Uncategorized

Contracting a Personal payday loan is a commitment that requires real support from the credit agency. In practice, there is no concept of associate advice from the person who grants you a Personal payday loan. However, it is advisable to make the arrangements with the family to then assume the refund. But what to finance with a Personal payday loan (which is also called consumer credit)?

Many borrowers use the Personal payday loan to finance works, to finance travel projects, study financing or vehicle for example. In front of them, banks and insurance companies can generally meet these needs. For example, a general insurer that does not have a real estate loan delegation can generally finance small consumer loans, this time without the need to delegate the signature of the contract to its head office or company.

 

What rate for consumer credit?

Consumer credit rates are higher than for the real estate market. In general, and although current rates are particularly low, expect to obtain from the same bank or insurer a figure between two and three percent. The advantage of this type of approach with your banking organization is that you can hope to negotiate this overall rate (and even the borrower insurance that goes with it) according to your seniority in the institution.

Regarding filing fees , seniority also pays because your banker can agree to reduce them drastically compared to a new client or member. Some banks such as Banque Populaire (in association with Casden as well), Directmoney Credit or Daisy Credit favor the loyalty of their customers by becoming a member at home.

These fees can, therefore, be about 100 euros or less in some cases that we will discuss later in this blog. Anyway, build a solid file to submit your application.

 

The Personal payday loan application file

Gathering documents at your home before an interview with your banker is a great idea. In practice, the simple constitution of these documents allows the first appointment to have an agreement. Nearly half of households in France have a credit in progress. We must stand out with a well-constituted and thoughtful financing plan. This largely determines the acceptance by a funding agency. You will need:

• A valid identity card,
• Proof of address,
• From your account statements (the last three if you are already a customer, at least the last six months if you are new to the lender),
• Pay slips and all of your income to study borrowing capacity,
• the marriage contract if you have one and the family record book,
• valid but unsigned specifications of the work or the car if you wish to purchase a vehicle. (It’s better but not necessarily useful for a consumer loan).

Regarding the bank fees , it is possible that you are asked to finance them at the appointment (in case of acceptance). For an appointment with a new bank, the creation of an account, or even the repatriation of your bank accounts under the new sign may be required. A bank does not have to justify the reasons for refusing to finance a bank loan.

 

The 14 day period shortened?

If you are about to sign a consumer credit with your bank, this period of reflection and retraction can be reduced by signing a discharge with the banker. Moreover, some financial organizations highlight and promote the fact that they can guarantee the deposit of money into your account after eight working days.

Note that the banker will not take security on this type of loan. The advantage granted on the guarantee makes it possible to consider obtaining a consumer loan that is sometimes cheaper than a conventional real estate loan, since this reduces the total cost of credit by the same amount, ie all the expenses borne by the lender. The borrower on the total duration of his credit. In fact, it is not just a matter of looking at the interest rate but also of the insurance costs, the fees and the required guarantee (for other loans than personal ones).

You are looking for a good and free checking account, possibly even with start credit? Then you will quickly realize that there are a great many offers on the financial market.

As known from the free economy, competition is greatest when supply exceeds demand. Due to the many different direct and branch banks, the financial houses court potential new customers with tempting offers for their new checking account.

These can be start credits or additional rewards. No matter what priorities your checking account has to meet: carefully compare the offers in your search for a checking account so that you do not pay more than necessary.

Starting balance with a checking account

In addition to comparing which bank has the best starting balance, you should also examine the terms of the account models more closely. An extremely attractive starting balance can also be deliberately offered to distract from poor conditions such as high disbursement costs, account management fees and other costs.

Tip: Many banks have a high welcome bonus, but be sure to compare monthly fixed fees / account maintenance fees. Otherwise, the welcome bonus is quickly used up.

For this reason, you should always consider the full range of the bank and not just consider individual aspects.

Which checking account offers start credit?

How much a bank is willing to give you to start credit when opening a checking account varies from bank to bank. The granted start credit also depends on individual actions of the financial institutions. If you open your checking account with a bank during a promotional period, you can be lucky and benefit from a 50% higher starting balance. In the reverse case, but also the bad luck, that the bank has reduced the bonus in terms of starting balance with the matching current account for you. To give you an overview, we have summarized for you various current account models with start credit (as of mid-2015):

Data theft happens more often than it seems at first glance. In 2014, 145 million eBay accounts were affected. At the end of 2016, Yahoo admitted a massive hack of more than 1 billion user accounts. Protect yourself against card misuse – the prepaid credit card is a great choice for online shoppers.

