Payday loans and the limited risk model

Payday loans are called high-interest loans. Of course, using the services of a non-bank company may be more expensive than at a bank, but several things influence this state of affairs.

Limited risk model

credit loan

First of all, this is due to the fact that entrepreneurs operating in the loan industry create a loan portfolio from their own financial resources.

They are also not subject to the supervision of the Polish Financial Supervision Authority (Polish Financial Supervision Authority), and therefore, apart from the interest limit (no more than four times the ABC Lombard rate, currently 10%), they do not have any restrictions on fees and commissions.

Defects in the credit history

credit score

This may change with the entry into force of the so-called Anti-Licensing Act, which provides for a reduction of fixed costs to 25 percent. loan value and variable cost up to 30% the amount of the liability. In addition, they do not use BIK databases, which allows them to grant obligations even to people with credit defects in their credit history.

This increases the likelihood that the customer will not be able to give them the money. These are not the only components of the limited risk model.

Payday loans with a limit on the first commitment

Payday loans with a limit on the first commitment

One of the solutions used in the limited risk model is limiting the amount of the first loan. This means that as a new customer we cannot immediately reach for the maximum amount available. Best Loan (USD 1,600) and Time credit, Express Loan (USD 1,500) are willing to give the most under the first free loan.

In addition, all listed loan companies will not charge any additional fees, which means that the commission and interest rate is 0%. As a result, we refund the same amount we received. Among lenders who do not offer a free loan, as much as USD 2,000 can be obtained from Cash Time, while Animal money offers USD 1,800. Women Cash offers new customers up to USD 1,500. 

Reliable repayment allows you to borrow more

credit loan

It is only the surrender of money within the prescribed period is the ticket to much higher amounts. The most, because of 4,000 USD on the second loan, we will find on Netcredit.pl. The final loan amount depends on your creditworthiness. Loyal customers receive discounts of 5–50% (the amount of the discount depends on the number of liabilities paid).

After giving the first payday loan, the second time we can reach 3000 USD. The repayment period is from 7 to 30 days. New Credit offers the same number of regular customers, however, the amount of the loan granted depends on our current financial standing and creditworthiness assessment.

On the other hand, Express Time and Time lend even USD 2,000 with a repayment period of 60 days to regular customers. The repayment is divided into two installments, payable every month.

Online Payment: Credit Card Anti-Fraud System

In recent years, online payment has found a growing number of adherents. Nowadays you can make almost any payment on the internet with just the data on your credit or debit card.

This facilitism may at first seem almost a miracle. Even if you don’t have access to the physical card, you can use it virtually as long as you know the information on it. But the nightmare begins when it is someone other than the cardholder who decides to benefit from the card.

 

Fraud is becoming more frequent and can be very discrete.

Fraud is becoming more frequent and can be very discrete.

It is always complicated to avoid this kind of scams. There are, of course, several steps you must take to reduce the risk of being the next victim, but the danger is always lurking.

Banks try to track and prevent customers, but when prevention ultimately prove to be insufficient, there is not much you can do – at least until someone realizes the occurrence of suspicious movements in the bank statement.

Following the report of theft, in certain situations the bank may refund the lost amount. However, there is always someone to lose and that someone will certainly not be the thieves, by the increasing number of occurrences of this practice.

In fact, according to the MoneyCode Bank , 66% of the total amount of credit card fraud in 2013 was achieved through non-physical card payments, and this figure is set to continue to rise. Or pointed.

 

A peculiar Security Code

Security Code

French digital security company Aberthur Technologies(AT)  has found a solution that promises to minimize the risk of fraud with online card payments: the three numbers that make up the security code (CVV) on the back of the card are still there… But change automatically every hour!

This means that even if someone has access to your data, it will take up to an hour for them to change. Once the change has been made, the previous code will be no more than three mere and insignificant numbers, leaving the thief with “shaking hands.”

 

Online payment: cutting edge technology

Online payment: cutting edge technology

This is a card that apparently does not differ from the others. The only difference is that it has an extremely thin lithium battery inserted, the validity of which can exceed three years. The card is equally malleable and may even go machine-readable, according to AT.

