Closing a credit card that still has balance

There is good and bad news for anyone who wants to close a credit card with a balance. First, the good news. You can close your credit card even if it still has a balance. The credit card company does not require you to pay off your balance before closing the card.

In some cases, closing a credit card can be helpful. For example, if a credit card issuer raises your interest rate, you might close your credit card to rule out a higher interest rate.

A 45 day notice will give you time to pay off your balance or transfer it to another credit card instead of closing the card while it is still in balance.

How your credit score will be affected

How your credit score will be affected

Now for the bad news. Closing a credit card rarely helps your credit, whether your account has a positive or negative history. After you close your credit card, it still logs on to credit bureaus as usual. The only difference is that your card has the status “Closed”. Your monthly payment history is still updated every time you make – or fail to make – your payments.

Closing a credit card with a balance can really hurt your credit score. When your credit score is calculated, it takes into account the amount of your credit card balance against your credit limit. This ratio is known as credit utilization and it is one of the major factors that affect your credit score.

A closed credit card does not have a credit limit, so calculating credit points could penalize you for having a card with a balance and no credit limit.

What happened after the credit card was closed

credit card

Once you close your credit card, you will not be able to make purchases on your credit card. And you’re likely to lose any credit card rewards you’ve accumulated.

Remember to make credit card payments after you close your credit card. You are still required to make a monthly minimum payment by the due date. If you are late in payment, you face the same consequences: you face late fees, late notice on your credit report, and an increase in penalties.

Closing your credit card does not relieve you of the monthly interest. Your balance will continue to accrue interest every month until your credit card is fully paid. If you make only the minimum payment on your credit card, it will take longer to pay off your credit card and pay more interest than if you doubled your payments and paid your balance faster.

Waiting Until the card is paid off

credit score

You should not allow fear of potential loss of credit points to keep your credit card open. Here’s why. You may need to close your credit card, for example, if you are unable to limit the cost of your credit card and you are looking for debt.

A temporary drop in your credit score is preferable to having a knee deep in debt that you cannot afford. Not only that, losing points that come from closing a credit card with a balance can be offset by the time you pay off. Think about your overall long-term financial health as you decide to close a credit card that has balance.

Quick fast loan credit to get money

Which are increasingly fashionable

Which are increasingly fashionable

In this blog we have already told you on countless occasions about quick credits. Which are increasingly fashionable. Products with which entities offer low-money loans without any paperwork or bureaucracy. In 15 minutes, in many cases, we will have the requested amount available to use it. But today we want to talk about quick small loan credit. Which is not exactly a credit as such, because what we do is send us money from our own bank account. Let’s explain it.

Send it to ourselves or to someone else

Send it to ourselves or to someone else

Rapid small loan credit is defined as a banking service through which money can be sent to a person via mobile phone. Yes, you read correctly. Let’s explain it very easily: thanks to the mobile phone we can request that money be withdrawn from our bank account and send it to ourselves or to someone else. Then it will have to be collected at any ATM of one of the banking entities associated with small loan. You don’t need a card, a passbook, or be a customer of the bank in question. Only the code sent from small loan will be necessary.

In other words, it is a great method to get out of an emergency situation in which we have run out of money, cards, or anything like it. But it is not only good if we are the protagonists of the difficult moment, it also serves to help another person. We only have to indicate, when requesting the quick small loan credit, that they send the code to the mobile of the person in question.

What do I have to do to receive a quick small loan credit?

What do I have to do to receive a quick small loan credit?

Once we have received the credit code, we will have to go to an ATM in the small loan network. 

There we will press the small loan button and we will have to follow the instructions: enter the phone number, the amount, the SMS reference and the code. And that’s how easy we will get the money from the quick small loan credit.

Funding Credit – Funding Opportunities

In some cases, a special purchase has to be financed with a loan. However, everyone should first look at the conditions at which they can receive it. Because this has a direct impact on the monthly rate and the term. When interest rates are low, a loan can then be repaid faster than when it is at a high. But the term also affects the amount that ultimately has to be paid to the bank. Therefore, everyone should first take a look at the current annual percentage rate before deciding to take out a loan.

