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Loans even with poor credit ratings

Get a loan without credit bureau

Get a loan without credit bureau

Many companies offer a loan without Credit Bureau information. Unfortunately, a large part of the dazzling advertising that we are confronted with every day on TV, the Internet and print media is the lead for clever rip-offs. The money is pulled out of your pocket with dubious methods. The providers promise to get you a loan without Credit Bureau. In return, however, you should pay fees in advance, because the banks abroad, through which the loan is supposed to be obtained despite Credit Bureau, would otherwise not carry out the application review. However, this is usually nonsense. A serious loan without Credit Bureau is certainly not processed through any dubious banks abroad, which usually do not exist anyway.

Contact professional brokers

If you do not want to engage in a personal loan, it is best to contact a professional credit intermediary right away. You can recognize a reputable credit broker who can actually give you a loan without Credit Bureau on favorable terms by the fact that he does not charge any fees. Credit brokers live on commissions that they receive through credit brokerage. Additional fees, in addition collected in advance, are a pure addition to your emergency situation and should therefore not be accepted.

Incidentally, a Credit Bureau-free loan is even accessible to people who, in addition to the negative Credit Bureau file, are also unable to provide proof of a regular income. For example, a loan without Credit Bureau is available for the unemployed. It is best to state such peculiarities when you contact the credit intermediary so that he can take them into account accordingly.

Conclusion

If you don’t get involved with dubious credit intermediaries from the start who just want to pull the money out of your pocket, you have a good chance of getting a loan without Credit Bureau. Do not accept offers that are subject to a fee, but rather make a free, non-binding inquiry to a reputable credit broker. He will do his best to help you out of trouble and to give you a financial reserve.

The 5 most common reasons for a loan cancellation

Income – too low, not attachable, unsafe

Income - too low, not attachable, unsafe

If the salary is too low, loan applications are often rejected because the risk of default is too high. In particular, the unemployed, low-income earners and students mostly do not receive a loan. You are considered a low earner if you earn less than 400 USD a month. Even if your salary is too close to the statutory garnishment limit, the chances of getting a loan are slim. Nevertheless, the salary does not play the sole role when it comes to obtaining creditworthiness. The following factors affect whether you get a loan despite low income:

  • Housing: If you don’t have to pay rent, this improves your chances of getting a loan because the monthly financial burden of the rent is eliminated. If you own your own property, this can also serve as security.
  • Guarantor: If you have someone who guarantees you at the bank, this can compensate for a low income. Of course, the guarantor must also have appropriate security in the form of his income or property.
  • A second borrower: If you apply for a loan not with someone else but with someone else, the income of both applicants will be taken into account. It may well be that the bank approves the loan.

In addition, you should of course also realistically adjust the amount of the loan applied for to the amount of your income and accept the bank’s claims linked to the lending.

Special loans for low earners

Special loans for low earners

Many banks offer special loans for low earners. These have different terms than conventional loans and differ in

  • the loan amount
  • the amount of interest as well
  • the term

of conventional loan offers. While the approved loan amounts usually do not exceed 3,000 USD, the interest rates are significantly higher than with conventional loans. The maximum loan term is usually 36 months. A positive Credit Bureau information is also a basic requirement so that you can get a special loan for low earners.

Debt restructuring for unemployed

Anyone who loses their job inevitably worries about the financial future. This is all the more true when loan contracts have been concluded, the repayment of which then falls during the period of unemployment. In any case, it is more difficult for unemployed people in the market to get a loan. Donors only trust their customers’ financial collateral. Taking out a new loan for debt restructuring often makes things even more complicated. This applies in particular if the old loan has to be serviced at high rates.

Unemployment threatens the debt trap

Unemployment threatens the debt trap

Losing one’s job means that financial losses have to be compensated. This weighs particularly heavily when the economic possibilities have been in the border area anyway. Low-wage earners who have taken out a loan to finance everyday goods or luxury goods are particularly affected.

In the event of unemployment, the overdraft facility is usually used before those concerned consider rescheduling. The problem is that one day the overdraft facility is exhausted. As the loan amount grows monthly due to high interest rates, this can result in economic ruin.

Because banks only offer their services against collateral, debt rescheduling can generally only be realized if the applicant can have a fixed monthly income. Salary and wages are such collateral that is accepted by lenders for the conclusion of a loan agreement. When you lose your job, you lose this security.

Those affected are usually entitled to unemployment benefits. However, lenders do not classify state transfer payments as sufficient security. This applies even if the amount of unemployment benefit is above the average of an employee’s income.

Legally, unemployment benefits are not treated as income. Nor can it be attached by means of foreclosure. Accordingly, the lenders lack any creditworthiness for a new loan, which certainly does not favor the initial situation.

Find the conversation at your own bank

Find the conversation at your own bank

In some cases, a conversation with the house bank is a promising way to start debt restructuring despite unemployment. The advantage is that the bank knows the debtor and his payment behavior.

If he has proven to be a solvent customer in the past, some house banks agree to rescheduling. However, the prerequisite is usually that the unemployment benefit is above average. The lenders then have an interest in granting a new loan because the monthly repayment rates are to be reduced. In addition, the borrower should be able to save an additional financial cushion.

