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Payday Loans

New reality in the Payday Loan sector

The quasi-monopolistic reality of banking entities as providers of financing for individuals and companies has fortunately already passed into a better life with the entry years ago of private lenders in the sector and other agents. Now, in addition, in the XXI century, a new reality comes to revolutionize everything: fintech and private lenders. see libhitech.com for more notes

A new era in Payday Loans

A new era in Payday Loans

Years ago, private lenders came to fill an important gap that financial institutions left, they came to occupy an important gap in the neglected segment of the market and, without a doubt, have made a very important contribution to society.

The role and work of private lenders has been reinforced in recent years where the need for credit for all individuals and Spanish companies was more necessary than ever and banks gave less credit than ever. Now, after the darkest moments of the banking crisis, bank credit remains but it is no longer the only one, far from it.

And bank loans are no longer the only ones, much less, because in the first place more and more they neglect a larger percentage of the population, and also the digital revolution that is taking place is promoting the appearance of new actors and agents in the market and above all, a clearly emerging new figure: that of private lenders.

A multi-credit world

A multi-credit world

We are heading at breakneck speed to a multi-credit world, to a world where the monopolistic is practically a chimera and even where what was monopolistic is no longer going to be even predominant, and that is that no figures break through.

The above supposes a great advantage and benefits for the applicants of Payday Loans since it not only supposes a greater diversity of options, but that this greater competition favors better options and above all more diverse, more diverse to be able to respond to the needs of any profile..

In this new environment, banks will continue to have an important role, of course, but it will no longer be as it was said, nor monopolistic nor in a few years predominant, but also companies from the digital world will enter with force, offering financial services of all kinds, It is not worth mentioning the irruption of any digital giant in the sector that definitively undoes the kingdom of bank loans, and then without a doubt private lenders will continue to enjoy great relevance.

Now, if a figure will emerge enormously it is that of private lenders, in a world where the collaborative expands and imposes itself, in a world where the laws are adapting to forced marches to this unstoppable reality the irruption with force of the collaborative, of the loans between individuals cannot, is not, much less be an exception.

The figure of private lenders is already gaining great importance and is already beginning to have a significant market share that is complemented by other options that already exist (such as private lenders).

Makes an interesting contribution to the sector

Makes an interesting contribution to the sector

This figure, the figure of the private lender, is here to stay and also makes an interesting contribution to the sector. Thanks to private lenders, a large part of the population has access to financing that they would not otherwise have, and thanks to private lenders, financial solutions to difficult situations can be found.

Private lenders provide a close relationship with the user, without intermediaries, direct. Directly from private lenders to the client, this gives these Payday Loans great and interesting flexibility.

There are all kinds of private lenders, from lenders that are more dedicated to the microcredit segment, to large private lenders that offer large amounts of loans. Among the latter, those that could be called traditional private capital stand out, that is, those private lenders who lend their money simply with a real estate guarantee that guarantees the operation (many of these lenders also often allow access to the financing they offer. through movable guarantees).

One of the great advantages offered by these last mentioned private lenders is the absence of personal requirements that they request. Both an individual and a company (and, of course, a self-employed person) can access the Payday Loans for these offered without having to prove income at any time, or provide any proof of them.

Of course, the above is accompanied by the possibility of accessing the Payday Loans of private lenders even when the applicant is registered in the Financial Credit Institution or in any other file. Private lenders do not take these files into account (for online microcredit and other products it is another matter, but that in any case would be another matter to be dealt with individually.

Banks grant car loan despite poor creditworthiness.

A negative entry can appear very quickly in the Credit Bureau. Since the payment of the invoice overlapped with a reminder, the mobile phone bill was completely forgotten, as well as the installment payment at the mail order company. But not only the negative entries in the Credit Bureau signal a bad credit rating. Income could also be a hurdle that the loan seeker has to overcome if it is too low and does not meet the conditions of the bank. Many will now say, why does a car loan have to be taken out despite bad credit?

