Online Loans With Bad Credit -Stealingeyeballs.Net / Sat, 04 Jan 2020 23:25:05 +0000 en-US hourly 1 https://wordpress.org/?v=5.6.1 Credit despite parental allowance /credit-despite-parental-allowance/ /credit-despite-parental-allowance/#respond Sat, 04 Jan 2020 23:25:05 +0000 http://www.stealingeyeballs.net/credit-despite-parental-allowance/

 

 

The birth of a child is not only a joyous event, but also leads to a high financial burden in most cases. In the early years of life, one parent usually stays home to take care of the newborn.

Credit despite parental allowance

Credit despite parental allowance

Of course, that means a salary to care for the entire family. In the first year, newly-minted parents receive parental allowance, which currently amounts to 67 percent of their current income. At the end of this period you can return to the old job or stay at home with the child. If you have to make a major purchase during the parental allowance period and you do not have enough funds, you can take out a loan despite parental benefit.

What obstacles are there on the way to credit despite parental allowance?

What obstacles are there on the way to credit despite parental allowance?

Although the parental allowance is a kind of income for you, it is not rated as such by the banks. Since the parental allowance is granted only for 12 months and corresponds to a fraction of your previous income, it is equated with the receipt of unemployment benefits or other social benefits. After all, the lending bank can not be sure that you will return to your old job after the parental allowance period and thus ensure a regular income. However, if you have collateral (eg your own house or an expensive car) or your partner earns a lot, the loan will not be a problem despite parental benefit.

How can you increase your chances of getting a loan despite parental benefit?

How can you increase your chances of getting a loan despite parental benefit?

As mentioned earlier, tangible assets or a high income of the partner are important collateral that can help you in lending. Apart from that, it makes sense to borrow small sums of money during parental leave, where the risk of default is not too high. Small loans up to 5,000 euros are granted to you rather than long-term mortgage lending, which amounts to dizzying amounts. If you are a single parent and do not have adequate collateral, the loan can be difficult despite parental allowance. In this case, it is helpful to be able to name guarantors who step in for you in the event of insolvency.

Compare offers worthwhile

Since the funds are already scarce during parental leave, you should also save as much as possible when borrowing. On the Internet, you can compare the offers of various online banks and find out which loan is best for you. Do not be fooled by a favorable interest rate – advantageous conditions such as long terms and low monthly payments are just as important.

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Online loans for bad credit -Visit bad credit lenders near me /online-loans-for-bad-credit-visit-bad-credit-lenders-near-me/ /online-loans-for-bad-credit-visit-bad-credit-lenders-near-me/#respond Tue, 09 Jul 2019 05:47:11 +0000 http://www.stealingeyeballs.net/?p=361 Visit bad credit lenders near me and get money now

The payday loan for bad credit has been on the market for quick loans since 2017 and offers its customers low-value loans of between 25,000 and 300,000 forints. The Payday Loan is distinguished by two features of the other credit institutions: the term is explicitly short, between 30 and 90 days, and the Express offers can be selected at the request, which can be used up to an hour. We have collected at http://www.prelaunch24.com/best-payday-loans-for-bad-credit-payday-loans-for-bad-credit-with-us-are-fast/, the terms of the loan application and the repayment process.

A small loan on the Payday Loan is actually a personal loan that offers temporary financial difficulties. The amount of credit you can collect is between 25,000 and 300,000 HUF and the maturity is 30, 45, 60 or 90 days, depending on the amount of the loan taken.

If you use a new loan for a Payday Loan as a new customer, you can count on a 0 percent THM, which means that you have to repay exactly the amount you have charged. You do not have to pay for the transaction interest, there is no disbursement fee and you do not have to pay for the Express service at the time of the promotion.

If you already had a Payday-Loan contract, then the fees would be as follows: THM 9.9 percent, which for a 300,000 HUF loan with a 90-day term means that the monthly installment is HUF 101,566, so the total repayable amount is HUF 304,697. If you choose an Express offer, the service fee of 75,000 HUF is added to the installment. Thus, the monthly installment will increase to HUF 126,760, and the total amount to be repaid will be HUF 380,281.

Payday Loan Express: Get credit for up to an hour

With the Personal Payday Loan Express service, you can get the required amount within one hour, and you don’t have to pay extra for speed until January 31, 2019. If it is not urgent to make money, you should consider that it can take up to 40 days for a normal adPersonal Paydaystration. If you take a quick charge, you should take advantage of the Express service as long as the action lasts.