What you should look for in a current account with start credit

At first glance, the cash bonus for opening the checking account is very tempting. One of the most important criteria, however, should be the permanent exemption from fees. If you pay an account maintenance fee or transaction fee on a monthly basis, the checking account will cost you far more in the long run than you have received on start up credit.

Attention: You should also pay particular attention to the details that the bank has set for this starting balance. When opening a current account, it is often overlooked that the bonus will only be paid to the checking account after a certain period of time. Four months and more are not uncommon.

Another requirement for the payment of the starting balance is an active account usage. This means for you that you have to make a certain number of transactions, which often involves a bank-determined level of revenue. Transactions include cash in and out, ATM withdrawals, wire transfers or direct debits.

Another condition that all major banks require is regular cash in the checking account. Here, the financial service providers differ only on the duration of the cash receipts.

While some banks are satisfied with two cash receipts in a row on the checking account, other banks want to see a receipt of money three or four months.

In addition, the total amount of these cash receipts reaches a fixed level. That can be 500 euros per month, but often 1,000 euros, sometimes 1,200 euros are required. There are usually exceptions for federal aid-related students, for whom proof of a lower minimum entrance fee is sufficient to open a checking account.

When is a change worthwhile?

Of course, when you open a checking account for the first time, this question will not arise for you. However, if you have a checking account, then this question is entirely justified. Normally a change of the account is avoided. It’s not because opening a giro account would be a complicated process. This can be done online today with just a few clicks or going to the post office.

The effort in the aftermath, however, is quite high. Standing orders have to be renewed, financial partners must be informed and the employer must be notified of the new account details. For this reason, many hesitate with the opening of a new account.

Recommended: Basically, one can say that a comparison is always worthwhile if you pay for your existing account maintenance fees. The number of toll-free deals is large enough that you can usually find a matching and free account. Start credit, which you get as a new customer, then serves as an additional decision support.

Savings and mortgage rates are historically low, but why don’t you notice this when you have a loan? Credit interest rates have fallen in recent years, but much less rapidly than the rates for savings and mortgages. How come you still paid so much for your loan? And will it be less in the coming years?

Development of credit interest since 2008

People still choose a too expensive loan!
You probably too. By first comparing well, you can easily find the cheapest lender. Borrow cheap money.

The 2008-2009 period was mainly dominated by the financial crisis. Many people lost their jobs or were unable to pay their loans for other reasons. When providing new loans, the banks were therefore exposed to considerable risk. That’s why they asked high interest rates. For a personal loan or revolving credit of 10,000 euros you quickly paid 9 to 11 percent loan interest.

Lending rates remained high until 2013

Credit rates fell in the years up to 2013. The banks themselves had to pay less and less to borrow money from investors and central banks. This advantage was also reflected in the interest that you paid for a loan. But again not completely … Banks were not waiting for loans. After the crisis, the people were faced with stricter rules. For example, the banks had to keep more and more money in cash compared to the loans they provided. That is why they kept the interest rates relatively high.

Credit interest rates are also finally falling

In the years 2013/2014, borrowing finally became cheaper. The new capital requirements had been fully processed by the banks and the economy was slowly recovering. As a result, the banks dared to considerably lower the interest rates for personal loans and revolving loans.

In addition, new online lenders came on the market asking for lower interest rates for personal loans and revolving loans. This forced the other banks and lenders to lower their interest rates.

Development of credit interest rates stable since 2016

From mid-2016 it seems quiet. The loan rates will remain at the same level from then on. You pay around 6 to 6.5 percent interest for a personal loan or revolving credit.

Expectation of credit interest rates 2018

We expect you to continue paying approximately the same interest rates in 2018 for a personal loan or revolving credit. The rates at which banks and lenders themselves borrow from investors and central banks remain at the same low level. There is no reason for banks to raise lending rates.

Perhaps the borrowing rates are going down even a little bit. The economy is growing, unemployment is falling and the outlook is positive. As a result, lending money is less risky for banks and the risk premiums that loan providers include in their interest rates can be reduced.

Save or invest? They represent options with positive results that converge on the same purpose and is nothing more than helping you achieve your goals and dreams.

Which to choose? Everything will depend on your short, medium and long term goals. The truth is that before deciding on an option, you must evaluate and thoroughly know certain aspects. If you want to know what it is, do not miss this reading.

Why is it important to save?

Basically everything starts here, even if in the end you decide that yours are the investments, since most of the cases of those who invest, first generated a saving of certain capital.

There are those who affirm that saving does not generate any profitability. This could be somewhat true if what is saved only goes to spending and not to the search for a plan that increases the value of money.

