/ My WordPress Blog Thu, 14 May 2020 06:15:03 +0000 en-US hourly 1 Car loan with residual value. /car-loan-with-residual-value/ /car-loan-with-residual-value/#respond Thu, 14 May 2020 06:15:03 +0000

A car loan is a loan that is cheaper than an uncommitted loan for the purchase of a new car or a used car. Appropriate loans can be taken out by car buyers through the car dealer at a car bank or through an independent commercial bank.

The residual value denotes the contractually agreed value of the financed car at the end of the contract term. It is to be distinguished from a final payment, which means a last car loan installment that is higher than the monthly installments. The final installment of a car loan with a residual rate often corresponds to the actual residual value of the car, but it is not absolutely necessary to calculate it properly, in contrast to a residual value agreed in the loan agreement.

For which types of credit is a residual value essential?

For which types of credit is a residual value essential?

Contract design as a car loan with residual value makes sense for balloon financing, which is also referred to as three-way financing. In this case, the vehicle buyer agrees a residual value of the car at the end of the loan term. The assumed loss in value is mainly calculated based on the mileage, so that an underestimation of vehicle use leads to the car not having the agreed residual value. At the end of the original contract term, the buyer decides whether to continue using the car or return it.

When the car is finally taken over, the additional purchase price to be paid corresponds to the agreed residual value, if required, renewed financing for this amount is possible. If the buyer does not want to keep the car at the end of the contract and the residual value is lower than estimated due to a higher mileage than the assumed mileage or due to a possibly careless handling of the vehicle, the customer must agree to a car loan with residual value agreement after the return pay the difference. The particular advantage of a car loan with a final payment is that the three-way financing combines the flexibility of vehicle leasing with the advantages of traditional vehicle loan.

Where can the loan for the car be taken out with a residual value agreement?

Where can the loan for the car be taken out with a residual value agreement?

Originally, only automobile banks granted a car loan with a residual value agreement via the vehicle dealer, since the purchase and resale of used vehicles is part of the day-to-day business of the vehicle dealer and the respective dealer can offer the returned vehicle himself. In the meantime, commercial banks have also discovered three-way financing as a business model because they can easily resell vehicles returned by their customers to the car dealer.

The vehicle buyer pays a higher interest rate for a car loan with a residual value agreement at a commercial bank than at a car bank, but can also negotiate a significantly larger discount on the car price with the dealer. It is customary to assign the car as security until the loan is finally repaid, both when borrowing from a commercial bank and when car financing is made through the car bank.

In most cases, this is linked to the transfer of the Part II registration certificate to the financing bank and the obligation to take out comprehensive insurance. Comprehensive vehicle insurance is in the interest of the car buyer anyway, so that the buyer does not have to pay back the loan for a car that is no longer available due to a self-inflicted accident or theft.

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Car purchase loan – Car Loans /car-purchase-loan-car-loans/ /car-purchase-loan-car-loans/#respond Fri, 20 Mar 2020 05:12:17 +0000

At present, competition in the banking sector is so great that getting a car loan is easy. Loan conditions are not very different, so special programs are often offered, promotions are in progress, and require the right amount of money to be received at this particular bank and not at another. What should be the first thing to do when applying for a car loan so that it is not wrong?

Statistics show that only about 20% of cars acquire cash in Russia, so the remaining 80% is purchased on credit. Therefore, the word “demand generates supply” is very appropriate for this situation. The average interest rate is 13-21% per year for 1 to 3 years. Buying a car on credit is a very relevant topic.


What are the nuances of special programs – car loans?

car loans

Most often banks implement these programs in conjunction with car dealers. Here you can reduce the interest rate and advance as well as extend the loan period. The loan to buy a car from a dealership for such shares is not particularly popular with the public. Fairly because of the fact that a person is determined to choose a brand before lending, so this offer does not suit him. If you are interested in the special program, please read the agreement carefully. In some cases, low interest rates may hide large commissions, special insurance policies, and other additional payments.