You can get the most out of your credit request when you complete the process online. You can submit an online loan application 24 hours a day, and the assessment and video identification will take place during the bank’s opening hours. Whether you have a contract with the Personal Payday Loan or not, there are only a few simple steps to make out of the disbursement. The process of applying for a loan is as follows:

  1. Enter your details for registration or login! If you are a new customer, you must fill in the following fields: name, mobile phone number, email address, password.
  2. Enter your personal details and use the calculator to determine the loan you need and the length of time you want to repay.
  3. Choose whether you want to sign the contract online or on paper.
  4. Confirm your credit request, then you will receive a confirmation code or link on your mobile and email. You will also receive an email informing you how to verify your income.
  5. If you choose Express, your credit needs can be assessed within one hour. The credit institution will also be notified of the result of the positive credit assessment via SMS and e-mail.
  6. If you have received a notification of a positive decision, you can initiate the video identification. Prepare your ID and address card for the call because you will need to show them to the agent you will talk to. The call itself takes only a few minutes. You can also make a call from a mobile, tablet or computer, but signing a contract is only possible with the Personal Payday-Loan app that you can download on a mobile or tablet.
  7. After signing the contract you have nothing but waiting for the disbursement. If you choose Express, money can arrive on your account on the day you sign the contract.

Need more than $ 300,000? Check out other banks’ offers with the quick loan calculator and find the best deals available on the market!

Conditions for applying for the Payday Loan

The Loan on the Personal Payday Loan is free to use, so you do not need to justify to the bank what you will spend. In addition, there is no need for a guarantor or real estate cover for the application, nor do you need a bank to get a better deal. Some of the conditions must be met for your request:

  • you must be 18 years old,
  • you must have a valid identity card, license or passport
  • you must also have at least 3 months’ employment or pension,

At a credit institution, a negative CCR list is not a valid reason for applying for a loan, but the creditworthiness is always assessed on an individual basis.

That way you can repay the loan

You can arrange for a refund by bank transfer at the Personal Payday Loan. The maturity of the loan is quite short compared to other fast loans, so you can repay the loan even within 30-90 days. However, this is only good for those who have no problem with the high installment. If you can’t keep this for some reason, you have the option of prolonging your term, but this service is not free. The fee for the extension depends on two factors: the higher the loan amount you require and the sooner you ask for the extension, the more you have to pay for it.

The extension is for 30 days, and you must always do so before the expiration date, but at the latest on the expiration date. It can be extended at any time, but keep in mind that the fee for an extension is actually a kind of default interest, so it’s not cheap and you will have to pay the installment later.

Let’s look at an example of an extension: if the amount you requested was $ 300,000, and you only want to extend the third installment, the last installment, you’ll pay $ 17,800 to expire the deadline of 30 days. If, however, you slip in the first month and extend the term before paying the first installment, you will have to pay $ 53,400.

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The Repayment of the Student Loan /the-repayment-of-the-student-loan/ /the-repayment-of-the-student-loan/#respond Thu, 13 Jun 2019 12:17:22 +0000 http://www.stealingeyeballs.net/the-repayment-of-the-student-loan/

A student loan is a credit typically offered by financial institutions for students aged 18 to 28 years old. It has an average duration of 9-10 years and an amount of up to 75 000 €. 

Duration is important and must be carefully chosen. Indeed, its lengthening may at first glance seem advantageous for the borrower who will benefit from inconsequential monthly payments. But in reality, the loan may be more expensive on arrival. This duration refers to the study of the repayment of the student loan.

 

The repayment terms of the student loan

The repayment terms of the student loan

The very principle of student credit is the financing of the young adult’s needs during the years of his schooling. If many students get help from their families, some people may not have the chance or even the intake will not be enough. A loan may be needed and the student benefit packages are tailored to their needs.

There are four main types of student loan repayments: immediate repayment, deductible repayments, prepayment.
The deductible is the period during which the repayment of the student loan is deferred. It covers, in principle, the duration of studies and the payment begins only at the beginning of the active life, from the moment when the borrower begins to get real income.

