Monthly Archives: February 2020

Quick non-bank loan – will everyone get it?

Non-bank loans are an offer for people who want to get extra money for various purposes. There is a perception that loans of this type are available to everyone – but is it really?

Compared to bank loans, those offered by non-bank companies have several advantages, but they also have their drawbacks. First of all, we associate them with payday loans, i.e. taken for a fairly short period – usually a month, but that’s not all. We also have installment loans that are similar to bank loans. We can then pay them back in convenient installments.

However, we must be aware that, like banks, non-bank loan companies have their specific requirements that must be met. They differ depending on where and how much and for how long you will want to borrow.

What requirements must be met to get a non-bank loan?

money

• valid ID card – one of the main requirements is having a valid ID card, so if its validity period has expired, you won’t receive a loan

• appropriate age – loan companies often have age restrictions, for example, a loan can be obtained by a person between 21 and 65 years old

• living in Poland – we can apply for a loan if we have an address in Poland

• adequate creditworthiness – although there is a perception that anyone, even the unemployed and in debt, can get a non-bank loan, it is not always possible – adequate creditworthiness is necessary

• positive credit history – recorded in BIK and other databases, allows to determine creditworthiness, when we had problems with repayment of installments in the past, we can be refused when applying for a non-bank loan

• bank account – when we want to take an online loan, we will need a bank account, preferably with online access to be able to make a verification transfer from it – we cannot then use the account of another person (some loan companies also use other verification methods)

• mobile phone – you need to verify your identity

These are the main requirements that we must meet when applying for a non-bank loan.

However, it is worth remembering that each company and in this respect slightly different requirements – the conditions for obtaining a loan together with the process of its receipt can most often be found on the websites of loan companies.

Loans on even lighter terms

money and calculator

As we mentioned earlier, in order to obtain a non-bank loan, we usually need an adequate, documented and stable income, for example from an employment contract, disability pension, retirement pension. In addition, we need a positive credit history – we cannot be listed in the debtor’s register.

However, there are loans granted by non-bank companies that do not require us to meet these requirements.

They are often referred to as a proof loan and a loan without BIK. We can also go to the pawnshop for money – then we must have a property that we can pledge.

However, such loans are associated with higher risk and higher costs, so it’s best to think about whether it is worth taking them.

Where can I get a loan to a pensioner? And can it be done at all?

As the analysis of product lines shows, the loan to pensioners has been in high demand in some Russian banks in recent years. However, it is not that easy to take. The bankers themselves admit that the customer category mentioned is one of the most conscientious and binding.

Finance institutions were loaning to a retiree is not that difficult

cash

Incidentally, employees of apartment offices could say the same thing. If, of course, it occurred to someone to ask them.  Next, let’s look at a few loan and finance institutions where loaning to a retiree is not that difficult. The particular age of this customer group and the modest amount of income naturally force lenders to be very careful.

It must also be added that the specified programs do not belong to the universal category. That said, we’re not going to go into detail about what kind of loan can be granted to a pensioner at Sberbank (a consumer who only has to be repaid after 75 years).
 So, the first to offer a loan to a pensioner was Sovcombank.

His program provides that a Russian citizen can apply for a loan that can be repaid in full up to the age of 85. The maximum amount is 250 thousand USD (or less). Interest rate – 28% per year. This proposal can benefit both working and non-working pensioners (for old age, for people who left early).

Express Pension program

Express Pension program

You can also use the Express Pension program: up to 30 thousand USD at 33% a year. All you need is a civil passport.  Even a loan to a pensioner can give an agricultural bank. A special program provides loans for up to 100 thousand USD. And he only pays 15% a year for using the customer.

The program conditions (otherwise called “Pension Credit”) stipulate that a positive decision by the credit committee is only possible if the guarantor or co-borrower is involved in the transaction. Alternatively, you can deposit a liquid deposit.

In addition to the organizations mentioned, the pensioner is offered a loan as follows:

• Fast Bank – up to 200,000 USD at 26-35% a year. You must confirm the income or provide a certificate of the amount of the pension received.
• Honest Bank – up to 250,000 USD at 26% a year (and above). You need a pension certificate and a civil passport.
• Thrift Bank – up to 100,000 USD at 17% -21.5% annually Without doing a guarantee, it won’t work here. The bank also requires a passport, a pension certificate, and a pension certificate (or 2-NDFL if the customer is currently working).
• Cash Bank – up to 100,000 or up to 200,000 USD at 20% -21% per year. In the second case, at least one guarantee is required, but not in the first. You also need confirmation of the amount of the pension.

Find free time to make a company an older relative when you visit the bank

money

The pitfalls here areas with standard credit programs. To avoid future difficulties, it’s better to find free time to make a company an older relative when you visit the bank. And you shouldn’t just go, but with the goal of becoming a guarantor. This reduces the risk of refusing to issue and hopes for a lower interest rate.

How to prevent over indebtedness credit?

The number of over-indebted households in Germany is still at a consistently high level. Unemployment has decreased slightly and the number of insolvency openings has decreased compared to previous years. Nevertheless, given 3.36 million over-indebted households, it is a persistent mass phenomenon.

