Month: December 2019

Web Loans – Is Online Financing Always Worth It?

The emergence of web loans has increased the alternatives to apply for financing, both personal and aimed at purchasing an asset. Even financial companies considered traditional, such as Fidelian and Tompass , can offer products via the Internet, even if on balance it is not always possible to speak of real online loans.

 

Online loans with digital signature or with only a request for quote?

Online loans with digital signature or with only a request for quote?

Most online banks provide for the possibility of being able to follow at least part of the procedure via the web, by sending the requested documents remotely. Here we find for example NiceOne Bank (which relies on Tompass) and Fella which has its online loan for those who own a current account (which does not necessarily have to be web Fella).

A further example is represented by Lendomestic Bank which, taking advantage of the digital signature, offers the entire process via the web for the request and granting of a loan. A valid proposal that joins the offer of another virtual bank always of the same Sons group, or Mineson! Bank , in very similar ways. Other banks such as LW Bank and Yesjam Bank can also be added to this list.

As for banks that mainly exploit the traditional channel (such as Unicredit , Intesa SanPaolo , etc.) instead the use of the telematic channel is used to orientate and sometimes to streamline the evaluation through the use of calculators on the site. In a few cases you can proceed at least to request a quote to be used as a starting point.

The same kind of distinction can also involve the financial companies, led by Agos in the use of the entirely online process, but with a good percentage also of smaller companies able to offer interesting solutions.

 

Is online financing more and more convenient?

Is online financing more and more convenient?

In everyday life you are now used to saving with the use of products and services that can be used or purchased online. But when it comes to financing, the choice must be made first by looking at convenience in a much broader way. In fact, it is also necessary to make sustainability assessments (which can be conditioned by the maximum installment duration) as well as the rates offered, incidental costs, etc.

So in principle it can be said that web loans “cost” less to banks (or financial) which therefore can offer lower rates , but that this must be verified personally, by making different estimates and simulations.

This will allow you to find the compromise that best suits your needs and the amount of the installment will consequently be easier to repay. Finally, as regards the ease of delivery, the differences between online and the ‘traditional’ way can be marginal, except in the case of a practice that needs the help of a consultant presenting particularly critical aspects.

Loans without credit check.

 To say it straight away, there are no loans without a credit check – at least not from banks. The credit check is the be-all and end-all when it comes to lending, so loans without a credit check are something that is impossible.

What belongs to the credit check in Germany

What belongs to the credit check in Germany

If you want a loan, you have to be creditworthy, and in order to determine this, the creditworthiness of the loan applicant is checked in advance. In Germany at least, this means that the Credit bureau of the loan applicant is queried and that their income and financial circumstances are examined. Credit is only granted to those who can demonstrate a so-called “clean” Credit bureau and a regular income of a seizeable size.

If one of the factors does not apply, it looks bad. In many cases, the loan application is rejected or the bank requests additional collateral, for example in the form of a solvent guarantee. The procedure is always the same and for the time being it is irrelevant whether it is a small or a large loan amount.

Loans without Credit bureau are not the same as loans without a credit check

Loans without Credit bureau are not the same as loans without a credit check

If you have a regular and good income, but a negative Credit bureau then you have at least the opportunity to switch to a loan without Credit bureau, which is often equated with loans without a credit check. But that is something completely different.

The loan without Credit bureau or the Credit bureau-free loan are not loans without credit checks. Banks in Switzerland, for example, only refrain from obtaining Credit bureau in connection with the loan request. In this case, however, the creditworthiness is only assessed according to the income situation.

This means that there are no loans without a creditworthiness test, on the contrary, the income situation is particularly important and unemployed or Best Bank recipients have no chance of Credit bureau free loans. Those who find themselves in this situation should focus their activities on finding a job, because creditworthiness still depends on orderly income relationships. What can still be achieved without a Credit bureau query can usually not be achieved without income from employment.

Exceptions in Germany may be the mail order companies and retail, where no proof of income is required for smaller amounts of credit, but Credit bureau is always asked for this. Nowhere without everything.

Car loan which term – choose yourself suitable

Car loan what term – even ensure desired rates

It is important to know that the loan rate results from the term, the loan amount and the interest rate. Generally speaking, a longer term means a lower rate, while a short term shows a higher credit rate.

Most car buyers choose a long term. This at least ensures that the loan installment can also be paid over the entire term. If the term lasts more than six years, the depreciation of the car decreases. If there is an emergency sale during the term, the residual value of the car no longer covers the loan amount still to be paid.

Experts therefore advise a term of a car loan which term is three and six years.

The car loan what term – how long

The car loan what term - how long

Anyone who has decided to buy a car, whether new or used, should take the right duration into account. Under no circumstances should it last so long that it extends beyond the useful life of the car.

Many borrowers often finance the next car with a loan. So two car loans would have to be paid. But that is not possible for many borrowers. So the tip: pay the first loan before the second one is taken up. As indicated above, the term affects the monthly loan rate. These should be chosen so that they can be paid for every month without any problems.

It is advised to pay off a car loan as soon as possible, the less the borrower will ultimately pay.