Express Car Loan

Express Car Loan

Often a session proposal in recent years. Conditions are quite attractive: minimal background, quick decision making, no collateral and no guarantor. Of course, the interest rate here is much higher, but that doesn’t stop much. Counseling is the same – pay attention to the conditions to avoid negative consequences.

Basically everything is clear with a car loan, but how can I get a car loan? Showrooms are sold only to new cars and loans to buy a car in the secondary market does not exist. You can of course have the same quick loan, but is also its characteristic feature (in addition to the high interest rate) of a small loan period that does not suit many borrowers. They should pay attention to non-purpose loans offered by almost all banks in the country. Its advantages are obvious. First, buy a car is your property (for a car loan, it will be pledged in favor of the bank until the final debt repayment).Secondly, the possibility of own choice of companies, life insurance and its types.By negatives of consumer credit abuse can be attributed to somewhat higher interest rates, maturity constraints and their specific design.

Buying a car is a responsible business, especially on credit. So I think a few times, consider all the disadvantages and advantages and only then go to the bank with a loan application.

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Cheap motorcycle credit: comparison of the best rates on the market /cheap-motorcycle-credit-comparison-of-the-best-rates-on-the-market/ /cheap-motorcycle-credit-comparison-of-the-best-rates-on-the-market/#respond Fri, 20 Dec 2019 12:04:08 +0000 Financing a two-wheeler in cash is not within the reach of all budgets. Motorcycle credit is a solution suited to many situations, especially since the best rates are very attractive. We will focus our efforts on finding a cheap motorcycle loan, on the reliable basis of the APR rate. We will finally see how to ensure that we get a favorable opinion without any nasty surprises.

Motorcycle credit: several possibilities

Motorcycle credit: several possibilities

You should know that motorcycle credit is generally included in auto credit solutions. Some specialists distinguish the two offers, but most of them have the same conditions. There are several ways to get a motorcycle loan:

  • Thanks to auto / motorcycle credit from organizations (Bankate, Viloan, Eicredit auto credit, etc.).
  • Directly in concession, with the credit of the manufacturer.
  • From a bank or an insurer offering car credit.

It is not clear where to look first to ensure you get a cheap motorcycle loan, especially as the rates vary depending on the profile of the borrower. The best motorcycle loan rate can also be different depending on whether it is a loan for new or a used motorcycle loan. Let’s go over what to know about each potential lender. We will be able to more easily trace the route leading to the best rate.

Cheap motorcycle credit, but not without proof

The new or used motorcycle loan is a loan with mandatory proof. You should therefore expect to provide the racing car order form in the supporting documents of the credit contract. When the purchase order is impossible to obtain, as during a second-hand purchase from a private individual, it is then necessary to turn to a consumer credit without proof. Personal loans are the most suitable product for “unjustified” financing.

Motorcycle credit from online organizations, option # 1?

Motorcycle loan from specialist organizations is the preferred option when looking for cheap car credit. Our cheap motorcycle * credit simulations indicate that the best rate is usually always owned by the credit agencies.

However, do not rush to the first organism seen on television. Using a credit comparator can identify the best motorcycle credit without making a mistake. There is considerable competition between all the specialists, making it possible to obtain particularly advantageous borrowing conditions. Rates may also fluctuate with special offers. This is why we note the best rates offered by organizations on a daily basis.

* We have carried out cheap motorcycle credit simulations with all brands (see Yamaha credit or Kawasaki credit). Just perform a search including the brand name at the bottom of the site (credit search) to land on the corresponding article.

Comparison of APR rates

Let’s use our comparator to simulate an expensive motopas loan of 15,000 USD over 60 months (5 years). The goal is to realize how much the APR rates can vary, including between the most reputable specialists.

New car / motorcycle loan of $ 15,000 over 60 months Fixed APR rate Monthly fees Total cost of credit
Best Credit Organization 4.30% 277.72 $ 1663.20 $
Organization 2 6.06% 289.28 $ 2356.80 $
Organization n ° 3 6.07% 289.35 $ 2361.00 $

The cheap motorcycle loan N ° 1 is much more attractive than that of two other organizations completing the podium. The three concerned are, however, big names in consumer credit. The observation is the same by modifying the amount and the duration of repayment, in always different proportions.

