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How To Get A Credit Instant Loan Online.

The bank consultant can quickly tell you as a professional if and how much credit is possible. A bank ensures that I can increase the monthly installments when calculating how much I can borrow. Above all, the free disposable monthly income must be high enough. They therefore expect an imputed interest rate to ensure that the customer can afford a higher lending rate even after the fixed interest rate has expired. How much personal loan can I get?

How much credit can I have?

How much credit can I have?

The lending business is one of the main tasks of the bank. In addition, mail-order companies grant installment payments to their customers, which from a legal point of view are also loans. This also applies to other special forms such as overdrafts and the use of a card or a call-off loan. In the vernacular, the lending business is mainly a bank loan or a loan granted by a private person by cash payment.

The borrower performs a loan comparison before taking out a loan. They pay attention primarily to the effective annual interest, but also to the credit conditions. Such contracts should be included in the loan agreement as credit customers can not ensure that financial institutions are able to comply with the fair decisions that they have currently taken and that have been praised in audit reports.

For many financial institutions, the amount of the costs also depends on the duration of the loan agreement, so it makes sense to compare loans on different terms. The credit comparisons do not always lead to reliable information on the loan costs, as some credit institutions calculate interest-rate dependent on the credit rating. In this case, you will only receive your loan interest after submission of the loan application or after requesting conditions.

You can revoke the loan application if the fees are too high for you.

You can revoke the loan application if the fees are too high for you.

Financial institutions grant loans only if they estimate the repayment probability by the borrower as sufficiently high. For this purpose, they check both the creditworthiness with regard to the previous payment behavior, which is represented in a Credit bureau information without negative entries and in the highest possible Credit bureau score, as well as the earnings creditworthiness.

This must be high enough to earn the cost of living and the monthly loan installment. This part of the credit check is also known as the Revenue and Expense Account, where individual banks apply different standards. Some credit institutions do not include them in their accounts, while other financial institutions include them in whole or in part.

If, in addition to your main job, you are a marginal or self-employed person, you should make sure that the credit institution you select takes account of this in your income and expenditure account when applying for credit. Because an online loan is nothing more than a loan that you apply for on the net and not in a branch of the house bank or on the phone.

The law requires that your personal information be reviewed before granting a loan, and you must then perform the Postident procedure. Alternatively, there is the video identification method, which is currently supported by only a few financial institutions. If you apply for a loan on the Internet and the financial institution has a branch in your area, you can also present your ID there.

Some financial institutions provide you with the payment of the credit within 24 hours.

Some financial institutions provide you with the payment of the credit within 24 hours.

Outside the banking sector, you can obtain credit from private credit agencies via the Internet. The procedure for applying for a loan is similar to that of conventional financial institutions, but private lenders are careful to specify their purpose as accurately as possible, as their lending decision depends on the use of the funds.

You have a good chance of getting loans through the brokerage platforms, even though most credit institutions show your credit rating as the limit.

Loans for students – offer, advantages, conditions

Most young people confirm that the study is financially very exhausting. In addition to the cost of living it is necessary to buy a notebook, textbooks, regularly pay shipping and sometimes expensive tuition. Not surprisingly, there is often no money left for studying abroad or unexpected expenses. A solution in such situations may be a student loan that will help cover the costs of studying. What are the conditions for student loans and who is offering this product?

Unlike the Western countries, the Czech Republic is definitely not a paradise for student loans – as these are loans for students without income, their offer is quite limited.

As a general rule, banking companies require proof of regular monthly earnings and must obtain a guarantor if their income is insufficient. Banks tend to offer other types of products to young people, such as a credit card or an overdraft for a student account. Downright student loans are provided by very few companies.

What can a student loan be used for?

What can a student loan be used for?

The student loan is a special-purpose loan and is intended to cover study-related costs. It can be used for example for:

  • tuition
  • study abroad
  • educational courses
  • notebook
  • dormitory accommodation

Some companies only offer loans to college students, others offer loans to high school students. The purpose of the loan may vary – some providers only allow it to pay tuition fees, but most of them can also be used for other needs.

