Loan Application Negative Results Read This Post

Does your loan application always end up negative? Can’t you just get the money you want from banks? Then contact us as soon as possible. Let us help you with a positive outcome of your loan application. All banks expect you to meet certain criteria for lending. For the positive results of your loan applications; You need to have a regular salary, pay your SSK on time, clean your credit history, have no mortgaged property, and perhaps find a surety.

Unfortunately, everyone who owes money cannot have all of these features. Therefore, when they apply for loans to banks, this results in negative results. People who seek debt then go on to seek out emergency lenders. In this way, trying to make money with illegal methods never results positively.

You no longer want to search for urgent lenders

You no longer want to search for urgent lenders

All you have to do is log in to our website in a few clicks and fill out the application form on the homepage. Thus, in a short time, you will be able to easily get the loan in the amount you want and in the maturities you want. In this way, all of your debts will be closed in a short time.

There is no need to depress yourself into sleepless nights anymore. The process you need to do is also quite simple. It is only to fill in the application form on the homepage of our website. Do not waste time anymore, log in to our site immediately. You can apply to our company with confidence and trust.

You will be able to get your credit in completely legal ways

You will be able to get your credit in completely legal ways

Our company will direct you correctly with its professional employees in a short time. You will be able to get your credit in completely legal ways. With the support of our company’s professional employees, your credit history will be cleared in a short time. Anything that prevents you from getting credit will be eliminated. In this way, you will have as much money as you want in a short time. For all this to happen, you must first fill out the application form on our website.

Our company employees will contact you shortly after completing the application form. In this way, you will have made a start so that you can get the amount of credit you want. We are a company that works completely for your satisfaction. Log in to our company’s website as soon as possible and make your application.

Increase credit bureau – free loan | When can it be useful?

 

Anyone who has a negative Credit Bureau is not necessarily a welcome customer at the banks and savings banks in our country. Especially not if he wants to take out a loan. Because through the negative Credit Bureau that he brings with him, he is not creditworthy in their eyes and the default risk around the loan is much too high. The banks therefore refuse to grant a loan under such conditions.

Anyone who wants to benefit from a Credit Bureau-free loan in spite of all this has to stretch mightily. Either a very good second borrower has to be found who, with his solvent appearance, makes it possible to borrow from one of the traditional banks. Or else, going abroad must be dared, where loans are generally granted without asking Credit Bureau. Both steps must be carefully considered, since they – each in their own unique way – bring with them sufficient uncertainties. Because whoever has a negative Credit Bureau has debts. And in this phase of life, getting even more debt by taking out a loan is always a risky business.

However, if you get along well and the negative entry in Credit Bureau was just a slip that has already been cleared up, you will hardly have any problems paying a loan without Credit Bureau. It is not uncommon for the desire to want to increase the Credit Bureau-free loan. If it comes from abroad, it is usually just a small loan that offers little financial leeway. But how easy is it to get a Credit Bureau-free loan? And what needs to be considered?

When can an increase be useful?

When can an increase be useful?

It is actually very easy to top up a loan. You go to the bank and ask for an increase in the loan amount. If this does not work, another loan is simply taken out.

It looks a bit different if you want to top up a Credit Bureau-free loan. Then somehow the query of the Credit Bureau has to be avoided again. If the loan was taken out with the help of a second borrower from one of the traditional banks, it must also be ensured that the second borrower is also involved when the amount is increased. Otherwise, the bank will not want to change anything in the loan agreement due to the negative Credit Bureau.

However, if the current loan was a foreign loan that is now to be supplemented with the Credit Bureau-free loan, it must be expected that this will not work. Foreign banks usually only give small loans to customers from other countries, because they too are looking for collateral when lending and only lend the money that can actually be repaid. As a rule, an increase does not work. A second loan from the same bank is also not possible.

However, a foreign loan from another bank would be feasible. Again, only in the form of a small loan. But this is still better than no additional financial support at all. Since no Credit Bureau data is requested for Credit Bureau-free credit, the credit is not entered in Credit Bureau either. The banks therefore do not know that a credit agreement already exists elsewhere.