Motorcycle loan from banks, a leap into the unknown

Motorcycle loan from banks, a leap into the unknown

Banks are lagging behind on the issue of cheap motorcycle credit. They are actually behind all consumer credit solutions. The loan offer from banking establishments is intended to build loyalty. They therefore offer cheap motorcycle credit solutions only to their best customers. Those whose savings are significant or who justify a stable situation over time. It is always best to ask the credit agencies before looking into the offer from your banker. It will almost never be a cheap motorcycle loan.

What about motorcycle credit directly in dealerships?

What about motorcycle credit directly in dealerships?

Dealers enjoy great attractiveness, with motorcycles directly available. They obviously offer credit solutions, either through their own financing branch or with an intermediary. The classic credit offered by brands is generally very expensive. In any case, this is what our different comparisons of cheap motorcycle credit reveal. It is also not easily accessible.

Should we give in to the temptation of LOA?

Manufacturers are increasingly offering LOA solutions (rental with purchase option) as an alternative to organizations’ cheap motorcycle credit. The business promise is simple: easy credit and small monthly payments. Always calculate – and be wary – of the total cost of an LOA solution. Our opinion on the LOA warns of this formula, yet adopted by the French.

How to get a favorable opinion online?

Our cheap motorcycle credit comparator lists the best rates, but above all questions organizations immediately. Connected to all specialists, the tool is therefore able to provide an immediate response in principle. It is actually possible to obtain a favorable opinion at the best rate in a few minutes. Confirmation will take place within 24 hours, by email. Here is how to go about applying for a loan in the state of the art.

  1. Indicate “new car loan” or “used car loan” on our comparator. The rates for auto credit are identical to those for motorcycle credit.
  2. Enter the desired amount and the repayment period. It is necessary to aim just and not to choose too important monthly payments, under penalty of being confronted with a refused credit.
  3. Organizations offering the best APR rate are offered. The best is questioned immediately (and without obligation).
  4. In the event of a favorable cheap motorcycle credit opinion (acceptability> 50%), the confirmation is sent by email within 24 hours.
  5. A request refused (acceptability <5%) by the best organization is not unacceptable. It is possible to interrogate with a single click the second, and the third. The conditions for accepting a loan vary considerably from one organization to another.

A favorable cheap motorcycle credit notice triggers a concrete contract proposal (by email). It then remains only to check the APR rate, before comparing it with that proposed by its banker or the dealer. This is the best way to get cheap motorcycle credit.

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Get your finances in order – the best tips! /get-your-finances-in-order-the-best-tips/ /get-your-finances-in-order-the-best-tips/#respond Wed, 20 Nov 2019 12:48:47 +0000


You should take good care of your own finances. If your own finances go awry, it will have a profound effect on your entire life. Many people neglect or neglect money matters, and it can slowly lead to very big problems. Even a couple of missions or problems can make it very difficult to improve your finances.

Loans – financing tool

Loans - financing tool

One of the biggest problems in many people’ economy is loans. Loans became a problem, especially after the 2005 quick rush. Many people have a quick draw right now, but missed the high interest rates on these loans. There were sometimes hundreds of interest and expenses, and when the mailbox collapsed at the end of the month, many people went completely confused.

In this case, many resorted to another instant loan or loan to pay off the previous loan. This quickly caused a debt spiral for many that was difficult to get out of. Many people are still being followed by loans and quick leashes.

In this article we will look at how to get your finances in order!

1. Be smart when taking out loans

1. Be smart when taking out loans

Since loans can very easily become a problem, you should be careful when applying for a loan. You should only be able to take out a loan when it is necessary and when your financial situation is such that you can afford to pay off your loan every month. A loan should never be borrowed for chronic money or for finance, for example, a shopping trip. However, if you are buying a home or needing a home remodeling, consider a loan.

Before you take out a loan, you should consider whether you want a flat rate loan or a floating rate loan. The Equal Loan Formula tells you how much you pay per month. Simply put, you pay the loan at a fixed rate the same amount every month, regardless of the direction in which the rate moves. The lump sum loan counter, for example, on the bank’s own website tells you how much a loan should be repaid per month, for example, with a 2-year repayment period. Use the calculator to think about how quickly you want to repay your loan.

