Uncategorized – commonfolkusingcommonsense.com / My WordPress Blog Sat, 11 Apr 2020 12:00:53 +0000 en-US hourly 1 https://wordpress.org/?v=5.6 What is a real estate bridge loan? /what-is-a-real-estate-bridge-loan/ /what-is-a-real-estate-bridge-loan/#respond Sat, 11 Apr 2020 12:00:53 +0000 http://www.commonfolkusingcommonsense.com/what-is-a-real-estate-bridge-loan/

The bridging loan is a limited-term loan to finance a new acquisition before having sold your property.

Operation of the real estate bridging loan

Operation of the real estate bridging loan

It is a loan that allows you to obtain a partial advance on the sale of real estate occupied by the person who requests it. This credit will make it possible to make the “relay” between the current property and the acquisition of the new property. It is a credit with limited duration, between 1 year and 2 years, this credit must then be obligatorily repaid, even if the borrower has not succeeded in reselling his first property.

The bridging loan does not provide for any amortization or even any repayment of capital before the resale of the property, only interest will be payable. In other words, upon acceptance and debugging of the funds, the borrower will reimburse monthly payments consisting only of interest, the amortization will not be recorded until the transfer has been made or the bridging loan comes to an end. As soon as the property has been sold, the borrower repays the interest and the capital.

Limited amount: the amount of the bridge loan will be limited, in general it is not possible to go beyond 80% of the value of the property put up for sale. The bank will be based on the profile of the borrower but also on important elements such as in particular the signing of a sales agreement with a buyer.

The different types of bridging loans

The different types of bridging loans

There are essentially two types of bridging loans: the dry bridging loan and the back-to-back (or combined) bridging loan. Generally, it is the back-to-back bridging loan that is most common in the buy / sell market.

The dry relay loan

This type of financing will be offered when the purchase price of the new property is lower than the price of the old one. The borrower therefore does not need to apply for other financing and can repay the bridging loan when reselling the property.

The back-to-back loan (or twinned)

This type of credit will be associated with a conventional mortgage and will apply when the purchase amount of the new property is greater than the old one. The bank grants a bridging loan and completes the necessary amount with a repayable loan. In this case, the borrower reimburses a monthly payment consisting of the repayable home loan and interest on the bridging loan.

The rates charged for bridging loans will depend on the current conditions of the banks and in particular on the key rates. A request for information can make it possible to obtain a rate estimate.

Advantages and disadvantages of the bridging loan

Advantages and disadvantages of the bridging loan

As with any loan, there are risks and opportunities to be grasped when applying for a bridging loan, so you must be aware of the advantages and disadvantages before taking out a bridging loan contract.


  • Have a maximum period of 24 months to resell a property
  • Not having to accumulate two loans and being able to settle the bridging loan without compensation for early repayment
  • Being able to buy new real estate more easily


  • The rates are often higher than on conventional mortgage
  • Increase in the amount of interest to be repaid over time
  • Mandatory refund, even if the resale has not taken place
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Check before you sign! – Rules for taking out safe loans /check-before-you-sign-rules-for-taking-out-safe-loans/ /check-before-you-sign-rules-for-taking-out-safe-loans/#respond Fri, 27 Mar 2020 12:34:20 +0000 http://www.commonfolkusingcommonsense.com/check-before-you-sign-rules-for-taking-out-safe-loans/

Without BIK, the cheapest, without fees – these slogans probably do not work with as recently.

They are not a magnet that attracts those in need of quick cash

They are not a magnet that attracts those in need of quick cash

Among some, it arouses rather extreme emotions, especially in the case of those who have an adventurous journey behind them. Unfortunately, information about the practices used by lending companies is not as common as overwhelming advertising encouraging to take out loans. Many financial institutions supervising the market receive numerous reports, which I warn against the dishonest tricks of some companies that offer “moments”.

UOKiK research has shown that most companies use illegal practices when advertising their financial products. At the same time, he uses false information, which misleads millions of Poles. Such practices are commonly used, not only in television commercials, but also in advertisements at bus stops, on the Internet, newspapers or roadside poles. All over the world, posters, billboards and leaflets flood us with catchy slogans – quick and cheap loans. The scale of the phenomenon is so great that only our own caution and prudence can take care of our financial security and you can’t be fooled. Don’t fall for it!