It lasts on average between 2 and 5 years and is the primary interest of the student loan. Some banks sometimes leave a small margin between the foreseeable end of studies and entry into working life. After the franchise period, the repayment of the student loan strictly speaking. This is the depreciation phase. It is linked to the duration of the chosen franchise since the longer it has been, the shorter the repayment period.

 

The total franchise

During the course of studies, in case of total deductible, the young borrower will only pay insurance premiums. It is true that the subscription to an insurance remains an optional service. Nevertheless, it is strongly recommended to guarantee the repayment of the student loan in the event of the occurrence of particular events (illness, death, disability, …).

The vast majority of banks offer insurance included in the service, for a cost ranging from 0.3 to 0.6% of the amount borrowed. Thus, the repayment of the student loan – that is, paid-up capital and interest – will only be made once the deductible has been completed. Be careful, if this solution seems very attractive, it can be expensive since the interest is added each year to the amount collected and in turn produce interest.

 

Partial deductible

Partial deductible

It is sometimes better to opt for the partial deductible repayment of the student loan. During this period, the student pays only insurance premiums and interest in full. The repayment of the student loan begins therefore from the beginning of the loan but the repayment of the capital granted will begin only at the end of the period of franchise, ie at the entry of the active life.

Binding, it imposes fees on the student even before the end of his studies. In the end, however, it remains less expensive than the total deductible since interest will be less substantial in fine. That is why this solution must be favored by those benefiting from regular income, for example students who occupy a small job in addition to their studies.

 

The immediate refund

refund

If the student does not wish to benefit from a deductible, he can choose the repayment of the immediate student loan which starts from the month following the release of the funds. The borrower then finds himself paying monthly installments that take into account the total cost of the loan: capital collected, interest, insurance.

However, the amount of the reimbursements can never exceed 1/3 of the student’s income, which can correspond to the scholarships, to the salary of a student job, to family financial assistance, etc …

 

Early repayment

Early repayment

A big money income is always possible in the life of a student. Since the student loan is a personal loan, it makes it possible to benefit from the 1978 Scrivener Act, which offers the possibility of prepaying the credit, in whole or in part, without paying any compensation.

This modality thus makes it possible to arrive more quickly at the end of the repayment of the student loan. However, the contract must be monitored when the loan is taken out to ensure that the prepayment without indemnity is indeed provided for – it is therefore strongly advised to always negotiate the elimination of the prepayment indemnities (ARI).

As a result, several types of student loan repayments exist. To guard against unpleasant surprises, it is better to discuss directly with the lending financial institution the various possibilities and choose the one best suited to your needs.

For an average student, who benefits from regular income including through a student job, the most advantageous option is the repayment of the student loan with partial deductible, while allowing the opportunity to repay early to reduce the cost of credit. However, most banks also propose adjustments to the duration of the loan during the contract.

 

Modulation of monthly repayments of the student loan

Modulation of monthly repayments of the student loan

As for conventional loans, in the first place real estate loans, some banks offer the modulation of maturities. It makes it possible to review upwards as well as downwards the monthly payments during the lifetime of the loan. This applies only to the repayment of the student loan itself – so either during the amortization phase in case of deductible, or when the borrower has chosen an immediate refund. Offers that allow this are often described as “scalable” or “scalable”.

In case of larger contributions, the increase in the amount of monthly payments automatically leads to a reduction in the repayment term of the student loan and therefore the total cost of credit. This is why the possibility of a modulation must be taken into account by the young borrower at the time of the subscription of the credit. Correlatively, the decrease in monthly payments lengthens the repayment period of the student loan and increases the cost of the service. Nevertheless, this extension is useful in case of financial hardship.

Attention, in the face of the benefits already provided by the student loan, in the first place the benefit of a grace period for a refund of the deferred student loan, most banks do not offer this possibility. It is generally only granted to large loans with long repayment terms. However, it is necessary to discuss it with the organization and it is not uncommon for facilities to be given to a conscientious customer. Also, in case of repayment difficulties, the repurchase of the student loan is an interesting alternative in case of subscription to several credits.

 

The repurchase of the student loan

student loan

In the event of a difficult student loan repayment, young graduates, or even students, may resort to other loans; for example when there is a need to finance his studies but also to pay for a car. Nevertheless, an accumulation of credits risks creating a financial imbalance.