If you choose a repayment method that depends on the movement of the rate, you may pay less interest than a flat-rate loan – or you may not. In some months the repayment may be less and in others much more. You should carefully consider which of these methods is best for you.
Before you sign a loan agreement, always remember to compare the available loans. For example, you can compare online loans with bank loans. Also compare payback times and interest and costs.

2. Make a budget

2. Make a budget

Making a budget is one of the easiest ways to manage your own finances. However, many are reluctant to set up a budget because it seems difficult or many are afraid that it will take a long time. However, creating a budget is much easier than you could imagine.

Start by listing all your income. Take into account all income, subsidies, investments and other potential income from your day job. When all income is written down, write down all your expenses one at a time. Be sure to consider all the bills you pay each month, such as rent, loan repayment, electric bill, telephone bill, food bill, and so on. Also, don’t forget to pay bills a couple of times a year, such as insurance.

Finally, deduct all your expenses from your income. This way you will know how much money you have left after all expenses. You also know if you have a plus or a minus. This will give you a good idea of ​​how much money you need to save on your expenses or whatever you might have a little extra.

The basic idea is that you spend 50% of your income on the mandatory and most important expenses. These expenses include rent, loan repayment, telephone bill, food bill and electricity bill. 30% should be spent on personal expenses such as makeup, toiletries, movie tickets and shopping. The last 20% should be saved and this amount should also pay some extra loan repayments.

If your budget doesn’t look like this, it’s time to make some changes. For example, you can start by striking out expenses that aren’t mandatory for you. For example, if you spend a lot of money on dinner outdoors, you can cross out this and start cooking more. If you have a big gas bill, switch to public or even cycling – at least for a while.

Small changes can help you get your budget a little more accurate and ensure that all your bills are paid on time. At best, you still have some money to save.

3. Make a debt repayment plan

3. Make a debt repayment plan

Life is much nicer when you have no debt. The less debt you have, the less stress you will have on your life. So make a workable debt repayment plan for yourself. List all your existing debts from lowest to highest. The idea is to pay off the minimum down payment on each loan every month, and a little extra on the smallest loan.

Once the smallest loan is fully paid off, you can use the amount spent on the smallest loan to pay off the second smallest loan. This is like a snowball rolling down a hill: speeding up. So you pay off your debts as quickly as possible.

Take the time and effort to carefully plan your debt repayments. This will pay off your debt and you will be completely debt-free in the shortest possible time.

4. Limit your spending

4. Limit your spending

One of the easiest ways to save money and get your economy in order is simply to limit your spending. Instead of going out for dinner a lot, cook food at home. Or, instead of a big shopping tour, just buy one or two things. Visit retailers and buy used products, if possible. Instead of going to the movies every Friday, stay home and watch new movies on Netflix.

It’s even more fun to limit your consumption if you make it with your friend to save. Saving does not mean that you should always be without and always save – but can easily save for example a month and spend normally the following month.


Even if the economy occasionally has bumps and bends along the way, the best idea is always to face the problems face to face. Putting problems aside and ignoring them only makes the situation worse. In particular, loans and bad repayments can make your own bad cash situation. Likewise, spending too much money and reckless shopping can be a burden on your wallet and your own financial situation.

In a few simple ways, you can easily fix and manage your finances. The first thing is simply to settle your own loans and debts. Write them all down so you know how much debt you owe and how much you need to pay off the installments in a month.

Making a simple budget will give you a good idea of ​​what your economy looks like. This will easily tell you whether you are on the plus side or the minus and what (if any) changes you should make to your finances. Generating a budget usually doesn’t take more than fifteen minutes, and once done properly, you just need to monitor and update it once the debt has been paid off.

If your budget looks like you are in or near the minus, a simple way to make a positive change is to limit your own spending. Instead of shopping every week, shop only every other week. Or, cook dinner at home instead of dinners.