Attention must be paid to this

Attention must be paid to this

Before a Credit Bureau-free loan is topped up, it should be checked whether there is enough money to pay the loan. If an account is already seized, the money from the loan must be paid out to another account than the account that is debited. Otherwise, the money from the loan flows directly into the garnishment and cannot be spent on the things that were actually planned with it. In addition, it must be borne in mind that even Credit Bureau-free loans require collateral. A fixed income must therefore at least be available.

Loan term | How short should it be?

For most banks, the interest on a loan is based not only on the creditworthiness of the borrower, but also on the term of the loan. The longer the repayment takes, the more expensive the loan becomes. So the simple formula.

For this reason, it is important for every borrower to choose the shortest possible terms in order not to make the loan unnecessarily expensive. We have summarized here how you can determine the appropriate term for loans and what you should definitely consider when determining the term.

Why are interest rates rising?

Why are interest rates rising?

When lending, banks and savings banks always strive to keep the default risk associated with a loan as low as possible. If the borrower can no longer pay the installments, the bank will not get their money back and will lose the loan agreement.

The default risk increases with each month that the borrower takes longer to repay the loan. Because nobody can predict exactly whether the conditions of the borrower, i.e. the creditworthiness, deteriorate during the repayment or whether it remains stable. The job can be lost or a serious illness can lead to complete inability to work. There may also be other financial problems that no one can predict and that will suddenly make the monthly loan rate unmanageable.

Therefore, banks are always interested in their customers choosing loans that have a short term. With a small loan, you are always a better customer for the bank than with a large real estate loan. Even if this brings in significantly more interest due to the longer term.

How short should the loan term be?

In most cases, the term of a loan can be determined individually by the borrower. So you have a say in how long you want to pay your debt to the bank. How long or short this period is depends on your solvency. If there is still a lot of money left over from your income after all expenses have been deducted, you can afford a larger loan rate and repay the loan in a shorter amount of time than with a somewhat narrower budget statement. It is therefore important to calculate and calculate in advance in order to find the best solution.

Tip: If you only choose a very short term because your credit rating is not optimal and the interest rates are therefore already high, then you should rather add a co-applicant than to set the term too short. A good co-applicant will improve your credit rating and lower the interest rate. An experiment with the runtime is then no longer necessary.

A comparison helps

Since the term of a loan can vary considerably and since various factors can have a positive or negative effect on the term of the loan, we recommend that you make a detailed comparison of various offers before taking out the loan. With the help of the comparison, you can not only check which creditworthiness or solvency you bring with you. You can also check how the term of a loan affects the cost of the loan and what options you have with your requirements for borrowing.

Always keep in mind that a loan should only be taken out if you can really afford it. Do not take too much risk and plan so that there is still enough air for other projects. Otherwise, the credit quickly becomes a burden and the joy in the things that have been put into practice has vanished quite quickly.

Mortgage loan or line of credit?

Some people say that the mortgage line of credit is practically a miraculous product. Others denounce a mechanism that encourages over-indebtedness and financial distress. Who to believe?

 

What is the mortgage line of credit?

What is the mortgage line of credit?

A mortgage line of credit gives you access to financing that can represent up to 65% of the market value of your property. In return, we re q uire that you put it as collateral.

Once the margin is granted, you use it as you wish. There is no restriction on the type of expense. You can just pay off the interest or the margin all at once. There is no due date, no amortization, no full repayment penalty. The margin is available as long as you keep your property.

 

Benefits

Benefits

Just like a traditional mortgage, you have to go to the notary to contract a margin, but you don’t have to go back to increase the amount if you want to do renovations. Save up to $ 1,000.

Significantly, it generally offers a more advantageous interest rate than that of margins and personal loans.

The mortgage margin also allows you to consolidate your debts yourself by using it to pay off credit card balances and other financing. You can even buy an automobile. You can negotiate a price reduction or re q uest more options.

On the other hand, if you expect to receive a large sum, you can use it to reimburse the margin at once without paying a penalty.

 

disadvantages

disadvantages

The mortgage line of credit re q uires a lot of discipline. Since the margin does not impose constraints on capital, the nature of the purchases or the maturity, many use their property as an ATM and go into debt up to their necks. Many bankruptcy trustees deplore the phenomenon.

If you’re having trouble restricting your credit card purchases or having trouble keeping up with your personal finances, use a traditional mortgage. Ditto for those who are nervous about the evolution of the economy and interest rates, because the mortgage line of credit always displays a variable rate.