Unemployed people have particularly good chances if they can offer other forms of security in addition to their unemployment benefits. These are, in particular, real estate or a new car. If the unemployed can prove that the lender takes a small risk by issuing a new loan, a positive decision in the interest of the applicant is quite possible.

The possibilities of rescheduling without appropriate collateral

The possibilities of rescheduling without appropriate collateral

If the person concerned cannot offer their house bank valuable collateral and the unemployment benefit is low in comparison, the bank will probably refuse to accept it. In these cases, however, it is possible to commission a credit intermediary.

The intermediaries work with foreign credit institutions, which are often based in Switzerland. But even these lenders do not entirely forego collateral. If the unemployed does not own a property or cannot have a life insurance policy, he must ensure security by other means.

Many foreign banks accept a guarantee in this connection. The prerequisite for this is that the guarantor has proven to be solvent in the past. It is ideal if the surety in turn has to offer additional collateral. However, when using a credit intermediary, it should be taken into account that they will regularly charge fees and a commission.

Before concluding the contract, make sure that the additional costs are not incurred until the mediation has been successfully completed. Otherwise, the unemployed are faced with further liabilities that put additional strain on their financial budget.

The personal loan

The personal loan

If the foreign banks come to the conclusion that the conditions for rescheduling are not met, the unemployed have another option. In recent years, a new type of loan has become increasingly popular, the so-called P2P loan. The request for a loan from the unemployed is directed to a private individual.

If the customer agrees to the loan, he pays the money out to the requester. He is therefore the sole creditor of the borrower. The application can be submitted via a credit portal. The contact between the unemployed and the private individual is thus established through an intermediary.

The intermediary ensures that the repayment is put under permanent observation. In terms of content, the P2P loan generally does not differ from the classic loan contracts. Nevertheless, the person concerned should make sure before signing the contract that all conditions have been recorded in the contract.

With this method, the chances of success of a debt restructuring are particularly high if there are no entries at Credit Bureau. Anyone applying for the personal loan via a credit platform should also pay attention to whether special conditions apply to the mediation. For example, fees or commissions may apply.

Partial loans – how does it work?

Corporate finance, which arises through a typical or atypical company, through profit participation certificates or even through subordinated or seller loans, is for most business owners already well-known and proven instruments that provide their companies with good liquidity outside of traditional bank financing. A largely still unknown element of corporate finance, however, is the participatory loan as part of mezzanine financing instruments. This is a special form of loan for corporate or equity loans. The lender grants the borrower a loan and receives a share of the company’s profits or sales instead of a fixed rate or capital or interest repayment. That is why one speaks of a profit loan.

If, for example, a partnership needs additional capital, this can be obtained from certain partners, here the partners. In return, the partners themselves have the right to participate in the success of the company. The partners who are not fully liable in any case enjoy the advantage that the loan itself does not extend their liability. The difference between a participatory loan and a silent company is often difficult to determine, but the main reason is the lack of influence on the company’s business. Therefore, participation of the partner in the loss of the company is always excluded.

The main advantage of a participatory loan lies in its simple investment model and it is also extremely inexpensive. Since this form of loan can be optimally adapted to the needs of a partnership, this form is particularly suitable as a so-called bridge financing. Bridge financing is financial resources that are made available to a company with the aim of improving its equity ratio. They often also serve as bridging finance in preparation for an IPO. The bridge financing is designed in such a way that it can be permanently replaced by equity or debt. If only equity capital is used for bridge financing, the equity ratio is improved. If an IPO is planned, the profit from the IPO is usually used to cover bridge financing.

In the case of a participatory loan by the borrowing company, there is no say whatsoever in terms of management or company decisions. Nevertheless, the parties have the option of agreeing any control rights for the lender. Since both borrowers and lenders can interpret their contractual arrangements very differently, the participatory loan is often equivalent to an atypical silent society. The boundaries are almost fluid, and some of them can no longer be determined exactly. The advantage for the company is that it only has to pay interest to the lender if it is doing well. In principle, the lender may not be involved in the loss of a company. In addition to profit sharing, an interest payment obligation can also be contractually agreed.

Partial loans also benefit many companies because the structure of power within the company is not affected by the granting of the loan, because the lender cannot exert any influence on the business decisions. It only has certain control rights. In addition to a partner, a partner-managing director of a GmbH can also participate in the GmbH with a participatory loan in addition to his regular contribution. A fixed percentage is always agreed with regard to profit or sales. As a result, the repayment amounts for the loan also change depending on how the profit develops. The loan itself can be granted to both partnerships and corporations. For the company, such a loan has the advantage that it only has to pay interest if it can also operate profitably with the capital made available. Conversely, if the company operates successfully, the investor has the advantage that he can achieve an interest rate that is above the capital market interest rate.

The use of participatory loans

The use of participatory loans

The participatory loan is a special form of loan as a form of financing. It is a question of financing by a natural or legal person in a company or an individual businessman who borrows a certain amount of money. However, the borrower does not receive an interest claim – as in the case of an ordinary loan – this is rather a share of the company’s profit or turnover. One therefore speaks of a shareholder loan or a profit-sharing loan that a partnership receives from its shareholders. The company only receives additional capital from its shareholders. Some of the loan itself has a fixed but relatively low base rate and is therefore not always distinguishable from a silent company.

