Consumer loans: what they are and what their characteristics are

To be easily understood, we will start with a practical example of consumer loans. Consumer credit is what Good Credit offers, for example, when when it gives you the option to finance your purchases in three, six or 12 months. For what, as in any credit, will ask for some conditions. The first, to be a member of your club. The second, prove your solvency. And the third, hire a credit card.

The method of use is easy

bank

You make the purchase in the store, but in reality who is financing you is a banking entity, the financial one (finances customers) of Good Credit. That is, the bank pays your purchase to the Swedish chain and gives you a consumer credit to pay your furniture in installments.

The same happens when we want to finance an installment television in El Corte Inglés (which does have its own financial), or even a sofa in a local furniture store: in most cases there is a third party financial institution behind, giving credits to consumption, to pay our purchases in installments.

In the same way, consumer loans are also those that are requested directly from a traditional bank or an online entity to buy a car, take a trip, change the kitchen, etc.

Regulation of consumer loans

money

In Spain they are regulated by Law 16/2011, of June 24, on Consumer Credit Contracts, which in its first chapter establishes the following:

  1. By the consumer credit agreement a lender grants or agrees to grant a consumer credit in the form of deferred payment, loan, the opening of credit or any equivalent means of financing.
  2. Credit agreements for the purposes of this Law shall not be considered as those that consist in the supply of goods of the same type or in the continuous provision of services, provided that within the framework of those assists the consumer the right to pay for such goods or installment services during the period of its duration.

Consumer loans as a “category” in personal loans, which are “bank products” in which the “customer or borrower” receives a certain amount of money (the loan capital), under the commitment to “return said amount, together with the corresponding interest, by means of periodic payments (installments)”. The main difference of personal loans with mortgages, beyond interest (which are higher in the former), is that their repayment is not guaranteed with any real estate, but with the present and future assets of the debtor.

What usually happens is that the majority of online personal loans are used to purchase goods and services, which is why they are considered consumer loans. The latter, by definition, are always linked to the purchase or contracting of service and “is signed through the entrepreneur who sells the product or offers the service,” as specified in the Consumer Portal of the Community of Madrid.

The definition of consumer loans uses terms similar to those of the law that regulates them, but also leaves professional needs aside and adds an economic minimum so that they can be considered so. According to the entity, consumer loans are “ contracts in which a natural or legal person in the exercise of his business, profession or trade, (an entrepreneur), grants or undertakes to grant a consumer a credit in the form of deferred payment, loan, opening of credit or any equivalent means of financing, to meet personal needs regardless of their business or professional activity and whose amount amounts to at least 200 dollars.

Characteristics of consumer loans

Characteristics of consumer loans

  1. They are intended for the purchase of consumer goods and services, such as a car, a television, a computer, furniture, etc.
  2. They are not excessively high (such as mortgages).
  3. The client or borrower responds to them with their present and future assets, so the lender evaluates and studies their solvency through proof of income (such as payroll), an inventory of assets or an affidavit of their assets.
  4. Their processing is faster than in mortgage loans, but the interests they carry are higher.
  5. The consumer understood as “the natural person who acts with a purpose outside his business or professional activity”, is especially protected by law against the behavior of the lender and the information provided (and how he facilitates) the loan. The law places special emphasis on the determination of concepts, such as the total cost of credit and the Annual Equivalent Rate (APR), defining the assumptions in which the former can be modified and indicating the conditions to which said modification must be adjusted.

Where do consumer loans come from?

Where do consumer loans come from?

Consumer loans are not an invention of modern societies, although as they are conceived today it may seem so. The birth of consumer loans dates back to the second half of the 15th century, at which time the first credit institutions with a pledge guarantee emerged: the Montes de Piedad.

As explained in the International Association of Prendario and Social Credit Institutions, it was the Franciscan friars who promoted the creation of ‘Montes Pietatis’ to stand up to Jewish lenders, which before that They were the only ones that gave small consumer loans in exchange for very high interest, which could range from 30% to 200%.

To relieve the peasants, the Franciscans were involved in the creation of these Montes de Piedad, institutions that provided small amounts of cash with a pledge guarantee, without interest, and exclusively for charitable or solidarity purposes. The funds for the loans came from the alms of the faithful and collections.