Social action, under the slogan – “Don’t be fooled. Check before you sign ‘started at the end of last year. The campaign is supported by: Polish Financial Supervision Authority, Police, Office of Competition and Consumer Protection, Ministry of Justice, Bank Guarantee Fund, Ministry of Finance, Capital Lender.

The campaign shows how to avoid signing a contract that is unfavorable to us in four safe steps

loan contract


You need to check the company in which we are considering taking out a loan, get acquainted with the necessary data to be able to calculate how much the whole commitment will cost us ; read the contract carefully as it is an important document in the event of any claims being raised by the lender. And never sign a contract if anything seems unclear to us! �

To avoid the unwanted effects of borrowing:

Check the company!

The website of the Polish Financial Supervision Authority provides valuable information. You can find a list of companies over which the Commission oversees. The list of reliable companies is also included in the campaign website – www.zanim-podpiszesz.pl. Good preparation for finding a reliable loan company should include, among others checking if the company is listed on these lists.

Calculate the total cost of the loan

Calculate the total cost of the loan

Request specific and comprehensive information on the amount you will have to pay back. Many companies hide the total costs, which is associated with the subsequent borrower’s disappointment. If a company representative is reluctant to provide information on the actual annual interest rate and the total amount to be repaid, you can calculate the cost of the loan yourself using the calculator.

Read the contract!


We still repent for reproducing the same mistakes – we don’t read the contracts! If you have to sign the contract, read it once, a second and even a third time so that you do not miss anything that could additionally burden you financially. If an employee of the company does not help you to resolve any doubts related to the provisions of the contract, please ask a person who knows this to ask for clarification.

You don’t understand – don’t sign!

Accept the rule: I don’t understand – I don’t sign. If you cannot get comprehensive information or if you can see that a company employee is concealing something, it means that taking out loans here can be costly and not the end is clear. It is better, therefore, to refrain from signing any documents and look for other places where you can borrow money safely and advantageously. and a very expensive commitment

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Make sure that the monthly repayment rates of the loan are not too high /make-sure-that-the-monthly-repayment-rates-of-the-loan-are-not-too-high/ /make-sure-that-the-monthly-repayment-rates-of-the-loan-are-not-too-high/#respond Mon, 02 Mar 2020 12:27:05 +0000 http://www.commonfolkusingcommonsense.com/make-sure-that-the-monthly-repayment-rates-of-the-loan-are-not-too-high/

What you should consider with online credit with poor credit rating

What you should consider with online credit with poor credit rating

Above all, as a borrower, do not expect more than your current financial situation allows. Last but not least, good financing depends on low interest rates and good conditions. If the loan is sufficiently adaptable, you will have fewer difficulties in repaying it. This includes installment breaks for one or more months as well as special repayments at no additional cost. If all of these things apply, you can rightly speak of viable online credit with poor credit rating.

However, please note a few things so that nothing is put in the way of your financing as a pensioner, student, self-employed, trainee, unemployed or employee:

1. Only take up as much money as you really need

In general, the basic principle applies: The necessary funds must be measured as precisely as possible when planning with regard to the topic of online credit with poor creditworthiness. It is therefore an absolute must to prepare the expenses in advance so that you do not experience any unpleasant surprises afterwards. Taking a small buffer into account would undoubtedly not be wrong. On the other hand, an excessively large cushion would disproportionately increase liabilities. As a result, it is sensible not to raise more funds than are needed. The better solution is to supplement the underpriced need for funds with follow-up financing in the form of follow-up or top-up financing.

2. Establish a structured plan of your finances

The first step in a project is to realistically assess its financial situation and then calculate the amount of the loan. Ultimately, this also does not apply to the topic of online credit with poor credit ratings. A precise weekly schedule of your own costs can help, for example: How much money is spent every day on what things? So that no hidden amounts are overlooked, small expenses such as morning coffee at the bakery or after-work beer in the pub should also be taken into account. Such a statement of costs helps on the one hand to estimate the optimal repayment rate fairly precisely and on the other hand it can be used to assess where there is still potential for savings.