Benefits of student loans

 

Compared to regular consumer loans, student loans are associated with a greater number of benefits. These include:

  • possibility to repay the loan after graduation
  • lower interest rate
  • possibility to postpone installments
  • possibility of early repayment of the loan without penalty

Perhaps the biggest advantage is the ability to repay the loan after graduation and during the course of dealing only with interest. Of course there is the negotiation and maintenance of credit account without fees.

Conditions for student loans

Conditions for student loans

Like other special-purpose loans, a student loan has certain specifics. It is obvious that it is provided only to persons who actually study. However, loan applicants must meet other prerequisites. The conditions for student loans are:

  • ISIC card or other authorization confirming student status
  • age to 26 years
  • own a bank account
  • (proof of regular income)
  • (guarantor who guarantees the loan)

As these are loans for students without income, there is no need to prove regular earnings with some providers. In the case of a loan over USD 30,000, it is usually necessary to secure the loan by a third party.

 Student loans are used to cover study-related costs. They can be used by both college and secondary school students.

Bank student loans

Banks offer special discounted products to students with low interest rates, zero fees and postponement options. These include, for example, Best Bank and its Lite Lender loan, which can also be used as a loan for high school students.

The loan comes in handy for anyone who wants to study abroad or need to pay a tuition, education course or a new computer.

Lite Lender loan parameters:

  • Loan amount: 20 000 – 600 000 USD
  • Who is it intended for: Students of secondary schools, colleges and universities
  • Maximum maturity: 10 years
  • Interest rate: from 6.9% pa
  • Processing fee: 0 USD
  • Early repayment: 0 USD

The Lite Lender loan is one that can be repaid after graduation. It is therefore only necessary to pay interest during the course of the event.

* The loan for secondary school students only applies to the tuition fees.

Non-bank loans for students

Non-bank loans for students

Although non-bank “student loans” appear to be real loans with benefits for learners, these are generally ordinary non-bank loans that are offered to all applicants without distinction. They are often advertised on the Internet as:

  • quick loan for students
  • loan for students immediately on account
  • short-term loan for students
  • SMS loan for students
  • and more

While these quick loans for students, SMS loans and other types of micro-loans are accompanied by appealing slogans, some caution should be exercised before negotiating them. In most cases, very high penalties are charged for late payment, APRs reach extreme values ​​and the contract includes an arbitration clause.

If it is a mere short – term loan for students and is sure that the loan repays without any problems in time, micro-loans can be the solution. Otherwise, it is much more sensible to apply for a bank loan or ask your family or friends.

An alternative to the above-mentioned loans may be the so-called P2P loan from Best Bank, where the interest rate starts at 3.99% pa annually. Just submit an online inquiry and reach other users with your life story. With a little luck, the money can be earned within a few days.

Loan for tax debts online

What are the reasons for taking out a loan? As a rule, it is the wishes that the borrower wants to fulfill. That can be a new kitchen equipment, other furniture. Washing machine, a car, a television, or a new computer. If there are no negative entries at Credit Bureau, there are usually no problems with the banks. However, there are also exceptional situations when applying for a loan.

Loan for tax debts

Loan for tax debts

A surely unusual loan request is that for the settlement of tax debts. Whether that makes sense is another matter. As a rule, the tax offices do not wait for their additional tax payments. They even take rigorous action against omissions and even keep checking accounts. But not everyone has the money for a tax back payment in the bank. Now a loan can help out for tax debts. But first, those affected should contact their responsible tax office. The authorities usually also engage in installments.

Advantage for online banks

Advantage for online banks

Not everyone wants to turn to their house bank with this particular concern. But what are internet banks for? Those who apply for a loan for tax debts online enjoy a little more privacy, because the purpose of online banks is usually not questioned. In addition, these are usually cheaper in the interest rate. However, nobody wants to pay off on such a loan for a long time.

Therefore, before signing a contract, it is important to inquire about the conditions. If an unexpected money blessing suddenly comes up, you want to pay the loan as quickly as possible. But be careful, the banks are demanding prepayment penalties to compensate for the loss of interest in such a case. But it is above all the online banks that do without it or where the compensation is not so high. Comparison portals provide a comprehensive overview of the individual banks with their terms and interest. An intensive comparison helps to save money. Hardly anyone has an abundance of these today. Especially not for the tax office.