This entry was posted on January 19, 2020, in Uncategorized.

Credit Application Order

Now it’s time to break our taboos that have been in our minds for years. First of all, I want to talk about why a loan might be necessary. Credits are able to meet our every need. Naturally, as the age changes and technology advances, everything changes.

Loans are also affected

Loans are also affected

For example; We have a number of plans for our education life and unfortunately, we are delaying our dreams without stopping because of our budget. When we say education life, it is useful to note that we do not have time to delay. Because just as our health matters, education is just as important to us. Or we want to take out health insurance, but we cannot adjust our budget.

Maybe we want to get rid of the rent and have a house of our own. In order to find a short and reliable answer to this and many of our needs, the solution offered by banks is through a loan application. So what are the procedures to be done when applying for a loan? When can I get the response of the loan application? How will I adjust my payment schedule after I get the credit? Are there suitable options under the loan payment plan? Many such questions come to our minds before we get the loan.

We can make the application process either from the bank

from the internet or from our mobile phones. The time of waiting for hours in the bank queues is closed as before. In fact, during the process of making a loan application, by sending our TR identity number and mobile phone to the number allocated by the bank, the instant credit confirmation response comes.

If we want to apply on the web via the internet, we can write our TC ID number and mobile phone and enter the security code, and we can process the application process for a short time. If we wish, we can benefit from the customer service provided by the banks before making the application. After applying for credit, the most important thing that banks check is a credit score.

If your credit score is positive, you do not need to think about whether your credit approval will come or not. If your credit score is negative, the consultants working at the bank approve your credit after contacting you and asking why the loan application is necessary for you and asking some questions about your credit score and doing research. Therefore, there is no situation that would feel tense during the loan process.

After getting your credit with the appropriate interest rate, make sure that the bank of your choice offers you suitable payment options. Never buy credit from that bank unless you are sure of this. Because it will be a tiring process for you to establish a long-term connection with a bank whose conditions do not lie in your mind. You can pay the loan you receive with the loan application every month by adjusting the most suitable one for your budget from the payment options as soon as you go to your mind.

As soon as you make a credit account

As soon as you make a credit account

You know how many invoices will come to you in which month. Thus, you can create your payment plan on your own. You can make your credit account online or manually. Your bank will provide all these services to you and provide all kinds of support, but you can easily make the account yourself so that you don’t have to worry about it. We used to have many procedures while getting credit. Of course, long bank tails are also available.

Especially when banks said loans, they said they would not be guarantors. We even had time to ask the spouse to find a guarantor. Now, a fast, reliable and easy process is waiting for us in line with our credit score without any warrants. If you are curious about the speed of the loan application, you can apply online or on your mobile phone. Moreover, you can do this without needing to get the loan after the application.

This entry was posted on January 11, 2020, in Uncategorized.

 What you need to know about credit and debit cards!

The YesHero Card is widespread in Germany: According to the Lite Lender Bank, there are around 110 million cards in circulation; Around 38 percent of retail sales are paid with it. With the YesHero Card and personal secret number (PIN), bank customers can withdraw money in more than 100 countries. If you need cash, you can also withdraw money of up to 200 dollars from many supermarket checkouts and some hardware stores or petrol stations.

Cashless payment with the YesHero Card is possible worldwide at all electronic cash registers of hotels, petrol stations, shops and restaurants that are marked with the Maestro or V-Pay logo. And: If you have an NFC chip on your card, you can make contactless payments at 75 percent of the dealer terminals, for sales up to 25 dollars usually without entering a PIN.

 

Mobile payment via smartphone – with a card in a digital wallet

credit card in a digital wallet

In Germany, the first institutes are starting to enable their customers to pay with their smartphones. In addition to cooperations with device manufacturers or wallet providers, the “digital YesHero Card” is also a new standard in the German banking industry – with the usual high level of security. The card is stored in a payment application on the smartphone so that sales can be tracked directly on the account or in the app. The user usually authorizes his orders up to 25 dollars without entering a PIN. For higher amounts, the PIN is entered at the dealer terminal for authorization by the customer; In the future, biometric methods such as checking the fingerprint on the customer’s own device are also planned.