Credit checks are always made

Credit checks are always made

Since the banks naturally want to be sure that they will get their money back, a Credit Bureau query is first made. If this information is negative, the bank may be able to refuse the loan.

However, from time to time everyone should take care of the Credit Bureau themselves, because mistakes can also happen here. However, some banks simply do not report the loans that have been paid off. For Credit Bureau, however, this is still active and can then lead to a rejection. This happens whenever the bank believes that a new loan could exceed the applicant’s financial framework. Of course, the bank wants to be sure that it will get its money back. Therefore, income is also important, because this is the only way to guarantee that a certain amount is available every month.

Finance a car

Finance a car

A car is often financed with such a loan. Here, of course, the bank also wants to be sure that it will ask for their money back. Some banks even require that they be assigned as security.

This means that the borrower can use the car as normal, but if he can no longer pay the installments, the bank will withhold the vehicle. This type of financing is also offered by car dealerships, because many manufacturers also have their own banks, which of course can be quickly recognized by the name of the respective brand.

Finance your own home

Finance your own home

Many people always think of a smaller sum when it comes to a loan, but a loan is actually a loan. Only the duration and the amount of the total is the difference here. Of course, loans for a house or condominium are much higher and, above all, the term is correspondingly long.

So that the financing is correct afterwards and does not mean financial ruin, you should calculate very carefully here. This also means that maybe someone can bring a certain amount of own capital. This can be done in the form of a home savings contract or simply from a cash reserve that someone owns. In addition, there are of course the usual additional costs such as the fees for a loan. Therefore, the loan or credit increases by exactly this amount.

Many things don’t work without credit

Many things don

A loan is often required to furnish the apartment. Of course, furniture stores also offer such financing, but it should be checked here which is cheaper. In this area in particular, interest rates are usually very high and it is definitely worth using a loan to pay for the furniture. Here, the bank does not ask for the furniture as security as with a new car.

But if there is little income, the bank can refuse a loan at any time. If this is the case, a surety can also be consulted. This then takes over the security vis-à-vis the bank. However, the guarantor and the borrower should be aware that this is not just a matter of form. If the borrower fails, so the borrower cannot pay, the guarantor must take it over. It may also be that the guarantor then no longer receives his own credit, since this guarantee is also entered in the Credit Bureau.

Always compare banks first

Always compare banks first

Today it is quite normal for many things to be done over the Internet. This also includes choosing a bank and many are customers of online banks. So it should be quite normal that the cheapest bank is found before a loan is to be taken out. This can usually be done very easily using a comparison calculator. Several comparisons should be made here, as there are differences in this area. Above all, however, the information on the different comparison computers must always be the same. This is the only way to compare the banks and their credit against each other.

Even the application for a loan can be made through the relevant bank. However, this application is still checked by the corresponding bank before a loan agreement is made. Because this must always be done in writing and of course with a signature.

Finance small purchases with a personal loan

Finance small purchases with a personal loan

Another option is to get a loan from private individuals. They have a little capital left and want to lend it to other people. This is an option, especially for smaller purchases, because smaller sums are mostly lent here.

This is done via a platform on the Internet that mediates interested parties and donors. But here too, a Credit Bureau query is and will be made, and of course the contracts will be signed. Security is also required for these lenders, such as proof of income. The procedure is the same as that of a bank, except that it can also involve several people. However, repayment is only made to an account and only a fixed monthly amount.

A loan to pay off smaller loans

A loan to pay off smaller loans

A loan is often required to pay off several smaller loans. This makes sense because a different interest rate is paid for each individual smaller loan. This makes repayment more expensive and unnecessarily burdens your wallet. In such a case, it is therefore worthwhile to simply reschedule and then only use a loan.

The monthly installments are much lower, or can be invested higher, and thus the debt is paid off faster. Of course, you can apply for this debt rescheduling at the house bank, but you should look for a cheaper alternative on the Internet. It is important here that the information for the current loans is correct and that there has not yet been a delay in payment. Because if there is a negative entry in Credit Bureau, the prospects for such a loan are very slim.