Meet the conditions

Meet the conditions

The car has long ceased to be a luxury item, and many employees have no way of getting to work if there is no car. The transport links, especially in the rural sector, are to be viewed differently than well. The same applies to the train connections. A car is then the subject of the loan request.

However, banks require the customer to be able to meet their conditions before accepting a loan. That is a sufficiently high income, the impeccable Credit Bureau, which is free of negative entries and the permanent employment. If the customer then only has to pay a few liabilities, he is the ideal bank customer. But many customers cannot meet at least some of the conditions and the car loan remains for them despite their poor credit rating. The credit opportunities are better with a car loan despite poor creditworthiness than a normal installment loan with bad creditworthiness.

The question arises for the customer if he buys a new car or a used one. However, a used car can also be expensive and cost a few thousand euros, which then requires a car loan despite poor creditworthiness. The customer has two options for financing the car. He can ask the dealer or a bank.

Traders work with partner banks that can offer a good loan offer. If the customer wants to finance his car through the dealer, the bad awakening will come. Because partner banks also require sufficient income and / or good credit, dealer banks are also bound by their regulations and reject the car loan despite their poor credit rating.

However, the customer does not need to despair if his loan request to the retailer bank has been rejected. If you are a good customer at a branch bank, you should first contact your house bank. A negative entry is not always the reason for a loan refusal. If it is only an easier negative entry, this entry could be explained in a personal conversation with the bank employee.

The terms and the credit protection

The terms and the credit protection

If the customer otherwise has regular income and there are no other payment problems, a car loan could be approved by the house bank despite the poor credit rating. The customer’s period of employment with his employer is also important. If he has been working in the same company for many years, this is rated as positive. If it is still a civil servant or a public employee, the customer need not worry, then the loan approval will be easier.

There is no threat of job loss with subsequent unemployment, so that the car loan could be approved despite poor creditworthiness. If several credit inquiries have already been made, all of which have been rejected, you should not look further. Here you should make a self-assessment with the Credit Bureau, in order to have older entries deleted. The creditworthiness will then be positive again.

If the entries are rightly noted in the Credit Bureau, the credit chances could be increased with a second borrower or a guarantor. These people could come from the customer’s immediate vicinity. But conditions are also imposed on these people. You absolutely have to be solvent, ie have a sufficient income, a positive Credit Bureau and a permanent position.

Likewise, the liabilities to be paid should be limited. These people must be able, if the borrower defaults, that the installments can be paid without any problems. This constellation is evident in a second borrower as well as in a guarantor. Both are liable for the loan if the borrower can no longer pay.

Of course, a car loan can also be approved despite poor creditworthiness if the customer can provide other property security. Think of a property, a life insurance that can be lendable or other valuable things. These things remain the property of the bank until the loan is paid off.

Basically, a car loan can be approved despite the bad creditworthiness, negative entries or insufficient income if the loan is secured. In addition, the loan can be granted for a specific purpose, ie the car or the vehicle letter will then be deposited with the bank as security. The customer cannot sell the car during the term of the loan.

If you can meet some of these credit rating increases, you should look for a cheap loan. To do this, he should use a credit comparison that he can find free of charge on the Internet. The loan amount, the term and the desired rate must then be entered. Then the customer is shown a current list of the best lenders.

The customer then not only sees the interest rate level of the loan, but can also read the terms and conditions of the provider. If a provider is found, the loan application can be made directly via the comparison. With the information to be provided in the form provided, the collateral to be presented can then be named, which will increase the credit chances.

However, the customer should be prepared that he will not receive a quick express credit or lightning credit because this type of credit requires a perfect credit rating. If there is a bad Credit Bureau or the income is insufficient, the loan is rejected. Banks use an automated check procedure for a fast loan, the customer with a poor credit rating will then fall out of the grid of the banks.

The car loan is then checked in individual cases despite poor creditworthiness and, as a result, takes a little longer.