If there is an inflow or outflow of capital, this does not trigger a shift in the power structure of the overall shareholders. Rather, the shareholders receive interest that is generally based on the company’s success. The advantage is that in most cases this interest rate is significantly higher than that for alternative investments. There is also a partial loan in the event that companies have fixed equity. And that denies their shareholders or part of them a right of withdrawal. The partners experience a further advantage in that, despite the loan being granted, they do not experience any expansion of their scope of liability. As a result, they remain non-fully liable partners.

As a result, there is no direct company participation in the participatory loan, so neither parts nor shares in a company are taken over. This has the advantage that there is no significant influence on business decisions for the borrowing company. Since the approval of participatory loans is only object-related or project-related, there is no need to examine them in accordance with the capital guidelines as prescribed by the banks.

However, even if a loan is not granted via business indicators, certain conditions are required for the borrower, in particular the project to be financed. Therefore, the granting of credit is made dependent on so-called economic studies, which confirm the feasibility of the planned project and the return expectations for the future. A company can only be financed through this form of loan if these forecasts are accurate. The main difference to the silent society is, however, that the silent society aims at the formation of a special purpose community, while the purpose of the participatory loan is always the mere granting of a loan.

This participation can accordingly be limited specifically to the business purpose for which the loan was granted. However, it can also affect the entire company’s activities. When granting a loan, the borrower is obliged to disclose his business evaluations, the profit and loss account and the balance sheet to the lender at regular intervals. Based on these numbers, the exact returns can then be calculated accordingly. In practice, there is often a contract that the lender can agree to regular installments in advance. However, a real security of the participatory loan is usually not agreed.

Therefore, money that is received as a participatory loan is always “repayable money” if only the interest, but not the repayment of the loan, is to depend on the success of the company. If a participatory loan agreement is drawn up in this form, it also fulfills the facts of the deposit business, which can only be excluded by qualified subordination. Since the interest rate is dependent on the profit of a company, disbursements in the event of loss situations are largely avoided – a clear advantage for all companies looking for capital.

The tax liability for participatory loans

The tax liability for participatory loans

Especially in economically tense situations, corporate loans are used in addition to the classic financing instruments as well as participatory loans. In this context, experts also speak of hybrid forms of financing. The forms of hybrid loans are very different. However, the most important form is found to strengthen the equity base.

The tax court sees this tax liability in the distinction between participatory loan and a normal loan. According to this, a partial loan is available if the lender is granted a share in the economic success of the company. In this context, participation in a liquidity surplus remaining at the end of the company is sufficient. This applies even if the participation in the surplus is not certain when the contract is concluded. But it must be possible. However, this may not be a normal loan in accordance with Section 43 (1) No. 7 EStG. In this context, the Münster Finance Court further stipulated that the remuneration should not only be paid in a fixed periodic amount, but rather had to consist of a share in the success achieved for the borrower. The remuneration can be both profit and turnover dependent.

The tax problem with this arrangement lies in particular in the delimitation between the various types of income tax income. This is because interest income, such as that deriving from loans, must always be declared as income from capital assets, while income from a participation in a company represents income from business operations. If companies use participatory loans, a differentiation is only possible in individual cases. On the other hand, when it comes to indicators of commercial income, management or other control rights associated with the profit sharing should be mentioned in particular.

Therefore, income from participatory loans must always be recognized in the context of income from capital assets according to § 20 EStG if the lender is not to be regarded as a co-entrepreneur or if the participatory loan is also not part of the company’s business assets. In addition, participatory loans in accordance with section 292 (1) no. 2 AktG always represent a net profit transfer agreement. Income from participatory loans are therefore part of income from capital assets in accordance with section 20 (1) no. 4 EStG, which in turn are subject to section 43 subs 1 No. 3 of the capital gains tax.

The borrower himself is obliged to show the participatory loan in his balance sheet as debt. In accordance with commercial law, the remuneration owed for a participatory loan is to reduce profits. If there is an additional performance-related remuneration for the lender and this can only be estimated at first (sections 249 (1) and 269 (3) HGB), a provision must be made accordingly. A prerequisite for the tax recognition of the loan interest as operating expenses is, however, that the contractual agreements are regulated as usual between third parties.

If the contractual agreements were concluded after December 31, 2008, the current income from the loan and any sales transactions are subject to the final withholding tax, regardless of their holding period. If the contractual agreements on the loan were made before January 1, 2009, payments by the borrower above the face value are taxable as another benefit and are therefore taxable at the general income tax rate. On the other hand, if the payments are made by third parties, a tax liability at the general income tax rate only arises if a sale is made within 12 months.

The contractual components of a loan contract

The loan itself always comes from a declaration of intent and by adding the loan amount – usually by the bank. The borrower – the entrepreneur – subsequently becomes the owner of the loan amount, which he can dispose of at will. Accordingly, he then bears the risk of destruction or loss. The lender bears the risk of the borrower’s illiquidity.