3. Be careful and accurate

With all information about your own financial situation and creditworthiness, it is important to be correct, honest and precise – especially with the topic of online credit with bad creditworthiness, with all information about your creditworthiness and your own financial situation carefully, accurately and absolutely honestly. Compile all required documents and evidence conscientiously. An accurate and serious presentation of your own finances is therefore possible, which has no doubt a positive effect on your chances of obtaining an express or instant loan.

How reputable intermediaries work

How reputable intermediaries work

In principle, the main service of an intermediary is to support you in your search for a suitable “loan without Credit Bureau”. However, the help offered does not only extend to pure mediation. In some cases, it also includes comprehensive debt counseling. A reputable broker will advise you on the financing offer, show you the advantages and disadvantages and will help you to compile the documents for the loan despite Credit Bureau application.

Advantages and disadvantages of mediation


  • Extensive advice before submitting the application
  • Help with the compilation of the application documents
  • Contacts with lesser known financial institutions and banks
  • Help with arguments in the case of problematic personal circumstances or large amounts of funding
  • Good chances of favorable conditions
  • Brokerage even with poor credit ratings


  • Dubious offers are not always immediately recognizable
  • Risk of obtaining overpriced loans
  • Possible costs for obtaining credit

The article Uncomplicated Instant Loan is also worth reading

Small financial institutions often offer more favorable conditions for online credit with poor credit ratings than the large, established banks. As a result, many intermediaries endeavor to do business with such lesser-known institutions. Even negotiations in complicated cases are easily possible. At small banks, the creditworthiness of an applicant is mostly checked manually, so that the intermediary can credibly explain an unfavorable Credit Bureau entry, for example. In this way, such an entry in the creditworthiness check is not as important as at a large bank, where such a procedure is largely automated. Such a loan application for online credit with poor creditworthiness would have absolutely no chance at an established bank.

This is how you can distinguish serious from dubious credit intermediaries

This is how you can distinguish serious from dubious credit intermediaries

A broker who is reputable will always act in your interest when it comes to online credit with poor credit rating. Since the intermediary receives his commission from the bank, you usually do not incur any costs or other payments.

Four characteristics by which you can recognize a reputable credit broker:

  • When you call, someone is actually available who makes a competent impression
  • You will receive specific information on the loan amount, terms, debit and effective interest
  • You do not pay any fees for arranging a loan
  • The company has an Internet presence including address, contact options and imprint

This is how you recognize a dubious mediator

  • Financing depends on taking out residual debt insurance
  • Offers in the form of a financial restructuring
  • Unannounced acquisition at home
  • Payment of a fee regardless of the conclusion of the contract, but only for advice
  • Sending the documents cash on delivery
  • You will be promised a 100% loan approval
  • Urge to sign the agency contract
  • Calculation of additional costs or expenses

The Advantages of Foreign Institutions in Online Credit With Bad Credit

The Advantages of Foreign Institutions in Online Credit With Bad Credit

The financing of larger projects by foreign credit institutions is becoming increasingly popular. This is not just a new car or a planned vacation trip, but also {the capital for your own existence}. The Internet is becoming increasingly popular among consumers to take out loans from foreign institutions, which means that the domestic financial institution is less and less used in this regard. What speaks for a financial institution abroad are the considerably simpler guidelines for granting a loan compared to Germany. A negative Credit Bureau entry or a poor credit rating are therefore not so important when it comes to online credit with poor credit rating. In principle, such online loans are financed by Swiss banks. This is particularly interesting for those borrowers who need an injection of cash particularly quickly and have already been rejected by German banks. For example, the self-employed, students, probationary workers, unemployed, trainees or pensioners. With regard to online credit with poor creditworthiness, it is these people in particular who find it extremely difficult to obtain a loan.

The advantages of a Swiss loan

Individuals in financial need can often not get a loan. With debts or with poor creditworthiness, the chance of financing is significantly reduced. A Swiss loan can be a sensible option in such cases. This means a loan granted by a Swiss financial service provider. Credit Bureau queries are generally not carried out by such institutes, which makes it much easier to obtain the loan. With regard to the topic of online credit With poor creditworthiness, this fact can almost be described as ideal.

Obtaining a loan without checking the creditworthiness as well as various proof of income and security is clearly not possible with Swiss institutions either. If your only problem is a negative Credit Bureau entry, but your credit rating is in the green, the Swiss loan for online credit with poor credit rating would be a real opportunity.

