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Installment Loans

Self-employed with a small or installment loan

 

 

In most cases, anyone who wants to become self- employed also needs capital in order to be able to pay for their first business start-ups.

On the other hand, if you are planning to become self-employed on the Internet, you certainly do not need the amount of money like someone who wants to set up a production facility with the appropriate machines and employees.

The basic equipment for web workers is an internet-enabled PC with additional accessories, probably a website or even several, certain software, etc.

If you want to get started in online trading, you have to estimate a little more because most of the time you have the shop programmed and put online by external service providers.

These purchases in the low to medium four-digit range, perhaps even higher, go on budget. There is a small or installment loan available for financing, because one advantage of this loan is that it is not tied to a specific purpose. That means you can use the money for whatever you want.

Installment loans are easier to grant

Installment loans are easier to grant

A small or installment loan is a term used to refer to loans that, due to their limited loan amount, make very little demands on the risk assessment and are therefore easier to issue than higher loans. Small loans can start at 500 dollars and are capped at around 3000 or 5000 dollars. But there are also small loans in the amount of 10,000 dollars and more. The maximum loan amount is set differently at the different banks. The average term of such a loan is 12 to 36 months.

Since the loan amount is usually not too high, the installments can also be repaid faster and you can get rid of your liabilities in a timely manner. And the monthly installments are also easier to repay because the amount is very manageable. The interest rate for most small loans is between just under 3 and a good 8 percent pa

What should you look for in installment loans?

What should you look for in installment loans?

Anyone who is interested in an installment loan should get enough information in advance. First of all, you should attach importance to how high the interest costs are, because there are noticeable differences between the providers.

It is also practical if there are no processing fees and individual installment payments can be arranged so that you do not overload your financial options.

Also note the effective interest rate, which is always included in the individual loan offers. The effective interest rate indicates what a loan will really cost you in a year. Additional costs may arise from account management and account statement fees.

In addition, some small loans are granted based on your credit rating. If your creditworthiness is particularly high and you have personal collateral that the bank recognizes, the interest rate is often more attractive. Another important key figure for installment loans is the two-thirds interest rate. This states which loan interest rate 2/3 of all borrowers really receive.

Cheap online loans

 

Since small or installment loans are relatively unattractive for house banks because the interest income is not very high, you should consider applying for a small loan online. Online banks have developed standardized processes for this, which is why a cheaper online loan via an online request is more likely than an attractive small loan from a house bank. You can also get a loan approval in a very short period of a few minutes after an online request.

Example: If you apply for an online loan of more than 5000 dollars, you can count on monthly installments of approximately 150 dollars and an interest rate of 4 to 5.85 percent with a loan term of 36 months, so that at the end of the loan term Repaid 5400 dollars. Shorter terms mean that installment payments skyrocket.

A specific loan for digital devices!

A personal loan is a loan without accountability that can usually be used for any project. Best Bank distinguishes itself from the competition by offering a credit specifically for the purchase of digital devices.

The amount to be borrowed is limited and the maximum repayment period is relatively short, which makes it possible for Best Bank to offer a more interesting interest rate.

 

A loan intended for digital devices

loan

Do you wish to replace your computer with a more recent model or with a laptop? Do you dream of buying the most recent smartphone? Or do you think it is high time to purchase a tablet for easier surfing? If the answer to one of these questions is yes, then the digital loan is the ideal solution. Thanks to this personal loan from Best Bank , it is easy to purchase your dream device on credit. However, you cannot use the borrowed sum for other purposes: for example, you cannot use the borrowed amount to finance your vacation, but you can use the money to purchase a digital photo device.

 

Limited maximum amount and maximum duration compared to traditional personal loans

personal loans

With a traditional personal loan you can borrow a maximum amount that can range from a few thousand to a few tens of thousands of dollars , with a maximum term of up to 10 years. The maximum amount that you can borrow from Best Bank is 2500 dollars with a maximum term of 24 months. The minimum amount is 500 dollars and the minimum duration is 3 months. These limits are logical since this is a “customized” credit.