The advantages and disadvantages of a participatory loan

The advantages and disadvantages of a participatory loan

A major advantage of the borrower is of course primarily the inflow of capital – be it as a bridge for a share move or in the event of a poor economic forecast if the house bank no longer wants to grant an ordinary loan. A disadvantage is that a third party gets an insight into the operation. This often creates fear of espionage. Another advantage is the additional financial burden compared to a normal loan, since the borrower not only has to “pay out” the interest, but also part of his profit to the lender. If the financial situation of a company is not so good anyway, such financing can also have a bitter impact.

In return, the lender has the advantage that he makes a much higher profit from lending than would be the case with pure lending. If the company does not make a profit, the lender will still share in the interest. Even if this is a speculative profit sharing, since the lender naturally wants to participate in the highest possible profit, there is no problematic disadvantage from the participation itself. The investor only generates income from capital assets within the meaning of income tax law. And even this tax treatment cannot necessarily be interpreted as a disadvantage.

The problem only arises in the event that the lender can exercise a certain influence or control rights on the borrowing company. In this case, the lender becomes a co-entrepreneur and thereby generates income from business operations. And that means that the lender has to pay trade tax in addition to his income tax. Overall, participatory loans offer a multitude of advantages, ranging from long-term terms, a low minimum interest rate to profit sharing by the borrower. In addition, participatory loans are not only independent of banks, but almost no guarantees or other real collateral are required for the loan itself.

Incentive loans are therefore particularly suitable for project finance, for business start-ups, for company takeovers, and for product developments and launches. In most cases, contract terms between 5 and 15 years are agreed, the loan itself is always repayment-free within the term, because the loan amount is only reimbursed in one amount when the contract expires. Subsequently, borrowers can again seek follow-up financing from their house bank, since the rating has improved significantly over the term due to the participatory loan. The terms are so long because the company profits are not very high in the first few years. So he waits for the development accordingly and then benefits at a later point in time when success sets in.

Since participatory loans are always reclassified as economic equity due to their subordinate status, this not only increases the equity ratio, but also significantly improves the company’s rating. But there are also advantages in that creditors and debtors are not united to form a real society. In addition, the parties always have the option of structuring their contractual components as required, so that, for example, a creditor’s right to monitor can also take place. As a rule, however, a certain fee is agreed for the use of the loan, in the form of a regular amount of interest to be paid and / or in the form of a profit sharing scheme.

Compared to other investments, the participatory loan also has the advantage that it can also be sold to the public without a formal sales prospectus. This has the advantage that the company seeking capital does not experience any delays due to the preparation of prospectuses and approval procedures by Astro Finance. Depending on the corresponding contractual arrangement, the sales department does not require a license under the German Banking Act; rather, only a license in accordance with Section 34 c of the Trade Code is required.

The financing instrument itself can be provided with a subordinate clause or a resignation behind other creditor claims (so-called subordination) with the advantage that the loan is then classified as so-called “economic equity”. This then turns them into “fake mezzanine capital”. Partial loans therefore also represent contractual money loan contracts – in contrast to property loans (Section 607 BGB) – in which the loan partner as a lender takes on a creditor position and receives an interest claim in return for this. Since a securities prospectus is not absolutely necessary for a participatory loan to a third party, a so-called legal entry threshold applies (section 3 (2) of the securities prospectus law. In this case, only 99 potential investors may apply or be addressed.

The disadvantage again lies in the fact that loans (money for interest) according to § 1 of the German Banking Act can only be granted or accepted by banks in the sense of their lending business (e.g. as deposits). However, this again does not apply to securities-oriented loans, they can be issued by anyone, including private individuals.

 

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Small loan without Credit Bureau

Small loans despite poor creditworthiness

A small loan can be the saving anchor if you run into short-term financial hardships that you cannot get out of yourself quickly. A small loan provides for a financial cushion of 500 to 5,000 USD, which in most cases is used for smaller purchases in everyday life – regardless of whether it is the urgently needed car repair or the new living room couch. It becomes difficult, however, if you want to draw on small loans despite a negative Credit Bureau, because the banks usually turn the tap very quickly. It is just as difficult to get a small loan for the unemployed.

Serious or untrustworthy?

Serious or untrustworthy?

There are numerous providers on the market who promise you a small loan without Credit Bureau. But don’t let dazzling advertising dazzle you, because often there is no Credit Bureau-free small loan hidden behind such offers, but a rip-off that pulls even more money out of your pocket. Supposedly banks abroad are supposed to grant a small loan without Credit Bureau information – in most cases, however, this is a complete humbug, because foreign banks cannot do without collateral either. Instead, the goal of this scam is to make it easier for you with ominous fees.

If you need a small loan without Credit Bureau, you should instead contact a professional loan broker. How do you recognize one? Very easily! A reputable credit broker earns his money with the brokered loans and therefore does not need to charge any fees – especially not in advance. If you are asked by a service provider to pay fees in advance, you should pay attention and avoid the order as a precaution.

Conclusion

Conclusion

When it comes to a small loan without Credit Bureau, you should always stay vigilant. Wherever people are in an emergency, there are always people who are eager to take advantage of this situation. After all, you certainly don’t want to be cheated out of your last money.