To find out if he is in a difficult situation, the borrower can use an index called the debt ratio. Used by lenders to ensure the financial health of the borrower, it assesses the amount of loan repayments in the person’s budget. It therefore corresponds to the proportion of loans in income. When the debt ratio exceeds 33%, we are talking about overindebtedness. One of the solutions is the redevelopment of loans which, to be granted and truly effective, must be requested before reaching the limit threshold of over-indebtedness.

The buyback, in case of difficulties in repayment of the student loan, is possible when the student has entered the business and has resorted to several loans to finance his needs (typically consumer loans). He can redeem his credits and his student loan in order to benefit from a single loan that will allow him to obtain monthly payments reduced by grouping debts into one.
It can also concern a student loan guaranteed by the parents. Since this type of credit provides rates generally more attractive than conventional loans, and it is for the benefit of people who do not have sufficient financial guarantees, a joint guarantee is usually requested by the banks.

It makes it possible to guarantee the repayment of the student loan in case of default of the student’s payment: temporarily, the parents find themselves paying back in place of the borrower. It should be noted that it is possible for another relative to hold the surety and even that there are alternatives to the surety (eg loan guaranteed by the State). The fact remains that in the case of a student loan with parental surety, when they are asked to compensate for the unavailability of their child, they can consolidate their own credits and thus integrate the student loan.

 

Conclusion: The various student loan repayment possibilities

Conclusion: The various student loan repayment possibilities

Concluding a credit entails the corresponding obligation to repay it. The repayment of the student loan can be done globally in four ways: immediately, with a total or partial deductible, in advance. In case of difficulties of repayment of the student loan, modulations of the monthly payments are generally possible. However, if this is not enough, the repurchase of the loan remains an advantageous solution; this is always the case when the borrower has subscribed to several credits, even if he manages to honor them all.
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 Top 5 Reasons Why People Are Denied Debt Consolidation Loans /top-5-reasons-why-people-are-denied-debt-consolidation-loans/ /top-5-reasons-why-people-are-denied-debt-consolidation-loans/#respond Wed, 22 May 2019 01:42:17 +0000 http://www.stealingeyeballs.net/top-5-reasons-why-people-are-denied-debt-consolidation-loans/

When credit users struggle with debt, a debt consolidation loan is often their best option. These types of loans are generally beneficial to all parties involved as the borrower benefits from the debt relief he / she needs and the lender receives the money owed to him / her. However, the fact that this is a possibility does not mean that it is the best option for you. In addition, as with all types of financial products, not everyone can or will qualify for a debt consolidation loan.

What is a debt consolidation loan?

What is a debt consolidation loan?

In simple terms, debt consolidation occurs when all of your eligible individual debts are combined or consolidated into one large loan, usually on more favorable terms, such as a lower interest rate. The main purpose of a debt consolidation loan is to facilitate the management of your debt so that you can repay the money you owe within a reasonable time. Getting approval for a debt consolidation loan is an excellent opportunity to pay off your debt and regain control of your finances. Unfortunately, not everyone who needs it is able to access this opportunity. We have listed below the top 5 reasons why some consumers may not get approval for a debt consolidation loan.

Why were you rejected for a debt consolidation loan?

Why were you rejected for a debt consolidation loan?

Poor credit rating and record

Poor credit rating and record

Having a low credit score and a negative payment history will prevent you from receiving a consolidation loan. That’s why we always emphasize the importance of making payments on time and checking your credit score and reports.

Not enough income

Not enough income

In other words, if you do not have the money to repay the loan on time, your chances of being approved for a debt consolidation loan are sadly low. Managing the cost of daily living and not mentioning unplanned expenses plus loan payments means that you must have a regular and reliable form of income, even if you do not have a typical 9 to 5 year job. A debt consolidation loan is usually paid back between 3 and 5 years, which means that you have every interest in maintaining a healthy income during this time.

No credit history at all

No credit history at all

What is the worst? No credit history or bad credit history? Unfortunately, even if the situation is not optimal, none will help you get approved the debt consolidation loan you need. If you are new to the credit market in Canada (because you have always used a credit card under another person’s name) or if you have recently immigrated, not having enough credit history can prevent you from acquiring a consolidation loan. Poor credit history involves a lower credit rating and lack of credit experience. This means for lenders that you are not responsible enough or experienced enough in credit to obtain this type of loan.

Too much debt

The majority of banks and creditors allow individuals to borrow only 40% of their total annual income. This means that your current debt payments, as well as the consolidation loan for which you are applying, can not exceed 40% of your annual income. If it exceeds 40%, the loan may be refused.