Czechs are not afraid of loans, they believe in their repayment

Buying goods or services on credit is a matter of course for most Czechs. 60% of people have experience with it. At the same time, most of them state that they are not afraid of repayment problems. Nor does the Czech Banking Association see space for unnecessary concerns. The payment discipline of the Czech Republic’s population is still very good in international comparison.

In February of this year, based on a commission from the Czech Banking Association, SC&C conducted a survey to answer, in particular, questions concerning the attitude and behavior of residents in relation to credit and installment purchases. 1,028 respondents aged 18 to 79 were addressed. The survey focused mainly on the calculation of the risk indebtedness index.

Risk indebtedness affects 1.58 million people

Risk indebtedness affects 1.58 million people

Interesting is the methodology by which the Czech Banking Association assesses the riskiness of debt. It might seem to be a very sophisticated and complicated method, the opposite is true. Very simply, anyone can find out whether or not their debts are risky by answering the following questions:

  • Are you willing to cover the installments with another loan? 2 points
  • Would you solve your insolvency with another loan? 2 points
  • Are you currently paying 3 or more loans? 2 points
  • Have you borrowed money in the absence of long-term funding? 1 pt
  • Have you ever borrowed money for consumption or entertainment? 1 pt
  • Have you ever borrowed money from a non-banking institution or an individual? 1 pt

As a consumer at risk, he or she will receive 4 or more points when answering the above questions. The index of risk indebtedness, which is recalculated to the entire adult population, reaches 20 percent, which is two percentage points more than last year. Of the adult population, 1.58 million people are at risk.

Young people are mainly in debt

Young people are mainly in debt

The survey showed that risky lending mainly affects young people between 18 and 34 years of age and usually with lower educational attainment. They often take credit from multiple providers. It is interesting to look at the reason why people buy on credit and installments.

Almost half (49%) said the lack of cash was the reason, 15% of people are unwilling to save money because they want the goods immediately, and 14% of consumers hear from the lenders in the form of, for example, zero interest.

Consumer loans, resp. People prefer to deal directly with the seller or provider of the loan. 83% of respondents expressed their opinion in this respect. Although it is very often possible to arrange credit online, only 12% of shoppers use this option.

The survey also shows that the Czechs are quite clear about what they are worth buying on credit and what not. 82% of people would never take a loan for an experience or vacation. A similarly high number of consumers (87%) say they would never have taken a loan to cover another loan.

Czechs are not afraid of repayment

 

Almost 69% of respondents are not afraid of repayment problems. This view is supported by the favorable economic situation and the related wage growth. And the fact that the total debt of the Czech population is growing, but the repayment problems are decreasing, is really not so bad.

The Czechs consider safe repayments to be no more than one fifth of their net monthly income, which is a reasonable consideration for experts. On the other hand, quite a lot of people, specifically 15% of respondents, do not solve the repayment amount at all and consider it a “detail”.

Should a situation arise where one would not be able to repay, most would resolve it by arranging a deferral and possibly consolidating loans. The survey showed that in these cases, people who already have experience with a loan would behave differently from those with no experience. The first group would prefer a loan with a bank or non-bank provider, while the second group with no loan experience would prefer consolidation or informally ask family or friends for money.

Online Loan Comparison – Clear Loans

Comparison of loans and credits is a practical assistant in considering what loan to choose for any necessary expenses. Comparison of loans will help to orientate in the conditions for granting loans and to decide which company offers more favorable conditions.

Loan companies have different conditions for granting a loan. Some companies provide a loan without proof of income. Some state that they provide a non-bank loan immediately or a non-bank loan in installments. Providers appear to declare that they do not consult the debtors’ registers. By law, non-banking companies are obliged to verify whether the candidate is able to repay the loan. In practice, this is often not the case, as is evident, for example, in a loan for the indebted and with execution.

These loans are often called loans for troubled clients. These loans without a register are usually a class less advantageous than conventional non-bank loans and come with a higher risk for those interested

What is important to note – an entry in the registers does not mean that the loan application will be rejected. Recording with individual clients is often dealt with individually, but it can greatly reduce a person’s creditworthiness in the eyes of a bank or non-banking organization.

When comparing loans, it can be clearly seen that loans differ in particular between loans from a bank and a non-banking company. Comparison of loans from banks is offered in the category of loans and loans, this section focuses on the comparison of non-bank loans.

