Month: February 2020

Cheap instant loans – where and how?

by admin

Some consumers cannot wait long for a loan because the money is needed immediately. Urgent bills that have been issued unexpectedly often cannot wait long to be paid. In this case, cheap instant loans can be used in this case. This loan is also known as a lightning credit and is used very frequently.

Where and how can the loan be taken out?

Where and how can the loan be taken out?

Loan seekers do not necessarily have to ask the house bank about cheap instant loans. You can also submit an application to a direct bank on the Internet. This special loan can also be taken out abroad if the applicant's creditworthiness is correct. It does not matter for what reason the loan should be taken out, the most important thing is always creditworthiness.

The application for the loan can be completed online. An acceptance or rejection will be given within a few minutes after the application has been submitted. The credit institution then draws up a contract, which must then be signed. This should be read carefully, because as long as no signature has been made, the offer is not binding. In the meantime, the borrower can make a different decision and take advantage of another offer.

What are the requirements for the borrower?

What are the requirements for the borrower?

Even with cheap instant loans, it is important that the credit rating is correct. An applicant who cannot prove a job will receive a rejection. The income must be attachable so that the loan is secured. Credit Bureau is also checked for entries for this loan. If there are too many negative entries here, the creditworthiness of the applicant is not good.

In order for him to be able to improve his credit rating, he has to find collateral that he can present to the bank. Most guarantees are given by guarantors and insurance companies. A guarantor is like a second borrower who secures the loan. To do this, however, a secure salary of a corresponding amount must exist and no entries may be found in the Credit Bureau.

What to look out for

What to look out for

Cheap instant loans do not automatically mean that the loan is already being paid out at the same time. It only says that a loan application has been approved. The payment is made a few days after the check so that the borrower can still get the money quickly.

Loans for the self-employed – fastest way

by admin

Self-employed people often have problems getting a loan. Due to fluctuating sales, the self-employed are simply not popular credit customers with banks. But even as a self-employed person, you have good chances of getting the desired loan for the self-employed, not least thanks to new banks entering the market. Many banks have even focused on this customer base.

What is the fastest way for self-employed people to get a loan?

What is the fastest way for self-employed people to get a loan?

Even if the conditions for the loan for the self-employed have eased due to intense competition, the self-employed still have to fight more for a loan than employees or even civil servants. The conditions for lending to the self-employed are simply much stricter than those for employees.

It is therefore important to provide proof of your own income. Because the income situation of the self-employed fluctuates very much, an average of the last few months is used to determine the income.

It is important for the self-employed that they can submit their business evaluations for the loan without gaps. Those who work correctly here have already done a lot for lending. If there is also collateral in the form of values ​​within the company, the self-employed also have a good chance of getting the loan they want.

If collateral in this form does not exist, a surety can also be liable for the loan. For some banks this guarantor is always necessary when lending to the self-employed, other banks only act with guarantors if no other security can be provided by the self-employed.

Make accurate comparisons

Make accurate comparisons

It is important with the loan for the self-employed that you compare the conditions very well. The self-employed continue to be seen as a risk group when it comes to lending and many banks use high interest rates to reduce the risk of lending. As a borrower, one should make exact comparisons before signing a loan application. Thanks to the Internet, the possibilities of loan comparisons as well as comparisons between providers have increased.

Ultimately, a self-employed person's online loan from a foreign provider can also be a good alternative to a self-employed person's loan from a house bank. Many foreign banks are more relaxed in dealing with lending to the self-employed than is the case with German institutions. In addition, the loan from abroad can also save you from querying Credit Bureau and entering the loan into Credit Bureau.

A loan for the self-employed that is not recorded in the Credit Bureau can prove positive for further activities in monetary matters. In addition, online loans are often cheaper than loans from established financial institutions due to lower administrative costs. Here too, however, the comparison of the conditions is very important.

Calculate credit card payments and costs

by admin

Still not sure how your credit card payments work? Knowing the specifics can help you make smart decisions and manage your debt: how the payment is calculated and how each payment goes towards reducing your debt (or not).