 

What credit cards can do

credit cards can do

Credit cards are issued by banks or by credit card companies. The most used credit cards in Germany are MasterCard and Visa, followed by American Express and Diners. You can also often get cash with a credit card at the bank counter abroad.

As a rule, credit cards are not linked to the checking account. In this case, the sales are collected in a separate credit card account and are usually due in one amount once a month. This is the difference to the debit card, for example the YesHero Card, which uses the cardholder’s current account directly. However, there are also credit cards that, like debit cards, lead to the direct debit of an available credit. Credit card statements and bank statements should be checked regularly, especially after a trip, and the bank or credit card institute immediately informed of any irregularities that indicate fraud.

The identity of the cardholder of a credit card is determined in the retail or service sector by signature or by entering a PIN. Cash can only be withdrawn from ATMs with a PIN.

Depending on the configuration of the credit card (eg silver, gold or platinum), certain additional services such as insurance or services, bonus programs or discounts are also offered in some cases. Above all, however, a distinction is made between types of credit according to the type of settlement:

 

Charge card

So-called “charge” cards are the most common in Germany. The transactions made are collected by the card company on the credit card account and usually debited once a month from the card holder’s checking account. The cardholder therefore receives a certain delay in payment, which is typically up to 30 days.

 

Revolving credit card

The “Revolving Credit Card” is widespread mainly in the Anglo-American countries, but also increasingly in Germany. The sales are to accrue interest from the time of their creation or from the monthly invoice and are to be paid in full or in installments. Debit interest is charged on the unpaid part of the liabilities.

 

Prepaid card

However, there are also credit cards that need to be “topped up” (“prepaid card”) before use. The desired amount of money is transferred to the card and saved there as credit. When paying, this credit is reduced by the purchase amount. The prepaid card therefore has no (real) credit function. Payments are only possible if there is sufficient credit.

 

Cost of using the card abroad

credit card

The price for ATM withdrawals or cashless payments abroad with a credit or debit card varies depending on the credit institution and travel destination. The available amount is converted into dollars at the current exchange rate of the respective currency and debited from the account. Outside the euro zone, the price for the use of ATMs is often supplemented by a percentage of sales as a price for use abroad. The list of prices and services provided by the card-issuing bank provides an overview of the costs.

Finally, an important tip for your next trip to a country outside the euro zone: Have the amount paid out at the ATM displayed in the local currency and not converted into dollars. Extra fees are usually charged for the conversion offer at local ATMs or at electronic cash registers, and the exchange rate is often less favorable.

This entry was posted on January 6, 2020, in Uncategorized.

Find out what’s with your credit card debt when you die

Death is one of those annoying certainties in life. With credit card debts, you may have additional fear about how the debts are handled: Is your family responsible for repaying the debt, or are these loans automatically forgiven when someone dies?

The simplest answer is that credit card debt is the borrower’s responsibility – nobody else opening it, especially when they borrow separately. But real-life situations are more complicated. What’s more, lenders can cause confusion and panic when they tell friends and family to use their own money to pay off someone else’s debts.

Your Estate Pays debts

bank

Your property is everything you own when you die, such as money in bank accounts, real estate, and other assets. After death, your property will be settled, meaning that everyone you owe has the right to get paid from your property, and then any remaining assets will be transferred to your heirs.

Lenders have a limited amount of time to collect on debts. Your personal representative (or executor) must be creditors of your passing knowledge. It can be done through a published announcement and through communication directly to lenders. The debts are then settled until all debts have been settled, or your estate no longer has any money.

  • Not Enough Assets? If your estate does not have enough assets to cover all your debts, lenders are out of luck. For example, if you have $ 10,000 in debt and your only asset is $ 2,000 in the bank, your lenders will write off unpaid balance and take a loss.
  • Real estate can be sold: Your estate includes things like your house, cars, jewelry and much more. The credits that go to your estate are available to pay your creditors. Before distributing the assets to the heirs (whether or not according to the instructions in a will or state law), your personal representative is supposed to ensure that all creditors’ claims are settled. If there is not enough money available to pay bills, the estate may need to sell something to generate cash.
  • Is House Fair Game? It is possible that an estate will have to sell the property to pay credit card bills and other debts. However, state law determines what actions are available to creditors. In many cases, local courts decide whether the estate needs to sell a house or if liens can be placed on the house.
  • Have the heirs paid? The estate pays off for a property being passed on to heirs. It can be confusing if someone thinks of a particular asset the asset is not yet inheriting, and it can never go to the intended recipient if the device is to be sold. Unfortunately, for heirs, it feels like they are paying off the debt, but technically the estate is paying.