Over-indebtedness

cash

This is the result of the representative study “First results of over-indebtedness statistics” by GISTA, science magazine of the Federal Statistical Office, issue 2/2016. In the context of the 2015 overindebtedness statistics, 410 of the 1,400 debt counseling centers in Germany were examined and data from around 103,000 advised persons were evaluated and extrapolated.

According to the study, the main reason for overindebtedness is the loss of a job. Almost 20% of those who received debt advice in 2015 experienced financial difficulties as a result of unemployment.

Unplanned changes in life circumstances such as separation, divorce or death of the partner as well as health problems, such as addiction or accident, are among the most common causes of overindebtedness. The average level of overindebtedness in Germany is USD 34,368.

Debt is not the same as over-indebtedness

money

Debt is not the same as over-indebtedness. While there is talk of debt even with the smallest installment loan, one only speaks of overindebtedness when the debtor is no longer able to meet the payment claims with his income and assets.

Once you have landed in the debt trap, you can usually no longer find out without external help. Private bankruptcy often occurs. Therefore, consumers should not let it get this far and prevent overindebtedness in good time.

We have summarized the most important tips:

money

  • If you have a relatively low income or already have to pay a number of liabilities from existing loans every month, you shouldn’t act hastily, but first, get an overview of your income and expenses. A household book can be a useful help here. Anyone who conscientiously maintains their income and expenses over a period of at least 12 months always keeps an eye on their finances. The numbers can be used to determine exactly whether and to what extent you can afford a new loan. This requires a bit of discipline at first but quickly pays off.
  • Indirectly, keeping a household book forces you to take a closer look at the expenditure page and to ask whether some expenditure is necessary for the amount or at all. For example, old contracts with telecommunications or electricity providers are often expensive and do not include better services. Switching providers can often result in enormous savings. This financial scope can now be used by consumers to pay the installments for a new loan.
  • Debt rescheduling can also save considerable amounts of old loans. By combining several old loans into a cheaper debt rescheduling loan, the monthly rate can be significantly reduced. Another positive side effect: The fact that only one monthly payment is debited gives you a better overview and control over your credit liabilities.
  • Consumers should be well informed before taking out a new loan and should not sign the best offer straight away. A comparison of different providers based on the effective interest rate is advisable and sensible in any case. Credit comparison sites on the Internet provide a good overview of various offers and provide an initial orientation in the search for the right loan. Get free advice if you are unsure or have any questions. Good Credit cooperates with a large number of partner banks and is able to determine exactly the right offer for you.
  • If despite the reduced expenditure, the income is still not sufficient to cover additional financing needs, it should be checked whether it is possible to screw on the revenue side. It doesn’t always have to be a side job. For example, if the children are out of the house, owners of an apartment or house can also consider renting premises to increase regular income.
  • In principle, consumers should first check whether an additional loan is always necessary. Sometimes consumers resort to cheap financing offers from banks for convenience, although the sale of technology that is no longer used, inherited jewelry, or second and third-party vehicles could easily have met the money requirement.
  • Perhaps the most difficult factor to prevent over-indebtedness is to control his desire to buy or not to be tempted by “decoy” offers to excessive consumption. Cleverly designed and designed advertising or limited promotions in retail try to encourage consumers to buy using 0% financing. Even if such offers sound good at first glance and buyers are supposed to get the interest on the loan, they shouldn’t make rash decisions. Free financing is often included in the purchase price or is actually just a slightly different form of advertising budget.
  • The easiest way to get a loan is to just overdraw your account, many think. Bank customers do not even have to make a separate application for this. However, the overdraft facility is tricky. Because those who overdraw their accounts often do not think at the moment that the expenditure in the following month would have to be all the lower in order to be able to compensate for the overdraft facility. However, monthly expenses often remain at a consistently high level or even increase. At some point, you end up in a permanent minus. The interest rate on an overdraft facility is usually many times higher than that of a normal installment loan. It is therefore urgent to avoid overdrawing your checking account permanently. It is better to replace the overdraft facility with a cheap installment loan.
  • Usually, banks request the Schufa score when applying for a loan in order to find out the creditworthiness of the applicant and thus to be able to correctly estimate the probability of default. However, it is not uncommon for stored data at Schufa to be out of date and therefore incorrect. In case of doubt, it could happen that an applicant’s creditworthiness is wrongly classified as too bad and the interest rate is unjustifiably higher or even rejected. Consumers who are planning to apply for a loan in the near future should therefore definitely obtain free Schufa information beforehand. This gives you an overview of the data stored at Schufa and can be used to correct or delete incorrect data.
  • Should a payment default actually occur on a current loan, the person concerned should not remain passive and sit out the matter wordlessly, but instead go proactively to the bank and seek the conversation. As a rule, creditors are always interested in finding a solution together with the borrower. For example, a break in payments or a reduction in monthly payments by extending the term can be a viable option for everyone involved.
  • If an extension of the term or installment break is no longer a way out, consumers should not be afraid to go to debt counseling. Those who get help from professionals in good time have a good chance of getting their finances under control again. In any case, the goal should be to avoid personal bankruptcy.