What to watch out for non-bank loans

What to watch out for non-bank loans

Non-bank loans are usually elected by people after their bank loan application is rejected. Banks are very strict and careful in assessing the creditworthiness of applicants. Low income, payment history of timely and bad repayment, or existing debts can make a bank loan impossible.

At this point, affordable and fast non-bank loans seem to be the ideal solution. It should be borne in mind that non-banking companies are aware of their unique position. It does not apply to everyone, of course. There are several factors to distinguish a solid non-banking institution from usury:

  • the contract is clear
  • all loan information is understandable and available
  • there is no assessment and negotiation fee
  • has had positive responses to unbiased sites

If the contract is already exhaustive, it may be better to try to look further. Small fonts, references to footnotes after each sentence, or gray letters on a white background are among the usual tricks of non-solid non-banking companies. All contracts must be read before signing, and this applies twice for non-bank loans.

 A contract for non-bank loans needs to be careful. Especially those less well-known providers.

Another feature is loan information. A solid non-banking company is not afraid to indicate both interest and APR before negotiating on their site. Amounts to be paid extra in the loan period are also welcome. Conversely, if this information is unavailable or is difficult to access, it is probably a very disadvantageous loan. An example could be a loan for work, which is a novelty in the market. Borrowed money can be repaid by work. Interesting idea, but no specific information. And this significantly weakens the credibility of the project.

The fee for examining an application and arranging a loan is an indicator that the entire loan will be accompanied by all sorts of fees. Conversely, loans that are negotiated free of charge or companies offering the first interest-free loan can be considered safer.

Every non-banking company pays to look at the unbiased pages and read the responses of people who have already taken a non-bank loan from them. Even though the reviews are positive, it is always worthwhile to read some of the negative reviews, as they can point out important details about a non-banking company and their offer of non-bank loans.

Comparison of non-bank loans

Comparison of non-bank loans

There are huge numbers of non-banking entities on the market. Even more is the types of loans it offers. The Loan Grader below, which is below, can help in this. The Loan Comparison classifies the loans according to the APRC, which is a better measure than the interest – it includes all fees borne by the loan. Loans with 0% APR are offered free of charge to get satisfied clients.

Non-bank loans differ from bank loans primarily in two areas:

  • tend to be more expensive
  • tend to be more accessible

Non-bank loans generally involve higher interest rates and a range of fees. Although the interest rate may be only a few percent higher than a bank loan, it is always necessary to look at the APRC (annual percentage rate of charge) percentage. The APRC also includes all fees associated with loan management.

On the other hand, non-bank loans are accessible to almost everyone, especially non-bank loans without proof of income. The arrangement is very often available online. Comparing non-bank loans will help you choose the most appropriate option from a responsible non-bank company.

Quick Loan

A quick loan is one of the most frequently offered non-bank loans. Their main advantage is speed, often presented as non-bank loans immediately. Money from the loan can arrive literally a few minutes after filling out the form either at the branch, by phone or online from the comfort of home. They are negotiated for a very short time – weeks to months. However, it offers relatively disadvantageous interest.

First free loan

The first free loan is sometimes provided by non-banking companies to attract customers. This loan is usually limited by the maximum amount, usually it is a loan of a few thousand crowns. Although the interest rate may be 0%, it is necessary to make sure that there is no fee for arranging the loan. Also, zero interest does not mean that the loan will not be overpriced unless it is repaid in time.

Mikropůjčka

A micro-loan is a loan in the range of several hundred crowns to a few thousand crowns, which is concluded for a very short time, usually a few weeks. They are very affordable and easy to obtain. Due to the short maturity, the APR is often not given, but only the amount that will be repaid at the end. The APRC on microcredit is one of the highest and is in the hundreds of thousands of percent.

SMS loan

The SMS loan is a micro-loan, but it is arranged by sending an SMS message with the appropriate details. The first SMS loan is usually set up as a postal order, the next SMS loans are then negotiated only by sending an SMS message. Their advantage is ease and speed, on the other hand, like other microloans, they are very expensive.

Loan without proof of income

The loan without proof of income is provided by several non-bank entities. The law mandates that the creditworthiness of each candidate be verified, usually by documenting and verifying the income and consulting the debtors’ register. These loans are provided without proof of income. As a result, however, it comes with a less favorable interest rate and higher fees than normal for non-bank loans.