No guarantee

Some lenders require or at least ask for a guarantee when you apply for a debt consolidation loan. This is especially true for consumers who have struggled to cope with their payments for past loans. The guarantee is a way for the lender to ensure that he will not lose the total cost of the loan in case of default.

How to handle rejection

How to handle rejection

If you have recently been denied for a debt consolidation loan, do not give up yet. Even if you have been rejected once, this does not mean that you can not improve your finances and be accepted in the near future. Follow these recommended steps while keeping your goal in mind and stay positive.

  • Find a co-signer for your loan. Even if your consolidation request has been refused, you can be accepted if you have a sufficiently solvent co-signer. A co-signer can be a friend or family member who has a very good credit and who agrees to repay your loan if you are unable to do so. This means that the co-signer is held fully responsible until the loan is fully repaid. Lenders are more likely to make loans if you have a co-signer with extraordinary credit because their money is guaranteed.
  • Think about using the equity of your home. Using the equity that you have built up by paying off your mortgage, you can get a net loan or line of credit. You can then use your loan or line of credit to pay off your consumer debt. You will always be in debt, but the bottom line is to transfer your high interest rate debt to a low interest rate loan or line of credit, save interest costs and get you out of debt faster.
  • Live on a budget to avoid other problems. If you wish to reapply consolidation loan in the future, plan a strict budget until then. If you spend more than you earn each month, you will probably sink deeper and find it even harder to get approval. Predict how much you will spend each week in order to have a positive amount (earn more than you spend). This will not only prevent you from getting into more debt, but will also help you out.
  • Treat the problem. People often ask for a consolidation loan when they do not really need it because their problem is their consumption habits and not their salary. Consolidating loans is not an easy way out of your financial difficulties and will not help you in the long run. Find your problem and work on it, be it impulsive decision-making, misuse of credit cards, a bad deal, non-payment of bills, etc. A problem affecting your finances will not go away, so adjust it by changing your behavior.
  • Talk to a credit counselor. If you have been turned down for a consolidation loan and are reading this article and you still feel uncomfortable or uncertain about what to do, talk to a credit counselor about your options. By helping you create a budget and explain all the possible choices, a credit counselor can give you useful tips during this tedious process.

To conclude, it is important to remember that debt consolidation is not an option for everyone because it depends heavily on your financial situation and your lifestyle. The use of a debt consolidation loan has its advantages and disadvantages, but it is important to remember that this will not remove your financial problems or debts. You must find the root of the problem and follow the recommended solutions to overcome this struggle. With determination and severe spending restrictions, you can overcome all your financial problems.

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Student Loan: Comparative Student Loans /student-loan-comparative-student-loans/ /student-loan-comparative-student-loans/#respond Tue, 14 May 2019 16:22:12 +0000 http://www.stealingeyeballs.net/student-loan-comparative-student-loans/ Any student over the age of 18 can apply for a loan to finance their studies with a financial institution. We have identified the best deals of the moment and tells you everything about student loans.

 

The characteristics of the student loan

The characteristics of the student loan

A student loan is a consumer credit called “affected”, that is to say that its goal is known: finance his studies. Whatever your profile or situation, you can apply for a student loan from a bank. It is intended to pay tuition, equipment, but also accommodation, food, transportation, etc. during the course of your studies. This consumer credit, if it is intended for students aged 18 to 28, requires no proof of expenses from you.

 

Student loan: the conditions to be met to subscribe a credit

Student loan: the conditions to be met to subscribe a credit

  • Age, as we have said, is between 18 and 28 years old (sometimes 30 years old).
  • Registration in a higher education institution (school, university) must be attested.
  • French nationality is required or, failing that, proof that you have resided in France for at least 5 years.
  • A third party’s deposit is usually required.

If you meet these conditions, you can expect to borrow up to € 45,000 (or more), for a maximum of 9 to 12 years according to the signs, knowing that the duration can often be modulated, without penalties.

 

The terms of repayment of a credit subscribed for his studies

At first, during your studies, you can only repay the loan interest – partial deductible – or refund nothing – total deductible. In a second time, you repay your credit itself.