How online credit works with bad credit rating with certainty

If you are looking for online credit with poor creditworthiness on the Internet, you may mean a “credit despite Credit Bureau” or “despite a moderate credit rating”. All renowned credit banks are now reviewing the applicant’s economic situation. Even if this is not done through the Credit Bureau, then at another credit agency.

At the largest credit agency in Germany, Credit Bureau, everyone has scoring. In the event that you are the owner of a credit card or have opened a bank account, a corresponding value has already been created for you. So you don’t get a “credit without Credit Bureau” from {a reputable financial institution}. On the other hand, what could be successful is a “loan despite Credit Bureau entry”. Fortunately, most of the entries made by consumers are positive at Credit Bureau. However, a lot of people think that they have a “negative Credit Bureau entry”

Before submitting a loan application to the bank, you should first find out what your score looks like or whether it is really so poor that your application may not be accepted. Once a year, Credit Bureau grants both private individuals and companies a free query of the “Credit Bureau Score”. Since 2010, it has been possible to obtain so-called self-disclosure to see what personal information is stored with the credit agency. According to Section 34 of the Federal Data Protection Act (BDSG), you are in principle entitled to this information free of charge, once a year. What factors contain the information that you can query at “MeineCredit Bureau”? First your personal scoring (Credit Bureauscore), but also who has made a request about you in the past few months. Your score depends on different “ratings”. These ratings can range from 1 to 100. 100 is the maximum value and conveys that the probability of failure is extremely low. A score of 50, on the other hand, means that the Credit Bureau assumes that payment problems are much more likely.

Tip: This is how you can have a negative Credit Bureau entry deleted

It can quickly happen that you don’t pay a due invoice on time. This can have various causes: You were currently in a financial bottleneck, had to move to a new address, or were on vacation at the time. Even an unpaid mobile phone bill can sooner or later lead to difficulties. It happens faster than you think. The result is that there is a bad Credit Bureau entry and it is difficult to get a loan afterwards. A reduction in the score by several reminders means that it can have consequences for the application for a loan.

However, for his protection, every consumer can have an adverse Credit Bureau entry removed. The credit agency stores considerable amounts of data. It can therefore happen that the stored information is very often incorrect or outdated. Such entries should of course be removed immediately. You can request such deletion directly from the credit agency. The condition for the removal is that the invoice does not exceed USD 2,000 and has been paid within 6 weeks.

Deletion of Credit Bureau data – your data at Credit Bureau

The Credit Bureau data will be automatically removed after a certain period of time without any action on your part. This happens for example with:

  • after 12 months for information about inquiries; This information is only transmitted to contractual partners of Credit Bureau within ten days
  • for loans, three years after the year in which the loan is fully repaid (to the day)
  • for information about outstanding claims, each after a period of three full calendar years (this means, at the end of December 31 of the third calendar year that follows the storage)
  • for claims from mail order companies, if these have now been resolved

Swiss credit – the advantages

It is often far from easy for a private individual who is in a financial emergency to obtain a loan. Financing is made considerably more difficult due to debts or poor creditworthiness. In such cases, the last option is a Swiss loan. This is a loan granted by a Swiss bank. Credit Bureau queries are basically not carried out by such institutions, which makes it considerably easier to obtain the loan. This is particularly ideal when it comes to online credit with poor credit ratings.

Obtaining a loan without checking the creditworthiness as well as various collateral and proof of income is of course also not possible with Swiss banks. If your only concern is the Credit Bureau entry, but your credit rating is okay so far, the Swiss loan for online credit with poor credit rating would be a realistic option.

What is the “APR”

For online credit with poor credit rating, the “effective annual interest rate” or “effective annual interest rate” is also decisive. What is the “annual percentage rate”? This refers to the annual interest costs for loans that are calculated using the nominal loan amount. Depending on the payout, it is specified with a fixed percentage. In contrast, an initial “effective annual interest rate” is the name for an interest rate that can change during the loan term (variable interest rate)

When financing is concluded, a fixed borrowing rate can also be set for the entire term. That means: Irrespective of the various interest rate fluctuations on the capital markets, the nominal interest rate on which the “loan” is based remains stable. The advantage here is that a fixed borrowing rate guarantees that your loan costs always remain constant. You already know that the interest rate on the “loan amount” remains unchanged throughout the credit period.