Loans without Credit Bureau

Loans without Credit Bureau

Loans without Credit Bureau request are offered again and again, but caution is advised here. Often this is not a serious offer and only insurance should be arranged. Some also charge a processing fee in advance, but no payments should be made here. Reputable providers only require payment when a loan has been arranged.

Here, too, it may be the case that no credit can be arranged because they work with different banks. Therefore, this is not a real alternative, even if someone would still like to buy something. Because banks often reject a loan application despite a positive Credit Bureau. However, this can be due to a low income or a temporary employment contract. In such cases, no credit is usually granted because the repayment would be too uncertain. Because security is always important for borrowers and donors.

Best Online Loan: Compare The Best Personal Loans

 

Whether you are looking for greater economic liquidity to buy a new car, or because you are in economic difficulties due to the crisis, you are in the right place! With this article we will give you information on the best online loan, which you can request to meet your pressing economic needs. When looking for the best loan online it means that you want to be able to compare between two or more personal loans, or you want to be able to choose the best loan from the whole offer made available by the lenders on the web.

You have probably already lined up in the bank to ask for personal financing, but the economic conditions, expenses and interests of the proposed loan (the dear Tag and Taeg) have not satisfied you, or you want to find a better loan than what your bank offered you…

Well… you still remain a simple user of the web, and dealing with other things you can hardly understand which loan to choose, which economic conditions to evaluate and what the best personal loan really is… Sometimes calculators are available online to simulate the installment of a loan or of a mortgage, nothing more harmful for a user who in fact does not know how to evaluate the best financing.

Often in the sites where the best online loans are compared, one gets sidetracked and diverted to this or that other banking product, simply by a more or less attractive installment that falls within the family budget, than by the actual favorable loan subscription conditions.

For this reason we offer you a resource containing information on personal loans that we have personally tried, also indicating the advantages and possible disadvantages compared to the rest of the offer of financial products that you can find on the web.

Personal loan or mortgage?

Personal loan or mortgage?

Before helping you in choosing the personal loans that we will list below, you should ask yourself a few questions to help you evaluate the best financing for your needs:

  • What amount do you need?
  • For what reasons do you need a loan?
  • Do you have a demonstrable income ?
  • Are you bad payer or protested?

It is important to answer each of these questions, as they can help you in evaluating the financial product you need, but also to know if you can continue looking for a loan or have to divert to a mortgage.

Personal loan amount

It is important to know the economic amount that you need when considering choosing the best online loan. If the amount you need exceeds $ 30,000 or is less than $ 3000, personal loan is not the best choice, but you can receive many benefits by taking out a mortgage or requesting a Revolving Credit Card or opening credit in current account at your bank. Another way is viable to be lent by a bank sums of money in excess of 30,000 USD, or the salary-backed loans.

For many people who need an amount of money higher than the ceilings granted by lenders for the personal loans sector, the search for financing unfortunately ends here for the lack of a property that can be mortgaged. For others, however, it stops, for the lack of requirements and for being reported in a database as a bad payer or protested. For people who, due to questions of amounts and lack of accessibility requirements to other types of financing, there are other possibilities that still need personalized advice.

Personal loan motivation

Motivation also plays a part in evaluating the best online loan. In fact, on the basis of the type of motivation, it will be diverted by the banks to other financial products. The reasons that are often presented by those requesting a personal loan are for:

  • Liquid assets
  • Purchase goods or services

The difference in motivation means that the personal loan that can be requested falls into one of the categories that correspond to a finalized loan or a non-finalized loan.

Personal income and loan

Without too many words, to have access to credit and request a personal loan both in the branch and online, both finalized and non-finalized, you need to have a demonstrable income. There are different forms of financing for bad payers and protests, with bills of exchange for example, but without a paycheck, no personal loan or credit institution is issued. So if you are reading this article because unfortunately you happened to it while you were looking for the best online loan without a paycheck I must disappoint you… there is not. A demonstrable income is the paycheck for employees, for the self-employed or any type of professional and entrepreneur the Single Model and for pensioners the pension slip.