 

Student credit: the various possible guarantees

Student credit: the various possible guarantees

The banking institutions, at the subscription, will ask you a deposit or the justification of incomes (a student job for example), often condition sine qua non of obtaining your credit. However, the state-guaranteed student loan allows you to borrow money to finance your education, without having to provide the bank with the surety of a relative or proof of income. The State then acts as guarantor to the partner banks, through the Public Investment Bank who will pay your monthly payments in case of default on your part. The student loan guaranteed by the State has a maximum amount of 15,000 euros and a minimum repayment period of 2 years.

Attention: the State guarantees the risk of default of only 70% and, consequently, some banks limit each year the number of student loans guaranteed by the State.

 

Alternatives to the student loan

Alternatives to the student loan

There are also many non-student youth credits, usually with a much shorter maximum duration (around 36 months) for young people, most often 18 to 30 years old. For example, credit-serve laon credit, reserved for young people between the ages of 18 and 29, which makes it possible to borrow a sum of € 7,000 maximum over a maximum period of 60 months with a fixed APR of 1, 99%.

 

Student loan rate 0

Zero-rate loans for young people are also common, but in this case, the loan ceiling is relatively low: € 2,000, for example, for the wineloan offer. The credit offers entitled “cash advance”, “CROUS cash advance” or “1 € per day allowed offer” also show a maximum amount of low borrowing.

 

Comparative Student Loans

Comparative Student Loans

By APR (annual percentage rate of charge) reserved for major students

Bank Rate Maximum duration Maximum amount Fees Age limit See the offer
Loans Studies Fixed APR of 0.90% (1) 10 years 80 000 € offered Not disclosed See the offer
Winey de Loan APR from 0.90% to 3.5% depending on the fund 10 years 45 000 € 0 € 28 years See the offer
Evolutionary Student Loan TAEG fixed by 1% 9 years 120,000 € 30 € Not disclosed See the offer
People’s Bank: Student Loan TAEG fixed by 1% 10 years 35 000 € offered 27 years old See the offer
RNP-Pares: Student loan Fixed APR of 1.50% 12 years No limits offered Not disclosed See the offer
NNC Unspecified 10 years 60,000 € 0 € 28 years See the offer
The bank Unspecified 9 years 35 000 € 0 € 27 years old See the offer

 

Student loan offers vary greatly from one bank network to another, from one fund to another, and often from one student to another, within the same institution. Some have signed partnerships with schools and / or mutuals to offer students preferential rates.

You will get a list of any organizations involved with the bank branches. Note also that some banks like the NNC systematically offer lower rates to the student children of their clients.

 

Tips for getting a student loan

Tips for getting a student loan

Negotiate your loan and present a clear and coherent professional project

Feel free to negotiate the rate, fees and any type of advantage with, in support, your well-written file explaining your future career plan. The more serious and thoughtful you seem, the more successful the negotiation will be for you.

In terms of banking fees, everything is trading!

Subscribing to a student loan may be an opportunity to apply for a free credit card, for example.

 

Play relationships

Play relationships

In the absence of own income, you will have to rely on the joint guarantee of a person of your entourage. If this person is a good customer in his own bank, you certainly have interest in seeking the latter, but never forget to play the competition.

Study the competition and the various student loan offers

Study the competition and the various student loan offers

Refer to the chart above, study the different student loan offers and peel the conditions, rate, maximum loan amount before making an appointment with your bank advisor (or that of your parents). Start a negotiation knowing the supply of competition to fuel the discussion. This will also prove your seriousness.

If you do not win, do not hesitate to go elsewhere. Be careful not to be too greedy and to be reasonable. You can not apply for a zero-interest loan of 25,000 euros with a free premium card and non-existent account maintenance charges on the grounds that your parents have been clients of the agency for 20 years.

Reminder: Offers vary considerably from one network to another, from one region to another and even from one bank to another.

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Auto Loan: Learn How to Calculate Your Loan /auto-loan-learn-how-to-calculate-your-loan/ /auto-loan-learn-how-to-calculate-your-loan/#respond Sat, 11 May 2019 16:29:12 +0000 http://www.stealingeyeballs.net/auto-loan-learn-how-to-calculate-your-loan/ The car loan falls into the category of consumer credit. As such, a credit agency or a bank lends money to the borrower to finance his purchase of a car (new or used). In order to finance this purchase, the borrower can choose the personal loan or the auto assigned loan.