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Home loan – Plan it carefully

For many people, buying an apartment or house is the biggest expense they will spend in their lives. In most cases, this is not possible without a loan. Although the home loan only opens up the possibility of owning a home for many people, it also represents a considerable burden over many years. In order for the purchase or construction of the home to be a complete success, it is very important to find a suitable one To choose credit. This article introduces some things to consider when choosing.

Plan your home loan carefully

Plan your home loan carefully

As already mentioned in the introduction, buying a house is often the greatest expense of all life. The credit required for this is therefore correspondingly high. As a result, you should always proceed with special care here.

If you compare many different options here and carefully examine all options, it is often possible to find a slightly cheaper loan. Take the time to do it! Due to the high loan amount and the long term of the loan, even minimal improvements can have a very high impact.

When planning the house loan, make sure not only that the interest is low, but also that the other conditions are right. For example, it is very important that the amount of the monthly installments corresponds to your financial options. If the rates are too low, you will have to pay off the loan unnecessarily long and therefore pay high interest. On the other hand, if they are too high, this can cause problems with the repayment and, in the worst case, even lead to a debt trap.

How much credit do I need for my financing project?

How much credit do I need for my financing project?

The loan amount depends not only on the purchase price of the house, but also on the savings that the buyer can bring as equity. The more you can pay yourself at the beginning, the lower the loan. In addition to the purchase price, the additional costs of buying a house must also be taken into account. Notary fees, real estate transfer tax, brokerage fees and entry in the land register are also incurred. It is therefore best to first consider how high the loan may be so that you can afford it and then look for a property in the right price range.

Loan for a house – the question of equity

Loan for a house - the question of equity

There is a wide variety of views on the necessary equity for a house loan, ranging from advice on full financing in the current low interest rate (as of 2014) to an equity component of 40% or more. If you want to know how the banks value the equity component, you only have to make an interest comparison for different mortgage lending values. The mortgage lending value is the value of the property to be financed. A mortgage lending value of 50% therefore corresponds to an equity component above 50% (because additional costs of around 7 to 12% still come at the pure purchase price). Here is a comparison of the cheapest effective interest on the market for a construction sum of 150,000 USD with an initial repayment of 2.00% and a fixed interest rate of 10 years (as of November 25, 2014):

  • 50% mortgage lending value: 1.41%
  • 60% mortgage lending value: 1.61%
  • 70% mortgage lending value: 1.61%
  • 80% mortgage lending value: 1.63%
  • 90% mortgage lending value: 1.82%

What does an interest rate difference of 0.41% mean over a period of 25 years of repayment, i.e. the difference between only 15 to 20% equity or 60 to 70% equity? The necessary part-time costs are taken into account. In addition, it should be assumed that the interest rate differential will remain roughly at the current level even after the first fixed interest period of ten years has expired. The loan calculator provides quick information: 0.41% for a loan amount of 150,000 USD makes a financial difference in terms of interest costs of 7,844.41 USD over a 25-year term. Added to this is the aspect that the buyers with a high equity component may be able to pay off much less, which in turn reduces the interest burden again. In this way, despite the small interest rate differential of less than half a percent, there is a significant five-digit savings.

The amount of interest – an important factor for home loans

The amount of interest - an important factor for home loans

When you take out a loan to buy a home, the key factor is certainly the interest rate. Of course, this should be as low as possible. For example, if you take out a loan of over 200,000 USD, a difference of one percentage point within a year makes a difference of 2,000 USD. Add to that the compound interest over the years. Therefore, small differences in this area can have a huge impact.

When you take out a loan, you will always find several details regarding the interest rate. On the one hand there is the nominal interest rate, on the other hand there is the effective annual interest rate. The nominal interest rate tells you how high the actual interest rate on the loan amount is. When calculating the annual percentage rate, all other fees are also integrated into the calculation.

If you compare the different offers with each other, it always makes sense to use the effective annual interest rate. So you can always see what total costs you will have to face. Because even if the nominal interest rate is low, high fees can make the loan ultimately very expensive. It is therefore always advisable to use the annual percentage rate for the comparison of interest rates.

In order to find a cheap home loan, it makes sense to compare as many offers as possible. It is therefore advisable to ask as many bank branches in your area as possible to obtain an offer.

However, this task is much easier if you use a credit comparison on the Internet. These computers do this work in seconds. This way you can see immediately where interest rates are particularly low.

The loan comparison on the Internet is not only very fast, but also particularly extensive. If you inquire personally in the bank branches, you are always limited to the offers close to where you live. A credit comparison on the Internet, however, includes significantly more alternatives. Therefore, it is often possible to find a particularly cheap loan in this way.