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Taking out a loan for investment /taking-out-a-loan-for-investment/ /taking-out-a-loan-for-investment/#respond Sat, 09 Nov 2019 12:09:28 +0000

Most investors invest the money they save, but sometimes they also take out a loan to invest. An investment loan helps you to buy larger units for which your own savings are not enough. This is more common in expensive investments, such as real estate investments or investing in a new business. Even buying a new home with a loan is basically investing in a loan, although few people think so. When, then, is an investment loan justified, and do the returns on the investment really help cover the cost of the loan?

When is an Investment Loan Profitable?

When is an Investment Loan Profitable?

Obtaining an investment loan is the most realistic and easiest way to invest in a home. When investing in a property, it is easier to get a loan because the loan is secured by the property itself, and in addition, the homeowner does not have to pay taxes when selling the apartment if he lives in the apartment for at least two years. You can also rent a home for a steady income that can pay off your loan and make a little profit.

It may also be easier to get a loan to invest in your own company than, for example, stock trading. So if you or your acquaintances have a gold business idea, a loan can help you get started faster.

However, in practice, the idea behind an investment loan is that the investment made with the debt generates more return than the interest on the loan, or that the rise in the share price exceeds the cost of the loan, so that the cost of the loan can be covered by this increase. In principle, the idea is profitable. The same loan money used to buy a new car could be used for shares. The value of a car drips quickly, while diversified investments usually increase in value over time.

However, it may be bad for an investor if all the money is invested in a company of friends or another individual destination as the market tends to fluctuate. Before you take on debt, it is a good idea to read carefully about investing, for example, by reading books and articles online. Familiarizing gives you a perspective that makes it easier to make good decisions and take a critical look at investments.

If you already have many other loans, an investment loan may not be a good option even then. The return on investment is slow, so it does not help pay off other loans, and the loan may not be repaid particularly fast. Especially in this situation, it is worth avoiding larger loans.

How do I use the leverage?

How do I use the leverage?

Debt investing has its own nicks to keep it safe. There are many variables; investments can be negative, returns can be time consuming and investment diversification may be poor. If the reference interest rate of a loan rises, a company’s dividends are not paid, or its own income collapses, the situation can lead to financial disaster.

The key is to properly diversify your investments . The majority of investors do not diversify their investments sufficiently, which results in higher risks. You can even take on debt for the stock trade, but it is not a good idea if you do not have an investment strategy or investment experience. Experience can be gained even with small investments. The earnings from stock trading may be higher, but the risks are also generally higher.

In addition to needing investment information, you also need loan information. So, make sure you read the loan repayment terms and conditions carefully when making a loan. That way, you know what the limits and possibilities of a loan are. In particular, read the terms and conditions of repayment; whether free months are possible, whether the loan can be paid off in advance without any charges, etc.

Investments can be spread across stocks, funds, ETFs, real estate, forests and even peer-to-peer loans . Most secure investments are slow to produce, so you may have to pay off your loan first with your own money. However, over time, the return on investment may cover the cost of the loan.

It is not a good idea to invest in high-risk items such as warrants or gold with fluctuating value. Long-term investments are the most solid way to invest in loan money, and for this reason, investing with loan money is popular with, for example, value investors, investors looking for and investing in undervalued companies. There are many ways to determine the true value of a company, but the purpose of a value investment is to invest in the company before their true value reaches the market price.

It would also be good for an investor to have an emergency fund. If you become unemployed and your investments go badly, without the emergency fund, the situation can quickly become critical. Indeed, many investors hold cash for investments, and this cash also helps in a situation where your own investments cannot be converted into cash and no money is available.

Also, investing with loan money is not a good idea when you have a large mortgage loan, most of which is still outstanding. However, the risks are much lower if the mortgage is paid off or you are renting and you can consider an investment loan by comparing it to your net worth.

Here’s how to apply for a loan


There are no instant loans for investing, but you should look for the best possible loan on favorable terms. A quick loan may seem like an attractive lever to start investing in because it allows you to get a small loan quickly and repay it in small installments over a long period of time. However, this arrangement is often unfavorable for investment because of the high interest rates on instant loans and the high costs associated with long-term instant loans. In addition, the terms of a long-term instant loan may prohibit the advance payment of the loan.

