Author: Christopher Peppers

Different Names for Different Loans- They are Just Loans

Ever asked the question, why in the financial industry a car loan or a real estate loan just have such a name? The keyword is: earmarking ! But what about this purpose bond? Why are these and what does earmarking have to do with the Odette mini loan? A summay is on papierkugel.org

What is a purpose limitation?

 

 What is a purpose limitation?

 

Let us first of all clarify the terminology: The earmarking is superficially known in connection with loans and for a good reason, because the purpose of lending granted banks often different loan conditions. In the case of loans, earmarking is not uncommon to this day and is used in particular in connection with individual loan forms. Although it no longer necessarily influences the terms of a loan , it certainly does affect how a loan can be “used” by a customer.
As already indicated at the beginning, exactly this is to be recognized today in the designation of credits – be it in the form of a real estate loan, a motor vehicle loan, home loan, etc.

Sense of purpose

 Sense of purpose

 

The purpose of the lending bank with earmarking is quickly and easily explained: For example, anyone wishing to finance a vehicle through a loan has a tangible asset that serves the bank as collateral against any loan default in the form of any unpaid loan installments , This means that the buyer of the vehicle just leaves this car to the bank as collateral for the duration of the loan. In return, banks often provide the borrower with cheaper interest rates, lower processing fees or the right of early repayment. A credit business that is worthwhile for both sides!

By contrast, ordinary installment loans eliminate the purpose limitation, leaving you free to choose what you are using your loan for. Be it for the replacement of the credit line, the financing of the holiday or the purchase of consumer goods – it is up to you!

Likewise, we think of Odette with our credit. Whether you apply for a € 199 mini loan or a higher loan. You can dispose of this loan completely free without having to inform us about the intended use. The Odette short-term loan with earmarking is not there, but the fair mini loan at leisure!

Editor: Markus Gildemeister

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Are Payday Loans For Free (without interest) Really Exist?

Payday Loans For Free

Payday Loans For Free

How many times have we seen ads on loan companies on television or on the Internet? Very often, there is a statement that a given company offers ” loans for free “, thanks to which we have to give back as much money as we borrowed. Certainly many people wonder if it is possible for someone to lend us money and do not want anything in return. It seems so unlikely that many people simply do not believe it and think that there are certainly many “hooks” that make such a loan without interest impossible to obtain.

However, as it turns out in practice, free loans really exist and you do not have to “add” a lot to get it. So let’s see what you need to do to pay nothing for borrowed money. First of all, we need to find a company that offers such free loans. There are a lot of them, so we will certainly find the one we offer the most. 

What is important, in this company we must submit an application for the first time, because such a promotional offer is available to new clients of a given company. The second condition necessary to take advantage of this special offer is the timely repayment of debt. There may be a bigger problem here, as we usually only have 30 days to repay the debt. Certainly, it is not easy to give a loan when you have such a short period of time, but it is precisely between those that are characterized by payday loans.

To sum up, in order to get money for free, we must use the offer of a given loan company for the first time, and secondly we have to pay the debt on time.

Certainly, many people wonder what interest the loan companies have in offering loans for free. Simply put, this is a marketing gimmick that aims to attract new customers to your company. Because the competition on the payday market is very large, so loan companies have to fight for the client almost. In addition, there is a high probability that if someone “tempts” to such a free loan, then when he will need money again, he will use the offer of the company that he has already used. And for another loan, you have to bear the normal costs, which do not belong to the low. Not everyone will pay off their first loan on time. So they also have to pay the normal costs of a payday.

Free payday loans really exist. And in fact, by borrowing money as part of this promotion, we do not have to pay anything. However, it is not always possible to meet all the conditions allowing for such a loan for PLN 0, so before we ask for it, let’s consider whether we will be able to pay the money on time.

How to Choose the Best Loan a Payday Loan

In the past, friends were interested in a loan or loan at the Bank. Today, more and more questions are asked about payday loans. What is it, is it worth using them and, above all, where is the catch in the offer of free loans.

I know the offers of most loan companies. I know where you can get 500 zlotys, where 2000 zlotys, and where the loan will cost you a lot.

Importantly – I tested a lot of these products personally. I submitted applications for various payday loans and with the stopwatch in my hand I measured the exact time needed to receive them. Part of this struggle is described on the portal under the series of articles “We take a loan in …”.