Best Online Loan: Compare them

Best Online Loan: Compare them

Below we compare several personal loans taken out online of which we can give detailed information on the characteristics of access to credit and on the advantages and disadvantages of each individual personal loan.

Online personal loan calculation

Online personal loan calculation

If for any reason you cannot or do not want to apply for financing from the best online loans listed so far, you have the possibility to request an online quote for a money loan, calculating the installment in a simulated way and sending the request to the lenders with the opportunities that best match your needs, using the services I am going to list.

Compare loans with Astro Finance

Through Astro Finance, employees and public administration workers, self-employed workers, social security and Government Agency pensioners and other categories will have the opportunity to request a quote for a loan of up to $ 60,000, using the search engine made available to the service.

Compare Loans with Best Loan

Compare Loans with Best Loan

MigliorePrestito is a search engine that allows those who want to apply for a personal loan or with the assignment of a fifth of their salary to access free estimates without obligation from banks and credit brokers located near their home.

General information about the USD credit

The USD loan is a special type of loan, which is practically an intermediate element of credit and the capital market. It is a different term for the USD money market loan, which can be used not only in USD, but also in other currencies.

General information

General information

The main feature of the USD loan is that it can be used as a sole proprietorship on particularly fair terms. Basically, as a retail company, it is possible to get a loan of this kind without much effort, which is very important, since the changes to Basel II will mean that weaker capital companies will be less likely to receive debt in the form of a loan in the future. With USD credit, however, companies have the option of obtaining borrowed capital due to its special features and sufficient creditworthiness.

Up to now, the overdraft facility was considered the typical loan for smaller companies because it was also very easy to obtain. However, the conditions with which the USD loan comes about are even more advantageous than those of the overdraft facility, which, compared to other loans, generally gives rise to high interest rates due to its status as a toleration loan. Therefore, many people rely on these as corporate loans.

USD credit and Basel II

USD credit and Basel II

Basel II is a capital requirement that was created by the Basel Committee on Banking Supervision in order to secure bank deposits for customers of banks. Banks must therefore have a certain equity ratio that must not be undercut. This means that banks are less happy to lend to companies or people who are not creditworthy, not even on better terms.

Since the introduction of Basel II in 2004, it has been particularly difficult for private individuals with mediocre income as well as sole traders and medium-sized companies to access debt. There are many ways to still get a loan, such as the USD loan, although it should be noted that this is partly bound by the Basel II guidelines, which relate to borrowing and creditworthiness.

However, special conditions apply to companies due to the uncertain economic situation. Since several banks have USD credit, it is much easier for sole proprietors to take advantage of such external financing if they have sufficient creditworthiness.

USD credit: the main features

USD credit: the main features

The USD loan is characterized by numerous features. On the one hand, it is considered a typical loan for small and medium-sized companies that do not want to take long-term loans but only need capital in the short term. So you can use the USD loan with a maximum term of one year.

Due to the short loan term and the associated higher repayment rates per month, many banks are more likely to give USD loans to sole traders than other types of loan for business customers. The loan amount varies between 50,000 and 100,000 USD, depending on the bank and borrower.

However, this also depends on the borrower’s creditworthiness, which is checked as part of a rating using Basel II. The USD loan is always issued by a USDbank that borrows large amounts on the financial market.

The interest rate of the USD loan is generally fixed over the entire term, which means that as a sole proprietorship or corporate customer, you do not take any risk that relates to unexpected interest rate developments. However, the exact interest rates depend on the contractual terms, which in turn represent a characteristic of the USD loan. Because they can be negotiated very flexibly. In addition, it often happens that the USD loan is not borne by one bank, but by several banks, especially for investment amounts of € 50,000 or more.

Forms of USD credit

Forms of USD credit

A distinction is made between different forms of USD credit. These include the fixed rate loan, credit line and standby credit.