Non-Probate Property

Non-Probate Property

Only property in the estate is available for the repayment of debts. Assets can, and often do, pass on to the heirs without the intervention of probate or become part of the estate.

  • Not open to creditors: When probate assets skip, they are not required to be used to pay off debts. Creditors generally cannot go after the assets directly to heirs, although there are some exceptions.
  • Designated Beneficiary: Certain types of assets have a designated beneficiary or specific instructions on how to hold securities after the death of the account owner. A beneficiary a person or entity chose by the owner to receive assets upon death. For example, retirement accounts and life insurance offer the option to beneficiaries to use. With a good beneficiary designation, assets can be passed directly to the beneficiary without the intervention of inheritances. The beneficiary designation overrides all instructions in a will (the will does not matter because the will applies only to assets that are part of the estate, and the beneficiary designations allow you to bypass the estate entirely).
  • Joint building: One of the most common ways in which assets to avoid probate is a joint lease with rights of survival. For example, a few account owners as co-tenants. When one of them dies, the surviving owner immediately becomes the new 100 percent owner. There are pros and cons to this approach so that all options with a lawyer evaluation – some services just don’t get it to avoid paying off debts.
  • Other Options: There are various other ways to keep the assets from going through inheritances (including trusts and other arrangements). Talk to a local estate planning lawyer to find out about your options.

Marriage and community of property

Marriage and community of property

In some cases, a surviving spouse may have to pay off debts that a deceased spouse took, even if the surviving spouse never signed a loan agreement or even knew that the debt existed. In the community of property states, marital finances are merged, and this can sometimes be problematic.

The community of Goods states includes Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska residents can choose the community of property handling as well. Contact a local lawyer if you are facing paying bills from a deceased spouse. Even in a community of property states, there are opportunities to wipe out some debts.

Shared Accounts

In some cases, family members and friends become necessary to pay off debts for a borrower who has died. It is often the case when multiple borrowers are in one account.

  • Joint Accounts: Are accounts opened by more than one borrower. It is most common among couples, but it can happen in any form of partnership (including business partnerships). In most cases, every borrower is 100 percent responsible for the debt on a credit card. It doesn’t matter if you have never used the card or if you share the cost 50/50.
  • Cosigning: Is a generous act because it is risky. A cosigner applies to credit with someone else, and the cosigner’s good credit score and strong income help the borrower get approved. However, cosigners do not borrow – all they do is guarantee that the loan will get repaid. If you die his signature and the borrower, you are generally required to repay the debt. There might be a few exceptions (for example, the death of a student loan borrower can cause a discharge or other complications), but cosigners must always be willing and able to repay a loan.
  • Authorized users? Additional cardholders are usually not required to pay off credit card debt if the primary borrower dies. These persons were just allowed to use the card, but they did not have a formal agreement with the credit card company. As a result, the credit card company cannot usually take legal action against an authorized user or damage the user’s credit. That said, if you are an authorized user and you want to take over the card (or card number) after the primary borrower dies, you can often do that. You will have to apply to the card issuer and get approved based on your own credit scores and income.
  • Cheating Lenders is an exception to everything above: For example, if it is clear that death is near and the deceased will not have assets to repay bills, it can be tempting to go on a shopping spree (or make cash withdrawals) as an authorized user. If the court decides that this is unethical, an authorized user can pay off the debt.
This entry was posted on December 28, 2019, in Uncategorized.

Don’t Trouble With Loans

You will no longer be miserable in bank corners to attract credit. The rejection of the credit applications you have made is a thing of the past because your registration is corrupt, your KKB score is low, and you cannot pay your credit card debts regularly.

