Month: January 2020
The Internet gives us broad access to various types of services. Without leaving home and without unnecessary formalities, we can handle a huge number of cases. It is no different in the case of the loan market. For several years, loan companies have been offering their clients online loans on account that enjoy unflagging popularity.
Loans via the Internet to your account – The Good Finance Bank has an entire list of such loans in one place for Internet users. This is a great site where you can get acquainted with a huge number of offers from various lenders in a few seconds. In today’s article, we explain the most important information about online loans.
Get on with your online loan application poor credit
An online loan is a great financial product that has been enjoying increasing popularity for some time. Many people value the fact that without unnecessary formalities and leaving home they can receive cash on their account. All the more so if you have previously received a negative decision from the bank.
It is also often the case that people who would easily get a bank loan also decide to get loans online. This is, of course, conditioned by the fact that non-bank companies operate much faster. Loan application procedures are devoid of unnecessary formalities, thanks to which we will obtain money much faster.
The loan company verifies the customer and pays him money usually on the same day because in the case of applying for financing at the bank it is practically unreal. In addition, we will not have many formalities to fulfill in the loan company. Usually, all you need to do is provide information about your ID card, present a statement of earnings (at this moment fewer and fewer loan companies use this solution). If there is a crisis and we need cash very quickly, then choosing the bad credit loan online offer from https://www.mandello.org/ is the best solution available.
What are the main pros and cons of online loans?
Of course, every financial product has its strengths and weaknesses – it is no different in the case of online loans. The most important disadvantage of online loans is that non-bank companies usually lend relatively small amounts of money to their clients.
Depending on which company we choose, we can receive from several hundred zlotys to several thousand. On the other hand, classic banking institutions can offer us much larger amounts (after meeting a number of stringent conditions).
The undoubted advantage of online account loans is certainly the quick application procedure. The money goes to our account several minutes after we verify the application submitted by us. Non-bank institutions do not verify their clients as well as banks. A higher interest rate is collateral for timely repayments, which is a big downside for many.
Do you need money to complete a project? Do you know your credit limit, the maximum amount you can borrow? How to calculate this limit? Our explanations.
What is the credit limit?
We talk about a credit limit to illustrate the maximum amount that can be borrowed by an individual when applying for credit. This limit is automatically calculated by the banks when submitting your file. Two cases then arise:
- Calculate your credit limit
If the precise calculation method differs from one establishment to another, the principle remains the same. Thus, the credit limit corresponding to the maximum amount repayable in three years. To calculate the credit limit, the financial institution does the following:
- Calculation of the gross budget : total of your income minus total of your compulsory expenses (insurance, rent, etc.).
- Calculation of the budget surplus : in the gross budget, it is then necessary to remove the “current” expenses (taxes, food, children,…).
- Calculation of the limit : the limit then corresponds to the maximum amount of a credit over three years that you could repay according to your surplus.
In a simplified way, once the monthly margin has been defined, it can be multiplied by a factor of around 30 to obtain the credit limit. In the case of a credit repurchase, the credit limit then corresponds to the total of the debts to be redeemed, plus a possible additional credit.
You have an income of 5,000 USD per month. After deducting the compulsory expenses, you have 2,500 USD. From these 2,500, another 1,500 USD is taken, corresponding to the current cost of living, to obtain a budget surplus of 1,000 USD monthly. To estimate your credit limit, simply multiply this excess by 30. You could then borrow a maximum of 30,000 USD.
Get your exact limit
To obtain a more precise credit limit, it is best to call on a specialized advisor. The latter will be able to study your budget in detail exhaustively to offer you a more precise estimate of your limit. In case of interest, it will then be possible to make a non-binding request to obtain your actual limit. In this case, do not forget to declare all your sources of income (and those of your spouse). Not only will you get a higher credit limit, but you will also benefit from better credit terms.
Press Release: Providers of bank and non-bank loans will have to carefully consider who they will and who they will not. If your eye is narrowed and you are in delay, they will not only have problems with installments. Many non-bank lenders will end up – they must have a registered capital of at least 20 million crowns.
On the other hand, you will have the option to repay the loan at any time or to transfer it from another currency. This is the impact of the Senate Bill on Consumer Credit. At present, only the President’s signature is missing and the bill will be valid. We will have to wait for its effectiveness. Still, it’s good to know what this change will bring.
