Combining the installment of several loans: is debt consolidation worthwhile?

This is one of the questions often asked by those who have multiple debt situations in progress (see also Loan for protestors and bad payers). The answer is generally yes, but let’s try to understand in detail how debt consolidation works.

What is it about?

What is it about?

It is a new loan that can be requested in order to pay off two or more ongoing loans, to obtain a further extension of the debt over time and therefore a monthly installment that is lower than the sum of the installments previously due. In addition, the monthly management of payments due is simplified, grouping all of them into a single installment. In some cases it is possible to check advantageous rates compared to those used in the past and, if necessary, it is possible to obtain additional liquidity at the same time.

One of the main advantages of debt consolidation is, therefore, the possibility of obtaining a lower monthly economic impact, in some cases obviating the pressure of the individual installments which is often no longer sustainable.

Evaluation criteria and requirements

Evaluation criteria and requirements

Since it is a personal loan in all respects, the request will initiate the investigation phase during which the credit institution to which it is addressed will carry out the necessary assessments on the applicant according to the following criteria:

  • specific risk policy: banks and financial companies assess the percentage of risk associated with a specific type of loan based on the statistical data in their possession (credit scoring) with the aim of minimizing insolvency cases;
  • income received by the applicant and percentage engaged in any other loans that you do not wish to consolidate;
  • creditworthiness (any non-payment relating to the loans to be consolidated, presence of reports to Crif).

No form of collateral may be necessary (pledges or mortgages on property and real estate) and the signature of a co-obligation or a guarantee may be required. More rarely, banks and financial institutions offer changed loans.

Banks and financial institutions follow internal policies for the evaluation of requests, but in principle, in order for the preliminary investigation phase to be successful, the applicant must meet the following requirements:

  • be aged between 18 and 75;
  • have an indefinite-term employment contract, with a length of at least 6 months for private employees and at least 1 year for self-employed workers;
  • have a good credit position.

In the event that you do not have a paycheck or have recently been reported to Crif as bad payers, in the absence of an excellent guarantor or better still a co-obliged party, access to this form of financing is difficult.

However, reported or foreclosed employees or pensioners will be able to resolve their economic difficulties by accessing the assignment of the fifth, which is not based on creditworthiness, but on the retention in the paycheck / payslip of the pension. With the credit obtained, they will be able to independently repay the previous ongoing loans.

Timing and documentation required

Timing and documentation required

Before choosing, it is advisable to request two or three estimates from different institutes in order to identify the most economically advantageous offer from the point of view of the rates applied (TAN and above all APR).

In addition, those who want to take advantage of the opportunity of debt consolidation must do it well in advance of the real needs: this is because the time to obtain the debt consolidation is often longer than the normal granting of a loan since the preliminary investigation phase it is more complex, having to evaluate not only the creditworthiness of the applicant, but also the feasibility of the whole operation itself.

In fact, in addition to the identity document, tax code and income documents, all the documentation relating to the loans to be extinguished, with the related extinguishing accounts, must be provided to the chosen credit institution. Retrieving this documentation takes time, but if the applicant signs a proxy in favor of the credit institution that is proceeding with the consolidation, the counts can be retrieved directly from the bank or financial.

After this phase, more repayment plans may be proposed, with different durations, to try to find the most comfortable amount to be repaid. Therefore, having chosen the one that seems to be the most suitable, upon accepted request, the bank will directly repay the various loans to be paid off in advance by replacing them in practice with its own. The financed will only have to pay the new lighter installment every month, thus being able to reorganize their finances.
Only in the event that the request for debt consolidation is also accompanied by the request for greater liquidity, will there be a credit to the account of the financed for an amount equal to this surplus.

When is it convenient?

When is it convenient?

Loans are repaid using French amortization. This implies that early repayment of a loan that has almost ended is not often convenient, since interest expenses have been almost all repaid and would only end up having to renounce the advantage of paying in installments an amount on which no longer owes interest. So entering the loans that are towards the natural end of the amortization plan’s duration is clearly unprofitable.

It will also be necessary to evaluate the possible penalties to be paid for the early repayment of the debt, even if in most cases these are not due when the loan is fully paid off.

It will also be appropriate to evaluate, in the event that you intend to extinguish loans covered by insurance, if the unused benefits can be recovered with early repayment.

Debt consolidation is more convenient if a modest lengthening of repayment times and a reduction in the interest rate applied can be used at the same time.

With our advice, your credit application will be successful

Those who wish to complete a loan with a bank sometimes make mistakes when filling out the form. In certain cases, additional information or information about the applicant’s financial situation may be important in accepting your credit.