 

Tested and approved

credit cards

In October 2015, a thousand French people had the opportunity to test the card. Banks in Mexico and Poland have also started participating in pilot tests with the card. The UK will be next to test the product. French banks YesTruth Bank and Bank of MoneyLoop are currently preparing to launch the product soon among customers.

The AT predicts that this effective security mechanism will be reflected in a considerable increase in online consumption . As for Portugal, the date of arrival of this technology cannot be predicted, as it is still so recent. Either way, we will wait, certainly impatient.

Credit with instant approval.

What is the instant approval loan?

The instant approval loan is a loan product in which the decision to grant a loan is made very quickly. If you apply for loans with immediate approval from the house bank, you can expect a loan approval within a few minutes. The loan with immediate approval can also be applied for as an online loan. Then you have a loan approval within a few hours.

Anyone who decides on this form of credit should consider that the loan approval can only be made quickly provided that all relevant information and supporting documents – such as proof of income – are immediately submitted to the relevant credit institution. All required information, which is required for loans with immediate approval, delay the lending.

For which purposes are loans with an instant commitment suitable?

For which purposes are loans with an instant commitment suitable?

The instant loan is a consumer loan. For example, if the washing machine breaks down and needs to be replaced quickly, if a new or used car is to be purchased or if you want to react quickly to offers in the trade, a loan with an instant confirmation is a very good solution. However, loans with an instant commitment are not intended for long-term financing.

A house construction, for example, the purchase of a property or larger investments in projects or the like cannot be financed by this type of loan. In contrast to large projects and their financing, there is usually a limit on the loan amount for loans with an immediate commitment. Usually between 30,000 and 50,000 USD are set as the top limit for this type of loan. And of course you only get this maximum amount if you have the appropriate credit rating.

What should you look for in this type of loan?

What should you look for in this type of loan?

Inquiries for loans with an instant approval signal the lender that there is an acute need for money. Therefore, there is a risk for consumers that providers – and here often often unknown providers from the Internet – unnecessarily make the conditions for loans with immediate approval unnecessarily expensive. Making a profit out of the need of consumers is not a common practice – but it is also not a very rare procedure.

Therefore, people with credit needs should not accept the first and apparently best offer, even with acute money needs, but should make comparisons regarding the terms and prices of the loans. If necessary, it can also be very pleasant if loans with immediate approval can be redeemed more quickly with free special repayments. Some banks offer these special repayments free of charge, others charge fees because they lose interest income through earlier loan repayments.

Money credit: registration, documents, conditions

In 2006, there may be cash requirements at the best time. It is necessary to accept the monetary credit as quickly as possible and under favorable conditions. And then the question arises: “Where to go?”. Banking or Microfinance Institutions (MFIs)? In terms of benefits, the bank, and as quickly as possible, MFI.

 

Flask

money loan

When applying for a bank loan, the prospective borrower must provide a package of documents. The more documents a borrower can provide to a bank to confirm its prosperous status, the lower the annual interest rate and the higher the loan.

 

What you need?

What you need?

The package consists of:

  • Proof of identity.
  • Compulsory health insurance policy.
  • Vehicle registration rights or certificates.
  • Passport, it is desirable that there be passport check marks that indicate a trip abroad in the last 6 months.
  • Questions from the real workplace about the income for the last 12 months, verified by the seal of the head of the organization and signed.
  • Copies of all pages of the workbook or other documents that can confirm employment. This can be a workbook statement or a certificate signed by the head of the organization that contains information about the employee: their position and work experience. Or a copy of the employment contract. All pages of documents must bear the seal and signature of the title. The length of employment from the current job should be 6 months and the total work experience should be at least 12 months.
  • Certificate of registration to the tax service (TIN).
  • You may also need additional documents to obtain a cash loan from a bank:
  • a military license (for persons under the age of 27) and, in the absence of such a document, evidence of the postponement of military service;
  • original and copy of marriage or divorce certificate;
  • A copy of the certificate attesting ownership of the immovable property.