Harder conditions for non-bank providers
Providers of non-bank loans will have more difficult conditions for functioning on the Czech market. Only the Good Lender Bank will grant licenses. Pursuant to Section 14 of the Consumer Credit Act, these providers will have to have an initial share capital of at least USD 20,000,000.
Subsequently, it must maintain the share capital of at least 5% of the volume of loans outstanding and outstanding, which it shall report at the end of the calendar year. Moreover, the capital must not fall below the minimum amount of initial capital.
The law will have a negative impact on rogue lenders in particular, will enable better supervision of the honest lenders as well as the enforceability of law in this area.
They must assess your creditworthiness
Under Section 86 of the Consumer Credit Act, lenders will now be required to assess your creditworthiness. This means your ability to repay the agreed regular installments of the consumer loan. They will have to assess:
- Before concluding a consumer credit agreement.
- Before changing the obligation of such a contract, which consists in a significant increase in the total amount of credit.
The assessment shall be made on the basis of a comparison of revenue and expenditure and a comparison of the way in which existing debts have been settled. If the consumer credit is to be repaid in whole or in part by the proceeds of the sale of the property, the value of the property will also be assessed. In addition, however, other factors must be taken into account in the assessment, such as the presumption of succession proceedings, the sale of real estate and others.
Consequently, the loan may only be granted to you if the resulting assessment shows that you are able to repay it. If it fails to verify your ability to repay and provides the loan, the contract becomes invalid. And you have the opportunity to repay the loan interest-free and according to your possibilities.
Pay at any time
Section 117 of the Consumer Credit Act regulates the possibility of early repayment. You are now entitled to repay this loan in full or in part at any time during its term. At the same time, you have the right to reduce the total cost of this loan by:
- The amount of interest that you would be required to pay in the event of early repayment.
- Other costs that you would otherwise have to pay if you did not repay the loan early.
According to the law, the practice should look like this: You have concluded a consumer loan and repay it. After 2 years you have the option to pay the remaining 3 years of repayment at once. You will notify the lender and the lender will provide you with the following information without undue delay:
- It will calculate the amount you have to pay. This will be divided into principal, interest and other early repayment costs.
- It will give you information about the amount of reimbursement. They must state all assumptions and calculate these costs.
- It will give you information on other consequences of early repayment.
Right to reimbursement
However, a creditor, such as a bank, has the right to require you to be reimbursed in the event of early repayment of the costs incurred in connection with such early repayment. However, the costs must be purposefully incurred and proven to be due to the early repayment of the loan. And they may not claim these costs at all if you paid them for one of the following reasons:
- As part of insurance coverage intended to ensure repayment of consumer credit.
- Where the consumer credit has been granted in the form of an overdraft facility.
- If you have repaid it during a period for which no fixed interest rate has been set.
- The amount charged by the creditor shall not exceed 1% of the early repayment, provided that the period between the early and agreed repayment and the agreed end of the consumer credit exceeds 1 year.
- If the period is less than 1 year, the creditor shall not charge you more than 0.5% of the prepaid portion of the total amount of the consumer credit.
- Also, the amount of reimbursement may not exceed the amount of interest that you would otherwise have paid if you paid regularly until the end of the agreed period. In other words, you can only save on early repayment of consumer credit.
- However, this does not apply to housing credit . You can only repay it fully if the contract lasts for more than 2 years. The fee may not exceed 1% of the prematurely paid amount and its maximum amount is limited to USD 50,000.
Limitation of sanctions
There has also been a clear definition of penalties for debt recovery and default. Newly, a creditor will only be able to charge you for the following:
- Purposefully incurred costs related to debt recovery.
- Legal default interest.
- A penalty of 0.1% for each day of delay (max. 50% of the outstanding amount and max. USD 200,000).
You can convert foreign currency credit
Consumer loans in foreign currency will also undergo a change. If you take it, you run the exchange rate risk. As the rate develops to your disadvantage, the loan becomes more expensive and you may not have enough money to repay it.
Therefore, according to § 116 of the Consumer Credit Act, the provider must allow you to change the currency of this credit to:
- The currency in which you had your primary income at the time when your creditworthiness was associated with that loan.
- the currency in which you held the assets from which this loan is to be repaid. Again, at the time your creditworthiness for this loan was last assessed,
- the currency of the Member State where you were resident at the time of the conclusion of the contract,
- the currency of the Member State where you reside at the time you request the change.
In addition, pursuant to Section 103 of the Consumer Credit Act, a foreign currency credit provider must inform you at least once a year of:
- the amount remaining to be paid,
- the amount of each installment,
- conditions for applying any currency change,
- other risk mitigation measures arising from changes in the exchange rate.