What does the loan term mean

A loan can have very different terms, most of which are defined by the loan term that the borrower chooses. In other words, the borrower has to pay smaller monthly installments if the “loan term” is longer than if he chooses a loan with a short term. As far as the loan term is concerned, it can definitely be worth considering the various options. Please note that there are only a limited selection of terms for a few loans.

The time from the payment to the complete repayment or repayment of the loan amount is called either the loan term or loan term. Strictly speaking, the duration depends on the one hand on the amount of the nominal interest rate and on the other hand on the repayment. The duration is clearly influenced primarily by the amount and the number of installments. The smaller the monthly installments, the longer it will take for the loan and thus the loan amount including any processing fees to be paid in full. If loans run for more than 120 months or longer, they are called long-term loans.

What are the loan fees

What are the loan fees

Loan fees are often also called closing fees, loan processing fees, processing commission or processing fees. These are costs that the credit bank was allowed to charge for processing the application for a loan or for a loan request. The calculation of the “loan fee” for activities related to a loan request, including checking the creditworthiness of the borrower, has been declared illegal since May 2014. Specifically explained, this means that fees for processing a loan application (on average 1 – 3 percent of the loan amount) may no longer be required since 2014. In principle, the fees already paid for the loan application or the credit request can be reclaimed.

What is a lender

What is a lender

The lender is a company or a private person who lends money to the borrower or borrower for a certain period of time at a corresponding rate of interest. In principle, the legal texts refer to the “lender”. {Other common terms} are also “creditors” or “lenders”.

For the lender, a loan is associated with a significant risk of default, which means that a higher interest rate is usually required. An insurance company, a bank or a savings bank usually acts as a lender. The BGB (Civil Code) is decisive for the rights and obligations of the borrower.

What is the monthly rate

Borrowers who have received “bad credit” loans must also repay them as individual monthly installments. The monthly rate contains an essential component – the interest rate. The index for the interest rate is based on the current market interest rates that the bank pays itself on the capital market. It then passes this interest on to the borrowers with an appropriate premium.

Another important component of the “monthly installment” of the loans is the amount of the repayment. The extent to which the borrower determines the monthly repayment largely depends on his economic circumstances. In most cases, the repayment per annum is 1 {{percent}}. If the borrower intends to repay the loan amount and thus the loan amount in a shorter period of time, he must agree a higher repayment with the bank. However, depending on the amount repayable, the monthly installments are then significantly increased.

The main factors that make up loans are interest and repayments. The processing fee of the banks and brokerage commissions of the credit intermediaries are often included in the monthly installment of financing relatively often integrated into the monthly installment. Although these costs are usually already included in the interest, they are still a criterion for the monthly installment for the total loan amount.

What is a debt rescheduling loan

A debt rescheduling loan is a loan that a person takes out in order to be able to compensate an existing loan with a high interest rate somewhat more cheaply. With such a debt rescheduling, the borrower can save money. Debt restructuring also has the advantage that it can be used to combine different loans into one. It is therefore easily possible to provide more than one loan as part of a debt restructuring. Logically, for a “debt rescheduling loan” you do not go back to the {financial institution} where you took out the first loan, but to another. There is certainly no reason not to apply for the loan for a debt rescheduling from the same bank again – of course only if the repayment terms are right this time.

The main advantage of a debt rescheduling is, therefore, that after completing your new loan you will have less financial expense than before – hence the debt rescheduling loan. Because even a relatively slightly cheaper interest rate can help you save money.

What is the total loan amount

What is the total loan amount? It usually includes all fees that a customer must repay along with the loan taken out. The financial service provider therefore not only requires the customer to repay the loan amount owed, but rather the total amount including all additional costs, within the agreed loan term. In addition to the pure loan amount, there are any commissions or processing fees as well as the interest to be paid. The “total loan amount” therefore includes all expenses and fees incurred, which sometimes makes it significantly more expensive than the actual nominal amount of the loan.

Various lenders require so-called residual debt insurance to be taken out to secure financing. These {expenses} are also part of the total loan amount.

What is the loan amount

The loan amount is the actual amount that the borrower receives on a net basis if the loan application has been approved. If the “loan amount” may not be paid out in full as a total amount, it is usually because the payment is sometimes different in terms of the type of loan. This also applies to a loan or a “Swiss loan”.