What are the conclusions from here? At the beginning, let’s disprove some myths:

1) Payday loans are products for indebted people

1) Payday loans are products for indebted people

Unfortunately, not true. Interim Loans are products for people with creditworthiness who do not want to go to the Bank for PLN 1.400 loans. Companies that actually lend to indebted people can be counted on the fingers of one hand.

2) The payday loans are all loans granted over the Internet

2) The payday loans are all loans granted over the Internet

A classic payday loan, as the name suggests, is a short-term product. We usually give up the money after 30 days. Loans whose payment we advise against for several / several months is difficult to call short time. These are ordinary loans provided over the Internet.

3) Loan companies do not verify the customer anywhere

3) Loan companies do not verify the customer anywhere

Nothing could be more wrong. Please consider – who of us would be able to borrow money to a person we do not know? Exactly. In business, the more you need to check who lends money to. The fact that a given loan company does not verify the Customer at BIK (Credit Information Bureau) does not mean that it does not check it in other registers (most often in the BIG – Economic Information Office).

4) The loan is free? There must be a catch somewhere

4) The loan is free? There must be a catch somewhere

There are no hooks. The company grants the first free loan because it pays off. Most of the clients return to such a company, and with each subsequent loan, they give the loan company with a vengeance. Why are customers coming back? Because they have convinced themselves to fast money on the account, especially that with each subsequent loan the client can count on a larger loan.

For a loan company, a borrower once again is a solid customer. Since he gave his first loan, he is a reliable borrower and you can borrow more.

And we are going back to the question of how to choose the best loan for a payday. Which offer to choose? I always answer: free.

There are over a dozen companies on the market that provide a completely free first loan. After 30 days we give exactly the same amount as we borrowed.

Every month, at the Długłużenia.com portal, we publish an updated list of loan companies providing free loans (you will find them here).

Free loans started with Hypocredits.pl. Many people shook their heads in disbelief – a loan for free? Impossible. However, the tactics of the company turned out to be a hit. Hypocredits is currently the leader on the Polish payday loans market, mainly due to marketing and a free loan. The maximum amount of the first loan is PLN 1,400. For many people it is a sufficient amount.

There was competition in Hypocredits’s footsteps. So if someone does not like animals from the Hypocredits.pl advertisement or for other reasons is prejudiced against this company, he can calmly choose other offers:

  • Metloan – free first loan up to PLN 1,500
  • Hillarium – free first loan up to PLN 1,000
  • Outtacredit – free first loan up to PLN 1,000

Finally, valuable information. Always try to pay your payday before time. Therefore, we will avoid delays for which loan companies have to pay dearly.

And above all, do not take out several loans at the same time. This is a short route to a loss of financial liquidity.

What is a Simple Interest Rate Loan?

Simple Interest Rate Loan?

Simple Interest Rate Loan?

A simple interest rate loan is a loan where the interest accrued is calculated solely based on the original borrowed amount, an amount known as the most important. The total amount repaid from a simple interest loan would then be the principal borrowed amount plus any interest earned over a certain amount of time. A simple interest loan is most commonly seen in relation to car loans, but it can be used in any type of loan situation.

Unlike a simple interest rate loan, interest rate loans are usually a more expensive option. A compound interest rate loan does not only charge interest on the most important, but also charges any interest on previous accrued interest. For example, if someone borrowed $ 100 US dollars (USD) from a bank and was charged interest on interest, interest would accrue over a period and at some point, additional interest would be added. If accrued interest is $ 10 USD, and then after a certain period of interest intended, then $ 110 would be $ assuming nothing had been repaid during that time.

Simple interest rates would only charge interest based on the original $ 100 USD and would not include any other accrued interest. At a basic level, the simple interest rate loan is preferable, at least with regard to car loans. Mortgages work a little differently, and simple loans are not always the best solution.

For mortgages, there are other loan options that actually come out cheaper because of the way interest rates are calculated. In a standard mortgage loan, the interest rate is usually calculated on a monthly basis, while the simple loan rate is calculated on a daily basis. When added over time, more interest payment is made with the simple interest rate loan, assuming the percentage rate of return on both loans is the same. The amount in difference increases the higher the percentage of charged interest.