Cheap loan without proof of income

Even loans without proof of income will find exceptions that can be described as cheap. They have a relatively low interest rate, which ranges to a maximum of 5% pa But you can get interest-free loans. These are offered by some non-banking institutions to clients who take a loan with them for the first time. In such cases, and provided the client pays the amount on time, there is really no extra charge.

Payday loan

A payday loan, sometimes also a Finnish loan, is a quick loan that is most commonly negotiated because of the need to suddenly pay the amount for which the family budget is not enough. These are usually loans up to a few thousand for 30 days. It is not a non-bank installment loan, everything is repaid in one installment. Interest rates are relatively high and late repayment fees can multiply the loan before payout.

Loan without register and pledge

The loan without a register and collateral is provided by non-banking companies that do not look into the register of debtors or require the mortgaging of a property or other object as compared to loans from banks. With this comfort often comes extra fees and higher interest.

Weekend loan

The weekend loan is usually negotiated in person. As the money is not transferred during the weekend, this loan is paid in cash. It can be obtained at a branch of a non-banking company, or you can invite a representative from a non-banking organization to come with all the necessary forms and conclude the contract at the customer’s home.

Loan for indebted

A loan for indebted is the most risky negotiable loan for both the non-banking company and the borrower. This is doubly true when it comes to a debt for the indebted and in the distraint, in which case the credit is no longer granted by many non-banking institutions, and those that do often count on the non-return of the loan in advance. any gain from the execution of the debtor.

Loan for the unemployed

The loan for the unemployed is a relatively risky loan. Unemployed people have to live with an absolute minimum, from which they would have to repay the loan, so the loan for the unemployed is usually very small. In the event of inability to repay the loan, very high fees come.

Interest-free loan

It is a loan with an interest rate of 0% pa. Non-bank interest-free loans are usually advertised as the first free loan, which means that only new clients can receive zero interest. For this type of loan, it is always necessary to bear in mind the possible hidden fees and also the timely repayment, otherwise usually there is a high interest on late payments.

P2P loans

In the context of P2P loans, people borrow from people via so-called peer-to-peer platforms. As a rule, they offer more favorable conditions than other types of non-bank loans and at the same time allow them to appreciate money for those who want to invest. P2P loans can be used for anything and the rules for granting them are much milder than for bank loans. 

Demand loans

Basically, all these types of loans and many others can be found at various loan markets. This is usually an advertising site where people can advertise for free loan requests or loan offers for free. This means that both people who need a loan and those who provide it meet here. The latter may be both financial companies and private equity holders.

Loan demand is mainly used by people who, for some reason, have been refused loans to banking or non-banking financial institutions. For many, this is the last way to raise money to tackle the adverse financial situation.

How to choose the cheapest loan?

How to choose the cheapest loan?

A comparison of online loans will help you to know a wide range of non-bank loans, and a credit calculator online can help you find the cheapest loan.

Generally valid loan selection tips are:

  • do not borrow more than you need to necessarily
  • compare APR, not interest rate
  • borrow only from trusted companies with good feedback
  • read the entire contract before signing

In addition to comparing non-bank loans, we also offer company profiles that allow you to take a background picture of each of these institutions.

Each company can be clicked to see their history and financial products offered.

How to avoid future problems with the loan

How to avoid future problems with the loan

1) Borrow only from branded companies

Borrow from companies included in the online comparison of non-bank loans. It’s always worthwhile to see what people say about a company in reviews, social networks, or various online forums.

In addition to the APRC itself, compare how a non-banking company would deal with repayment problems. If it allows postponement of installments free of charge, it is probably a responsible and reputable company. Otherwise, when the inability to pay is solved by high fees, it is better to look elsewhere.

2) Before you sign anything, read it.

By signing, you agree to all contract items. If you do not understand something or something is not clear, do not be afraid to ask the non-banking company directly. It is never worthwhile not to read the contract or just fly over it.

It is always possible to take the contract home and for example over the weekend read it calmly and sleep on the final decision. A second pair of eyes can also help to detect problematic items – eg the presence of a surveillance clause. If it is in the contract, this means that any dispute with the loan in the future would be resolved by a person appointed by a non-banking company instead of an impartial judge.