 

Money on credit

Money on credit

In the current year 2016 take a cash loan, the beneficiary will have to choose the bank with the most attractive interest. For consumer loans, the rate will be from 22-38%, the mortgage will be from 11.9-18.8%, and the car loan will cost from 18-24%.

Package of documents submitted by the debtor budedo 2-12 working days. The bank employee then informs the potential beneficiary by decision. The borrower will be able to pay a cash loan from 1 to 3 years, based on the amount of the loan and the interest charged on it.

Virtually any borrower with a full credit history can be expected to receive the maximum possible loan. The amount of income will depend on the debtor’s monthly income and costs and the type of collateral it can provide.

 

MFI

money loan

If the bank requires a comprehensive package of documents, Forcing the borrower to collect many certificates and make voluminous photocopies of various documents, and then raise money for MFI credit, you don’t need a lot of documents. And in time everything will be decided much faster. The only negative is that even if the debtor collects a large number of documents confirming his viability, the interest rate will still be higher than at the bank. In addition, the amount of credit will be limited, especially if the borrower applies for the first time. And the amount of the loan will be issued only in rubles.

The list of documents to be used is very short and consists of only one item an identification document.

It is possible that the debtor will be asked to provide a second document, but here he can choose from a list offered by the lender.

The cash loan provided will be interest bearing, depending on which microfinance organization the borrower will cooperate with. The minimum interest rate for first applicants is from 0.8 to 2% per day. The annual percentage will therefore vary: from 292 to 730%.

The borrower will have to refund the amount received for a relatively short period of time: from a few weeks to six months.

If the borrower does not first apply to MFIs, it can expect to receive a loan on other more favorable terms. A recurring loan is characterized by a reduced rate, which is reduced almost twice. Also, the borrower can expect to increase the amount of the loan. The company is thus trying not to lose one customer. Psychology works here in this MFI they consider it a serious and positive client when they give money on credit and provide bonuses, so why look better?

 

Credit card

Credit card

Another way to get a loan is to get a credit card. According to statistics, more than a third of the Russian population uses a credit card.

To obtain a credit card, you will need to collect an identical package of documents, both for consumer credit. You should not rely on a large credit line when you first issue a credit card. If the debtor takes a responsible approach to monthly debt repayment and actively uses the card, his credit line will increase. Do not withdraw cash from your credit card. Firstly, the banking system does not welcome this, and secondly, the credit card fee can reach 5% of the amount issued. And sometimes the commission may exceed the amount spent.

 

Interest, repayment period and other expenses

Interest, repayment period and other expenses

Creating a credit card cash loan does not take long: from 1 to 7 business days. Sometimes the borrower does not have to go to the bank to get it a courier service delivers a credit card to his house.

The average life of a credit card is 3 years. You will have to pay for the service every year. The amount will be calculated based on the card type: Maestro or Visa, from the credit card limit plus the costs incurred by the bank serving the client at the bank branch. The monthly loan repayment will be 5% of the credit limit.

Choosing the right place to borrow is the prerogative of every citizen. You should correctly assess your financial capacity, plan your income and expenses, avoid spending rashes to pay off your debts in time and not worsen your credit history.

Features of the home equity loan: Get to know them

For you to get an idea, if you do not know much about the subject, taking a loan with a mortgage guarantee, is technically asking for an amount of money from the bank in exchange for leaving your house as collateral, this becoming the guarantee of payment of the debt. In addition, this type of credit has great advantages compared to others, mainly when it comes to interest rates. But what I want to make very clear to you today are the characteristics of the home equity loan. Do you want to know what they are?

 

What are home equity loans?

home loans

As I had already anticipated, this type of credit is based on mortgaging a home to obtain a loan. But before requesting it, the best thing is that you can analyze important aspects in detail, such as: the repayment period; The commissions; the interest rate; and any expenses that are included with the loan.

And because I emphasize you so much in the previous analysis, because finally it is your house that you are leaving in the hands of the financial institution.

 

What are the characteristics of a home equity loan?

What are the characteristics of a home equity loan?

