Month: March 2020

Works credit: assess your borrowing capacity

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Transform the garage into a studio for the older child, redo the kitchen, add a bathroom for the children ... The evolution of the family or a new financial ease allow us to consider a work credit for the house. However, this loan works, like any credit, must be repaid. Hence the importance of assessing your borrowing capacity before borrowing $ 5,000.

Evaluate your borrowing capacity for a construction loan, why?

Evaluate your borrowing capacity for a construction loan, why?

Requirements for a construction-to-permanent loan include a down payment of at least 20 percent of the estimated mortgage. While the home is being built, a homeowner only pays the interest on the outstanding balance. Private lenders may offer construction loans to qualified borrowers with a 5 to 10 percent down payment requirement. Government-backed loans are available with as little as zero down.  Construction loans are very short term, generally with a lifespan of one year or less.

Borrowing $ 1,000, or even going as far as borrowing $ 10,000, requires being able to assume the repayment of this loan every month. Especially that a work credit often turns out to be substantial. The lending institution will therefore help the borrower to assess its monthly repayment capacity based on its income and expenses. It is these monthly payments, as well as the desired loan duration, which will determine the amount of credit. The calculation of the borrowing capacity for this works credit is the starting point of the project.

How to calculate your borrowing capacity?

How to calculate your borrowing capacity?

Without being legally regulated, the limit on the debt ratio accepted by financial institutions is 33%. The debt ratio is calculated by making a ratio between the income of the borrower of the loan and the charges or other loans that he must assume. For a person who receives an income of $ 3,000 monthly and who repays a mortgage up to $ 650, the debt ratio is (650/3000) x 100 = 21.67%. He then has a borrowing capacity of 33 - 21.67 = 11.3% of his income, or $ 339. This amount is the key element in assessing the amount allocated to the work.

Also assess your borrowing capacity through a simulation for your cheap work credit.

Credit despite bad credit history or payment

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If the credit rating is poor, this makes it extremely difficult to borrow. Because then you can't just go there and take out any loan on excellent terms. Even if this is exactly what the advertising suggests. If you have a bad credit rating, you are not creditworthy and therefore very quickly stands in front of the closed doors of the banks. Because banks and savings banks only want solvent consumers as customers. No matter whether it is taking out a loan or opening an account.

Now it happens again and again that despite bad creditworthiness, a loan is absolutely necessary. Perhaps this was supposed to eliminate the debts that led to the bad credit rating. Or it should be invested in the future, so that with a better income the bad credit rating can be a thing of the past at some point.

It will not be easy

It will not be easy

However, since banks are not enthusiastic about lending a loan despite their poor credit rating, borrowers find it difficult to find good deals. There are various offers that advertise a loan despite poor creditworthiness. But usually you can assume that these are not serious and in the end only lead to the debt trap. Because mostly windy business people are behind it who only want to sell their insurance to the man or the woman and ultimately don't offer any loans at all.

It is therefore advisable not to consider such offers in the first place and much rather to ensure that a second borrower accompanies the taking up of a loan despite poor creditworthiness. This can ensure that taking out the loan is still possible at a regular bank at worthwhile conditions.

Creditworthiness that the banks want

Creditworthiness that the banks want

In the best case, the second borrower brings with it exactly the creditworthiness that the banks want for a loan. So you are always on the safe side and can choose the best loan from a pool of loan offers. Despite all of this, you should never forget that your credit rating is not good and that there are reasons for it. The loan should therefore only be taken out in spite of poor creditworthiness if it is really needed and if you can also afford the loan.

Financing a relaxing holiday with a loan is not a good plan. Summarizing debts and eliminating them in this way is a very good plan. Because it helps to take a decent path again and to have a better life in the long term. And this should always be the goal if you want to take out a loan that shouldn't actually come about due to the poor credit rating.

13,000 dollars for self-employed – from just 113 dollars

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If you want to start your own business, you have to expect costs. Offices may have to be rented. Maybe IT equipment is needed. A homepage may also have to be created. You have to advertise your new offer or company. If you have no savings, a loan is inevitable. A 13,000 dollar loan for self-employed can help. But what conditions do you have to expect?

Loan for the self-employed 13,000 USD: that's what the banks understand by that

Loan for the self-employed 13,000 USD: that

When you apply for a 13000 dollar loan for the self-employed, you need to know one thing. Banks understand this to be a special purpose loan. A loan for self-employed persons of EUR 13,000 is a commercial loan. Accordingly, you must prove that you are actually spending the money as requested. In return, however, you also get better interest rates than a free-use loan.

13,000 USD loan for self-employed: You have to expect this interest

13,000 USD loan for self-employed: You have to expect this interest

The interest on a loan for self-employed persons of 13,000 USD is very good. The best APR comes from the Bank of Scotland. It is 1.95 percent. You will receive it for all terms from 24 months (2 years) to 84 months (7 years). For twelve months (1 year) you have to expect 1.99 percent effective interest. The offer comes from Loan plus Bank.