There are other ways a simple interest rate loan can cost more. A common way of doing this is with fees, either to pay off the loan early or to pay it late. For example, usually a type house mortgage is a grace period to pay late, but interest is accrued daily in a simple interest loan, additional interest accrues every day, the payment is delayed.

Although not so common, some loans will charge a fee for early repayment of the loan. Some loan contracts have it written in that a certain amount, usually a quantity intended to be the total money owed over a certain period, must be paid and if paid early, the amount will normally be less than the agreed amount. amount. An early payment fee, often quite large, is then charged. Most simple interest rate loans, unless the individual has bad credit, are not like this, but it always pays to read the fine print.

Residual Debt Insurance

Anyone who has ever been in his life at his house bank for a loan or installment loan interested and while the conversation with the bank consultant has sought, which should have encountered the term ” residual debt insurance “. Explained from the mouth of the bank adviser, such insurance seems absolutely reasonable and therefore necessary. But is that really true? Not at all and that has its reasons. Let’s put a little light on the matter with the following article. See http://www.siirevreni.com/2019/05/07/instant-uk-payday-loans-please-see-our-instant-payday-loan-page-for-more/ for an illustration

Remaining credit insurance: useful or profiteering?

 First of all, the determination of what a residual debt insurance basically does: If due to external influences such as unemployment, long-term illness or even death, the monthly loan installments can not be repaid temporarily or permanently, the residual debt insurance. Sounds good, but has its catch.
The question of the reasonableness of a residual debt insurance for credit can therefore be answered in the view of the lending bank basically only with a YES, because the bank always earns a commission on the mediation of such insurance and also secures the granted credit. For consumers, on the other hand, it makes no sense in the vast majority of lending transactions except the fact that consumers pay for it. In addition, residual debt insurance policies are considered to be highly inflexible in their contract design. In this respect, it is recommended to offer the bank reasonable alternatives to the residual debt insurance as a credit protection.

Remaining debt insurance: Consumer advocates warn

 Remaining debt insurance: Consumer advocates warn This is confirmed by current statements of the consumer centers in Hesse and Saxony. From the point of view of consumer advocates, the 108 policies under review for residual debt insurance are altogether too expensive, too inflexible and anything but consumer-oriented. The main criticism is the additional financial burden on the loan secured by a residual debt insurance, because the insurance first increases the installment loan, which also increases interest rates. So it can happen that the interest rate for installment loans and residual debt insurance often doubles. What will then be quite an interest rate of 20 percent can be achieved.

Offer alternatives to credit protection

 Offer alternatives to credit protection Those who would like to actively protect themselves from the unnecessary additional financial burden of a residual debt insurance for the loan should offer the bank corresponding alternatives to the credit protection. For example, an existing life insurance policy or a home savings contract provides a valuable security for the bank. A term life insurance is also accepted as collateral by most banks. For expensive residual debt insurance, there are quite reasonable alternatives – you just have to know as a consumer! However, it would be absolutely desirable for bank advisers to point out these alternatives to credit protection on their own and not focus exclusively on brokering the so-called RSV!

Do You Need an Urgent Loan? | Payday Loan

” I need a personal loan! Have you ever needed an urgent payday loan? When watching TV and reading the newspapers online, we see several articles showing that the cost of living in Brazilian cities has only increasing by the day. “

We also know that in order to keep finances in order, you have to start cutting expenses and reducing expenses that are sometimes important but expendable, if you make an effort, you can eliminate many expenses.

Unfortunately, prices of consumer goods, products and services are increasingly inflated, even though interest rates drop month by month. On the other hand, the income received monthly by the workers has remained the same, when it increases, it does not follow the real inflation.

Worse is when there are few chances and opportunities to make more money or extra income. Whoever has a single source of income has even more difficulty surviving.

Urgent payday loan to save the motherland!?

Urgent loan to save the motherland!?

Brazilian families are almost all with their rents worn out, and with the economic crisis left by previous governments and continued by the current one, the financial lives of many have truly become much more difficult.

To overcome this continuing trend of tightening in finance, people are forced to borrow one or more loans urgently.

urgent payday loan is a basic type of personal credit usually done in cases of pure emergency. In simple words, it is when a person needs money right away.

Most people who choose to ” make an urgent payday loan ” use it to buy things they need, to pay for consumer bills or expenses that they can not be left behind.

Examples of situations like paying the rent of the house or apartment, doing the car review or paying taxes and condominium fees, can be considered as priorities, and certainly are reasons to take an urgent personal loan .