It does not matter whether the borrower is a private individual or a business, the bank will definitely check the total income or the business documents before approving the application for the loan amount. The actual amount of the loan amount is irrelevant. The borrower’s income is checked for a loan amount of USD 300.00, as is usual for a loan amount of USD 100,000.00.

The repayment of the monthly installment within a set period of time is generally specified for the loan amount. These credit terms are always firmly anchored in the written loan agreement. If the borrower has the corresponding monthly income, he can also repay the loan amount early using special repayments. Such special repayments are not always free of charge. If you are interested, you only have to look in the respective financing contract. The loan agreement usually ends automatically as soon as the last installment for the loan amount has been repaid. If the borrower wishes to borrow a fresh loan, this must be agreed again in writing.

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Digital Business Credit Card Guide For SME Owners /digital-business-credit-card-guide-for-sme-owners/ /digital-business-credit-card-guide-for-sme-owners/#respond Sat, 15 Feb 2020 12:13:47 +0000 http://www.commonfolkusingcommonsense.com/digital-business-credit-card-guide-for-sme-owners/

You need funds for your small business and weigh the various options available. The right type of funding for you certainly needs to offer flexibility – you want choices that can fund various expenses and you can take advantage of many times. If this sounds like something you want, a business digital credit card might be the right solution.

With a digital business credit card (or revolving credit), you will get access to a number of pre-agreed capital. Similar to a credit card; You do not need to use the entire amount, but you can withdraw whatever and whenever you need as long as it does not exceed the credit limit provided. Interest will be charged on the amount withdrawn and after this amount has been paid, your credit limit will rise again as before.

Does a digital credit card suit my needs?


A Digital Credit Card is the right solution for your business if the following criteria apply:

You want to fund short-term expenses

One of the biggest benefits offered by digital credit cards is its flexibility. There is no limit on how much you can withdraw (as long as the amount is still within your credit limit) and for what you use the funds. So this can be used to:

  • Financing unforeseen costs: By opening a digital credit card in advance, small business owners can take advantage of credit facilities to finance costs that arise unexpectedly – such as the cost of replacing equipment or repairs.
  • Overcoming seasonal fluctuations: Balancing your cash flow across busy and lonely periods is a common challenge for seasonal businesses – and this is where digital credit cards can help. With this credit facility, you can still meet your operational expenses even though you are experiencing income fluctuations.
  • Closing the cash flow gap: Late payments are a significant cause of cash flow gaps for SMEs; according to the 2017 SME Survey conducted by SPRING Singapore and Dun & Bradstreet, 60 percent of SMEs face the problem of delayed payments from customers. With a digital credit card, you will be in a better position to manage cash shortages arising from delayed payments. Digital Credit Cards can function as a reserve fund to help meet your operational costs.

You need to avoid using digital credit cards for long-term investment because it will limit how much you can use when an urgent need arises.

You need flexibility


Digital Credit Cards provide access to funding that you can use whenever a need arises. Therefore, this is a good funding option if you have unexpected expenses. Digital Credit Cards are also right for situations where you know you will need funding in the near future, but cannot determine exactly when you will need it or how much you need.

You need instant access to funds

After getting a credit line, using a digital credit card is one of the fastest and most convenient ways to access funding. If you have not made a digital credit card, you can consider getting one from an alternative loan platform. Unlike traditional banks and lenders, online lenders have usually streamlined the application process and can provide access to funding within 24 hours.

You need to pay for something that is repeated

With existing digital credit cards, you can withdraw from your credit limit repeatedly. This makes it the right choice to meet regular costs such as salaries or ongoing marketing activities.

Some common questions about digital business credit cards


What important factors should I consider when applying for credit?

Minimum Requirements:

The first step is to review the minimum requirements set by potential lenders; this will allow you to narrow down your choices and only consider lenders who have requirements that suit your business.

Traditional banks and lenders usually impose stringent requirements (for example having a flawless credit record, a minimum operational history of two to three years and a minimum annual income of USD. 240,000,000), while alternative lending platforms usually offer greater flexibility.

Credit limit:

Traditional lenders usually offer a larger credit limit, but small business owners may face difficulties meeting requirements to get funding from banks. If a lower credit limit is suitable for your needs, you might consider switching to an online lender.