The car loan which term – special repayments

The car loan which term - special repayments

If you finance your car with a car loan, you should make sure that special repayments are allowed in the loan agreement. Especially for employees who receive bonuses or special payments from their employer throughout the year that are to be paid on the loan.

If no special repayments are allowed, the process can become chargeable. Rate breaks should also be noted in the loan agreement. The financial situation of the borrower can also turn negative. A smaller financial bottleneck could be bridged with rate breaks. The contract should also include a change in the credit rate once a year. A loan rate could be increased or decreased depending on the financial situation of the borrower.

With the car loan what term – properly financed

With the car loan what term - properly financed

Car buyers have various options for financing their car. First of all, there is the classic installment loan. The advantage of this type of loan is that the rates are constant over the entire term. Financing with the dealer could also be an option.

Especially when it attracts with 0% financing. However, this loan should not be concluded prematurely, since the cash payer discount often tops the favorable interest rate. Customers who opt for an installment loan and pay the loan amount in cash can receive the cash discount. The new trend is towards balloon financing or three-way financing.

Both types of credit are characterized by advantages and disadvantages. Generally, car buyers can use any loan that is offered. Many loans will also be earmarked. Then the vehicle registration document is deposited.

Car loan what term? – 0% financing

Car loan what term? - 0% financing

Of course, this offer is very attractive at first glance. However, borrowers should ask and check carefully. Because 0% financing does not seem the way it looks. Nobody has anything to give away, neither the car dealer nor the car bank.

If you want to opt for 0% financing, you should question the following facts. The terms can be very short, which brings a high credit rate. As far as the purchase price is concerned, there is no room for negotiation. The alleged 0 interest is counter-financed through the purchase price of the car. This means that they are added to the purchase price in advance. Those who have found their car have little scope.

Apart from the lack of room for negotiation, the term cannot be adjusted to the financial situation of the customer.

Car loan what term – credit check

Car loan what term - credit check

There will be no credit without the bank checking it. This means that they check the borrower’s income and query the credit bureau. The credit bureau is an important approval factor. If it is encumbered, a loan can be refused.

This is because negative entries indicate that there have been payment problems in the past. Anyone who has decided on a loan must enter personal data such as first and last name, date of birth and address in the form provided.

In addition, a reference account must be specified on which the installments are debited. Information on income and expenses must also be provided.

The checklist for a car loan what term

The checklist for a car loan what term

  • A copy of the sales contract
  • Pay slips for the past three months
  • for self-employed persons, they are income tax notices
  • Information about fixed expenses per month
  • Possibly other liabilities with details of the remaining debt and the rate
  • bank accounts
  • Declaration of consent to query credit bureau

Anyone who now receives a loan approval and is a new customer to the lender must use the Postident procedure at Swiss Post. A valid identity card is required.

This procedure is nothing more than a personal identification. Loan seekers should know that a car loan cannot be applied for at the house bank, but at any other bank.

Car loan what term – rate amount

Car loan what term - rate amount

The monthly loan rate must fit into the monthly budget without any problems. A budget could help.

All income is compared to expenditure. The balance is positive if there is a surplus.

However, experts advise that this excess should not be used entirely for a loan installment. There should still be scope for unforeseen expenses.

Online credit for civil servants

Nowadays, almost everyone gets a normal installment loan. However, there is also a loan that not everyone will get, the online loan for civil servants. Officials have a special status in the financial world. This is mainly due to the fact that they are non-resignable and therefore cannot become unemployed and the high income they receive on a monthly basis.

This gives officials the opportunity to get this loan. This is tailored to the group of people and is also issued by direct banks. Civil servants and employees with very high incomes can also take advantage of the conditions of an online loan for civil servants.

What can the loan be used for?

What can the loan be used for?

As a rule, civil servants do not have to meet any additional requirements in order to be able to receive an online loan for civil servants. So you do not have to specify a purpose if you want to get the loan approved. The only exception is that civil servants have to repay an old loan with the new one before they can freely dispose of the loan amount.

The loan amount can be up to 20 times the net income, so that many opt for larger purchases when taking out the online loan for civil servants. For example, a house can be financed without any problems or a longer trip.

What are the conditions like?

What are the conditions like?

Officials enjoy particularly good conditions with an online loan for civil servants. Not only can the loan amount be chfosen very high, but the interest rates are also very attractive. This loan is also called a term loan. As a rule, the official takes out a life insurance policy when applying for a loan. In this case, he then does not have to pay the installments of the loan, but the insurance contributions. These are used at the end of the term to repay the loan.

Officials should also compare

Officials should also compare

Officials should also compare the loans. Since you will find a very large offer, you will be best served if you make a comparison. Not every bank automatically offers a civil servant loan, so the rest often has to be asked for in order to receive the favorable conditions. Interest rates vary and can vary widely from bank to bank.

Offers are filtered out by a credit comparison and at the end there are few offers that are really cheap. Officials should refrain from taking out residual debt insurance, as this is only taken out if unemployment threatens. As this is almost impossible in this profession, the residual debt insurance is not important.