Design of the initial fixed interest period for a house loan

Design of the initial fixed interest period for a house loan

The initial fixed interest rate period in turn influences the effective annual interest rate. The rule of thumb is: the shorter this fixed interest period, the lower the banks’ interest. Again, a small comparison for different initial fixed interest periods with a construction sum of 150,000 USD, an initial repayment of 2.00% and – for the sake of comparability – a uniform mortgage lending value of 80% (the most favorable interest rate on November 25, 2014):

  • 5-year fixed interest rate: 1.29%
  • 10-year fixed interest rate: 1.63%
  • 15 years fixed interest rate: 2.06%
  • 20 years fixed interest rate: 2.39%
  • 30-year fixed interest rate: 2.61%

In the comparisons presented, the attentive observer notes that the duration of the initial fixed interest period currently has a greater influence on the interest than the amount of equity. This is indeed the case, but it is a phenomenon in 2014 with the lowest interest rates in the market due to an Capital Lender key rate close to the zero limit. Mortgage rates are at their lowest ever in over 60 years. In German post-war history, mortgage financing was definitely never that cheap. The banks are currently calculating this: they suspect that interest rates will soon rise and therefore raise the interest rate quickly if a builder or buyer wants to secure the low interest rate in the long term. Nevertheless, this is recommended: It would be inconceivable that mortgage interest will still be around 2.61% in 25 to 30 years (as with a 30-year fixed interest period). They could also be 5.00 to 8.00%, as was the case in the 1990s. Forward-looking builders therefore secure the current low interest rates in the long term.

Calculate the amount of the installments

Calculate the amount of the installments

When taking out a loan, it is very important to plan the amount of the installments with care. Too low rates result in a long term. On the other hand, excessively high rates represent a considerable burden. You should therefore think carefully about the amount you choose here.

So first think carefully about how much money you can spare each month. An interest calculator can then give you information about the loan amounts and the terms that are possible.

It is very positive if you agree on a loan that allows special payments. This way you can set the monthly installments so that they do not put you in financial distress. If you still have some money left, you can make a special payment and thus significantly reduce the remaining debt and thus the interest to be paid.

Take creditworthiness and other collateral into account

When you take out a home loan, the bank that issues the loan always carries out a credit check. It checks how high your income is compared to the amount of the loan applied for. It is good if the income is very high compared to the loan.

If you have a high income, the chances that you will no longer be able to pay the installments are relatively low. However, if the income is low, the risk of default for the bank increases. In this case, therefore, it generally charges significantly higher interest rates.

If you have a low credit rating, it may make sense to offer the bank additional collateral. So you often have the opportunity to get a cheaper interest rate. When you buy a house, it is always a good idea to enter a land charge. In an emergency, the bank can then access the property to assert its claims.

Another possibility is to name a guarantor. If there is someone in your family who has a high income and fully trusts you, this also offers the opportunity to improve the credit rating. If you own other items with a permanent value, you can also use them as collateral.

State subsidy for homes

If you want to buy your own home for old age at an early stage, you can, for example, receive an annual basic allowance of 154 USD plus child allowances (185 or 300 USD, depending on the year of birth) with the so-called “residential Riester”. To do this, the loan agreement must comply with certain rules that should be discussed before buying the house. Another government grant comes from Cream-Bank. With this bank, home buyers can receive up to 50,000 USD in a very cheap loan. The house bank must make the application forms available to the buyer. Additional promotional loans can also be applied for through the various federal states or the respective municipalities. If you already know where you want to live, you can specifically ask. Another option for saving money is the church leasehold law in some regions. The property does not have to be bought, but is leased for so long that the construction of the house on it is worthwhile.

Beware of problems with the Credit Bureau

If you ever had problems repaying a loan, a Credit Bureau entry can occur. Most banks control this detail and only grant the loan if you have a clean slate in this area.

There are also banks that grant loans without a Credit Bureau check, but the interest rates are usually quite high. Therefore, the loan is a particular risk in this case and it is advisable to consider carefully whether it is really necessary.

Credit for a wedding?

A wedding can sometimes exceed 10,000 USD

A wedding can sometimes exceed 10,000 USD

It should be the most beautiful day in the life of two people and at the same time be the highlight of the relationship: the wedding. The preparations already show that a wedding can often cost up to or even over 10,000 USD. The wedding dress, the suit for the groom, the celebrations and any special requests (a carriage ride, the live music, etc.) can therefore only be paid out of your own pocket in very few cases. With the wedding credit, it is possible that the party does not have to save, but that the day of the day is spent as both imagine. But where and how do you find the ideal wedding loan?

Your credit for the best day of your life!

The term and loan amount are the basis for the calculation of the monthly repayments

The term and loan amount are the basis for the calculation of the monthly repayments

Furthermore, the borrowers must pay attention to the monthly repayments that are agreed. The amount of the repayment is decided not only on the basis of the loan amount, but also on the basis of the term. The longer the term, the lower the monthly charge. At the same time, however, this means that the loan will become more expensive. After all, the borrowers also pay interest on the financing. If you want to have an overview of how expensive the loan actually is at the end of the term, you have to compare the position of the total credit burden. Surprises are always possible here. Because even financing, which may have a favorable interest rate, does not always have to represent the lowest total credit burden. This position includes, among other things, additional fees as well as processing costs or expenses for account management. Loads that must also be observed.

What interest rate do you choose?

What interest rate do you choose?

Another question that needs to be clarified in advance is the question of the interest rate. Do borrowers choose a fixed rate or a variable rate? The advantages of the fixed interest rate are that the borrower can expect no monthly changes in the repayment. The monthly charge remains unchanged. The downside, however, is that there is no way to pay off the loan early. With variable interest rates there is the possibility of free special repayment; borrowers also always have the option of reducing their monthly debit. The development of interest rates is based on the key interest rate of the Lite Lender; if this falls, the monthly rate drops. If this increases, however, the monthly repayment also increases. An advantage and a disadvantage at the same time.