At best, you pay 2.48 percent effectively to Salader for 96 months (8 years). For 108 months (9 years) to 144 months (12 years) term, the best annual percentage rate is 3.95 percent. It comes from extra credit.

You can see from the values ‚Äč‚Äčthat there is a great advantage in shorter terms: overall, interest rates are lower. In return, you have to live with higher rates.

Loan for self-employed 13,000 USD: Some examples of monthly payments

Loan for self-employed 13,000 USD: Some examples of monthly payments

One question should still burn under your nails. What do the above explanations about the 13,000 dollar loan actually mean for self-employed persons? What monthly installments can be expected? What should you shoulder for what duration?

At best, you would have to pay back 1094.94 USD for 12 months. You only get the best interest if you have a strong credit rating. If your credit repayment ability is weak, it can increase significantly. The rate burden drops significantly for 24 months. At best, you pay after 552.64 USD.

You may find the best offer of term and interest rate for 84 months. The best rate is 165.59 USD. Then the interest rates rise, which affects the monthly installments. For example, at best, you would pay 113.06 USD for 144 months. With the 13,000 dollar loan for self-employed, you hardly save compared to 84 months per month, but you pay significantly more interest.

Debt restructuring without Credit bureau information

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Debt restructuring without Credit bureau information, through a reputable foreign bank, can accompany the return to financial normality. The article provides more information on debt restructuring via a foreign loan without Credit bureau.

Debt restructuring without Credit bureau information - Credit bureau-free Swiss loan

Debt restructuring without Credit bureau information - Credit bureau-free Swiss loan

The arm of the Credit bureau extends very far in Germany. Almost every bank draws up information from Credit bureau when lending. Credit bureau is therefore almost “almighty” for determining creditworthiness. There is also no commercial loan provider, apart from the pawnshop, which does not report an approved loan to Credit bureau. Debt restructuring without Credit bureau information is therefore dependent on a foreign loan. This loan option is advertised primarily as a Swiss loan without Credit bureau.

Until 2009, the name actually corresponded to the country of origin of this type of loan. At that time, several direct providers were based in Switzerland. The “end” for these providers came in April 2009. The decision of the Federal Administrative Court prohibited the largest provider of Credit bureau-free loans from operating in Germany. All providers at that time lacked the banking license for cross-border lending. Only in advertising has everything stayed the same.

In 2013, Swiss credit is advertised by credit brokerage companies practically without exception. The advertising still conveys the image of different loan providers vying for customers. That is not entirely correct. As far as is known, only a single bank from Liechtenstein may legally grant Credit bureau-free loans to Germans. It is Cream bank, which was founded in 2010 especially for this purpose. The application for a debt rescheduling without Credit bureau information can be made directly at the credit bank or through an intermediary.

Borrower's requirements for debt rescheduling

Borrower

The requirements for applying for a loan and the processing times are the same for everyone. It makes no difference whether an urgent loan from a credit broker or a loan is applied for on the bank's homepage. The application via the credit intermediary is only a little more convenient, but it is also more expensive. Only dependently employed applicants have a credit opportunity. The loan is secured only through labor income. Guaranteeing or pledging a real asset does not improve credit opportunities.

Emphasis is placed on an employment contract that is unlimited, not terminated and has also been in place for at least 12 months. (Special regulation for time soldiers). The attachable portion of the monthly income is used to secure loans. He is to be ceded. The net income must therefore clearly exceed the garnishment exemption limit. There must also be no seizure of wages or existing assignment of salary. If the income is too low or is not fully transferred to the borrower's bank account, the credit request is rejected.

The credit check does not only include a look at the income situation. The public debt register is also viewed. An entry in the public debtor register also results in the loan being rejected. Interested parties who meet the above requirements can apply for one of two loan amounts for debt rescheduling.

Loan conditions for a debt-free debt rescheduling loan

Loan conditions for a debt-free debt rescheduling loan

A debt rescheduling without Credit bureau information can be requested in the amount of 3,500 USD or 5,000 USD. For the loan model with 3,500 USD Credit bureau-free credit, 11.62 percent effective annual interest is calculated. A single person without any maintenance obligations can qualify for the loan with a net income of at least 1,130 USD. The repayment is made in 40 equal monthly installments of USD 105.95 each.

If 5,000 USD are to be rescheduled debt-free, then the Spin bank charges 11.61 percent APR. The minimum income to qualify for the loan, again using the example of a single person, must be 1,600 USD net. Repayment can only be made in 40 constant monthly installments. For the rescheduling of 5,000 USD, the monthly installment is 151.35 USD.

Debt restructuring in two phases

Debt restructuring in two phases

If larger amounts are to be rescheduled, a loan without Credit bureau is usually not enough. Only one loan per applicant can be granted. The combination of both loan models is unfortunately also excluded. Nevertheless, a Liechtenstein loan proves to be a valuable start-up aid for a comprehensive debt restructuring. Due to the debt rescheduling without Credit bureau information, it is often possible to mark the active Credit bureau entry with the note "done".

If all Credit bureau entries have been declared done, the loan offers expand again noticeably. Although a "normal" loan cannot be used for three years, the offers can still be used despite Credit bureau.