It is also expensive to invest with credit or flexible credit. Flexibility loans can bring you between 2,000 and 15,000 dollars, which is an attractive start-up investment, but often the interest on your credit accounts is expensive. If you already have a credit account and are considering using one, you might want to check the terms and conditions and compare, for example, with a loan comparison.

A consumer credit or bank loan may be a cheaper alternative to an investment loan. In order to get a loan, your credit history must be in order. Smaller loans may not even be used, but larger loans may even require collateral or guarantors. Loans can be sought from banks and financial companies; the easiest way to compare prices is through the web. On the other hand, your own bank can offer a very affordable loan to a long-term customer with a good credit history.

Some loans have specific uses and cannot be used for anything other than a specific offer. This must be checked against the terms of the loan, for example, even if the title of the loan is a car loan, it may be open for use. If your bank offers loans for specific purposes, you may want to look elsewhere or even consider changing your bank. Investment loans are still a relatively unfamiliar concept in Finland and applying for one can get the bank to give a high price for the loan. So it is generally better not to tell you what the loan is needed for, unless you are forced to. The smaller the loan you take, the less the use will matter to the bank.

When applying for a larger loan, it may be necessary to provide security for the loan, such as your own home. Equities can also act as collateral. Their collateral value is determined by the risk level of the investment and the bank. However, in most cases the value of equity investments as collateral is lower than the value of the funds. However, this requires that you already own shares that are used as collateral. For example, if you are saving for your retirement and pension investments are your only investment, think carefully about whether you are willing to risk them.

In addition to the purpose of the loan, you should check the loan costs. Check to which reference rate the loan is tied and what its withdrawal fee is. It is definitely worth the margins to compete. Low costs are the key to investing in loan money, so you should not rush or miss a comparison.

It may also be possible to obtain a consumer credit that can be increased in the future if you wish. You should only grasp this if you already have more investment experience. Interest expenditure can sometimes be tax deductible; this is worth checking with the tax office.

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Acquire Mortgage Credit In Colombian Pesos, Has Benefits /acquire-mortgage-credit-in-colombian-pesos-has-benefits/ /acquire-mortgage-credit-in-colombian-pesos-has-benefits/#respond Mon, 17 Jun 2019 01:38:18 +0000

To acquire mortgage credit in Colombian pesos, it can be applied to people who have moderate or traditional thinking . This is because the way of financing is long term (10 to 15 years). Assuming that, within the monthly installment, part of the capital will be amortized as interest.

For this mortgage credit system an annual rate with variations around 13% is being applied. Therefore, it is very easy for the client to quickly know the installments to be paid throughout his loan.

Additionally, it can be visualized that, if market interest rates have variations, the same fee will always be canceled. The form of amortization suggests that there is greater security, but in the end it has a high cost. Well, more interest will be paid for financing in this system. Options to consider:


Fixed monthly payment to capital in pesos for the mortgage loan

Fixed monthly payment to capital in pesos for the mortgage loan


Do you have income that sufficiently covers the fee? This question is asked because… your fees are higher at the beginning , then they go down.

It requires a very high monthly income to be able to meet the quota, since the contribution to capital is high. It is at this time it is necessary to think about additional money entries, so as not to be behind on your credit. Financial institutions are daily analyzing the payment behavior of customers, and thus, do not start charging.


Fixed fee applied to mortgage credit in pesos

Fixed fee applied to mortgage credit in pesos

As mentioned in the first sections of the topic, this option is suitable for moderate people. Well, your mortgage loan fee is going to be constant from beginning to end . Although if we analyze internally the depreciation movement of the monthly fee we will find surprises. The participation made to capital is gradual, therefore, an amount greater than interest will be initially covered. Showing a decrease in capital in the middle of the term of the mortgage loan.