The conclusion of the wedding loan

The conclusion of the wedding loan

Anyone who decides to finance should carry out a comparison in advance. Online and direct banks also always offer favorable conditions or special wedding loans, which are equipped with individual conditions. Only those who compare the different financing options will ultimately find a favorable offer for themselves and celebrate a perfect wedding.

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Bank Loan

bank loans

At Bank loan you can borrow up to 400 thousand cash. They therefore turn to a slightly different segment of quick loans where you can borrow money for larger purposes. Here you have the opportunity to finance eg a boat or a car with a loan from Bank loan. Precisely because they are focusing on the segment that would like to borrow a little more money than the normal quick loan loans amount, it is preferable to borrow from Bank loan, since it is precisely cheaper to lend larger amounts to them than elsewhere.

Do you have a project to be funded?

bank loan

Bank loan addresses the customers who are facing a project they lack funding for. It may be that you are in the process of building an outbuilding where you cannot finance all the costs associated with it. Here, Bank loan offers that you can go in with them and apply for a consumer loan at a fixed low interest rate.

Interest from 4.99%

Interest from 4.99%

Bank loan offers an extremely attractive low interest rate from only 4.99%. We are therefore really close to the conventional loan that we know from our own bank. It can also be compared to a conventional loan, but with all the benefits that can benefit from a quick loan. Bank loan combine the best of 2 worlds. It gives you as a customer a super product that you can use to finance projects that you would like to have for the world at a really low interest rate. Bank loan helps to make it easier for individuals to lend money for all possible purposes that they would like to have realized.

Collect all your quick loans at Bank loan

Collect all your quick loans at Bank loan

Just because Bank loan offers you that you can borrow up to 400 thousand cash at a reasonable interest rate, you can actually use Bank loan to collect all your quick loans. If you have received several quick loans, you can advantageously take out a large loan from Bank loan to repay all your small smaller loans. That way you get all your debt with a creditor. It may sound like a bad maneuver to take out another loan to pay back your other loans. But it can actually pay off. Because Bank loan can offer you an interest rate that is attractive compared to all your other small individual loans. Besides, you want to save money by collecting your quick loans somewhere. Then it also helps to create an overview, which is an essential part of being able to get its finances connected. If you have any further questions about this procedure, please contact Bank loan at their online support. They are very easy to talk to.

Who can apply for a loan from Bank loan

However, not everyone can apply to Bank loan. One must meet some requirements which are as follows. Firstly, you must have an address in Denmark, in order to be able to take out a loan from Bank loan. Then you need a permanent job. This means that if you have no work, you are not eligible for a loan from Bank loan.

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Annual Cost Percentage – What does it mean?

Deduction

ACP stands for Annual Cost Percentage. With your AOP you can see your total cost of taking out a loan. You must read your APR as your total annual cost calculated as a percentage of the total loan amount. This means that if your APR is 10% and your total loan amount is DKK 10,000, then your total cost of raising the loan is DKK 1,000 per year.

We can therefore use the APR as an indicator of how expensive a loan is. Which allows us to compare loans. Here it is just important to compare 2 or more loans with the same parameters.

Loan providers must disclose the OPP

loan application

Loan providers are subject to the Credit Agreement Act, which states that banks and loan providers must inform the OPP in connection with loan offers. The reason for this is that it should help make it easier for the consumer to see how much it will cost to take out a loan at an annual cost.

Here is the keyword “annual cost” because although it helps to give a really good overview of what it will cost a consumer over a period of one year to have a loan. Then it has the disadvantage that it becomes difficult to read the OPOP when you apply for a quick loan in order to borrow for a shorter period than one year.

A good example is if you would like to borrow 4000 kroner for 7 days. If we say hypothetically that credit costs for this 7-day loan period will be Bank, then we can expect that the APR will be 12,995.5 percent. Which sounds like something you should never ever move into. Although we can see that the credit cost of taking out this hypothetical loan is only Bank. want to take out a loan with a loan period that is less than one year. In this example, 7 days. How many would say good to take out this mortgage loan.

We can therefore conclude that the shorter a loan period, the greater the APR. You should therefore be aware that you can reach very high APRs during short loan periods, which is very typical for when you want to borrow money with a quick loan.

The APR is not the final percentage to be paid

That being said, the OPOP is a little bit misleading. The OPP can make it much more clear in terms of how much to expect to get rid of the cost of taking out a loan. It’s just important to know how parameters are screwed together so that you can see what the number is telling.

Now that we have been on how not to misinterpret ACP, there are still some places to pay attention. There are several things that have an impact on the calculation of the OPP, which can help to give a wrong picture of reality.

The following must therefore be noted:

  • Deduction
  • Runningtime

Deduction

Deductions make it possible to take out a loan cheaper than what is actually stated as AOP. Since you can deduct interest from tax with deduction. This results in fewer costs for the full loan than the AOP suggests. This is a positive thing for you. So you have to keep in mind when you make the calculation to take out a loan, yes there are actually some interest rates that you can deduct from your annual statement. This makes it cheaper to take out the loan than what your APR actually shows you.

