bad Credit Bureau. Negotiations can also take place in complex cases. Good personal connections to small institutes pay off in such a way that the intermediary can, for example, justify a Credit Bureau entry. Then the entry regarding the creditworthiness is not as important as at a large bank, where lending is mostly automated. A loan application for instant credit Despite bad Credit Bureau with an established bank, in contrast, would be a pretty hopeless undertaking.

How do you differentiate between reputable and dubious credit intermediaries?

How do you differentiate between reputable and dubious credit intermediaries?

First of all: A reputable broker always represents your interests when it comes to instant credit despite bad Credit Bureau. The agent does not expect any commission from you either, because he receives it from the bank.

The following applies to reputable credit intermediaries:

  • The agent has a website with imprint, contact options and address
  • You do not pay any commission to obtain financing
  • The company can be reached by phone without having to wait a long time
  • You will receive specific information on terms, debit and effective interest and loan amount

This is how you recognize a dubious mediator

  • Cost collection regardless of the conclusion of the loan agreement, but only for the consultation
  • You are promised a hundred percent loan approval
  • Documents are sent cash on delivery
  • Offers in the form of a financial restructuring
  • Unannounced acquisition at home
  • Financing depends on taking out residual debt insurance or other insurance
  • Calculation of expenses or additional costs
  • They are urged to sign the agency contract

What are the advantages of an instant loan despite bad Credit Bureau foreign banks

What are the advantages of an instant loan despite bad Credit Bureau foreign banks

Whether for the new car, a long vacation trip, a better mobile phone or the starting capital for starting a business – loans from foreign credit institutions have long ceased to be a financing option that you have to shy away from. The Internet is becoming increasingly popular among people to borrow from foreign institutions, making the house bank less and less important in this regard. What speaks for a financial institution abroad are the much simpler guidelines for granting a loan in contrast to Germany. An unfavorable credit rating or a negative entry in the Credit Bureau therefore only play a subordinate role in the case of an instant loan despite the bad Credit Bureau. It is generally Swiss banks that grant loans that are brokered online. This fact is particularly interesting for those consumers who need an injection of money particularly quickly and have already been rejected by German banks. These include e.g. B. Self-employed, students, trainees, pensioners, probationary workers or the unemployed. These people in particular find it particularly difficult to obtain a loan in spite of bad credit despite bad Credit Bureau.

The benefits of a Swiss loan

The benefits of a Swiss loan

Individuals who want to take out a loan because of financial difficulties often find it difficult. With debts or poor creditworthiness, the chance of financing is reduced considerably. A Swiss loan can be a real option in such cases. This is a loan that is granted by a Swiss bank. Credit Bureau queries are generally not carried out by such banks, which makes it considerably easier to get the loan. Especially when it comes to instant credit. Despite bad Credit Bureau, this fact is a huge advantage.

Obtaining a loan without checking the creditworthiness as well as various proof of income and collateral is clearly not possible with Swiss financial service providers either. If your only concern is the Credit Bureau entry, but your credit rating is in the green, the Swiss loan for instant credit would be a realistic option despite the bad Credit Bureau.

This is how instant credit works with certainty despite bad Credit Bureau

Quite a few consumers who are looking for instant credit on the Internet despite bad Credit Bureau or “despite moderate creditworthiness” usually think of a “loan without Credit Bureau”. If Credit Bureau does not provide information about the economic situation of the applicant, then well-known financial service providers will certainly turn to other credit agencies.

There is actually no one who lives in Germany and has no entry or score at Credit Bureau. It is sufficient that you have set up a bank account or applied for a credit card. Then a corresponding credit score will be created for you at the same time. So you don’t get a “loan without Credit Bureau” at {a bank}, at most a “loan despite Credit Bureau entry”. Fortunately, most of the entries made by consumers are positive at Credit Bureau. Nevertheless, many people suspect that they have a “negative Credit Bureau entry”

It is best to check beforehand whether your scoring (the so-called credit rating) is in fact so unfavorable that it might be difficult to release your loan application at a bank. Incidentally, you can conduct a free “Credit Bureau Score” query at Credit Bureau once a year. In order to be able to determine for yourself what data is stored, you can obtain a so-called self-disclosure from the credit agency since 2010. You are normally entitled to this information once a year free of charge according to the Federal Data Protection Act (BDSG) § 34. What factors include the information that you can query at “MeineCredit Bureau”? Primarily your own score (Credit Bureauscore), but also who has obtained information about you in the past few months. Your scoring depends on various “ratings”, which can range from 1 to 100. Excellent creditworthiness therefore requires a high score. The optimal value is 100. This means that the probability of failure is extremely low. On the other hand, the risk of default is much more likely if a person only has a score of 50.