Online credit card calculators offer some helpful numbers, but they don't help you understand how the numbers work. Maybe you are considering putting a big purchase on your credit card, or you are strategizing a debt payout plan. Either way, you will be a wise consumer if you go behind the numbers.

Fortunately, the process of calculating your payments (and costs) by hand is not that difficult. If you can remember how to do it multiple times or a calculator you get everything you need.

 

The minimum payment

credit payment

Start by finding out the minimum payment that is required by your credit card company. This is generally calculated based on your balance.

Example: Your card issuer requires you to pay 3% of the outstanding loan amount. You owe $ 7000 on your credit card. The minimum payment is 3% of $ 7,000, which is $ 210. To find this answer, multiply $ 7,000 by .03 (which is the same as 3% - learn more about converting percentages and decimals).

Your minimum payment is determined by your card issuer so that you will need to look up the requirements specific to your account. Would you like to learn more? See how to find your minimum payment and common methods of calculation.

 

First, the interest

interest rate

If you make a payment, 100% of that money will not go to your debt. In other words, the balance does not go down from $ 100 when you make a $ 100 payment (provided you have a 0% interest deal). Instead, the card company will initially take their cut of interest.

To find out how much is going towards interest, you'll do another calculation (don't worry, it's pretty easy - but there are a few steps involved):

  1. Find the interest rate you pay on your card (12% April, for example)
  2. Convert the annual rate to a monthly rate of 12 by division (because it's 12 months a year - so you'd pay 1% a month)
  3. Multiply the monthly rate of your credit (1% by 7,000)
  4. The answer is how much you're spending on interest ($ 70 in this example)

The steps above provide a simplified monthly interest calculation. However, your card issuer could charge interest daily. If so, the calculation is more work, but follows a similar procedure:

  • In step 2 at a daily rate from the annual rate of 365 parts (it's 0.0329%)
  • Calculate the daily interest charge ($ 2.30 in this case)
  • Add this fee to your account balance, for a new total of $ 7,002.30 after the first day
  • Repeat the process for every day of the month

 

Then the head

Then the head

After you pay interest, the rest of the payment goes to your debt (also known as the "principal" part of your loan). How to find subtract interest from your total payment to find out how much capital you are paying out in a month.

 

In our example, your payment is $ 210 and interest costs are $ 70. Subtract: 210-70 = 140, so you will be paying out $ 140 of your loan this month. That brings your credit balance to $ 6,860 for the next month.

As you may have guessed, you will need this number to calculate the next month's payment. If you all do this by hand, the process is time consuming, but there are ways to speed up the process.

Keep in mind that if you pay more than the minimum payment, which is always a smart move, you will pay off your loan balance faster. The amount that goes into interest this month is fixed - there is nothing you can do at this point. But you can speed up your debt repayment and spend less on interest in the next month by paying more than the minimum.

 

Many months, many calculations

loan calculations

You have seen how to calculate payment and interest for a single month (and start on the next month), but how can you calculate a longer period over?

To see the whole process of paying off your debts, it's easiest to use a table or a hand-made table (unless you use an online calculator - which you won't allow to adjust that much). The idea is basically the same as having a home or car loan repayment schedule: each line represents a payment.

It can take a small amount of wizardry spreadsheets, but it's not the most difficult task and you'll have a valuable skill. With each new line, looks back on the loan balance at the end of the previous month (in the line above). For a sample of how your spreadsheet might look like, skip until the last image of this tutorial.

 

Variations on the subject

credit cards

By now you have a basic understanding of how most credit card payments work. But every card issuer is different, and your card may work slightly differently. With what you've already learned, you should be able to find out how to calculate your own payout with almost any card issuer.

For example:

  • If your card has an annual fee, just add that fee to your loan balance when the fee is charged
  • If your interest rate will change in the future, one shouldn't forget how to run the numbers and make the calculation
  • If you decide to skip a payment (which you probably shouldn't be doing) for the holidays, make that payment a zero this month