Speed ​​of funding:

There are two factors that can affect how quickly you can access a digital credit card:

  1. Loan ceilings: Usually, smaller credit limits can be more easily agreed upon than facilities that offer larger credit limits.
  2. Types of financial institutions: Banks and traditional lenders have a strict application process and a lengthy approval process. Approval time usually takes between three to six weeks before you get access to funding. Online lenders are a better choice if you need funds as soon as possible because certain lenders can approve your application and provide access to funding within 24 hours.

Payment structure:

In general, ordinary lenders offer a payment schedule on a weekly or monthly basis. Before you apply for a digital credit card, it is important for you to set up a payment structure that suits your business, so that you will be able to fulfill your payments without problems.

The key is to see your customers and how you get paid. The writer and consultant Michelle Dunn suggests: “If a regular customer pays on time or is usually 15 to 30 days late, this will affect the way you pay back a line of credit. you don’t want to be in a difficult situation because of it. “

Start small and slowly increase your credit line

You may not be immediately offered the required credit line, especially if your business’s financial or credit profile is not in good condition. Be prepared to start with a smaller credit limit, because this can be a way for you to get a larger credit limit later. Over time, you can renegotiate for higher credit limits when you have new achievements – such as achieving revenue growth, or showing that you can meet payments in a timely and consistent manner.

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Credit despite sick pay /credit-despite-sick-pay/ /credit-despite-sick-pay/#respond Tue, 04 Feb 2020 12:13:04 +0000 http://www.commonfolkusingcommonsense.com/credit-despite-sick-pay/

Those who receive sick pay probably don’t have a small cold, but a really serious illness. Restoring the patient is often completely open. Not only do illnesses occupy a large space, but sickness benefit is also provided with a reduced income. If a rehabilitation measure is still pending, the period will be even longer. Because of this, many patients find themselves in a financial emergency. A loan despite sick pay could then be the solution.

The loan despite sick pay – the prospects

The loan despite sick pay - the prospects

Most banks take a skeptical view of a loan despite sick pay. After all, the customer does not know whether and when he will be restored or whether a disability pension will be due in the end. Unemployment was not uncommon after a long illness. A situation that banks also know and therefore keep very low on a loan despite sick pay.

But there are probably important reasons why a loan is sought. The best served is the customer who goes to his bank where the salary account is kept. It can be seen from this that the customer very well has an income. But it is often assumed that sick pay is not attachable. But this is only partly true. Because sickness benefit is legally equivalent to a pension and pensioners are given a loan.

Of course, the clerk will not offer the customer a long-term loan. If the customer’s economic situation is not quite sufficient for a loan, he could hope that he will be given an increased overdraft facility. However, the customer should exercise caution here. In a tight financial situation, a disposition that is used unreasonably could be a debt trap.

If there are only urgent bills that have to be paid or pending urgent repairs, the overdraft facility could be useful. However, the customer should know that the overdraft facility should only be used at short notice. Even with a limited income, the overdraft facility should then be balanced out month after month.

If the customer is healthy again and can start working again, he could also convert the expensive overdraft facility into an installment loan. The bank will see that the income is allocated in the usual high amount, so that it would have to agree to an installment loan.

The loan exception

The loan exception

But a loan in spite of sick pay can also have a chance of success if certain conditions are met. For example, civil servants. These not only have an extended continuation of wages, the job is also safe in the event of illness. As a result, civil servants and civil servants have significantly better credit chances with a loan despite sick pay.

If the illness is such that it is certain that work will resume after recovery, the bank will agree to a loan despite sick pay. Banks see the limitation of loans in the fact that often sick people can no longer continue to work. This ultimately means that the income is reduced. This then raises the question of whether the customer can still pay his installments.

The customer should know that existing loans can continue to be paid without the bank making any changes. Given this, that recovery is not certain, the bank will not approve a loan despite sick pay.

The loan form

The loan form

A loan despite sickness benefit could also be approved if the loan seeker can name a guarantor. The bank receives the loan protection it needs and the loan seeker can get a comparatively cheap loan. The guarantor then bears the credit risk.