The Credit Bureau free credit

The Credit Bureaufree credit

However, if banks reject the loan application, the customer can look around for the Credit Bureau-free loans. Here, a credit broker is a good starting point, because he knows banks that also grant a loan with poor creditworthiness. He also has contacts with foreign banks where Credit Bureau is not the decisive factor. For this, however, the income must be right and there must be a permanent job.

 

Use cheap loan interest rates for debt restructuring now.

The current low interest rates in the European Union are bringing golden times to borrowers and consumers who would soon like to take out a loan from the bank: Not only banks can currently borrow money from the Cream Banks as cheaply as never before – the institutes have recently been giving the best conditions also to their customers: Since the beginning of the year, numerous Infra Banks have significantly reduced their interest rates on consumer loans.

High savings potential through debt rescheduling

High savings potential through debt rescheduling

If you are currently planning a major purchase, you can now finance it at particularly low interest rates even without saving. But even consumers who took out a loan from a bank a long time ago are currently benefiting from the low interest rates: If you now pay a loan at a higher rate at your bank, you can save a lot of money by rescheduling a loan with a lower interest rate.

In order to calculate the savings potential that can now be achieved through a debt rescheduling, consumers should simply use a credit comparison to determine what interest rate level banks would currently charge for a loan in the amount of the remaining liability – afterwards, the interest costs associated with the existing, expensive loan would still be due during the remaining term, compared with the new, accruing interest costs of the cheaper debt rescheduling loan – the difference corresponds to the potential savings from debt rescheduling.

Easy debt rescheduling thanks to credit comparison

Easy debt rescheduling thanks to credit comparison

However, the savings in rescheduling are reduced at some banks by an additional fee: the so-called prepayment penalty. Some financial institutions charge this fee because they lose interest payments if the loan is repaid early. Although the prepayment penalty is between one and 0.5 percent of the outstanding loan amount, depending on the remaining term, in most cases the savings from rescheduling exceed this fee.

Contrary to what many consumers think, rescheduling an existing loan takes about the same amount of time as changing accounts: the consumer can use a loan comparison to conveniently apply for the desired loan from the sofa – the only important thing here is that the purpose of the rescheduling is direct is stated in the loan application. After the submission of the credit documents, a successful credit check and the payment of the loan amount, the new bank replaces the loan with the old bank using the borrower’s proxy.

What is the relationship between inflation and loans.

In recent years, the main Cream Banks have emphasized the need to create inflation in order to reduce the burden of debt. To do this, they have put into circulation huge amounts of liquidity that more or less have achieved the desired effect, creating inflation.

But what is the relationship between inflation and debt or loans? Although many people do not notice it, there is much more relationship than a priori seems.

Debt Burdens Go Down

Debt Burdens Go Down

Inflation is nothing more than a general increase in the general price level of a given country. In other words, inflation represents the reduction in the purchasing power or value of a currency since with the same amount of money we can acquire fewer goods or services.

When it comes to loans, inflation means a reduction in the burden of debt. In effect, since the debts represent the same amount over time and the value of the currency is less, the creditor will receive a lesser amount in real terms, that is, he will be able to acquire fewer goods or services when the borrower returns the loan.

For the debtor, on the other hand, inflation represents a reduction in debt burdens. If your salary is linked to inflation, you will have a higher disposable income for the same level of debt. In other words, you can allocate a higher income to pay your debts, which in the end is nothing more than a de facto reduction in the burden of this debt.

Inflation and loans: case study

Inflation and loans: case study

For example, if we have a debt whose total amount (including capital and interest) is 12,000 USD over ten years and our salary of 1,000 USD per month, we will allocate 100 USD a month to pay this debt, that is, 10% of our salary.

If inflation is 2% and our salary is linked to inflation, next year our salary will increase 20 USD per month, that is, our income will be 1,020 USD per month. If we allocate the same amount of money to pay this debt in percentage terms, we will pay 102 USD of monthly installment for the same debt, 10,000 USD in ten years.