Saving is closely linked to the ability to invest, since without this the investment opportunity is practically nil. That is, the more you save, the greater the chances of multiplying that money, placing it in an instrument that generates profitability in a given time.

Saving is about periodically setting aside or saving a certain amount of money. Normally it is recommended to allocate at least 10% of our income, however this percentage may vary upwards depending on your salary, needs and lifestyle.

Saving is convenient for you, especially if your financial goals are planned to be achieved in the short term, or if you need to have an amount immediately.

You may be interested: Why have a savings account? Main benefits

What are the short-term examples of which we speak?

Buy a new cell phone

Take a trip

Take a diploma

Acquire health insurance

Change of house

These are good reasons to save . Putting this habit into practice will help you keep your finances healthy and allow you to have money available for an emergency or unforeseen without having to incur new debts.

What benefits do you get for investing?

Investing also has broad benefits, especially if your goal is to grow and multiply your capital in the long term. You should know that in the fascinating world of investments there are plenty of alternatives to increase your money, so you will have many options to diversify your investment.

Who can invest ? Any person with a capital and wanting to develop can do so, even if his trade is contrary to the world of finance.

However, there is no doubt that the ideal would be for you to prepare and acquire knowledge about the specific area in which you wish to invest. Another thing that you should keep in mind is your investor profile, if you are looking for low or high risk investments.

You may be interested: practical guide to financial skills for non-financial

Why invest ? The answer varies from one person to another, from one goal to another. For example, there are those who invest only to generate wealth, others to ensure a decent retirement, others to create businesses and others to guarantee the future of their children.

Among the most prominent options in the world of investments are:

• Actions
• Estate
• Raw Materials
• Cryptocurrencies
• Bonds

To launch into the financial markets, it is not only recommended that you have some knowledge in the field, the best thing to do is to complement it with good advice.

In the same way we suggest that when you invest you do it with institutions certified and regulated by the corresponding agencies, so that your money is protected from possible scams or fraud.

Regardless of the instrument you choose to invest, you must be clear that everyone has a level of risk, no market is exempt from possible losses and everyone has a different return.

Which one suits you best?

From a very young age we are hearing from our family about the importance of saving , but very rarely about the advantages of investing. When we reach a certain age and we have a notion of each alternative, the big question arises, which one suits me best?

The answer seems complicated, however it is not. Ideally, there should be a balance between both actions. Look at it this way, the more you save, the more opportunities you have to invest . And if you have reached a good level of savings, why not make it grow?

Another important point that you should analyze before any decision is your financial situation. If you have accumulated debts, if you have trouble reaching the end of the month. So the first thing is to implement a plan that allows you to clean up your personal finances, and then be free to choose what to do with your money in the short, medium and long term.

As we mentioned above, both have their advantages separately. But if you put the two into practice, the benefits will be greater. Without a doubt, it will improve your standard of living and you will be guaranteeing a stable future for you and your loved ones.

conclusion

Before making a final decision between saving or investing, it is essential that you have clear both concepts, as well as the scope and advantages of each. Once all these points have been clarified, it will be easier to know which one suits your lifestyle and your goals.

The important thing is that regardless of the step you take, do it with responsibility, do it well, get advice from professionals, carefully analyze what you want and never act on impulse. Uncontrolled emotions can have fatal consequences for your personal finances and it is not worth putting your stability at risk.

Saving or investing is a very personal matter, but whatever your choice, you should know that your life in general will surely benefit in many ways. It is in your hands to give your money the best destination.

The credit card with own checking account / bank account

Many banks also offer a new credit card to new customers with the opening of a checking account. These are usually the credit cards of MasterCard and Visa, which offer their products according to the principle of association via banks. With the credit card with checking account, the opened account is used at the same time as a reference account from which all expenses incurred via the credit card are withdrawn. For customers, the credit card with checking account can offer some advantages. As a rule, they have the same contact person for both financial products and can also keep an eye on their credit card sales with a look at their checking account.

Charge-Card in combination with checking account

Most often, the checking account is combined with a so-called charge card. Depending on the credit rating, the banks provide the customer with an interest-free credit line that they can use at their discretion over the course of a month. At the end of the month, the customer receives the billing and the transactions are debited from the checking account in an amount.

Real credit card with checking account

Compared to the charge card, the customer receives a special type of installment credit with a classic credit card, which does not have to be repaid at the end of each month. As with the charge card, the customer is provided with a credit-related credit facility that he can exploit as needed. At the end of the month, the customer must repay installments of between 5 and 50 percent of the loan amount. The banks also allow their customers to make special payments at any time. One disadvantage of the so-called revolving credit card, however, are the high interest rates that are calculated after the expiration of four weeks on the outstanding amount. They ensure that the risk of over-indebtedness in this form of credit card with current account is particularly great.