The borrower may be forced to use a specific type of credit

The borrower may be forced to use a specific type of credit

Indeed, if he wants to buy a used car, he will have to move towards the personal auto loan. He may apply to a bank or credit institution. As part of a purchase of a new vehicle, he can choose the auto credit affected. This credit has the advantage of being directly suspended upon delivery of the car purchased. The repayment of the monthly payments will begin after the delivery. Conversely, if the buyer does not take delivery of the car, or if it is not suitable, the funds will not be issued.
Credit institutions, banks or organizations on the Internet, are free to set the interest rate they want, the goal being to remain competitive while getting paid.

Of course, the calculation of a loan (whether consumer or real estate) depends on several criteria. The higher the amount borrowed and the longer the loan period, the higher the cost of credit. The cost of a loan is reflected in the interest rate applied. The interest rate and the remuneration that the lender will withdraw from the situation. Credit institutions are paid at this rate. The interest of each credit is their income. This rate is calculated according to the duration of the loan, the nature of the risks incurred (purchase of a new vehicle, used car, loan work, etc.) and guarantees provided by the borrower (situation personal and professional). This rate will correspond to the interest to be paid by the borrower in addition to his various monthly repayments.

Thus, the longer the duration, the higher the rate applied. This is explained by the fact that the risk incurred by the banking establishment is much greater when the duration of the loan is long. Indeed, the borrower may be subject to certain hazards of life that will compel him to be unable to repay all or part of his monthly payments. An additional dependent child, divorce, loss of employment, death (etc.) may result in a reduction in the borrower’s disposable income. The household’s disposable income is no longer sufficient to enable the borrower to honor his commitments and repay his monthly payments. Logically, these events are much more likely to occur if the time between the lender and the borrower is long. It is therefore understandable that these lenders increase the interest rate (their remuneration) according to the duration of borrowing to guard against its risks.

 

Depending on the nature of the risks

Depending on the nature of the risks

The borrowing rate may vary. Indeed, some financing needs are riskier than others. The personal loan is riskier than the loan assigned. The latter is granted for a purchase, usually a consumer good such as a new vehicle, very precise. The bank (or the institution delivering the good) therefore has a very precise knowledge of the nature of the risk. It does not commit to a fuzzy or unknown risk. For example, when the borrower applies for a loan to finance work, the interest rate will be very high. In fact, this is a fairly vague risk that can lead to complex situations when there are delays or unforeseen events, when delays become longer and so on. The borrower may find himself in a situation where he will have to repay his monthly payments while his work will not be finished and he will still need cash. This situation is not favorable for credit institutions. To cover themselves and keep a salary, they apply rates almost twice as high as those applied in the context of a personal auto loan.

 

A personal loan for the purchase of a new vehicle

A personal loan for the purchase of a new vehicle

In the same logic, a personal loan for the purchase of a new vehicle will cost less than a loan for the purchase of a used vehicle. The risk is less on a new vehicle than on a used vehicle. The buyer of second-hand goods is much more likely to incur costs as a result of their purchase than a buyer of new goods. In the case of the purchase of a used car, it may be repairs not planned in the months following its purchase. In these situations, it is very rare for the purchaser to be able to call on any guarantee that will allow him to pay his expenses. While a new vehicle is often guaranteed by the manufacturer for several years, which reduces the financial risk to which the borrower and therefore the lender is exposed. The cost of a car loan for the purchase of a new vehicle is therefore lower than the cost of a car loan for the purpose of buying a used vehicle.
When an individual chooses to use a loan to finance a purchase (from a vehicle or other), the cost of the credit should not be the only element to calculate before making the decision to apply. In addition to the calculation of the loan, the borrower must be interested in his debt ratio. This is the ratio of the different debts to the borrower and the monthly net income of the borrower. In general, this ratio must be less than 33%. For example, a household must not use more than 33% of its net disposable income to settle its debts. Beyond this rate, the household is considered to be over-indebted.

This ratio is however to put into perspective. It is important to take into account nominal values ​​of net disposable income as well as debt. The 33% will weigh less on the finances of a wealthy household with comfortable incomes than on a household with low incomes. Loan applications are sometimes accepted automatically without a personalized study of the file. If the debt ratio is less than 33%, the file can be accepted even if the “remainder to live” is low and would not allow the household to face all the financial situations it should face. This rate is preferably also calculated by the borrower himself. Before any loan application, the borrower should know what is his debt ratio in order to anticipate and himself to know if his situation allows him to finance himself through this. Different websites offer individuals to calculate this rate by filling in different predefined items.