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Credit cancellation Can I cancel my credit? /credit-cancellation-can-i-cancel-my-credit/ /credit-cancellation-can-i-cancel-my-credit/#respond Mon, 17 Jun 2019 01:35:28 +0000 Is Credit Cancellation Possible? The cancellation of the credit can be done through a separate notice, but depending on the type of credit, it can be done at any time or within 14 days of the contract being drawn up or received. However, you should not apply for credit on a light basis, as there are always costs involved in canceling a loan. Loans must always be carefully compared when applying.

Termination of credit can also come to mind if your ability to pay or your personal finances are shaken. There are handy applications for managing your finances that allow you to streamline your financial situation.

Termination of Continuing Credit


Continuing credit, such as card credit, can be terminated at any time. The loan can be terminated for a maximum of one month and is free of charge. However, the regular costs incurred before the termination of the contract must be paid. If the costs have been prepaid, the charges for the period after termination shall be refunded. In other words, if you’ve already paid your next month’s billing costs, you’ll need to refund that charge.

Terminate the ongoing credit

Terminate the ongoing credit

It should also be remembered that the lender may terminate the ongoing credit. However, the credit will not mature on the expiry of the credit agreement, but will be repaid under the terms of the agreement and in accordance with the payment plan. Notice of termination must be given in writing or electronically.

There is usually a clause in the credit agreement that allows the lender to deny the consumer the right to use the ongoing credit and, for example, close the credit card. In this case too, the credit used to be paid in accordance with the contract and the debt is not due in full.

Termination of credit agreement

Termination of credit agreement

The consumer credit agreement may be canceled within 14 days of the conclusion of the agreement or after receipt of the credit agreement in writing or electronically. The creditor must be informed of the cancellation in writing or by email, for example. You do not need to tell the lender the reason for the termination.

The lender may claim compensation for the cancellation of the credit if the compensation has been announced prior to the conclusion of the contract and is mentioned in the terms and conditions. The amount of compensation is usually the interest rate on the credit for the period the credit was available to the person. The lender may also, in accordance with Chapter 7, Section 20 of the Consumer Protection Act, claim compensation for payments made to the authorities.

If the credit is taken at a distance sale, the creditor’s right to compensation depends on the size of the credit.

  • In the case of a loan of EUR 200 to EUR 75 000, the borrowing rate
  • For loans of less than $ 200 and more than $ 75,000, the effective annual interest rate will be charged (exercising the right of cancellation may be expensive)

The funds must be credited to the creditor’s account without delay, and no later than 30 days after the notice is sent. If the refund is not made within this time, the original agreement will resume.

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How Do Cash Loans Work? /how-do-cash-loans-work/ /how-do-cash-loans-work/#respond Mon, 17 Jun 2019 01:17:38 +0000 Cash loans allow you to face urgent situations, take advantage of an investment opportunity or satisfy a desire. If you use them productively, they can help you in an emergency or boost your personal development. In this article, you will know how this type of personal credit works.


What are cash loans?

What are cash loans?

Cash loans are personal loans that grant you freedom in the use of the requested money. That is, the financier does not grant you these loans with a particular objective, as in the case of mortgage credit. In this way, you can use the money from these loans to cover any need, opportunity or desire you have.

A feature of these loans is that they are granted expeditiously and without the application of many requirements.

Once the loan approval occurs, immediately the credit money is deposited into your account.


What are the requirements of cash loans?

What are the requirements of cash loans?

The requirements vary from one institution to another, with a general rule: the less requirements, the higher the interest rate. The common requirements of this type of loan; that is, those required by all financial institutions are the following:

  • Be of age.
  • Reside in Colombia
  • Receive income stably.
  • If you are married, count on your spouse’s endorsement.
  • Have an account at the institution where the loan is requested.

Each financial institution may add additional requirements, consistent with its own risk assessment policy. For example, they may require:

  • A fixed or variable minimum net income.
  • A minimum working age.
  • Do not present adverse information in the credit history.


How to get a cash loan?

How to get a cash loan?

The important thing, in any case, is to make accounts. Be very clear about the concept of rate, the value of money over time. Ask, compare, find out a little more if you really need the money.