Debit card with checking account

If you want to play it safe, you can combine your checking account with a debit card. Unlike the charge card or traditional credit card, the debit card does not provide real credit. However, with the ability to pay cashless almost anywhere, it includes the basic function of a credit card. The biggest difference compared to a charge card and a credit card with checking account is the method of billing: The transactions made with the debit card are paid directly by the current account. The risk of debt usually does not exist, because only with the debit card can be paid if money is in the checking account.

Prepaid card with checking account

For job seekers, students, recipients of Hartz IV benefits and persons with negative private credit bureau, banks usually do not offer a credit card with current account. An alternative, however, may be the prepaid credit card. It combines the basic features of a true credit card with full cost control. In order for the prepaid credit card to be used for payments, money must first be transferred from the checking account to the card. If there is no money on the card, the prepaid card will not work. This limits the possible damage caused by theft or loss of the card.

Interest is subject to withholding tax

Investors of overnight money will ask yourself in which amount your interest on the call money account must be taxed. Interest is a capital gain, which since 01.01. 2009 are subject to withholding tax. This tax replaced the previous capital gains tax and amounts to a flat rate of 25 percent.

Added to this are the solidarity surcharge and church tax (for non-denominational investors). However, the legislator has set a tax exemption up to a certain amount with the saver’s lump sum.

Exemption order for final withholding tax

Single and married people have the opportunity to claim the saver lump sum amounting to 801 (singles) or 1,602 euros (couples). This lump sum covers everything and must be applied for at the bank via an exemption order.

The exemption application then applies to all current as well as overnight and term money accounts at a bank or savings bank and also to accounts at other financial institutions. However, interest income and capital gains above this flat rate must then be fully taxed.

Non-assessment Certificate instead of exemption order

Low-income earners also have the option to use the basic allowance of 8,820 euros for single persons and 17,640 euros for married couples. For this, a non-assessment certificate with proof of salary must be requested from the responsible tax office.

All interest income above this limit is tax-exempt. Otherwise, there is only the possibility of reclaiming overpaid taxes via the annual income tax return. In order to do so, you must enter your entries and taxes in the form “Capital incomes” in short: KAP.

Conclusion The exemption application for the final withholding tax can be issued by your bank or insurance company.

With the non-binding construction financing comparison in your own 4 walls

The dream of one’s own home is present with many people, with the help of a real estate financing this should no longer be a dream. But only very few can fulfill this dream right away without any financial support. For all others, the question of financing is at first in the foreground.

How much property can I afford?

Before any real estate financing is the question of the type and size of the property, which in turn usually depends on how much the loan amount. This should be calculated realistically: Face monthly exceptions and exceptions, including not only all fixed costs, but also a small cushion for unpredictable expenses such as a broken washing machine, a broken car or the like. After subtracting these costs from the total revenues, there remains a surplus, which forms the basis for the calculation of the loan amount. Also included is the equity that can be used to build or buy real estate.

Prepare for the bank conversation

Experts recommend that prospective homeowners, after identifying the loan amount, prepare carefully for discussions with the bank employee responsible. Do not forget that the bank – and therefore all its employees – is interested in selling lucrative financial products. However, these do not necessarily have to be the best product for you. But with good preparation, you are well equipped to successfully start the right real estate financing. It is essential to calculate the amount of equity that you would like to use to finance the property. The rule of thumb for most banks is that at least 10% of the loan should be equity backed, but the more there is, the better.

Fixed interest rates for real estate financing

In times of low interest rates, you should press for the favorable interest rate to be fixed for as long as possible, preferably until the end of the loan term. What is beneficial for you as a consumer costs the banks money, which is why they usually do not offer fixed interest rates on their own. Therefore, become active yourself and bring this possibility into play – including your concrete ideas.

Repayment and special repayments

When planning real estate financing, keep in mind the amount of the repayment, ie the portion of the loan installment that reduces the residual debt and is not an interest payment. Basically, the higher the rate of repayment, the faster a loan can be repaid. But always stay realistic and do not run the risk of agreeing to overpayment that you can no longer afford at some point. Regardless, you should be aware that there is a possibility for special repayments. For example, if you have an inheritance, a significantly higher income or a lottery win by changing your employer, you can use a special repayment to repay your loan earlier. Inform yourself about the respective conditions of your bank.