Certain points must be observed carefully, in order to optimize the success of your order. You should also know what are the points to which banks agree on the importance and how to evaluate your request.

How Banks Work?

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Banks carefully examine each credit application, as a general rule, this is a considerable amount. So it is understandable that it is not borrowed without certain security.

In principle, two means of control are used: the examination of solvency and budget. For the latter, it is your ability to pay monthly fees that will be assessed. Thus, their wages and expenses are compared in order to determine the margin, which is the amount that remains at their disposal.

This procedure is required by the Consolidation Act. For the analysis of your solvency, it is your willingness to respect your contracts that are examined. For this, your payment habits will be analyzed by statistical means and clarifications will be requested from the poursuites office.

Fill in the credit application – what to pay attention to

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Since banks do not easily accept a loan, you must complete your application carefully and conscientiously. Our long experience has shown us that the following advice can enable you to achieve your desired success:

  • All wages must be tested. Ask your current employer to give you a salary certificate that you keep safe. This is valid for accessory gains.
  • Make the total of all possible earnings for your order. A second proposer, like the wife, considerably increases the opportunities to obtain a loan.
  • Submit your credit application during a period when you were not fired
  • Most banks ask for a fixed job, 3 months minimum. That is why it is preferable to wait for the end of the trial period to send your credit application.
  • Good payment morality increases the prospect of obtaining a credit, which is why you must pay your credit cards (at least the minimum amounts) and your invoices respecting deadlines
  • Require those who issue your payment or credit card that any codes, from the previous amounts, be eliminated when you meet your financial obligations
  • Ask for credit before being on poursuites
  • Each credit declined negatively influences other exams. That is why you should go to a serious credit intermediary and provide the appropriate documents.
  • If your loan wish has no opportunity to be accepted, you must apply later.
  • Any preceding credits have an influence on your current solvency. He who has always fulfilled his financial obligations in time will be rewarded for his morality
  • Less reliable behavior negatively influences your creditworthiness.
  • Credit institutions agree on the importance of personal data, such as private and personal telephone as well as e-mail.

Banks like stability

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Banks like stability when they look at solvency. This is valid for moving house and boss. The more you live and work on the same site, the better your ability to obtain credit will be considered.

Loan with high interest rates.

If you have a negative credit, you must carefully consider whether it is worth replacing a high-interest loan with a negative credit. Without Credit bureau, the possibilities for a loan are limited and the costs are usually a bit higher. Replace loans with high interest rates – debt relief. People want to replace an existing loan with high interest rates, especially with regard to the debt cancellation effect of debt restructuring. Long-term loans, such as real estate loans, can also have very high interest rates.

Replace high interest rate loans

Replace high interest rate loans

Your main problem is that loans replace high interest rates? Are you planning to take out a loan to finance necessary repairs or major purchases such as vacation, cars or mobile phones? But you have the problem field of a defective Credit bureau entry or a bad creditworthiness? On this page, you’ll find useful tips and advice on how to get cheap credit and not stumble on costly credit scraps to lend at high interest rates.

However, for many it is not possible to ask relatives or acquaintances for a grant for “high-interest-rate loans”. Even a loan request to the bank is unnecessary because of the poor soil quality or a Credit bureau entry. Many people do not know that – even with miserable creditworthiness and without Credit bureau information, you can find a loan.

Serious credit brokers working with foreign banks have also focused on arranging loans for creditworthy people. First and foremost, the intermediary will assist you in obtaining a loan tailored to your needs from a domestic or foreign subsidiary. He will also help you to compile all the necessary documents for the credit application.

Many brokers have good business relationships with less well-known banks and therefore the ability to negotiate more favorable loan terms with high interest repayments. On the other hand, in conventional credit institutions, a loan application for high-interest-rate loans is generally inconclusive from the outset. There are no intermediaries with more experience than these two when it comes to issues such as replacing loans with high interest rates.

Insufficient credit rating

Insufficient credit rating

A serious intermediary has a real interest in helping you get a loan for a high-interest rate loan. Serious financial institutions can be identified by the following features: Promises such as “100 percent credit approval” Whether for a new vehicle, a long vacation trip, an improved mobile phone or the initial capital to self-build – loans from foreign credit institutions have long been no form of financing, in front of you can shy away.

The popularity of the Internet is increasing among people to lend money from outside institutions, which means that the domestic financial institution is being used less and less in this regard. The choice of a bank in Germany and abroad has the great advantage that the guidelines for lending there are much simpler than with credit institutions in Germany.