 

The result? A personal loan with the best interest rate!

The result? A personal loan with the best interest rate!

By offering a specific loan for digital devices, Best Bank can offer you unusually low interest rates. To better illustrate this, we will now compare the classic personal loan without accountability from Best Bank with the digital loan.

Simulation for a traditional personal loan without justification:

  • Loan amount: $ 1,250
  • Duration: 12 months (1 year)
  • APR: 8.50%
  • Total amount to be paid: $ 1,306.08

Simulation for a digital loan:

  • Loan amount: $ 1,250
  • Duration: 12 months (1 year)
  • APR: 2.40%
  • Total amount to be paid: $ 1,266.12

The result is clear: the APR is three times lower with a digital loan, with a not insignificant difference of $ 40 on the total amount to be repaid.

Merging loans and mortgages: is that possible?

You can combine both mortgages and consumer loans. It is even possible to combine mortgages with personal loans, car loans and credit cards. Even if there is a report on the Cream Bank.

In this article we will go into more detail about merging or centralizing different loans.

As you probably know, there are different types of credit. But according to the law, only two types of credit are made: loans that fall under the Mortgage Credit Act (mortgages) and loans that fall under the Consumer Credit Act (installment loans or LOAs).

 

Merging mortgages

mortgage loan

If you have several mortgages, these can be merged into one new mortgage . It does not matter whether they were entered into at different times. One mortgage can run for more than 10 years and can be perfectly merged with 2 others who have only taken out 3 and 5 years.

When is merging mortgages interesting? There is no fixed answer to this. It depends on various factors: your current interest rate, the new interest rate, but also how long you still have to pay.

 

Merge installment loans

installment loans

Even if you have various credits that fall under the Consumer Credit Act, you can have them merged. This can really involve completely different forms of credit. For example, you have a car loan (financing), a personal loan and 2 credit cards. It is possible to combine these into one installment loan. You can then choose the term within which this new loan will be paid off. Usually your intention here will be to reduce the monthly installment so that you have more budget.

 

Merge mortgages and installment loans

Merge mortgages and installment loans

But is it also possible to combine mortgage loans with consumer loans? Yes, that is perfectly possible. In this case it is therefore possible to have 2 benefits at the same time. On the one hand you could benefit from a lower interest rate to take over your mortgage credit and save on it and at the same time to merge one or more other loans to increase your monthly budget. This is also possible for loans with a notification at the Cream Bank!

Important

What is very important in all these cases is that you get a correct calculation of the acquisitions and a clear representation of the conditions of the new credit. Of course you can contact us for this , also online via Facebook!

How do I apply for a starting independent loan?

Have you started your own business or do you have plans to do so? Then think carefully about how you want to finance those plans. You can turn to friends or family, but in many cases they do not have the money for that at their disposal. In that case you can use a starting independent loan. It is of course important that you provide a form of certainty and substantiation to convince the financial companies that they are making a good investment.

 

Guarantees and certainties

loans

Provide as many guarantees and collateral as possible, as this ensures that a lender has less risk. Whether you want to borrow private or business money, it is always wise to work towards a situation where it seems certain that you will actually pay back the money. Bear in mind that the lender is a risky company. You pay an interest to partially cover this risk, which means that a starting independent loan will be cheaper if your plans are in perfect order.

 

Financial and business plan

Financial and business plan

In any case, make sure that you make a good business plan, in which you indicate exactly what you want to do and in which you are better than other companies that are already active. Combine this with a financial plan to indicate what you will use the money from the starting independent loan for, what the income will be and how you see the future ahead. The combination of these two plans gives the lender a good idea of ​​the plans that you have with regard to the money you want to borrow for them.

 

Taxes and costs

Taxes and costs

Finally, keep in mind that not all income is actually for you. Make sure that you take into account both the VAT, the Rsz and the personal income tax that you have to pay, since that is the only way you can draw up a realistic financial plan. The tax authorities are entitled to part of the money that you earn, which means that this will not remain available within the company and it will not contribute to your options to repay the starting independent credit. On the other hand, you only have to pay these costs as soon as you collect income, so you do not need the credit immediately.