The easiest way to make a decision is:

  • It quotes with several entities. Here you can do it
  • Ask to be told what the monthly fee would be.
  • If you want to know how much the credit would cost you, do this operation: multiply the value of the fee by the number of months: 
    Value of the installment x the term = total value of the loan (interest capital)
  • Ask about other expenses, such as commissions for handling, sending the account, advancing fees, etc.
  • Consider home equity loans. They have lower interest rates.

This information will allow you to make a better decision. In general, banks offer better rates than other institutions. Although, financial companies are doing well. An advisor will help you identify the best offer in the market.

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Should you take out insurance with a high or low deductible? /should-you-take-out-insurance-with-a-high-or-low-deductible/ /should-you-take-out-insurance-with-a-high-or-low-deductible/#respond Thu, 13 Jun 2019 01:52:07 +0000

The vehicle insurance deductible is created so that people think twice before using their policy “for the pure ones” and also to encourage them to have some more care when driving, because in case of using their policy, there is a percentage that you must leave your budget.

Unnecessary to have vehicle insurance

Unnecessary to have vehicle insurance

For many people, the collection of the deductible makes it unnecessary to have vehicle insurance. They argue that “they will still have to pay,” however, you should know that the deductible is equivalent to a minimum percentage, which can be 10% or 15% of the total, and does not compare to paying 100% of the claim.

 In addition, in many cases the insurers eliminate the need to pay it, for example, in cases of damage to third parties or when the driver of the other car was the one to blame for the accident.

Choosing the insurance that suits you

Choosing the insurance that suits you

But if it is a matter of choosing the insurance that suits you, what should you do with the deductible? Should you choose a very cheap one or a higher one? What you should consider is that in many cases, the higher deductible is equivalent to the lower charge of the policy, but this may cause it to be difficult to cover the agreed percentage at the time of use and therefore have trouble using the insurance.

The policy may increase its value

The policy may increase its value

On the other hand, the cheaper the deductible, the policy may increase its value, which could cause difficulties in paying for it and protecting your vehicle. So, the ideal is to locate an intermediate option, which does not jeopardize your budget.

Remember that this deductible can be given in amounts or as a percentage, and that will depend on the insurer you hire, in addition, it may vary depending on the coverage in question.

Do you want to find the ideal insurance for your profile? Compare the alternatives using the Good Finance vehicle insurance comparator.

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What is a joint mortgage loan? /what-is-a-joint-mortgage-loan/ /what-is-a-joint-mortgage-loan/#respond Sat, 08 Jun 2019 17:00:26 +0000

Do you want to apply for a mortgage loan for a home, but can’t support enough income for it? One solution to this situation is that you apply for credit in partnership with someone you trust. Below we explain what a joint mortgage loan is and what benefits it has.

What is a joint mortgage loan?

What is a joint mortgage loan?

A mortgage loan is a type of loan that you can only use to acquire real estate. This property works in turn as a guarantee of compliance with the payment obligations generated by the loan.

Among the different varieties of mortgage loans offered by Peruvian institutions, is the joint mortgage loan. Its characteristic is that it can be taken in partnership with another person of your choice. That is, in partnership with a father, son, partner or friend that you have a good choice.

Each institution that offers this type of product gives it a particular name, and places its own requirements. You can see some denominations of this type of credit according to the respective financial institution.

  • Continental BVVA, Free Mortgage Credit, does not discriminate gender, sex or kinship.
  • Scotiabank, Family Mortgage Credit, for relatives and heterosexual couples.
  • Interbank, Loan Mortgage Credit, heterosexual couples.

What advantages does a joint mortgage loan offer?

What advantages does a joint mortgage loan offer?

The main advantage of this product is to facilitate the income support required to qualify for it. By adding the monthly income, the amount of payment they can contribute as a couple exceeds their individual capabilities. In this way, together they can opt for loans of greater amount of money.

Another advantage is that you can opt for the loan in soles or dollars

Another advantage is that you can opt for the loan in soles or dollars

In the latter case, only if both partners can support income in that currency.

And finally, depending on the institution where you request it, you can enjoy the following benefits:

  • Enjoy a fixed interest rate.
  • Cancel in double installments.
  • Opt for wildcard fees.
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