The characteristics of this type of loan are generally the same, but depending on the financial institution, you could find variations:

  • In most cases the term is usually less than that of a home loan.
  • You will have to pay said loan in monthly installments, adding the interest.
  • If you have met all the requirements and the loan is approved, all the money is deposited into your account.
  • You have the alternative of requesting up to 90% of the value of your home.
  • As with the mortgage loan, you will have to pay for real estate insurance and credit life.

Broadly and generally, these are the predominant features.

If you are in need of money or something unexpected has come up, this type of loan is an excellent alternative. The good thing is that you can get great benefits, especially if you carry too much debt.

I hope I have been able to help you, and remember that the fact that you can learn a little finance will put you one step ahead in a variety of situations.

Loan with provisional ID card.

No matter whether bank or savings bank, every credit institution is obliged to carry out a legitimation check when applying for a loan. On the one hand, the borrower must assure that he will only use the loan to be applied for private or business interests, on the other hand, he must make a declaration that he is acting in his own economic interest. The bank must then verify the identity of the customer. For this purpose, only the identity card or passport, but in no case other documents of the borrower are permitted.

Loan with a provisional ID card

Loan with a provisional ID card

A loan with a provisional ID card is somewhat more difficult, ie if both the ID card and the customer’s passport have expired or even been lost. However, since a provisional ID card is also an official document, it is generally possible to obtain a loan with a provisional ID card. It can be helpful here to also submit an official registration certificate from the responsible residents’ registration office.

In most cases, however, the credit institution will insist that the borrower submit the final identity card as soon as possible, either in original or as a copy. The decisive factors for or against the approval of a loan application are rather parameters such as the Credit bureau information, a credit check and the submission of proof of income. These also serve to clarify the identity of the applicant.

However, a provisional ID card can be a possible reason for refusing credit requests. If, for example, you would like to apply for a consumer loan or an installment loan in a department store, the identification number of the provisional ID card could be too short, so that the target fields in the request system of the respective credit institution cannot be exhaustively filled out. Furthermore, a loan with a provisional ID card can be rejected for online loans for reasons that cannot be defined in more detail.

Online loans are another special case

Online loans are another special case

If an applicant is fully employed and has a median income, he can normally take out a loan with a provisional ID card of up to USD 20,000. However, if the loan is an installment loan from a department store or mail order company, the upper limit of the loan is usually set at around USD 2,000. In addition to the parameters listed above, the so-called scoring points are decisive for the actual classification of the borrower when applying for a loan with a temporary identity card.

Online loans are another special case. In the case of the same, it is usually not possible to present the original identity card – regardless of whether provisional or final. In such cases, the Postident procedure is carried out. The same can be done at any post office in Germany and only requires a small amount of time. So if you want to apply for an online credit with a temporary ID card on the Internet, you only have to present it to the respective post office for legitimation. The counter clerk will then verify the identity of the borrower and return the entire loan documents to the bank with a note.

Credit cards: How to avoid paying more for purchases in installments or advances?

The answer to this question is simple: before deciding, quote and compare between the different credit card issuing institutions paying special attention to the Total Cost of Credit (CTC). This is recommended by the latest Sernac study, on cash advances and installment purchases with credit cards, which showed differences, in some cases, of more than 100% in the Total Cost of Credit.

The total cost of the credit includes interest

Taxes and commissions in general. But not only that. In addition to the specific fees charged for cash advances or installment purchases, there are other expenses associated with credit cards, such as maintenance expenses, which must also be taken into account.

Now with regard to what is more convenient, request a cash advance or make purchases in installments with your credit card for the dreaded March, the Sernac ensures that “in general it is cheaper to make a purchase in installments with a card than a cash advance . ”Let’s see why?

Differences in cash advances

saving money

114% difference in cash advances. For the comparison on card advances, SERNAC detected that the most expensive entity was Hites, with which you can end up paying a CTC of $ 454,590 for requesting a advance of $ 200,000 in 12 installments, that is, $ 242,544 extra.