Which criteria are important for a fast credit?

Are you planning to take out a quick credit, for example to buy a new car or a washing machine? Then take the following criteria into account, since they largely determine whether it is wise to take out the loan. A personal loan or a revolving credit can be a great choice to finance your purchase, provided you ensure that the various criteria are consistent with each other.

 

Interest rate and term

Interest rate and term

Obviously take a good look at the interest rate and the term. The moment you take out a personal credit with an interest rate of 7% per year, this basically means that you incur 7% annual costs, compared to a few percent interest that you could have received if you had started saving. For example, a purchase of $ 1,000 with an interest rate of 7% will cost you $ 1,070 after a year. The exact costs of a loan depend on the repayment and the duration. Choose the term preferably not too long, since the costs of the loan as a whole will increase further in this way. On the other hand, do not choose the duration too short, since the repayment may then become unrealistic.

 

Structure of the repayment

Structure of the repayment

In addition, look carefully at the structure of the repayment. Do you opt for a personal loan? Then you make agreements in advance about the repayments that you will make each month, so that the debt is properly repaid at the end of the term. Do you opt for a revolving credit? Bear in mind that the repaid amounts can be withdrawn, so that the structure is less structured. In the case of a mortgage loan, you can even opt for an annuity repayment, with repayments gradually increasing, at the expense of the monthly interest amount.

 

Lifetime of the product

credit score

In any case, try to ensure that the quick credit does not run longer than the expected lifetime of a certain product. For example, are you buying a television? Keep in mind that it can break after 4-5 years or even have to be replaced due to the outdated technology. The moment your duration is longer than the lifetime, you continue to pay for a product that you no longer have. Moreover, it is a lot harder to borrow money again for a new purchase.

Differences between credit and debit cards

Do you know the differences between credit and debit cards? Do not? Do not worry! Later we will solve your doubts.

Although we use both cards as a payment instrument when making our purchases, they are not the same. Each type of card has features that differentiate them from each other. Do you want to know what they are? Next, we will explain everything you need to know about debit cards. Credit cards.

 

What is a debit card?

debit card?

It is a financial tool issued by a banking institution, which consists of a plastic card. This card has a magnetic strip in which the information regarding the bank account holder, the number, among others is stored.

However, this instrument is associated with a bank account. This means that all payments you make will be automatically subtracted from the balance available in your bank account. That is why, in the case that you do not have money in the account, you will not be able to make any payment.

If you wish to request a debit card you must take into account that you require a savings account or a checking account with which you can associate this financial tool. Although they tend to be a free service, some banks set fees to pay annually to maintain the service. In certain cases, some additional commissions must be paid when other services are associated.

 

What is a credit card?

It is a banking instrument that contains a series of numbers and a magnetic stripe, or a microchip that allows you to make purchases. Generally, these payments are debited from a credit line granted by the bank. This means that you will have to pay those charges plus interest within a certain period.

Unlike the debit card, to request the credit card the bank requires you to comply with a series of conditions and requirements. This is due to the fact that the bank has the responsibility of verifying that you have sufficient payment capacity to fulfill the payment commitments.

 

Main differences between the debit and credit card

credit card

Debit cards vs. credit cards, what is the best option? Next, we will present its main differences, so you can choose the one that best suits your needs:

  • The debit card is directly associated with the user’s current account balance. Unlike credit cards that allow you to work with money provided by the bank.
  • When you are going to withdraw money at an ATM or make a payment with a debit card, the amount is deducted from the balance of the associated account. And in the event that you do not have sufficient balance the operation will be denied. For its part, when paying with credit cards, the bank is the one that will lend you the money and you will have to pay it back the following month, or in different installments plus interest.
  • The request for a credit card tends to be more complex than that of the debit card. This is because, since it is the bank that is lending the money, it has to ensure that the client will be solvent with the payment of the fees.
  • When payment of commissions exists, they are usually cheaper than debit card commissions, than those of credit cards.