Our tip: This is how you can “delete a negative Credit Bureau entry”

Not paying the bill – it can happen to anyone. The reasons for this are often different: you were on vacation at the time, had a new address due to a move or were currently in a financial constraint. An unpaid mobile phone bill can also lead to difficulties. This happened quickly. You suddenly have a disadvantageous Credit Bureau entry and can only apply for a loan with Credit Bureau. A reduction in the score index through several reminders means that it can have consequences for the application for a loan.

However, as a consumer you can have an unfavorable Credit Bureau entry removed. Enormous amounts of data are stored at the credit agency. As a result, it can happen that the stored information is often incorrect or outdated. In any case, as a consumer, you should exercise your right to self-disclosure in order to have entries that are no longer current deleted. To do this, it is sufficient to request a deletion directly from the credit agency. The condition for the removal is that the claim has been paid within 6 weeks and does not exceed USD 2,000.

Deletion of Credit Bureau data – your data at Credit Bureau

The Credit Bureau entries are automatically deleted after a certain period of time, even without your request. This usually happens:

  • after 12 months for information about inquiries; This information will only be passed on to Credit Bureau contract partners within 10 days
  • for loans 36 months after the year of the full repayment of the loan (to the day)
  • for information about due receivables, each after a period of 3 full calendar years (ie with the expiry of December 31 of the third calendar year that follows the storage)
  • for mail order or online purchases, in the event that the claims have now been paid

Why a Swiss loan is a good alternative

Individuals who need a loan because they are in a precarious financial situation often find it difficult. With debt or poor creditworthiness, the chance of financing is significantly reduced. In such a case, a so-called “Swiss loan” would be a sensible option. This is a loan that is approved by a Swiss credit bank. Since such institutes do not carry out Credit Bureau queries, this reason does not play a role in lending. This is particularly ideal when it comes to instant credit despite bad Credit Bureau.

Clearly, you also need certain collateral and proof of income for a loan from Swiss financial service providers, although a credit check is also mandatory before the loan is granted. If it is only an entry in Credit Bureau that worries you about financing, the Swiss loan could be a real opportunity for you, provided that your credit rating is in order.

What is the “APR”

With immediate credit Despite bad Credit Bureau, due to the greater risk of default, the credit costs are sometimes somewhat higher than normal. The “effective annual interest rate” or “effective annual interest rate” plays a decisive role. The “annual percentage rate” denotes the annual borrowing costs, which are calculated according to the nominal loan amount. Depending on the payment, it is specified with a certain percentage. There are financings with an interest rate that is flexible or variable and can therefore change during the term of the loan. This is then called the “effective annual percentage rate”

A fixed debit interest rate is also sometimes agreed for a loan for the entire duration of the term. This means: The nominal interest rate on which the “loan” is based remains unchanged regardless of the current development on the capital markets. For you as a borrower, a fixed borrowing rate has the advantage that you don’t have to be afraid of rising loan interest rates. So you can be sure that the interest rate on the “loan amount” will not increase during the entire term.

What does the loan term mean

What does the loan term mean

A loan can have different terms. This primarily affects the repayment terms that borrowers agree with the bank. This means that the longer the “loan term” is selected for a loan, the lower the individual monthly installments that the borrower has to repay, and vice versa. As far as the loan term is concerned, it can definitely be worthwhile to think through the different options. Nevertheless, not all maturities are offered for all loans.

What exactly is the term of the loan or loan term? In short, this is the period between the payment of the loan amount and the complete repayment. In principle, it is the amount of the nominal interest and the repayment that play a decisive role in the long term. Of course, the amount and number of installments primarily affect the term. The lower the repayment amount, the longer it will take until the loan amount and thus the loan including the processing fees has been paid in full. Loans that run for 120 months or longer are considered long-term loans.

What are loan fees

Loan fees are often also referred to as closing fees, loan processing fees, processing commission or processing fees. Financial service providers were officially allowed to charge the applicant the expenses incurred until 2014 for a loan request or processing the loan application. In May 2014, the calculation of the “loan fee” for a loan request, such as checking the creditworthiness of the borrower, was declared illegal. Today, processing fees depending on the respective loan amount may no longer be required since 2014. Basically, these costs were approx. 1 – 3 {{percent}} of the loan amount, for example with a loan of USD 10,000 already USD 150 to 450. If various borrowers have been charged such a fee for the loan request or the loan application, they often have the option of requesting reimbursement of the cost.