  • The fixed rate loan comes with a one-time payment and rather short loan terms, usually up to a maximum of 15 years. The interest rate is fixed over the entire credit period and special repayments are generally not possible.
  • The credit line is one of the most common forms of USD credit. It therefore comes with a maximum term of one year and usually has no fixed interest rates over the entire period. As a rule, the interest is fixed for four to six months.
  • The standby loan is also very common and the last form of USD loan. This form is also called rollover loan. It is characterized by the fact that the terms can be very long, but not necessarily, as well as the interest conditions. The lender and borrower agree that the interest rate level for the loan will always be adjusted to that on the money market. The current interest rate is adjusted every one to 12 months. However, the interest rate level is fixed for the individual periods.

The pros and cons of USD credit

The pros and cons of USD credit

The USD loan comes with some advantages and disadvantages. Above all, the flexible use and contract negotiation are considered to be a plus point of the USD loan for borrowers. The flexibility relates to the term of the contract, interest rate adjustments, repayment and review of the creditworthiness, the latter being guaranteed, but to different degrees. Depending on the type of loan, the borrower also does not take any risk that relates to interest rate developments or the changing interest rate.

In turn, the credit restrictions for financially strong customers are a disadvantage as they have little scope for investment activities on the USDpean financial market during the term. The banks continuously monitor the economy and balance sheet during the credit period.

Urgent loan changed

The loan changed represents a type of financing that allows you to obtain a certain sum in a very short time, which therefore suits those who need it urgently. The ceiling for loans with bills of exchange amounts to a figure ranging from 20 thousand to a maximum of 40 thousand USD. It is very difficult to obtain these figures if you do not have good requirements and guarantees. It is a type of loan that can also be requested online (as early as 2015 it is possible to request them electronically to make them faster ). In 2016, the changed loans became the fastest way to have a loan with promissory notes aimed at all those reported as protested and therefore in turn enrolled in the Crif and also to those who do not have a paycheck.

Characteristics of the urgent exchange loan

Characteristics of the urgent exchange loan

What distinguishes the urgent loan from the others is the speed with which it is disbursed. The timing revolves around 48 hours, wanting to stay wide, but usually this time is shortened. This disbursement of money will be refunded with a bill of exchange that can be paid at a bank. Let’s see together what characterizes the urgent exchange loan:

  • It is a fixed rate loan.
  • The installment of the urgent exchange loan remains fixed for all the financing.
  • Bills of exchange must be repaid monthly.
  • The loan can be requested online.
  • Loans can be applied for up to 120 months.
  • Loan advice is free and without obligation.
  • The loan does not need collateral or guarantees.

The requirements and documents to obtain it

The requirements and documents to obtain it

Personal loan up to $ 60,000. Ideal for employees and retirees also for BAD PAYERS. Quote in ONLY 5 minutes! 

Those who decide that they need an urgent loan with a loan must first of all have a permanent contract, then be employed or otherwise be retired. It is also necessary to present the two latest arrival payslips, the same story for the CUD together with the identity document or the tax code or health card. The urgent loan changed does not verify the presence of negative reports in the credit databases. Anyone who asks for this kind of loan must be careful to pay the installments on time, since in the case of promissory notes, failure to pay follows the protest.

When you get the go-ahead for the loan request, you can take advantage of the money requested, which will be paid by check or bank transfer; the transfer gives you the opportunity to get the money comfortably as the check will then be paid to your bank. In 2015, the rules changed to simplify the request for the urgent exchange loan; that it is at home, online, or at a bank, it will only be necessary to show the TFR that you own and you will also have the full stipulation on life insurance as a guarantee for the provider and for the same worker. In addition, the loan is also granted to foreigners.

What are the types of loan changed

What are the types of loan changed

The world of changed loans is very varied, we find in fact:

  1. loan changed for protesters.
  2. loan changed without guarantees.
  3. loan changed online.

The urgent loan changed can be the only form of loan that can be obtained in many cases and is often combined with the formula of the assignment of the fifth of the salary, which often replaces the loan changed but that has its own methods of payment same characteristics.