Now, we have already reviewed the most important differences of both payment instruments. Take into account that purchases made with your credit card must pay them with additional interest. For this reason, the best recommendation is to make sure you keep your debts under control and take care of your finances.

How does a loan simulation work?

Do you want to perform a loan simulation, or are you curious about the benefits that this has to offer? You can easily do a simulation online, so you know exactly where you stand. Determine on the basis of the amount you wish to borrow, the term and the Annual Cost Percentage what you spend on the loan each month. Do you want to know how much you will pay during the first year? That is also something you can easily find out with the loan simulation.

 

Amount borrowed and duration

credit loans

As soon as you perform a loan simulation it is in any case important to enter the amount that you want to borrow. For example, do you want to purchase a car of $ 10,000 and do you also have some savings available? Then it is a good idea to first enter the full amount in the loan simulation. Find out what it costs to borrow this amount. Are the costs higher than you thought? Then you assume, for example, $ 8,000 in the loan simulation, so that you can also contribute $ 2,000 in savings.

In addition, the duration is also important within the loan simulation. Keep in mind that a longer duration will lower the monthly costs (the monthly payment will be lower), but that the total costs will ultimately be higher (you pay interest over a longer period).

 

Annual Cost Percentage

credit loans

Do you want to get a good idea of ​​the interest you pay per year? Then also enter the Annual Cost Percentage, as stated in the offer from the bank or lender. In this way you can enter the various elements of the loan simulation, so that you get a good picture of the costs that the borrowing money will entail.

 

Compare loans

Compare loans

Do you want to compare loans? Then it is wise to perform a loan simulation in any case. In this way you can check, among other things, what it is if you contribute more of your own money. In addition, you can easily find out what it costs if you would, for example, pay 1% more interest per year, or what it would save if the duration turned out to be shorter. Try different loans so that you can choose the terms and conditions for the loan that match the financial picture you have in mind.

Christmas is coming. Ranking of the best personal loans

Christmas is coming, a holiday season that makes our lives happy every year, with ornaments, music, sweets, walks and gifts. If you are one of the lucky ones that you gather as a family to celebrate, you must be very excited because there is little time left for the holidays.

However, for many it may mean a season of spending where stress is raised. But keep calm! We will give you some suggestions, to build a Christmas holiday budget.

 

1. Determine the limit of money you will spend

1. Determine the limit of money you will spend

The first thing you should do before the holiday season comes, is to establish how much you will have for this year’s expenses. Remember that you should only use that money that you are going to reserve.

Never spend more than you planned! Don’t be tempted to buy that expensive bottle of wine or that pair of shoes. If you fail this saving maneuver you will end up frustrated and without a penny.

 

2. Make your shopping list

It is time to start making your Christmas shopping list. Usually, this list includes: gifts, food, drinks, sweets, clothes, travel, ornaments, among others. Also, it is convenient that you divide your budget by categories, so that you assign to each element of the list the investment amount.

Planning with days in advance will allow you to get excellent products at very reasonable prices. This strategy will help you reduce expenses.

 

3. Purchase in cash

3. Purchase in cash

Avoid making your Christmas purchases with another payment method that is not effective. Do not fall into that great temptation to use your credit card, with the thought I buy today and then pay. Without realizing it, you will be full of debts that will be your ordeal in the new year.

 

4. Don’t miss Black Friday

Check the online catalogs early and don’t miss out on Black Friday sales. This holiday is a good opportunity to make advance purchases and take advantage of discounts. In addition, in many online stores you can place your orders without undergoing long lines or last minute trips.

 

5. Wrap your gifts

5. Wrap your gifts

It’s amazing everything you can save by wrapping Christmas presents yourself. You can even print a touch of creativity to your packaging using various types of recycled paper, ties and everything you can think of.

Importantly, your family and friends will appreciate more a gift wrapped with your own hands. In this way, you are demonstrating that you invested time, effort and love in each packaging.