An insufficient credit rating or a negative entry in the Credit bureau therefore only plays a subordinate role in the topic of loans with high interest rate substitutes. Such online loans are usually financed by Swiss credit institutions. It is obvious that this very group of people has an extremely difficult time repaying high-interest loans.

When it comes to borrowing, private individuals with financial problems often are not that easy. If there is a debt or a lack of creditworthiness, the financing opportunity is considerably reduced. In such cases, the last possible option would be a Swiss loan. It is a loan from a Swiss financial service provider.

Financing are good conditions and low interest rates

Financing are good conditions and low interest rates

Credit bureau inquiries are generally not carried out by such institutions, which considerably simplifies the procurement of credit. This is a big plus when it comes to replacing loans with high interest rates. It is clear that it is not possible to conclude a loan without a credit check and various securities and income statements, not even from Swiss financial advisors. If you take care of the financing options just because of the Credit bureau booking, the Swiss loan could be a real possibility for you if your creditworthiness is in order.

A and O of financing are good conditions and low interest rates. If the loan is sufficiently flexible, you will be much less likely to run into problems if you repay it. Sustained financing on high credit interest credit replacing all this must involve. However, there are a few things that you need to keep in mind so as not to interfere with your credit as an unemployed person, employee, trainee, pensioner, student or self-employed:

As a general rule, when it comes to credit with high interest payments, the funds required must be estimated as accurately as possible from the outset. Therefore, you should set the amount of the loan as low as possible. It is better to underpin the too tightly calculated demand through follow-on or additional financing.

If you want to take out a loan, you should assess your economic situation correctly and keep an eye on expenses and earnings – even for high-interest loans. When providing information about your financial condition and creditworthiness, it is important to be cautious, honest and accurate – be cautious, honest and accurate in providing information about your financial condition and creditworthiness when dealing with the high interest loan issue.

Pay attention to these things so that your online loan application is always approved

Good Finance companies that provide online lending facilities have many benefits to the public. The diverse needs of the public can be met because Good Finance online loans are easy to obtain.

To pay for your child’s school, pay for vehicle service costs, pay for renovations, additional expenses, and more. Such an urgent need can be met by online loan funds.

Like Good Credit, which has issued USD 1 Trillion in loans over the last 2018 years. Good Finance which provides online lending services is well-liked by all walks of life.

Although simple, as the model is still relatively new, people often find it difficult to lend themselves to the loan process. What is often complained of is the online loan application that is still being rejected by the system despite following the recommended steps.

If you find any similar issues, consider these 5 things to keep your online loan application approved!

Apply Easy Loans, Without Installing Applications

Apply Easy Loans, Without Installing Applications

Document completeness

Good Finance online loans with smartphone application platforms require document requirements that you must complete.

For example, Good Credit requires only a photo of your national ID. There are also other Good Finances that require other personal documents such as NPWP, Pay Slip, Family Card, ECPB and more.

The Good Finance application requires only a photo of the document for its online loan application process.

The terms of this document are only required at the beginning when you create your account in the Good Finance application. For the next online loan application process, you will not need to upload the document again.

Well, the photos of your uploaded document must meet the following requirements in order to be eligible:

  • The photo is not blurry or dark
  • No part of the document is covered / obscured in the photo
  • The document you are taking must be yours

Quietly, Good Credit is committed to maintaining the confidentiality of your data. You don’t need to worry about your personal data being disseminated.

The number is active and reachable

The number is active and reachable

As with most online lending applications, Good Credit also needs to provide a mobile phone number that is still active and reachable.

This phone number is required for many things, such as:

  • Send SMS for notifications and promotions
  • Call Customer Service to alert billing charges
  • Call Customer Service for billing

In addition to your personal phone number, you also need to provide an emergency phone number that you can call when your number is off.

Smartphones support consumer recognition features

Good Credit is a Good Finance that uses state-of-the-art technology compared to its class applications.

To apply as a lender in the Good Credit app, you will need to go through the consumer recognition process. This process requires the application to capture your face image to ensure that the face matches your uploaded identity. In addition, this process ensures that you are a true borrower.

Therefore, your mobile device needs to support this consumer identification feature.

Fortunately, the majority of smartphones sold in the market already support Good Finance-based consumer recognition features.

Connect to social media

For a higher percentage of online loan approval, you can connect social media to your Good Finance account.

Good Credit currently supports connections to your personal Facebook account to increase your online loan approval rate.

The social media accounts you connect to serve as complements to previously uploaded personal data.