What does she have to tell you?
Section 94–98 of the Consumer Credit Act defines the information that the credit provider must provide to you before you conclude the contract. Among other things, it is obliged to publish information on the intermediary and its commission on its website. The contract will be required in writing only in specific cases, such as exclusive contracts.
If you require advice from the provider, the provider has the right to charge it. However, the resulting advice or output must be printed.
Payment only after signing
Pursuant to Section 83 of the Consumer Credit Act, the right to any remuneration will not be newly granted to the provider or intermediary. The exception is:
- Right to reimbursement of taxes.
- Right to reimbursement of administrative fees.
- Right to reimbursement of other similar cash benefits and reasonable costs.
Withdrawal within 14 days without giving any reason
Even if you sign a consumer credit agreement, you have the right to read the agreement under Section 118 and cancel it without any penalty within 14 days of conclusion. You must resign in writing.
In order to be considered as being complied with, you must send this withdrawal to the consumer credit provider in paper form by postal service no later than the last day of the 14-day period.
Change in the use of the lien
The Consumer Credit Act also affects the lien and the creditor. The pledgee will have to notify you 6 months in advance that he is planning to sell the mortgaged property in order to satisfy his claim. At the same time, it cannot prevent you from selling it for debt repayment.
If the creditor fails to comply with the aforementioned deadline and enters the lien in a public list or register, the period of 6 months shall commence only from the date of such registration. And you can’t even agree with a creditor that you only need to notify you in less than 6 months.
When to expect changes?
The Act will come into effect at the beginning of the fourth month after its publication in the Collection of Laws. Therefore, even if it was announced in July 2016, it will not take effect until 1 November 2016.
Contracts that will be concluded after the effective date will be fully governed by the new law. Contracts concluded prior to the effective date of the Act shall be governed by this Act only if the terms and conditions change. However, the level of individual sanctions will be governed by all contracts as of the effective date of the Consumer Credit Act.
What is important, however, is that these changes are brought to the attention of consumers, so that they know how to behave in key situations.
The Ministry of Finance should devote time and funds to educate consumers in the awareness raising campaign and to protect the benefits that the new law has given them the right to use.
Do you need money quickly to finance a project or to deal with an unexpected event? How to get your money as quickly as possible, and what real delay should you expect? Explanations.
Fast credit, how much?
Getting credit quickly is possible, at least up to a point. Obtaining the money essentially involves two stages: the offer stage, which can be very quick, and the payment stage, which may take longer.
Get an offer
Obtaining the offer involves contacting a service provider: a credit bank, an agency or a broker. In order, it will be:
- Contact the service provider, announce the desired amount, the planned reimbursement period, and announce their situation.
- Provide the documents necessary to study the file. At a minimum, these will be copies of salary slips, identity card and rent lease.
- Wait for the decision and, if the application is accepted, receive the credit contract for signature.
The time required to obtain an offer varies depending on your situation, the time required to collect the documents, but also the efficiency of the service provider. Going through a credit agency, accustomed to dealing with banks, can thus guarantee a faster processing of the request. In all cases, it takes at least 2 to 3 days to receive a decision and the credit contract. In fact, this process can easily take a week to gather and transmit the necessary documents, then receive an offer in return.
Get your money
If the application is accepted, you receive a credit contract to sign and return. Since 2016, however, Swiss law has imposed a period of 14 days between signing the contract and paying the money! Depending on the desired method of payment, you must then add up to 24 hours for the payment to actually arrive in your bank account.
Speed up the process
Do you want to get a loan as soon as possible? To quickly obtain the desired amount, you can use a few tips:
- The choice of agency : choose an experienced agency to apply for your loan quickly. The latter will know precisely which documents will be necessary for the study of the file. This will avoid unnecessary trips to and from the bank to provide new documents.
- Document preparation : find out and prepare the necessary documents in advance. The copies of the documents must be of good quality: we prefer a scan to a photograph. Do not hesitate to send the documents by e-mail for more speed!
- Choice of payment : it is possible to withdraw cash, which allows you to get your money directly after the 14 days linked to the waiting period, without having to wait for the transfer to be effective.
Contact the right provider
Specialized in credit for almost twenty years, Best Credit can help you get your credit quickly. Do not hesitate to contact Best Credit for a non-binding proposal or simply inquire about the documents necessary for the study of your file.