 

6.Effect family activities that reduce expenses

For Christmas traditions to be memorable they don’t have to be expensive. They can think of activities that are cheaper and even free. For example, your family Christmas activities may include:

  • Visit the nativity scenes of the city where you live.
  • Go to the Christmas markets of the squares.
  • You visit the Christmas lights show in your region.
  • Stay home to watch a Christmas movie and enjoy seasonal tapas.
  • Visit Santa in a mall.
  • Bake cookies together with the family.
  • Go to church to listen to choirs with Christmas carols.

 

7. Save all year

2. Make your shopping list

The month of January is a good time to start saving for Christmas shopping. Each month has an amount for December purchases and you will be surprised how easy it will be to cover all expenses.

 

8. Apply for a loan online

It is no secret to anyone that Christmas is a time where everything increases in price and even if you are a wizard of family budgets. It is possible that some expenses may not be covered with the money set for these dates.

So one way to cover those unforeseen Christmas is through a personal loan. In general, these financing grants adequate amounts to what you need, they are processed quickly and you can pay them comfortably.

The best of all! It is that in a short time you will have the money available in your account.  

Laying out the terrace for mortgage credit

Mira and Larry want to lay their terrace and place a carport. They do not receive financing from their bank, because Mira is incapacitated for work and receives benefits through the health insurance fund. Thanks to an intelligent view of their financial situation, they can still do these small works. They opt for a new mortgage loan.

 

Benefit through health insurance is an obstacle to financing

mortgage credit

Mira is temporarily unable to work and is currently receiving benefits through his health insurance fund. When Mira and Larry look for financing to lay out their terrace and place the carport, they unsuspectingly approach their house banker.

There, the payment from the health insurance fund appears to be a problem for obtaining an additional loan or a drawback of their mortgage credit.

Moreover, there was no room for an additional loan. They were already on a borrowing charge of 71%! So the banker’s right decision. But no solution for the couple.

 

A borrowing charge of 71%

Mira and Larry have a borrowing burden of 71%. How do they get a borrowing charge of 71%? This is a view of their financial situation:

  • Mortgage credit of $ 115,000 – monthly charge of $ 984
  • Installment loan (cash requirement) of $ +/- $ 20,000 – monthly charge of $ 321
  • Installment loan (car financing) of $ 15,000 – monthly charge of $ 291
  • Credit opening (credit card) of $ 5,000 – (theoretical) monthly charge of $ 250
  • Credit opening (credit card) of $ 1,240 – (theoretical) monthly charge of $ 62

In total, Mira and Larry pay off debts of $ 1,907 per month, where their combined income is just under $ 2,700.

In order to advise them, they contact an independent credit intermediary in mortgage credit.

 

Intelligent view of their financial situation

mortgage credit

The credit intermediary in mortgage credit listens carefully to their story and analyzes the entire file. He ultimately formulates a proposal that gives a different perspective.

The proposal is to refinance their existing home loan together with the installment loan (money requirement) in a new mortgage loan. Space can then be made available in this new home loan to borrow the budget for the works ($ 17,000).

 

What are the benefits with their new mortgage credit?

The couple let this proposal sink in and consider the advantages and disadvantages. A calculation convinces them that this is a good proposal.

These are their benefits.

* Decrease in monthly credit burden

The loan burden falls from 71% to 47%. This makes their new situation bearable again.

* Implementing their project, which increases the value of their home

They can lay the terrace and place the carport. This increases the value of their home. From $ 230,000 for the works to $ 250,000 after execution of the works.

* New financial comfort

Their surplus of living is rising. This is the amount that the couple has left each month to pay other costs. It rises from $ 787 to $ 1,420 per month. A doubling of the household budget.

* Also a long-term winner

Suppose the couple did nothing about their current situation, they would repay a total (capital and interest) of $ 232,000 for the mortgage loan and installment loans. With the new mortgage loan of $ 122,000, they will only repay a total of $ 161,000.

 

Investigate your financial situation? Which can!

mortgage loan

You do not have to lay a terrace or place a carport, every moment is good to have your financial situation examined. At Lenders Credit you can rely on a network of 500 independent credit intermediaries in mortgage credit. They are happy to help you further. Complete this form and we will get you in touch with one of them as soon as possible.