Build a good credit history

For older or previously borrowed users, building a good credit history is a must

The goal is to make the next loan easy to accept.

How to build a good credit history as follows:

  • Borrowing according to your needs & ability to repay
  • It’s timely to pay the bills
  • Loan transactions often

A good credit history not only simplifies the process of applying for an online loan, but also opens up a larger loan limit that you can enjoy.

The steps are really easy, right?

This article was written by Good Credit, a Good Finance company that facilitates online lending for all Indonesians. Follow the Good Credit blog for more helpful financial management tips. Want to get to know Good Credit more closely?

Advantages and Functions that Credit cards gives us.

Credit cards give us a series of advantages and functions such as the fractional payment of our purchases made with these cards. It is an increasingly common function in banks, whose use has been enhanced during sales or Christmas purchases. That is why many families resort to this condition of their credit cards on these dates as a result of Christmas shopping, the arrival of Santa Claus or the long-awaited Black Friday.

The deferral of charges through credit cards do not usually exceed 6 months nor do they admit very high financing.

On the other hand, there is the option to pay our expenses in full with our card, an action that does not imply any type of cost or commission. That is the safest way of payment and in this way you avoid possible commissions or interests on the part of the banking entities.

Advantages and disadvantages of fractional payment

Advantages and disadvantages of fractional payment

The most common with this type of transaction are financing ranging between 600 and 1,200 dollars in a period of three to six months . This function of our credit cards does not usually allow us to spend more than $ 3,000, for example in the case of requesting a travel card.

Commonly, one of the great advantages is to be able to defer our payments by allowing us greater economic peace of mind to meet our future expenses; Always at a low interest. It also allows us to face other expenses at that time, postponing our purchases for a future short-term payment.

On the other hand, one of the biggest risks of this type of financing tools is to fall into the routine of getting used to borrowing with deferred payments. These are expenses that we will always have to face, always being in continuous debt. And even more on dates like these where expenses soar and it is easy to fall into the habit and a negative loop of purchases and expenses.

Examples of installment payments

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Good Finance offers a number of advantages with its smart cards as a series of different forms of payment. You can either pay on the day, at the end of the month, make a payment in installments, pay at the moment or finance your purchase up to 18 months without commissions.

On the other hand, another example is the well-known Bankintercard with which you can postpone your purchases and be able to manage your economy in a quieter way.

Loan: offer financial services through information technologies

Good Finance companies (Good Finance is a combination of the words finance and technology) offer financial services through information technologies more efficiently and at a lower cost.

In Latin America, the leading countries in the creation of these Good Finance companies are Brazil, Mexico, Colombia, Argentina, and Chile, in that order respectively, according to the number of ventures they contribute.

These ventures are still in the early stages

These ventures are still in the early stages

The Inter-American Good Credit Bank identified around 703 enterprises and the countries mentioned occupy 90% of Good Finance operations in Latin America. Many of these companies were established between 2014 and 2016 and this demonstrates the value that these entrepreneurs give them.

However, the study by the Inter-American Good Credit Bank mentions that these ventures are still in the early stages and that they need to strengthen their business models before they are truly sustainable.

According to the report “one in four Good Finance operate as alternative financing platforms, offering loans, collaborative financing (crowdfunding) or financing through the intermediation of invoices. Another quarter operates as payment companies, and the remaining segments include business and personal finance management, asset management, insurance, and digital banks. “

For this study, 393 Good Finance entrepreneurs from 18 countries in Latin America were consulted and something that was found was that a large number of these think that the objective of their companies is to reach those segments of the population that do not cover traditional financial organizations such as They can be some individuals or SMEs.

This new offer of financial services has been well received in different parts of the world such as Germany, Spain, the United Kingdom, among others. There are several factors that differentiate these alternative financing organizations. Each has its own conditions, but among some of these differences is the speed with which money is delivered, the fact that no guarantee is needed, that everything is done online, that loans are made in small amounts of money, and that traditional financial organizations are not necessary.

A sector of the population that is very interested

A sector of the population that is very interested

It has been seen as these companies develop their activities, that a sector of the population that is very interested in this type of services is that of the millennials or born between 1981-2000. This generation lived closely the era of the information and have very good management of technology, precisely because they grew up with it.

Although many of them are very well prepared academically, not all of them still have the financial stability that traditional banking organizations require.

It is important to clarify that although the rules for accessing the loan are more flexible than with the banks, the rules regarding the breach of the agreements they have reached are not so.

In other words, it is important to plan and be assured that there is the ability to cover periodic fees in a timely manner. Any breach of the agreements will result in higher interest, therefore, a more expensive loan.