3) If a branded company does not give you a loan, it is a sign that you may not be able to repay it.

It is not so uncommon not to reach a bank loan, but to reach a non-bank loan from an established and verified non-bank company is no longer so common. This rejection is either due to too low income, high debts, distraint, or history of defaults.

 If a person does not obtain a loan from a bank or from a branded non-banking company, he has no other options.

In such cases, loans from non-banking companies bordering on usury remain. Offering usurers will not help, on the contrary, even more harm.

4) Solve problems in advance

Anything can happen. If a person finds himself in a situation where he cannot repay his debts, he should immediately report this fact to the appropriate companies. At best, the repayment schedule can be compiled until the situation calms down and the repayments can be paid again.

Therefore, do not borrow to repay the debt. This is a debt spiral and never ends well. If you have problems with debts, contact the help of experts. There are a number of non-profit organizations in the Czech Republic that help people with debts in financial distress completely free of charge.

frequent questions

frequent questions

Are non-bank loans offered credible?

Yes, the offers included in the online loan comparison come from proven and solid non-banking companies.

What does creditworthiness mean?

Creditworthiness means the ability to repay the loan. Banking and non-banking companies use an individual’s creditworthiness when deciding whether to grant credit.

It is determined mainly by:

  • current income
  • Payment history (whether former loans were repaid on time and in full)
  • amount of debts.

Too low creditworthiness will limit the maximum amount of loan that a person can reach or even prevent the loan from obtaining.

What are the risks of non-bank loans?

Credit is a liability. Whether it is provided by a bank or a non-banking company, loans must always be repaid in full. Loans are not recommended to take on unnecessary things.

Therefore, one should spend enough time comparing individual offers and making sure that the non-banking company is truly proven and reliable. We’ve already done both, just use our comparison of non-bank loans online and read each non-bank company on our site.

What is the APR?

APR means the annual percentage rate of charge. In contrast to the interest rate itself, it includes all fees associated with the loan. Therefore, it pays to look at the APR rather than interest. Lenders are legally obliged to inform about the amount in advance. For APR calculation you can also use one of the calculators on the Internet.

Can I get a loan online?

Yes, basically all non-bank loans offer to negotiate online. All you have to do is click through to a non-banking company after selecting a loan.

What to do if my loan becomes disadvantageous?

Interest rates are constantly adapting to the financial market situation. If the current loan becomes disadvantageous due to a much higher interest rate than is currently available, refinancing can be requested.

By refinancing, the current loan is adapted to the conditions of the bank, which offers lower interest. Thanks to this, you can save up to thousands of crowns per year in installments.

If the debt is 2 or more loans, debt consolidation is agreed. With consolidation, all debts are taken and made into one big loan. Thus, one does not have to pay interest on each loan separately and makes life easier by administrative simplification.

Borrowing to open your own business – Cash Loan

As we know today, it is very wise to have your own interest. Then we can create a company that will deal with the field that is most familiar to us.

It is important to be aware of the subject, which results in good insight, appropriate knowledge on how to manage business, knowing the ins and outs of customers’ expectations. However, mere intentions and even great insights on the subject are not enough.

To get started, you need to have the right capital

To get started, you need to have the right capital

And initially we are talking about money, because they are necessary when creating a company. You have to rent or build a place, hire people and get the right tools and equipment, and all this costs a lot. So where do you get the funds? Well, we can get a chance for funding from a bank or other institution granting loans. Of course, for such an entity to grant us a loan, we must meet certain conditions that are clearly defined.

To receive such a grant called a loan, we must provide documents that certify that we are able to repay the debt incurred within a specified period. A loan is a form of financing that we have to pay back, taking into account the additional costs, i.e. interest. These are called the interest rate, and its amount depends, among others, on the amount collected and the time regarding repayment.

However, we cannot speak here about the issue, which turns out to be EU funding, because here we often receive cash that we do not have to pay back. Then, the most important thing is to meet the conditions set out in the contract, and therefore conduct the business as intended, which is also defined by a certain period of time.