How to apply for an urgent payday loan?

How to apply for an urgent loan?

In Brazil, there are a lot of lenders and online loan companies, they lend money from wherever you are. You can apply for an urgent payday loan with the most varied amounts and payment terms.

Approval of the loan is usually based on your personal profile, nothing different from the conventional personal loan. The approval and release policies of the loans vary little from lender to lender.

Consultation and verification of registration for approval

Some lenders check the credit report for debts or negative entries before approving the application, this is not the case for pre-approved loans, credit on the card, overdraft (credit limit).

Therefore, it is always advisable to pay your existing debts to clear the history and increase the score in Serasa, Boa Vista (SPCP), SPC Brasil and TransUnion Brasil. The truth is that paying off debts is the most essential way to keep your credit score healthy and your credit report free of pending registrations.

Having a good or excellent credit score not only provides almost immediate credit approval, but also helps in obtaining much lower interest rates.

Because of the incessant search for loan, and with so many companies, websites, platforms and online lenders, it has become a difficult task to find a reliable lender who specializes in specific loan categories. For people with a dirty name, for example, go here!

So … if you are a regular consumer, you know you need to do research and in-depth comparisons to find what you are looking for with the best conditions, this should also be done when it comes to personal loans.

As an advice : Hire your urgent payday loan only if you are sure that you can return it to the bank or financial institution at the right time. Do not borrow just because you need to buy luxury items as a new-generation smartphone. Be smart, manage your finances wisely.

Taking advantage of the let, let’s talk about some myths and misconceptions that many only discover when they ask for a new loan or are disapproved in their requests.

Misconceptions about urgent and non-urgent payday loans

Misconceptions about urgent and non-urgent loans

There is no ” good loan ” and ” bad loan ,” the idea that personal loans are usually a last resort, or that hiring them may mean that you have reached a desperate state, not true!

Not only that, some people may be disappointed by not having the approval of their personal loan application due to a variety of reasons (lack of score, bad credit history, no credit etc), so let’s clear up some misconceptions to improve the understanding.

To borrow loan need to have good credit score?

To borrow loan need to have good credit score?

Credit score is definitely one of the most important factors for credit approval especially in banks and retail financial. In Brazil, unfortunately many people neglect the fact that the ideal would be:

  1. Have a clean name on the square
  2. Prove enough income
  3. Have unspotted credit history
  4. Do not have any restrictions on Serasa, SPC and others
  5. Build and Have a Good Credit Score

These five factors are not just meant to qualify for a personal loan, this should be part of the financial life as a whole. If you want to know how to really get out of debt and have credit to do what you want, click here. If you want to increase your score and credit score quickly and efficiently, learn more (here).

The only place you do not need scoring to get one or more loans is with loan sharks, and in that case, if you do, it is at your own risk. Feel free to do whatever you want with your life.

Are interest rates the same for all people?

Are interest rates the same for all people?

In a near perfect world, we could believe that in this online universe we live on the Internet, people would be the same, and that financial institutions would offer the same rate of interest to all people who borrow money.

But the world is neither perfect nor almost perfect!

From home loan (mortgage) to negative loans, lenders apply different interest rates for each type of person.

You would be surprised at the amount of factors that can affect the interest rates and terms that lenders evaluate to release a loan to the borrower. Financial institutions offer different rates depending on your credit risk status .

They may also be based on the applicant’s ability to repay the loan, in his professional qualifications, on his status as a citizen, eg Public Servant, Retired, Pensioner, Military, etc., or his ability to present collateral.

Do not just look at the loan with the lowest interest rate

Do not just look at the loan with the lowest interest rate

As mentioned in the previous point, there may be more than one factor to consider when it comes to approving a personal loan from online lenders or banks.

While interest is an important criterion, since it determines a large part of the total cost of the loan, do not forget the term, administrative fees, federal taxes (IOF), processing fees, insurance lenders, prepayment penalties and ease of application, all of this affects your pocket when choosing a loan mode.

Let’s consider that you need a loan of $ 5,000 and would like to repay it in 4 months, would you prefer to pay a little higher interest to get the payment in 4 months or extend the term for a year with a slightly lower rate?

Think carefully! But do the math.

Do you need to be employed to get a loan?

Do you need to be employed to get a loan?