Runningtime

You also have to be aware that the APR decreases as you extend the term of a loan, but here you have to keep your tongue straight, because that does not mean that your loan will be cheaper. The thing to keep in mind is that the OPP is calculated per. years and runs one’s loan over a longer period than one year, then you may well get a distorted picture of reality. One must therefore also remember that this can go both ways. Therefore, if you take out a loan with a view to repaying it within a year, then ACP also shows a wrong picture, and in fact you will not pay as much as ACP gives up.

The conclusion on the 2 above points is that one should not always be intimidated by a high AOP until you have taken all the things into the calculations. In many cases, it may turn out that you have to spend less in total costs than what the OPP suggests you have to do. So even though the OPP gives a good overview, it can also be misleading. It is therefore necessary to know how to calculate the OPP, in order to have the full understanding of the calculation.

If you think the above seems too complicated, don’t worry. The only thing to keep in mind when looking at an AOP is that it is calculated per day. year basis. That is, these are the costs you have per. year as a percentage of its total loan amount.

What does the OPP cover?

Now we have more or less been told what the OPP is and what it stands for, as well as how we figure it out. We also know that OPP is the total cost, and here you can see which elements influence your OPP.

One-off costs

  • end fee
  • fees
  • Booking fee
  • document fee
  • Registration fee
  • etc.

Ongoing costs

  • Monthly / Annual Account Fees
  • Management fee
  • interest
  • custodian Fees
  • PBS fees
  • etc.

There are a number of points and many things to keep track of, and that is precisely why we would like to have the OPOP informed, because then we do not have to go through all those points. In conclusion, therefore, it must be that an OPP is very useful when calculating its total costs for your loan, just remember to take some things into consideration as it is not always the right picture that the OPP gives . Therefore, a good rule of thumb is to use only the OPP as an indicator, but that you have to sit down and make calculations yourself before you give up the loan. Typically, the loan providers are good at helping someone with this so you can get the right overview.

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Attractive maturities on loans

Cheap loans are a Danish mortgage loan provider. As a new customer you have the opportunity to borrow up to DKK 8,000, while as an existing customer you can borrow up to DKK 15,000 with an annual fixed interest rate. Cheap loans are known for their fast processing of loan applications. If you apply in local’s opening hours, you can have the borrowed money in your account within 30 minutes. Of course, this requires that you be approved for the loan.

Cheap loans offer attractive maturities on loans

Cheap loans

One of the things that makes Cheap loans attractive is the long term of the loan. You decide for yourself how long a repayment period you want on your loan. You have a minimum payment each month, which of course you must comply with. If you would like to pay off your quick loan ahead of time, you can easily do this. It does not cost extra if you would like to repay the loan ahead of time. Here, other Danish loan providers require a fee for early repayment.

Apply easily with Cheap loans

Cheap loans

Cheap loans have an extremely user-friendly application where it is really easy to apply for a quick loan. The website contains all the necessary information, so you do not, as a starting point, have to contact Cheap Loan with any questions. You can quickly get an overview of the repayment amount, the APR, the loan interest rate and the credit costs. This is information that is essential when you need to know the price of the loan.

The application takes place in 4 easy steps.

  1. You choose the desired loan amount . You can borrow from DKK 100 and up to DKK 15,000 from local if you are an existing customer. If you are a new customer, you can borrow from DKK 100 and up to DKK 15,000. You can easily choose the amount you would like to borrow through the website.
  2. Complete your loan application . Once you have found the amount you would like to borrow, fill out the loan application. In the application you enter, among other things, your name and address. Based on your loan application, cash Loans makes a credit assessment where your final terms for the loan are calculated. If your credit rating is not good enough, you will be rejected for the loan.
  3. Sign your application . In order for Cheap loan to obtain the necessary information for the credit assessment, you must sign the loan application with your NEM-ID.
  4. Receive responses to your application . A few minutes after your application is submitted, you will receive a response to your application. If you get approved, you can approve the loan agreement. If you approve your loan with Cheap loan, you will have the money available within 30 minutes if you apply during their opening hours.

What are the requirements for cash loans?

In order to be approved to borrow money from a Cheap loan, there are a number of requirements that you have to live up to. These requirements are very similar to those of most Danish loan providers.

More specifically, the requirements you need to meet are:

  • Be between 19 and 75 years.
  • Danish citizen and have a valid CVR number.
  • National register address in Denmark
  • Have an NEM ID
  • You must not be registered in the RKI or the Debtor Register.
  • Have a Danish phone number and an e-mail address.
  • You must have a Nemkonto in a Danish bank. It is for this account that your money is paid out.

Why Should I Choose a Cheap loan?

Why Should I Choose a Cheap loan?

One of the great advantages of borrowing money from Cheap loans is that it is easy and fast. At the same time, disbursement is among the fastest in the country. Therefore, if you stand and lack money here and now, then local is a really good loan provider. One of the disadvantages of Cheap loans is that you are only able to borrow 8,000 cash if you are a new customer. If you need to spend more money, you must find another loan provider. At the same time, the loan’s OPP is at the high end. On the other hand, you have the option of choosing a long repayment period, which can make the installment more comfortable.