Loans changed 10,000 USD

 

Are you looking for a foreign exchange loan that can provide you with a capital of 10,000 USD? It is not part of the small loans proper (amounts up to 5,000 USD) but the amount you want to request, however it is, gives you the opportunity to make your dream or project come true; in addition, you can request 10,000 USD to fulfill liquidity needs without having to justify the purpose of requesting and using the loan. To proceed with the request and simulation of loan quotes with contextual release of bills of exchange, you can opt for the electronic transmission of the requested documentation or you can go to a bank branch, a credit brokerage company or an agency in operation financial. Let’s see better to understand, in this guide, what are the paths to follow to request a loan, the opportunities available to you, the guarantees that can be requested (if any) and some statements of calculation of the amortization plan.

Loan changed: online request, fast and secure

Loan changed: online request, fast and secure

If you want to electronically submit the request for a loan of 10,000 USD, connected to the prestitionline.com website, a service offered by Best Bank in Astro Finance, send these required documents via email: identity card, tax code, paycheck and CUD or, if you are a pensioner, the OBIS M model. As soon as the assessment of the investigation has been completed, Best Bank will immediately notify you of your creditworthiness and you will receive the requested amount of 10,000 USD in your bank account or by bank draft.

The amount disbursed as a personal loan, you can use it without any obligation to motivate the request, to finance any expense or project you have planned: a home renovation job, a medical or dental intervention, the purchase of a car or any valuable object and any other desire you want to give life to, including the possibility of requesting liquidity to cope with daily unexpected events. Even in the case of foreclosures, reports to databases, protests or other negative economic situations, you can submit the electronic request to get a quote without any commitment. If you have further loans or loans in progress and you need to re-open one from scratch, there are no problems, you can request the consolidation of previous debts by unifying everything in a single and united installment represented by the title.

Online foreign exchange loan: economic conditions

Online foreign exchange loan: economic conditions

If you opt for the request for a foreign exchange loan through the electronic channel, the subscriber of the foreign exchange loan undertakes to repay the debt under a fixed-rate and amortization plan at constant rates and at installments agreed upon with the creditor. The requested sum is paid to the customer within 2 working days from the receipt of the documentation requested by the Agency in financial activity for the liquidation of the file. The financing may be supported by guarantees (if any), subject to an assessment of the merit and reliability of the applicant.

How much can online loan loans cost ? This type of loan assisted by the issuance of the bills of exchange is rather expensive: Taeg 16.395%, in addition to the APR, other costs must be considered, such as the expenses and taxes for the stipulation of the contract, preliminary costs 300 USD, postal collection costs zero USD, zero USD collection costs, nominal annual rate (TAN) or price of the personal loan with reference to the calendar year (divisor 365): 15.760%, collection / recall commission for bills: 10.00 USD. The amortization plan is French.

Example of a 10,000 USD online loan loan: fast and safe

Example of a 10,000 USD online loan loan: fast and safe

Here is an example of an example prospectus of the loan request that can be requested online for an amount of 10,000 USD depending on the duration of the amortization plan:

loan amount 60 months 84 months 20 months
10000 USD 223, oo USD 173.00 USD 132 USD

10,000 USD loan at the branch or agency

10,000 USD loan at the branch or agency

If, on the other hand, you go to a bank branch or agency in financial activity or a credit brokerage company, you can present the required documentation to obtain a credit and personalized advice based on your personal and credit needs and receive the outcome of the evaluation of the investigation after 3 days from the submission of the application. Once the request to grant the loan has been approved, you can renegotiate the contractual conditions and the amortization plan during the course of the loan, in addition to the possibility of requesting additional additional liquidity. Let’s see some examples of a simulation table of the loan suitable for your needs for an amount of 10,000 USD, depending on the different purposes and the amortization periods 48, 60, 72 months:

Installment $ 253.65 (monthly)
APR 8.36%
Amount disbursed $ 10,000.00
Amount Financed $ 10,400.00
Fixed TAN 7.95%
Total to be refunded $ 12,197.22
Initial expenses Preliminary investigation: $ 0.00
Taxes: $ 16.00
Periodic expenses Monthly: $ 0.00 – Annual: $ 2.00
Insurance costs $ 400.00

 