The bank’s main credit institution

The bank

The bank is not the only institution that grants us credit, but it is undoubtedly the entity that most often grants loans. Cash loans granted by banks are a form of interest-bearing loan. It is from these interest that the bank benefits. The customer may have several loans, however, he must provide documents proving his solvency, and therefore should not have debt. It is true that we take out a loan to pay off another debt, but the bank will not grant us such a loan if it is not certain that we can pay it back.

Cash loans are granted for a given period after which we have to pay back the debt. It looks like that after presenting all the documents and meeting all the required criteria, the bank pays us a certain amount of money in cash. It can be both a transfer and direct collection of funds.

Pursuant to this transaction, the customer signs a contract, which includes both the period in which he should repay the loan and interest, which will be added to the loan. Cash loans last for a period of several months up to about 8 years. However, most often it is a term of 1 to 2 years. It is also worth mentioning that this amount can be returned once or in installments.

Parties concluding a credit transaction

Parties concluding a credit transaction

Two parties must participate in collecting the loan. One is the institution that grants the loan, and the other is the customer who collects it. Therefore, no guarantor or other third parties, here referred to as parties, are needed.

A bank or other credit entity is called a lender here. However, the person taking the loan is a borrower. So in a sense we are talking about the institution as a creditor and the client as a debtor. It is worth remembering that such an individual customer as well as a group of people or even a company can be a borrower. Most often, however, we are talking about one person.

How high credit can the borrower take? Its value depends on the client’s net income. According to this criterion, the bank can determine whether the borrower has the so-called creditworthiness, which proves that the applicant is credible and solvent. We must provide proof that we will earn and work within a certain time so that we can pay the debt. However, if we open a given business, and we do not work and earn ourselves, the loan must be taken by a person who has this job and stable income.

Use their buffer or borrow? – Take out Loan

We at Good Finance cannot stress enough how important it is to have a buffer if you want a safe and stable economy, not least if you own a car that may require expensive repairs or a villa where you may need to buy a new hot water heater if it wants really bad.

This with buffer is also especially important for those who have small margins because if you are hit by a large unforeseen fee, there is otherwise a big risk that you have to take out a loan to cover the expense. Or at worst, you might have such a poor ability to pay that you can’t get a loan at all and what should you do then? Stand without a car or hot water?

Without a buffer, you may be forced to take out a loan – if you get

bank

Some who find it difficult to get a bank loan due to poor payment ability are forced to take a sms loan instead and, as you know, the interest rates for these loans are significantly higher than for a bank loan. Now, Good Finance does not think that this with the interest rate is the biggest problem since the difference in the total loan cost between a loan of USD 10000 that you repay within a month and a private loan with the sum paid off in a year is not so extremely big, the big problem is being able to repay a sms loan of USD 10000 in 1-3 months.

If you have not been able to save up for a buffer and need money really quickly, you can of course turn to a sms lender who pays sms directly but before you do you have to be absolutely sure that you can repay the loan otherwise you can end up really sticky.

Remove the buffer or borrow?

Remove the buffer or borrow?

It is therefore very important to save for a buffer so that you do not have to take out a loan that you have to pay interest on if you suffer any costly unforeseen event. But how do you do if you have a buffer and are thinking of buying a car for example? Should you burn all your buffer on a car instead of taking out a loan for which you have to pay interest? We don’t think so. It is never good to stand without a buffer if something should happen and since the car loan is not very expensive today it is probably better to take a loan and keep its buffer, however you may be able to cover the down payment with it.

Here we show you what we think you should borrow and not borrow:

Do not lend to this

bank

  • Computers, tablets, cell phones and hobbies. These kinds of consumer goods should you try to save together or cover with part of your buffer if you have to.
  • Unforeseen expenses such as broken hot water heater, washing machine, dishwasher, car repair and other necessary pain. It is above all this that you should use your buffer for.
  • Buying a cheap used car because your old car has been paved and not worth repairing.
  • Also, do not lend to the entire housing’s cash stake, but you should also not pay the entire stake with your buffer if it means it disappears completely.

Borrow to this

  • New or better used cars. This kind of thing is usually so expensive that your entire buffer probably smokes if you use it and it is not good.
  • Purchase of housing. Yes, who can afford to buy a home with their own money?

Have you ever thought of a credit monitoring service?