Student loan – what is it and what does it consist of?

Starting university education is associated with major changes in your life so far. It’s not just time that requires taking time to study intensively. It is also a cost generator – especially when it comes to moving. Students are looking for different ways to face expenditure. Is student loan a remarkable solution?

Student loan – what is it and what does it consist of?

Student loan covers a specific type of commitment that is granted by the bank to a specific group of students – university students. His role is to provide financial support to help cover various types of monthly expenses related to student life. Student loans have preferential conditions and are much more attractive than classic consumer loans.

Compared to ordinary commitments, its cost is much lower. Why? Well, the interest part of the loan is financed from the state budget. This translates into, among others for the loan repayment period. The student does not bear such high costs imposed by the bank for profit. It is worth adding that a student loan has no specific purpose . The learner has the right to spend funds on current tasks, matters related to education, housing or even can allocate cash to a savings account and investing.

Who can get a student loan?

Who can get a student loan?

As the name suggests, every person currently studying at university has the right to receive a student loan. Both public and private (private) students can count on funding . What’s more, student loan in its requirements does not distinguish between full-time, part-time and extramural students. The only requirement is to start education before the age of 25.

Student loan – what documents are required?

Student loan - what documents are required?

As with any bank commitment, a student loan must go through some necessary formalities. However, before starting the whole process, we recommend that you first call the helpline or use a chat-bot of a specific bank. Find out if it offers credit for college students . If possible, verify which documents will be necessary to submit the application. We present the most important information in this regard.

The following documents are required to submit a student loan.

  • Filling out a written loan application – after reading it, sign it legibly.
  • Certificate of family income per capita – is the basis for determining whether a student is entitled to a loan.
  • Certificate from a university – confirms that the applicant is a student and has such status. It is also worth to attach a student ID, which is an additional confirmation of student status.
  • If you have not yet started education at a given university, you should download a document proving that you took part in the recruitment carried out there. This is called certificate of studies .

Student loan applications must be submitted within a specified period of time. They are considered from July 15 to October 20 each year , i.e. in the transition period between the old and new academic year. The student has the freedom to choose the bank where he wants to get a loan. However, it is worth remembering that the group of such institutions is relatively more limited than in the case of a standard loan offer.

Lost Credit Card, Take These 5 Quick and Easy Steps

The first thing is that when you realize that the credit card is fully gone, it must be incredible panic. Just how not, the article is very vunerable to misuse by others. The particular shadow of a credit card dropping into the hands of irresponsible people will always haunt.

If the credit card drops into the wrong hands, your own limit will certainly be exhausted. While you have to swallow the loss that is paying expenses after bills due to the activities of that person. Do not need it like that?

Nicely, rather than you constantly panicking without doing anything, it might be better to do this. Launching the particular Coverage 6 page comes after five ways you can do right after losing a credit card.

Also read: Let me not really regret, know these five things before you do the BNI credit card cash withdrawal

1 . Recall the objective of traveling that day

1. Recall the purpose of traveling that day

The first thing, naturally , is that you have to remember back again where the location was stopped at. Sort by one to allow it to be easier for you to specify anyplace using the credit card as a means associated with payment.

Or even instead, it could be that the card dropped from a pants pocket. In case you trace back to the road which was passed, maybe the card remains. Visit the place again, if you can find it.

2 . Remember every deal

2. Remember every transaction

Attempt to remember again you use the bank card for any transaction. That way you are able to trace one by one, and then contact the shopping center to see when the card has fallen or even left behind.

You can even go to the merchant’s store which was last visited. Who knows, probably your credit card will be remaining there.

3. Phone the Bank

3. Phone the Bank

If the two ways over have been done but have never produced results, immediately contact the credit card issuing financial institution. Report if your credit card is definitely lost so that the bank may process the blocking.

This is certainly to prevent unwanted things from happening. Nearby report it immediately, anxiety that many transactions have been carried out by bad people communicate card.

4. Apply for a new credit card

4. Apply for a new credit card

You need to obtain a new credit card. Making a brand new credit card can be done at the aged issuing bank. You must full the registration form once again and complete the conditions of creating it. Same when you simply made it for the first time.

5. Be calm

5. Be calm

If almost everything is done calmly, everything goes smoothly. Freaked out once i found out the credit card has been lost. Especially if there have been dealings made by people who found your own card.

Yet consider this a reprimand with regard to carelessness in storing bank cards. Rather than you panic extented, it’s good to be solved slowly, calmly and thoroughly.