Meanwhile, the cheapest card when requesting an advance in 12 installments for $ 200,000 was Capital Lender Bank’s Visa Dorada credit card, with a total cost of credit (CTC) $ 212,046. Just $ 12,046 extra. 92% difference in advances with retail cards. According to the SERNAC study, when requesting an advance of $ 200,000 in 12 installments with the CMR Falabella card (traditional / Visa / MasterCard) you could pay a CTC of $ 236,571.

Which represents the cheapest card in retail

Which represents the cheapest card in retail

Meanwhile, the most expensive card was Hites again, which reaches $ 454,590. That is, a difference of $ 218,019 extra.

76% difference in advances with bank cards. In the case of banking, the comparison detected that for $ 200,000 requested with the cheapest card in the business, the Golden Visa of Capital Lender Bank, $ 212,046 is paid, that is, $ 12,046. As the least convenient card in banking, it is the Master One from Cream Bank, which can represent a CTC of up to $ 372,954, which represents a difference of $ 160,908, 76% more than the lowest value.

Differences in installment purchases

saving money

Difference 77% in purchases with bank cards Now in the case of purchases in 12 installments in the amount of $ 200 thousand, a consumer could pay up to $ 160,103 extra when comparing the CTC of $ 208,022 of Capital Lender Bank (Visa Gold card) with that of Cream Bank (Mastercard One) that reaches $ 368,125.

Difference of 51% in retail cards. On retail related credit cards, adding tax, commissions and interest, the lowest total cost to pay is $ 232,166 CMR Falabella (Traditional / Visa / Mastercard) up to $ 350,861 with Hites card, with a difference of $ 118,695.

100% mortgage increases money loans.

The number of applications for consumer credit will increase. That is the expectation now that the maximum mortgage has been adjusted from 101% to 100% with effect from 1 January 2018. Renovations, furniture and costs of the buyer can no longer be co-financed with the mortgage, which was almost a matter of course in previous years. You can finance your house with a mortgage, the other (additional) costs via an (annuity) consumer loan.

Personal loan, revolving credit or hybrid credit

Personal loan, revolving credit or hybrid credit

Which loan form of our consumer credit do you choose? A personal loan with a fixed interest, term and monthly payments. Or do you want more flexibility and opt for a revolving credit with a variable interest rate? A combined loan of these two loan types is also possible; you then take out our hybrid credit.

This credit has been specially developed for consumers who want to borrow a high amount up to a maximum of $ 150,000. With this hybrid credit, you benefit from the advantages of a personal loan, a fixed low interest rate and a possible tax benefit, as well as from the advantages of a revolving credit, where you determine when you withdraw which amount of the credit. And you may withdraw repaid amounts.

Tax benefit

If you are unsure about the loan types, the tax deduction of the interest costs for a personal loan may be the deciding factor. If you want to realize a renovation or improvement of the house as a loan goal, the interest is tax deductible. This also applies to the personal loan part of the hybrid credit. Interest rates are now historically low, so to take advantage of this low interest rate throughout the term, opt for a personal loan. The interest on a revolving credit is variable and therefore subject to interest rate fluctuations.

Redeem without penalty in the meantime

You can repay extra on all loans and credits with the Good lender Credit Collective free of charge during the term. You do not pay a fine for this. In the event of extra or early repayments on your mortgage, a fine is often charged for the loss of calculated interest for the bank.

Consumer credit versus mortgage

Consumer credit versus mortgage

But this is not the only drawback of a mortgage co-financing. For example, if you chose to co-finance your new furniture, this meant a term of 30 years for your furniture. Very long when you consider that the economic life of furniture is a few years. With a consumer credit you take out an appropriate term for the loan so that you do not pay while the products have already been written off.

Financing residual debt

If the mortgage debt is higher than the sales price of your home, it means that you have a residual debt. You can no longer co-finance this with your new mortgage, but with a loan. And that is even cheaper. And faster; You can arrange a loan yourself online without the intervention of a notary or long lead times.

Borrow money with advice

Borrow money with advice

Our advisors advise you on the most suitable loan form for your personal loan purpose. You take out a loan with us at a low interest rate and good conditions. Do you want to insure your loan? That is also possible with us with our credit protector. In the event of unemployment, disability or death, your loan or credit is insured so that no financial problems arise.