Installment $ 214.93 (monthly)
APR 8.43%
Amount disbursed $ 10,000.00
Amount Financed $ 10,600.00
Fixed TAN 8,00%
Total to be refunded $ 12,927.79
Initial expenses Preliminary investigation: $ 0.00
Taxes: $ 16.00
Periodic expenses Monthly: $ 0.00 – Annual: $ 3.20
Insurance costs $ 600.00

 

Installment $ 187.96 (monthly)
APR 8.42%
Amount disbursed $ 10,000.00
Amount Financed $ 10,720.00
Fixed TAN 8,00%
Total to be refunded $ 13,568.06
Initial expenses Preliminary investigation: $ 0.00
Taxes: $ 16.00
Periodic expenses Monthly: $ 0.00 – Annual: $ 3.20
Insurance costs $ 720.00

 

Student Loans – Is It Possible?

Loans help to finance larger purchases in the long term. Through this, the parties also make clear commitments. Therefore, student loans are also subject to special requirements.

Basic information

There are clear restrictions on student loans, partly because there is a legal requirement and partly because banks are very careful in this area. Minors are not allowed to get a loan in Germany. If they still need one, the parents must participate and act as co-borrowers. In this way, they vouch for their children and may also have to pay for their conditions and repayments. But students over the age of 18 usually have a hard time getting a loan.

The banks see this as too high a risk, since in most cases a student does not have a regular income and thus a secure repayment is not considered secured. Even a part-time job is usually not enough to convince the bank of its own creditworthiness, since the income from it is usually too low. As a result, even adult students only get a loan in a few cases. It becomes easier with a co-borrower. He or she no longer has to be a parent, however, if the student becomes insolvent, the parent must step in. Therefore, everyone involved should think very carefully about whether they have enough mutual trust to engage in this close relationship.

A potential guarantor must also meet several requirements. Among other things, he must have a regular income. The necessary amount of this depends on the amount of the required loan. In addition, he himself may not yet have high financial obligations due to his own loans. As a result, many parents already fall through the required grid.

Should parents vouch for their children?

Should parents vouch for their children?

This is a difficult question that each parent has to decide for themselves. It also comes down to the question of how to raise your own child. Many parents want their child to learn that they have to earn money themselves and get nothing for free. It is often pointed out that young people in particular only respect the value of money when they have worked hard. A loan would not fit into this view of education.

On the other hand, students also have to learn that they have responsibilities and that they have to follow certain rules. A loan can help with this. In addition, this does not rule out that the children or adolescents do not continue to have a part-time job. On the contrary, because only then will you be able to pay it back. In addition, they become aware that all their purchases and decisions have far-reaching consequences.

If you want to buy something, you have to work a long time to pay it off. So parents should decide on a case by case basis. In any case, it is important that the child or young person in the family is carefully introduced to the new responsibility and the subsequent obligations and is not left entirely with them. Nevertheless, it should be clear that it is not possible to hand over everything to your own parents. Even if the child is unable to pay an installment and the parents have to help out, they should insist that their son or daughter get the money back for a limited time. This is the only way to promote sensible use of money.

Disposition credit for pupils

Disposition credit for pupils

An alternative that minors can use is the overdraft facility. This can easily be set up on the usual student account. The pupil is given the opportunity to build a minus level up to a certain limit. This gives them a significantly expanded financial scope and can better manage their own expenses. However, this possibility also poses considerable dangers. A prepayment loan is associated with extremely high interest rates, which can lead to permanent overindebtedness. In addition, the parents have no control over what their child does with the money and, above all, whether it is responsible with it. Young people in particular sometimes cannot really estimate how high interest rates can actually be.

Loans for adults

Loans for adults

Students over the age of 18 shouldn’t have any problems getting a loan from a bank. In reality, students without proof of income only really get a loan in very few cases. However, there are several ways to avoid this practice. An alternative is the private loan. The person concerned borrows money from a private contact with friends or acquaintances. However, it should be noted that a personal relationship can be heavily burdened by such obligations. It is also important that the obligations and conditions are clearly written and set out in an official contract. This prevents sustainable conflicts. When a loan from a bank is brought forward, the student must provide a security. This can be a property, such as a property, but also an insurance or a guarantor. A guarantor is probably the most sensible alternative for a student, since he puts little at risk and parents are usually willing to offer themselves.