 

For households with low incomes

For households with low incomes

It is better to turn to banks for personalized support. It may be harder to get the loan, but the risk of over-indebtedness is a very significant risk facing many households. In parallel with the development of credit institutions on the Internet, the number of over-indebted households continues to grow. Since 1990, the number of over-indebtedness files filed has risen by 140%.

The amount of indebtedness of these households today averages € 41,254, with a total of 9 accumulated debts (including real estate loans). It would therefore be advisable to strengthen the underwriting rules and limit the obtaining of consumer credit to households that could not face these financial risks. For example, a low-income household could be denied a loan even though the 33% rate would not be reached.

When the borrower decides to finance himself through consumer credit, let alone auto loan, it is important to calculate the cost of credit and its debt ratio. He will be able to make several simulations to find the most advantageous credit and corresponding most to his needs. However, he will not be able to make several calculations to determine his debt ratio.

Depending on this last element, he will be able to apply for adapted credit. It may need to revise its ambitions downward and ask to borrow a smaller amount. It will also cost him less to take out a loan on a smaller period. However, it will have to allow its situation to the extent that the monthly payments will be more important.

 

Lastly

Lastly

In order to avoid all financial circumstances preventing him from repaying all or part of his credit, it is recommended that the borrower take out loan insurance. Unlike real estate loans, insurance is not mandatory when applying for a consumer loan.

While this optional insurance has a cost and affects the calculation of the credit, it allows the borrower to insure against risks such as loss of employment, disability or even death. It is important to know that despite the occurrence of these situations, the monthly payments are always due by the borrower or his successors.

If this insurance is taken out, it replaces the borrower in order to regularize the missing monthly payments. This insurance is offered automatically by credit institutions when applying for consumer loans such as car loans.

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Why use a loan broker? /why-use-a-loan-broker/ /why-use-a-loan-broker/#respond Mon, 22 Apr 2019 12:29:54 +0000 http://www.stealingeyeballs.net/why-use-a-loan-broker/

When you contract a broker for a credit, he will defend your file in order to get you better terms.

A broker is an intermediary, so the loan broker is the intermediary between the financial institutions that sell credits, and the individuals who buy the credits.

Brokers can intervene with both individuals and businesses. When you mandate a broker to obtain a credit that is real estate, or consumption, you hope that he will be able to defend your file to get you better financing terms. It can also be to find a credit agency, when you have only been refused for your loan applications.

The broker works with many financial institutions, and he has many clients who like you, are looking for financing, because of this, his trading margin is higher.

The broker not only negotiates the APR (Global Annual Effective Rate), he negotiates all loan conditions. In this way, he can negotiate the absence of prepayment indemnities, the insurance of your credit …

 

Regulatory aspect

loan for loan

The credit broker must be registered with the ACP, the Prudential Supervisory Authority, he must have professional liability insurance. When you use a broker, you do not have to pay anything until your file is accepted by the broker. This regulatory provision is found in the Monetary and Financial Code, Article L519-6. Brokers work with many financial organizations, they earn a fee from the financial institutions with which they work.

 

Broker’s Benefits

Broker

By using a credit broker, you save time, you will not have to contact many credit agencies directly, the broker will do it for you. The broker who will follow your file will be able if you are in difficulty with the banker who granted you the credit, to help you to respect the clauses of your credit agreement. In addition, often your loan file is processed more quickly.

In addition, because of his technical knowledge, the broker can be the right interlocutor to advise you in the setting up of your loan, whether it is a mortgage (devices such as the PTZ, regional aid …) or a credit to the consumption.

 

The inconvenients

the loan broker

Brokers choose the financial institutions they want to work with. Thus, despite the fact that brokers do not advise you to put them in competition, under the pretext that your file could arrive at the same bank by different channels; you may be interested in contacting several brokers.

However, we advise you to contact directly some financial institutions, it is possible that the broker is not able to provide you a better rate than that which you will be able to obtain by your own means.

By using a broker, the proposal he will provide you may require you to domiciliate your income within the institution that will provide you with your loan. Although the broker is paid by financial organizations, he may charge you brokerage fees.

Depending on the broker, the brokerage fees may or may not replace the application fees. These costs are taken into account in the calculation of the APR. 

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