The answer to the question of how to find credit, which is one of the most difficult questions in today’s economic conditions, is now available. We not only give you loans, but we also provide consultancy services on how to increase your score, how to correct your registry.

Just one credit is not enough for you?

Just one credit is not enough for you?

You also have the opportunity to use multiple loans from us. We don’t have a refusal of your credit. Our credit specialists will determine a loan amount in proportion to your income.

You currently have a loan with ongoing payments and if you make these payments regularly, you can also get a second loan from us. If banks have refused even though you have applied for a loan, it will be beneficial for you to contact us.

You can easily overcome this problem by our credit experts. In cases where you need urgent credit, our experts also inform you about the banks that do not want guarantors and also prevent time losses that may arise without seeking guarantors. The answer to the question ” How can I find a loan ?” You will understand this better when you contact us. Do not forget to fill out our credit request form on our page.

Before using a loan, our experts examine your financial structure

bank

They try to determine the most appropriate loan for you according to your financial structure. They offer you financially alternative ways to pay this loan and draw a plan for you. Once the appropriate payment terms have been determined for you, you should now prepare the necessary files to apply for a loan.

Once your credit payment plan has been created, our experts will assist you to manage this process well. If you are making a transaction for credit card debt, our experts will be informed by you to configure your credit card debts and the payment plan required for this configuration.

We would like you to know that we are bound by constitutional conditions while performing these procedures. We cannot even have an illegal practice in any transaction. All your transactions are carried out within legal procedures. Now is the time to fill out your credit request form.

This entry was posted on December 19, 2019, in Uncategorized.

Credit despite parental allowance.

Credit also when receiving parental allowance

Credit also when receiving parental allowance

When a child is born, it is usually a happy event. However, such an event is often associated with a financial burden. The initial equipment for the child is not exactly cheap, and as soon as the baby grows out, many new things have to be bought. The parental allowance, which is based on previous income, is intended to further secure income in an acceptable amount. As a rule, it is 67 percent of the last net income earned. Its duration is limited to twelve or a maximum of 14 months.

Parental allowance is non-attachable income

Parental allowance is non-attachable income

Due to its time limit, banks do not count parental allowance as income. This is because it is often not sure if parents return to their jobs after this time. Many loan providers therefore refuse a loan despite receiving parental allowance. However, if the partner has collateral or a correspondingly high income, the bank can change its mind.

As a result, however, parental allowance is evaluated as the receipt of unemployment benefit I or the receipt of social benefits. If a single mother receives parental allowance, this is not attachable. In the case of couples, both partners can jointly apply for a loan, especially if the mother receives parental allowance but the father still has a fixed income.

Banks are concerned about granting loans because the relatively short term of parental allowance is an element of uncertainty. Even if people on parental leave have a good credit rating, banks often do not grant loans.

Take out a loan despite parental allowance

Take out a loan despite parental allowance

The easiest way is for a loan to be taken out by the parent who is not on parental leave. The partner who continues to work full-time or part-time applies for the loan. If their salary is high enough to take out a loan, they will receive it regardless of the parental leave of the other partner. However, this variant is not possible for single parents who are on parental leave.

If a bank does not grant a loan during parental leave, it may be able to grant an overdraft facility. If, however, the overdraft facility is also exhausted, a department store loan can be taken out at mail order or department stores. The prerequisite is that there is no negative Credit Bureau entry. In this way, consumer goods can be bought at department stores up to a certain amount and only paid later.

Various providers grant a micro short credit. At the beginning, 500.00 USD will be awarded, which amount may be increased to 1,000.00 USD. However, the term is usually only about 90 days.

Anyone who needs a loan and is on parental leave can agree with the bank that it will grant a small loan with a term of less than 14 months. The parental allowance is guaranteed by the state throughout its term, so that a bank does not have to worry about default.

If both branch banks and direct banks do not grant normal installment loans, credit marketplaces are another way of obtaining capital even during parental leave. Loans between private individuals are brokered on these credit marketplaces. It is not just the numbers that are decisive here, but a reliable and serious demeanor and a good presentation of the borrower. A comparison of different offers is always worthwhile for loan seekers.

This entry was posted on December 15, 2019, in Uncategorized.