Month: January 2020

Difficult Loans. The case of consolidation loans.

Consolidation loans are very popular among Poles. They undoubtedly have their advantages, such as:

  • One installment instead of several or a dozen
  • Lower installment amount
  • Debt spread over a longer period
  • Lower interest rate per annum

The conversion of several or several loan commitments into one is a tempting vision of dealing with your debts. But what if banks refuse to consolidate us? Where to go for help? Finally, do they have difficult loans?

When there is a refusal, it is worth turning to a specialist who will help find a way out of the given situation. The difficulty, which turns out to be a large number of questions, whether loans are the most overcome for a professional advisor or credit broker.

A difficult loan resulting from a large number of payday loans

A difficult loan resulting from a large number of payday loans

Many customers are refused a loan because of having payday loans. Some of the banks include payday installments. What does it mean? Let’s try the example:

Ewa, she pays a bank installment of $ 300 on 2 small loans. He works on a contract of employment, net income of $ 2,100. She had to save for two loans due to temporary health problems. First for $ 3,000 for 12 months, with an installment of $ 450. The second is payday pay, $ 2,000 to be given back after 2500.

Ewa’s bank includes payday installment, i.e. bank installments $ 300 plus loan installment $ 450 plus $ 2,500 loan. How does this relate to income? 3250 $ installment up to 2100 income. Banks operate systemically and by detecting such a high installment compared to income they effectively refuse a loan.

In such situations it is good to turn to a professional advisor or credit broker. The knowledge of such a person will allow you to choose a bank that is not having a problem with payday loans. I will exchange all installments of Example Ewa, for one maximum of $ 400 per month.

Difficult loan resulting from the ending contract with the employer

Difficult loan resulting from the ending contract with the employer

Today’s labor market is characterized by a high percentage of fixed-term contracts. Banks are well aware of this and are trying to meet this state of affairs. Nevertheless, not every bank will accept a client whose employment contract expires e.g. in 4 months.

Banks have different ranges of their clients’ work periods. Some credit only for the duration of the contract with the employer, others add a dozen or so months after completion, and for others it does not matter, or they ask the client for seniority and previous contracts. If you meet with the refusal at the bank in which we asked, it is definitely worth seeking professional help, e.g. consultants in Puss in Boots

Difficult credit resulting from the spouse’s disagreement

Difficult credit resulting from the spouse

Customers with good income, good credit standing and excellent scoring may also be denied credit. Why?

No consent of the spouse. It happens many times that the person we live with does not want to participate in our debts. Despite marriage, we have separate budgets and the costs are borne by everyone equally.

Another case is married couples who are separated and have no divorce. Then nobody is interested in the material situation of the other person, but it is a limitation.

Most banks introduce limits, you can receive up to $ 20-30 thousand. Above this amount, the consent of the spouse is required and we are not interested in the fact that you do not live together, you have separation.

Brokers from Puss in Boots meet this situation, thanks to cooperation with banks it is possible to properly justify the client’s situation and the bank’s consent to the client’s individual approach, without the consent of the spouse. Loans received by customers are up to $ 240,000.

Difficult credit resulting from the lack of confirmation by the employer

Difficult credit resulting from the lack of confirmation by the employer

Another case that we often deal with are clients working in larger reliable companies, but unable to get loans because they have no confirmation of the employer’s phone number. Some banks have artificial requirements. Transfers from an employer or a certificate are not enough for them. They definitely want to confirm the fact of employment by phone.

Customers don’t know what to do then. Despite the good situation, there is a problem. Therefore, a large group of our clients are people who employers are not able to confirm income by phone. Thanks to close cooperation with banks, we only need the last 3 transfers from the employer, without the banks having to make phone calls to companies.

How do you check the right cash loan?

When looking for the perfect cash loan, you should definitely check many details to choose the perfect option for yourself.

The cash loan is granted by a bank or some other credit entity. It is highly valued by customers and is provided by banks directly to the borrower’s bank account. In addition, this loan may be paid out in cash at the bank’s counter. This loan can be used for any purpose.

Banks use such repayment safeguards

Banks use such repayment safeguards

As a blank promissory note, third party surety and insurance against the consequences of unforeseen random events. Banks require their borrowers to complete a loan application, submit photocopies of two identity documents, as well as a valid income certificate.