In other words, instead of using ten years to pay our debt, we will finish paying the last installment at 9 years and 9 months, reducing the total time by 3 months. The higher the inflation, the lower the debt burden.

In reality, calculating the incidence of inflation on loans is much easier, since it is only necessary to subtract the interest on the loan from the level of inflation. If the interest is 5% and inflation is 2%, the real debt burden measured by the real interest that the debtor will pay is 3% (5% -2%).

Summarizing

Summarizing

The higher the inflation, the lower the debt burdens will be. This has a contrary impact on savings or the amount borrowed by the lender. Inflation reduces the real savings of families and companies in the same proportion.

This is the fundamental reason why countries and Cream Banks seek reasonable levels to avoid an increase in the real burden of debts that makes it difficult to repay them.

 

Mini loan transfer – Lending gives you more information.

Have you taken out a mini loan? And later found out that the mini loan is not the best option for you? Then you can transfer a mini loan. The transfer of a mini loan is always without additional costs. If you repay the mini loan earlier, you will also pay slightly less in interest. It may therefore be wise to transfer a mini loan to a loan with a more “normal” term.
Because that is the major disadvantage of a mini loan. The very short duration.

Where can you transfer the mini loan?

Where can you transfer the mini loan?

If you want to transfer the mini loan to a loan with a regular term, there are various options. For example, instead of borrowing money with a mini loan, you can borrow money in the form of a revolving credit. Or a personal loan. You can also transfer the mini loan to acquaintances or friends. In any case, make sure that you start transferring on time. If you cannot repay the mini loan on time because you start transferring too late, you will usually have to pay considerable extra costs.

Do you want to transfer a mini loan? And the costs incurred?

Do you want to transfer a mini loan? And the costs incurred?

If you take out a mini loan, you will soon notice that there can be quite a few additional costs. These additional costs can even amount to more than 25% of the amount you want to borrow. These are all costs that have to do with taking out your loan. If you are going to transfer the mini loan, you will unfortunately not get any more back. It is therefore important to check beforehand whether there are really no other options. A mini loan is and remains one of the few options if you want to borrow money without BKR testing.

Why transfer a mini loan?

Why transfer a mini loan?

You can of course have several reasons for this. One of the most likely reasons is the very limited term of the loan. You often have to repay a mini loan within 30 to 45 days. If you do not have this money at a certain time, it may be necessary to close the mini loan again in a “normal form of borrowing money”.

How to apply for a mini loan.

Applying for a mini loan is done quickly. Just “Google” the term mini loan and you will find several providers of the mini loans. The question is, what is the best provider? And which provider also has a cheap mini loan? That is the best question you can ask yourself before applying for a mini loan. Enough providers, but not comparing providers, may turn out to be expensive.

Where to apply for your mini loan?

Where to apply for your mini loan?

To start with, it is of course best not to apply for a mini loan at all. A mini loan is not an advantageous form of borrowing money. But if borrowing money without BKR testing makes it possible, unfortunately almost the only form of borrowing money.

The best place to apply for your mini loan depends on your wishes. In any case, it is important to read the entire website of a provider before you start working with a provider.

There are quite a few providers that charge hefty costs. Try to clarify this in advance. Applying for a mini loan is fun, but taking out a cheap mini loan is much more important.

What does applying for a mini loan cost?

What does applying for a mini loan cost?

Applying for a mini loan costs you nothing besides some time. If you actually take out the mini loan, you will of course be charged costs. These costs can add up considerably. Only take out a mini loan if you really do not see any other options. The disadvantage with applying for a mini loan is that you often have to repay the mini loan within 30 and sometimes within 45 days.

Request alternatives for a mini loan

Request alternatives for a mini loan

Applying for a mini loan is not the right way to borrow money cheaply. But sometimes there is no other way.  You can hardly take out a loan anywhere with a negative BKR registration, a mini loan can then be the only option.