Personal Loan – Banking Finance

The personal loan is a form of financing which provides for the granting by the credit institution of a sum of money repayable in installments with an increase of a certain interest rate in a predetermined time. It falls into the category of non-finalized loans, i.e. all those operations which are not aimed at a purchase of a specific good or service. The contract is concluded between the applicant and the lender who, once the request has been accepted, delivers the sum directly to the applicant. No guarantee is required in the event of insolvency by the debtor and this makes this financial product particularly risky for the lender, which are usually banks or financial companies.

Personal Loan and Guarantees

Personal Loan and Guarantees

We have said that the personal loan usually does not require collateral, such as mortgages or different rights on the applicant’s property. In some special cases, however, to limit the risks of insolvency, the lending institution requires special conditions during the contract. It may happen so that the contract provides for the cambializzazione of installments or a single bill, which provides all or part of the amount paid. The most commonly used form of guarantee, however, is the signature of a co-obligation or a third-party guarantor, which guarantees the success of the operation. Basically this third person agrees to pay in place of the applicant in case this does not. Other times, to limit the risk of insolvency, the lending institutions require the subscription of particular insurance products, usually policies that cover the risk of death or the risk of loss of employment.

The Personal Loan Agreement

The Personal Loan Agreement

The personal loan contract establishes the conditions, under which the lending institution grants a sum of money to the applicant who undertakes to repay it by paying installments over a certain period of time. Like all contracts it must be signed by both parties, and the legislation provides for the essential elements of the contract as it must be drawn up. Let’s see what the law provides and what are the elements that must not be missing:
1. The type of financing
2. The amount of the loan and the method of financing
3. The number, amounts and timing of each individual installment
4. The annual percentage rate of charge (APR), which includes interest and ancillary charges
5. Details of the analytical conditions under which the APR can be modified
6. The amount and the reason for the charges that are excluded from the calculation of the APR
7. Any guarantees required
8. Any insurance coverage required and not included in the APR calculation
In the case of consumer credit agreements which have as their object the purchase of a specific good or service, the contract must also contain the description of the good or service, the purchase price in cash, the price established by the contract and any down payment and finally the conditions for the transfer of the right of ownership in cases where the transfer is not immediate.
We remind you that these legal requirements must be respected, if only one of these conditions is not respected the contract will be considered void.

What happens when you don’t pay a loan installment?

What happens when you don

The interruption of payment of even one installment leads to immediate default and the consequences are unpleasant. Interest is increased with the application of a late payment. The greatest risk is to be included in the list of late payers and / or reported to the risk center, which will normally share information with lenders and banks. All this leads to a deterioration of the reliability of the subject who will therefore have greater difficulty in obtaining credit. Failure to pay also authorizes the lender to unilaterally terminate the contract and the customer will be required to bear all costs, charges and any penalties.

Early repayment of personal loan

Early repayment of personal loan

The law states that it is always possible for the customer to pay off the loan early. The law provides that it is possible to exercise this option by reimbursing the residual capital by applying a penalty that cannot exceed 1% of the amount financed.

Loan for age groups: Under 65 and Over 65

Loan for age groups: Under 65 and Over 65

The very nature of a personal loan provides for the repayment of the sums obtained through the payment of monthly installments which continue over the years until the debt is extinguished. A personal loan can have a maximum duration of 25 years (such as an offer that no longer exists by MPS), but generally it does not continue beyond 10 years. This deadline is obviously respectable by an individual who is still of working age, i.e. less than 65, but when one approaches or exceeds this threshold, the personal loan payable to employees or self-employed workers must give way to the loan for retirees. The loan to pensioners falls within that particular category of financing that we can define as subsidized. The minimum and essential prerequisite, as can already be seen from the phrase, is that of being a pensioner. The pensioner status to access the pensioner loan does not necessarily have to be that of direct pension ownership but also that of indirect retirement, i.e. the survivor’s pension.