If a guarantor is found, he must be fully informed about the risks of a guarantee. In most cases, banks require a joint and several guarantor, which immediately takes a guarantor back when the borrower stops paying. The guarantor must therefore be solvent, ie his income must be sufficiently high, his Credit bureau must be clean and a permanent job must be available.

A co-applicant would also have the same requirement. He would also secure the loan despite sick pay.

A long illness often brings with it boredom. If the customer then wants to buy a new television, he can finance it through the dealer. For example, if you buy a new television in an electronics store, you only have to enter the name of the employer, and the Credit bureau will also be asked.

Even if you regularly order from mail order companies and have been a customer in one of these stores for a long time, you can order consumer goods without having to check the creditworthiness. If payments were always made on time in the past, the customer can also take out a loan there.

Many customers with poor credit ratings are looking for a Credit bureau-free loan from abroad. But the customer is not suitable for this, as he receives sick pay that is not paid as income by these banks, since it can only be seized to a limited extent. The prerequisite for these loans is an income that shows a attachable portion.

If the customer does not find a lender and the loan is urgent, they could contact a credit broker. The business of these brokers is to broker loans under difficult conditions. Credit intermediaries know banks that are not so well known and also grant loans in difficult situations.

However, the customer should know that the loan will then become more expensive. Firstly, he will have to count on the loan broker’s commission and secondly, he will receive a loan with an increased interest rate. These loans are advertised with low interest rates, but ultimately creditworthiness counts, which often only brings a loan with really high interest rates.

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Get Rid of Credit Card Debt Using KTA? Consider the Following 5 Things /get-rid-of-credit-card-debt-using-kta-consider-the-following-5-things/ /get-rid-of-credit-card-debt-using-kta-consider-the-following-5-things/#respond Mon, 27 Jan 2020 13:01:56 +0000 http://www.commonfolkusingcommonsense.com/get-rid-of-credit-card-debt-using-kta-consider-the-following-5-things/ Credit cards provide optimal benefits if used correctly. However, wrong understanding changes the image of credit cards as ‘demon cards’. The benefits that should have been obtained turned into havoc that brought customers to the gate of financial ruin.

Various methods are used to overcome the accumulated debt. If you have known KTA as an emergency fund option, it is possible that KTA facilities can be used to pay off credit card debt. Before paying debt with a KTA, consider the following 5 things.


Debt Status

Debt loans

Before applying for a KTA, make sure your previously good credit status hasn’t turned bad. If the credit status is bad, applying for a KTA will be in vain. Because banks do not provide loan funds to customers who have bad credit status.

Conversely, if your credit status is good, you will most likely receive a KTA application. However, do not be happy just yet. You must meet the requirements requested. If you do not meet the specified requirements, a KTA loan may be refused.


Payment Term

Payment Term

The term of payment or KTA tenor ranges from 6-36 months. After reviewing it turns out you can apply for a KTA, take the tenor KTA according to the ability to pay. If financial conditions have not improved, you can take the longest tenure of KTA.


Current Financial Situation

Current Financial Situation

KTA is a debt that must be paid every month. There are two aspects that affect the amount of installments, namely the loan amount and the grace period of payment. Installments paid should be in accordance with the current financial situation.


Take Low Interest Credit

Take Low Interest Credit

KTA interest rates vary. Starting from 0.95-3% per month. The best way to pay off credit card debt is to take a KTA with interest below the credit card interest. Instead, pay off credit card installments slowly until all debts are paid off.


Other Costs

Other Costs

KTA has never escaped other costs, such as administrative fees, provision fees, and other costs. This fee must be paid every month together with the KTA installments. If calculated carefully, the amount of other costs is quite good. Apart from the repayment fee, it turns out there are other costs incurred without you knowing, namely the cost of applying for a first time loan.

Before the KTA funds are disbursed, you must take care of this and that document which incidentally requires a fee. Incomplete documents cause the KTA funds not to be disbursed. If you want to apply for a loan again, you must pay the same fee a second time.


Remember, KTA is not a Credit Card Debt Solution

Remember, KTA is not a Credit Card Debt Solution

You need to know that KTA is not the best solution to pay off credit card debt. Indeed, credit card debt is paid off if you get KTA. However, on the other hand, you still have to pay the KTA installments and interest. That’s the same as you move from debt to debt. Therefore, consider all aspects carefully to avoid losses.

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