The alternatives are therefore scarce. The first alternative is to borrow money from acquaintances or family. This is often the most economical way to take out a loan. In addition, especially when it comes to small amounts, this is often a quick way of borrowing money. You usually pay little to no interest. The disadvantage is that with the family you prefer not to “get naked with the buttocks”. Money is usually still a private matter.

The other alternatives are borrowing money in the form of a revolving credit or a personal loan from a bank or credit intermediary. Unfortunately, if you have a negative BKR registration, you have no chance of succeeding. You may still be able to contact the Infra Bank. They do test against the BKR, but in some cases can ignore the result of this test.

Crowdfunding – Loan lending honestly about beneficial money.

Crowdfunding is a fairly new form of borrowing money. With crowdfunding you borrow from other individuals or companies. In recent years, many crowdfunding platforms have been added where you can take out a loan at an affordable price. How can you get a loan with crowdfunding? What are the benefits of borrowing money? And is it beneficial to borrow money? We are happy to tell you more about that!

How can you apply for a crowdfunding loan?

How can you apply for a crowdfunding loan?

Applying for a loan works the same as with “other” banks and credit intermediaries. You can fill in an application form and your loan will then be applied for immediately. There are various platforms where you can apply for a loan. But more and more new platforms have been developed.

Is borrowing money quickly crowdfunding?

Is borrowing money quickly crowdfunding?

Personal loan Revolving credit Mini loan
From 4.1% From 4.5% Borrow a maximum of $ 1500
Fixed interest variable interest No BKR testing
from 21 to 69 years old from 21 to 69 years old from 21 to 70 years old
Payment within 2 days Payment within 2 days Payment within 24 hours
Apply for a personal loan Apply for revolving credit Apply for a mini loan

If you want to borrow money quickly then a loan in this way may not be the right way. There are two reasons for this. First, the assessment process takes a little longer. If you apply for a loan from a bank or credit intermediary, you can usually know within a few minutes whether your loan is approved. With the crowdfunding loan you have to take into account a much longer assessment period.

The second reason why it can take (much) longer is because your loan has to be written “full”. Every investor only pays a small part of the loan you have requested. It can take days, and sometimes weeks, before your loan is written up. The amount will only be paid out to you when your loan is fully subscribed. So this is not really a quick way of borrowing money.

Crowdfunding and BKR assessment

Crowdfunding and BKR assessment

In the past, this form of borrowing money was a form of borrowing money without BKR testing. It was therefore an opportunity to circumvent testing at the BKR. Nowadays this is no longer the case. Most providers of this credit form now test with the BKR themselves and register your loan with the BKR. This is to prevent overcrediting from taking place.

Credit for self-employed with BWA – loan can be approved for self-employed persons

BWA (business evaluation) is often indispensable when it comes to credit for the self-employed. Through them, the credit institution assesses the applicant’s creditworthiness in accordance with Section 18 KWG. For the loan officer, the BWA reflects the current state of the company much more realistically than the annual balance sheet.

Credit for self-employed people with BWA backgrounds

Credit for self-employed people with BWA backgrounds

The developed the BWA idea in the 1960s. The entrepreneur gains a current overview of the status of the company through this data. Since then, the BWA has provided the information according to which the entrepreneurs make their decisions. In addition, this evaluation enables every outsider to realistically record the business situation. The financial status will also be comparable across the industry.

The BWA plays a key role in granting credit. It provides the data that the clerk uses to determine the creditworthiness according to § 18 KWG checks. If the result of the test is clearly positive, then the loan can be approved for self-employed persons with a BWA. If there are doubts, further analysis or security is required.

German credit institutions are also legally obliged to have the economic situation disclosed again during the term of the loan. Compliance with this regulation is checked by the Bafin (Federal Financial Supervisory Authority).