Being employed being (salaried, hired CLT, cooperated) definitely helps in any personal loan application . But you would probably find that anyone who is not employed does not need credit – it will!

This is especially the case for many start-up micro-entrepreneurs and entrepreneurs who do not have sufficient resources to handle the startup stage of their new business, or face shortages in cash flow.

Being unemployed does not mean that you can not have access to credit or take out a loan.

As long as you can prove income, there are personal credits that are designed for both freelancers and for entrepreneurs and entrepreneurs who have businesses in progress. A pro-labor or even income tax resolves this obstacle.

Unemployed man gets loan

Unemployed man gets loan

Another way for an unemployed person to obtain personal loan is by presenting a guarantor or guarantor as collateral for payment, the bank will do and evaluation of financial status, if everything cooperates – the money is borrowed.

In conclusion : Provided that a person files proof of income, declares income tax and passes the credit analysis, any lender will certainly not deny the loan application.

Borrowing Money through Banks and other Sources.

One or the other was certainly already in a situation in which it was thought about borrowing money, because it did not work with saving again. But how and especially with whom do you borrow money? First contact is usually the own house bank. It compares credit terms, amounts and interest rates with other banks regarding their own needs.

On the Internet, various comparison portals allow you quick and reliable access to relevant information from home and online banks.

Check24.de

 Check24.de

  • Loan from 500 €
  • Minimum term 12 months
  • 16 online banks in direct comparison
  • Access to Ekomi (general evaluation page)
  • Known from TV advertising

Kreditvergleich24.de

 Kreditvergleich24.de

  • Loan to € 10,000
  • Minimum term 12 months
  • 18 online banks in direct comparison

Verivox.de

 Verivox.de

  • Loan from 500 €
  • Minimum term 12 months
  • At 500 € are 2 banks in direct comparison, at 1000 € 13 banks are available

However, sometimes you do not want to lend so much, but would just like a bridging money until the next receipt. This is where the online providers for instant loans and mini loans come into play.

At www.BankingCheck.de you can compare short-term loans from 100 € directly with each other. Click on Credit and enter, for example, 100 € and 1 month term and you have 3 banks to choose from. The higher the amounts, the more providers there are.

Tips

 Tips

  1. Take a close look at the internet pages.
  2. What is offered for service?
  3. Are you clear about settlement and fees?
  4. Are there any contacts you can talk to during opening hours? Clear question, clear answer?
  5. Stay away from advance payment!
  6. Read testimonials, necessarily the negative reports and judge for yourself whether something is in the negative reports or if someone has just not gotten his will and his anger “air” and the positive reports are true.

Interest – the cost of obtaining financing

Interest, in banking terminology, we treat as a cost that is charged for the use and use of borrowed financial capital to a given recipient. A standardized measure of such a cost, converting it into a unit of capital and 365 days of use, is the interest rate. Banks treat interest as the cost of obtaining funds financing their current operations (usually in the form of deposits or issued debt securities) or as a multi-period income which is derived from the capital obtained by the bank, usually due to loans and credits granted. The difference resulting from interest income earned by the bank and the interest costs paid by them is the net interest income, which is referred to as interest assets. From England, it is called interest margin , or net interest margin.

Interest amount

Interest amount

The size of interest depends on the interest rate, the size of the capital and the time horizon for which the given liability is made available. In addition to the above, we also include the method of determining interest data. In practice, the adopted interest rate calculation calendar is also significant, which specifies such aspects as: the number of days in a given calendar year, which was used for the calculations made. Pursuant to Article 52 of the Banking Act, the number of days in a calendar year for interest calculated from funds in bank accounts is 365 days, however, this value may change, in accordance with the content of the agreement concluded between the bank and a given Client. There is no method for determining interest in Polish banking law, which is why the above issue is subject to direct regulation on the agreement between the bank and the client.

Ways to determine interest

Ways to determine interest

The methods for determining interest are:

  • Calculation of capital in proportion to the time horizon of interest rates, charged after they are calculated (from below) – simple interest,
  • Calculation of interest accrued after a specified period is added to capital, after the next period interest is calculated on their total amount – compound interest,
  • Continuous charging, applicable, for example, in the valuation of derivative instruments (options, futures contracts, etc.) – continuous interest,
  • Calculation, in such a way that interest is calculated and charged in advance – a discount.