The state of your credit depends on a variety of factors, including your use of all credit derivatives and loans, scams and all types of credit accounts you have, and even for how long are open. Any of these factors can negatively affect your credit rating and that’s why it’s so important to keep an eye on your credit report. Credit monitoring can help you do that.

 

What is credit monitoring?

credit monitoring?

Currently, not only do all our financial decisions affect our credit, but it affects our financial options. Your credit is a determining factor that governs whether you qualify for certain financial benefits and products. Loan approval, interest rates, leases and insurance premiums can all be greatly affected by your financial health. A credit monitoring service can help you manage your finances, keep track of your credit rating, make sure your credit accounts are all in order and even help you deal with fraud. If you frequently request copies of your credit report and credit rating from Equifax or TransUnion, monitoring your credit could be exactly what you need. Credit monitoring allows you to access your credit history, which means you can check your credit report regularly without having to request a new copy and pay other fees. Once you sign up for the service, you will have access to your own account where you will be able to view your credit report and receive alerts regarding your credit information.

Credit monitoring:

  • Helps you keep track of your credit rating
  • Allows you to monitor all your credit accounts
  • Keeps you informed when a new credit account is opened on your behalf
  • Warns you when you miss a payment
  • Inform you of any questions and changes regarding your credit

 

Credit monitoring and identity theft

Credit monitoring and identity theft

It is wrong to think that a credit monitoring service can help prevent identity theft. However, such a service can help you react faster and help you manage the situation if someone tries to steal your identity.

Unfortunately, if a criminal intends to steal your identity, he will surely get there. Once new credit is requested on your behalf, the credit monitoring service will notify you. This can help you take immediate action and limit the damage that could be done. Such a service will also facilitate communication with the creditor in case of identity theft. You will also be able to access all the information from your creditors in one place.

 

Who should use a credit monitoring service?

Who should use a credit monitoring service?

Anyone who actively uses credit can use a credit monitoring service. Know that you must pay for this service. If that worries you, maybe it’s not a good service for you. While everyone can benefit from credit monitoring, it can be even more beneficial for some.

  1. If you are very concerned about identity theft and are looking to protect yourself.
  2. If you need help keeping track of your credit accounts.
  3. If you are looking to improve your credit rating.

Credit monitoring is a great financial tool that can help you reach your financial goals, get back on track after a bad time, and even alert you to suspicious activity.

Online Banking: Free Comparison and Online Quotes

You want to change banks and opt for opening an online account? Betsey Trotwood.com helps you find the best online bank with the lowest bank charges. Nearly 3.5 million French people have already made the choice of an online bank. Why not you?

Since the 2000s, several online banks have developed to compete with traditional banks. Offering their services on the internet, they relied more on simplified account management and more attractive bank and commission fees. The given service is therefore identical, even without physical agencies.

 

The different types of online banking

online banking

There are 4 types of bank on the internet to distinguish:

  • The “pure players” (Saitama Bank, Bling Direct, Lisabanq, Newsegment bank, Mellow Bank, Furtunebank): offering advantageous rates only online without physical agencies;
  • The online services of traditional banks or remote banks (e-CLC, LaBanque): tariffs are those of the traditional bank with online management;
  • Bancassurers (Exu Banque, Purpleright Bank ): rates are those of insurers’ banking services with online management;
  • Neobanks (B26, Marga Account, C-Wam): mobile banks where all the management of the account is done online on an application at preferential rates.

 

Why choose an online bank?

choose online bank?

To stand out from the competition, online banks offer lower rates than traditional banks. On a daily basis, it is therefore possible to save money on your bank account management as well as your operations, for example:

  • A free credit card: as much on classic cards as premiums, according to your income;
  • No account maintenance fees;
  • No charges on intervention fees and reduced overdraft fees;
  • No charges on transfers or withdrawals.

 

Access to your accounts 24/7

Access to your accounts 24/7

Without physical agencies, online banks give you the opportunity to access your online banking services whenever you want. Compared to traditional banks, most market players offer a more advanced mobile or online application. For example, you can manage your bank accounts and options, track your expenses on the statement of account, cap your expenses or set up alerts.

In addition, online advisers are available by phone to answer all your questions but on larger time slots. You will be able to contact them earlier in the morning (8h) and later in the evening (19-20h) but also on Saturdays, unlike traditional banks.