What is a lender

The lender is a natural or legal person who grants the borrower or borrower a loan for a certain period of time at an agreed interest rate. The term “lender” is generally used in credit contracts. In this context, one often hears the terms “creditor” or “lender”.

A loan is associated with a high risk of default for the lender, which means that a higher interest rate is normally charged. The lender is usually a savings bank, a credit bank or an insurance company. Of course, borrowers also have rights and obligations which are laid down in the Civil Code.

What is the monthly rate

What is the monthly rate

Repayments of financing such as “loans with poor credit ratings” are also made in the form of individual monthly installments. One of the elements of the monthly loan installment is the interest rate. The index for the interest rate is based on the current market interest rates that the bank pays itself on the capital market. It then passes this interest on to its customers – usually plus an appropriate surcharge.

Another component in the “monthly installment” of loans is repayment. The borrower normally determines the monthly repayment depending on his economic circumstances. For {long-term loan contracts}, the repayment is mostly 1 {{percent}} per year. With a higher repayment, the loan amount and thus the loan amount can of course be repaid in a shorter period of time. It is then clear to expect an increased monthly charge according to the repayment amount.

The central characteristics that determine loans are repayment and interest. However, the monthly installment for financing also includes the processing fees of the banks and the agency fees of the credit intermediaries. Although these costs are already taken into account by default in the interest rate, they are included as a component of the monthly installment in the total loan amount.

What is a debt rescheduling loan

A debt rescheduling loan is a loan that a person takes out in order to be able to use the money to compensate an existing loan with a high rate of interest at a slightly cheaper rate. With such a debt rescheduling, the borrower can save money. With a debt rescheduling, different loans can also be combined into one. It is therefore very possible to disclose more than one loan as part of a debt restructuring. Without question, you don’t go back to the {credit institution} where you took out the expensive loan for a “debt rescheduling loan”, but to another one. Of course, financing for a debt rescheduling can again be started with the same bank.

The basic purpose of a debt rescheduling loan is surely to have a smaller financial outlay after the new loan has been taken out. Even with relatively slightly lower interest rates, you can save a nice amount of money with the cheaper loan.

What is the total loan amount

What is the total loan amount

The total loan amount includes all fees that the financing credit institution additionally charges the customer for an approved loan. This is therefore not just the pure loan amount, but the total amount including all additional costs that the borrower repays to the financial service provider during the repayment within the loan term. The pure loan amount is increased by any processing fees or commissions as well as the total interest to be paid. As a result of the additional fees and expenses, the “total loan amount” is significantly larger than the nominal amount of the loan.

{Expenses} for residual debt insurance that may need to be taken out to secure the loan are also part of the total loan amount.

What is the loan amount

The loan amount is the actual amount that the borrower receives if he has been granted his loan application. In some cases, the payout is lower because the “loan amount” is not paid out in full as a total amount. In the same sense, this also applies to a loan or a “Swiss loan”.

When a financing application is made for a loan amount, the bank determines the business balance sheet for a commercial applicant and the existing income for a private person. How high the loan amount is then de facto is only a secondary issue. For example, if a loan amount of only USD 600.00 is applied for, the bank checks the applicant’s income as well as for a loan amount of USD 500,000.00.

There is generally a fixed agreement for the repayment of the monthly installment for the loan amount within a specified period. These agreements are always included in the written credit agreement. The loan amount can nonetheless be repaid by the borrower through special repayments before the contract expires if his monthly income is sufficient. Sometimes fees are charged for such special repayments. A quick look at {the respective financing contract} provides information as to whether you have to shell out something extra in such cases. The contractual relationship generally ends automatically as soon as the last installment for the loan amount has been paid. When applying for a loan again, the borrower must submit an application to the bank.

What are the credit rating criteria

There is no credit without checking the creditworthiness. The result of the credit check primarily depends on the “credit rating criteria” and is, so to speak, the credit rating that determines the respective surcharges on the loan. If the credit rating is excellent, the interest rate is favorable. In the event that the credit check gives a good result, there are, of course, certain advantages. There are clear differences between the individual financial institutions regarding the classic credit rating criteria