Loan with BWA versus loan with income tax return

Loan with BWA versus loan with income tax return

Not every lender necessarily relies on the BWA as the basis for evaluating his credit decision. With small loan amounts and the offers of the credit intermediaries, often only the income tax return is required. In these cases, the keywords “simplified credit procedure” and “instant credit for self-employed” are often used.

That’s how many loan offers you get

That

The evaluation of a BWA is relatively time-consuming for the clerk. In addition, he must have an advanced business background. This effort is hardly worthwhile for small loan amounts. The credit institution can also comply with the legal requirement by examining the income tax return.

For foreign banks with which credit intermediaries work more closely, the legal benchmark for credit checks is often much lower. German credit institutions are examining more closely, the credit for self-employed persons with BWA is the rule. In return, the loan costs are more moderate compared to international loans.

Personal loans to finance self-employment

Personal loans to finance self-employment

The availability of a bank loan has deteriorated as a result of the USD crisis. Large companies can refinance themselves via the stock market. Small and medium-sized companies do not have this option. If the banks withdraw from the financing of the companies, the only alternative is to take the alternative to personal loans.

The personal loan comes from the Internet today. The market leaders in the industry are two portals with approximately the same performance. The portals offer is a combination of investment capital and investment opportunities. Many retail investors are trying to avoid devaluing their savings in this way. You invest it yourself within a bidding process and earn on the interest. The loan for the self-employed with BWA can be realized from private at fair interest.

Know the 7 characteristics of the loan with vehicle guarantee

Who has never needed to reinforce the budget? Know that there are very interesting options on the market to monetize your projects.

In this context, we have gathered some characteristics of the vehicle secured loan in order to provide subsidies that will guide you in making the most appropriate decision.

Whether to make that trip of your dreams or pay off your debts, it is important to be attentive and identify if this is the most suitable modality for your profile.

Therefore, in today’s text, we will highlight the 7 characteristics of this loan alternative that is increasingly gaining consumer preference.

Are you interested in the subject? So, be sure to check the text until the end.

Transparency and agility in information

money

The fear of future losses is often one of the obstacles when taking out a loan. These events are bad for both the contractor and the contracted company. So don’t be afraid and ask for detailed information about deadlines, costs and any unforeseen events.

This information is essential in the decision-making process as to which company will be chosen to conclude the business. The adoption of these criteria can be a watershed between the success and failure of your initiative.

In addition, check if the financial institution has service channels that are compatible with your needs. This will facilitate communication and demonstrate that the institution is concerned with delivering an excellent service to its customers.

Affordable interest rates

money

One of the main requirements that must be observed before opting for a loan is to compare the cost of this operation. Institutions often offer easy credit, but with high-interest rates. In this context, you must be very careful before closing a deal. It’s no use hiring a loan that doesn’t fit your budget, is it?

As the type of loan with a vehicle guarantee consists of presenting your car or motorcycle as a commitment to pay the installments, the financial companies have offered interesting interest rates. Typically, such rates are around 1.5% per month. That is, well below the 15% per month of overdraft.

So don’t be in a hurry! Compare as many possibilities as possible and don’t get carried away by extremely easy credit offers. Keep in mind that a process, even if it takes a little longer, can guarantee an excellent deal.

Plots appropriate to your financial possibilities

money

The vehicle secured loan modality offers payment terms that meet the contractor’s financial possibilities. This is possible, as such institutions make a careful analysis of the profile of that consumer, which makes the transaction very secure.

In addition, there is the possibility of establishing a long term for the payment of the amounts, which can reach up to 180 months.

This allows, for example, that an entrepreneur, who has applied for a business loan to defray his working capital, can gain enough time to resume the growth of his business again.

Online processing

cash

It is estimated that 54% of Brazilians have access to the internet. In this context, the so-called new digital age is also impacting the behavior of the financial market.

Both companies and consumers are looking for smart solutions that guarantee efficiency in business transactions.