If a pensioner applies for a cash loan, instead of a statement of earnings, banks require a decision to issue the right to a benefit from the Social Insurance Institution, as well as the last pension or retirement pension slip. Almost everyone who is over 18 can get such a loan.

What does the bank check with the loan?

What does the bank check with the loan?

The borrower when applying for this loan must be verified at the Credit Information Bureau. If his credit history in BIK is compliant with the banks’ requirements, then the bank may already start calculating the creditworthiness. Such verification is carried out by banks every time a loan application is submitted, and in addition banks often use customer checking in BIG, i.e. the Economic Information Bureau.

When employer certificates are brought to the bank, the customer seeking a loan usually has to agree that the bank can verify this information. Currently, bank employees primarily check whether a particular company exists, and whether its data given on the stamp or statement match the actual data contained in the database. This is because it is currently available online and this type of data can be obtained without much problem.

In addition, the bank calls the employer, confirming the employment of the employee, the period from when he is employed and whether he is achieving income in the amount stated on the certificate or statement. Each time, however, the client must agree to verify both at the employer and in the BIK and BIG databases. However, we must reckon with the fact that its absence may mean a negative decision regarding the granting of the loan.

Positive verification and what’s next?

bank

If the verification is positive, then the borrower will find out how much money he will receive from the bank. The cash loan is a short-term loan. It can be granted for a period of three months to even ten years. Cash loans are quite high-interest, but they still have a lot of advantages and many customers are choosing them. It is worth remembering that this interest rate may not be higher than four times the current Lombard rate of the National Bank of Poland. The cash loan is repaid once or in installments.

The borrower sets such formalities with the bank before signing the final contract. Cash loans can be taken directly from the bank or can be taken online. The latter form is already very common and known to everyone, thanks to which no one has a problem with getting a loan online.

In addition, it gives a chance to reach a much larger number of banks. The customer does not have to choose only between the offers of those banks whose stationary branches are located in their town or in the immediate vicinity.

How to swap expensive debt installments for cheaper credit

Getting a lower-interest personal loan to pay off all installments is often more worthwhile than keeping multiple installments over the long term. Almost every day we see news about the level of indebtedness of Brazilians.

The recurrence of the subject is understandable, due to the economic crisis that still impacts our daily lives. To give you an idea, a survey by Serasa Experian estimates that 40.4% of Brazilians are overdue or overdue.

Which directly influences their financial life.

money loan
And the biggest villain everyone knows well is. Another study by the National Trade Confederation shows that credit card debt continues to top the debt list, with 78.8%. Next up are booklets, with 15.8%, and car financing, with 10.5%. If you are paying very high interest rates, maybe this is the time to consolidate your debts.

Exchanging the installment of expensive debt for cheaper

Ideally, you should have up to 30% of your income committed to paying installments for personal loans, financing, or other debt arrangements. Therefore, care must be taken not to curl up.

As we said, keep an eye on credit card billing installments. In addition to the fees being very high, when you use the card it is easy to lose track of expenses as that amount is not often debited from your bank account.
 But if you have come this far, it is because your personal budget has gone off track and you need to rearrange it. For this, it is important to negotiate debts with the highest interest rates and the highest FET.

Understanding Total Effective Cost (FET)

The FET is the rate a financial institution charges to make a personal loan . It corresponds to the total value of the negotiation, which is obtained from the sum of interest, fees, charges, taxes and insurance.

The time has come to renegotiate debts

To get started, what you need to do is review all your current accounts. Find out everything you have to pay, including debt installments from different sources. Once you understand what you need to pay in the month, check out the interest rates and FET. Thus you will arrive at the full amount of your debt.

This is the time to get the calculator

This is the time to get the calculator

Is it worthwhile to take out another low-interest loan, pay off all debts, and be on one installment? The answer is almost always yes. At this point, the important thing is to think of a installment that fits in your pocket without compromising your entire income because you have other accounts.

It is essential to look for a solution that does not compromise your personal budget and solve your financial life once and for all. Therefore, check the types of loans available in the market and choose the one that best fits your financial planning.