Finally, if you just pay off interest over a long period of time, the margin will end up costing you more than a mortgage, even if the mortgage rate is higher. It always pays to pay off your mortgage the q uickly the possible.

Finally, note that a lender grants a loan more easily than a mortgage margin.

To remember

  • With a mortgage line, you have access to credit that can represent up to 65% of the market value of your property.
  • There is no due date, no amortization, no full repayment penalty.
  • The margin offers many advantages, but re q uires greater rigor and discipline to avoid going into too much debt.

Credit from business evaluator

Most banks have a problem with lending to a self-employed person. In contrast to employees subject to social security contributions, monthly income is not guaranteed. It is subject to fluctuations and can also be seasonal, depending on the industry. Before the banks granted a loan to a self-employed person, they checked their business analysis, or BWA for short.

What is a BWA?

What is a BWA?

The BWA is a business evaluation that provides information about the company’s financial situation as it is currently. Here the income and expenditure are compared so that the bank can see whether the company is successful or not. But for a loan with BWA, the bank also needs the bank statements of the past few months. In addition, the creditworthiness is also checked at Credit Bureau. If everything looks promising, it could work with a loan.

Internet Banking

Internet Banking

Because the branch banks are least willing to take out a BWA loan, it is worth taking a look at the Internet. Here, banks also lend to self-employed and freelance workers. Before doing so, however, all offers should be compared well, because there are differences in interest rates and the remaining conditions. A loan with BWA is already somewhat more expensive than a conventional installment loan. It is therefore worthwhile to make a direct comparison using the online search engines.

Peer to peer

Peer to peer

There is also support for the self-employed in the peer-to-peer sector. The private investors are happy to grant a loan with BWA, because they know the needs of the self-employed and know how difficult it is for them to get a loan. In the past, there have been many successful loans, including to self-employed people.

The Swiss loan

The Swiss loan

A Swiss loan cannot be arranged. The loan seeker can save an inquiry because a Swiss loan cannot be applied for by the self-employed. The foreign banks only accept dependent employees. This is due to the income risk for the self-employed. The income of a self-employed person can be seized within the legally prescribed allowances. The problem with self-employed people is that it is never certain what their monthly income is. A loan from abroad is therefore simply impossible.

Seniors also benefit from the sharp drop in mortgage loan rates.

Rates around 1% for mortgage loans over 15 years or less

Rates around 1% for mortgage loans over 15 years or less

The drop in credit rates is an opportunity to afford real estate at a lower cost. Indeed, this indicator is what constitutes, in part, the price to be paid following a financing agreement from a banking establishment. During the month of May, lenders were making offers of housing loans with an average interest rate of 1.29% regardless of the duration defined. A record threshold that had never been reached before since the previous lowest rate was 1.33% in November 2016.

And the rates granted can be even lower depending on the repayment tenure determined. The shorter the years, the lower the cost of credit too. Concretely, the average rate over 25 years is 1.42% whereas it decreases clearly to 1.20% over 20 years and it even manages to get closer to below 1% over 15 years with 1.02%. For borrowers who receive high income and who hold assets, it would be interesting to favor a shorter repayment period in order to benefit from a better mortgage interest rate.

Loan insurance can drive up the cost of credit

Loan insurance can drive up the cost of credit

Due to a more advanced age and a heritage which has sometimes had time to accumulate, the elderly are a type of borrower who often turns to shorter credit periods. In this case, they are fully eligible for the lowest rates and the banks have no real fear of lending them. Indeed, seniors earn fixed incomes and their financial situation is less subject to change than an active worker.

Now, banks are protecting themselves from the risk of non-payment by asking for loan insurance. It comes to guarantee the amount of the mortgage in the event of death during the amortization phase of the borrower. If it is not legally binding, the banks condition a financing agreement if the loan is accompanied by such cover. This requirement is all the more real for retirees who are more exposed to the risk of premature death. If the short repayment periods selected by the seniors will make them benefit from extremely low rates, they will therefore have to be vigilant with regard to the cost of borrower insurance since the premium is much higher than for the youngest.

Find a better guarantee with the loan insurance delegation

If the cover offer previously signed does not meet expectations in terms of conditions and cost, a senior may apply for delegation of borrower insurance by proceeding two months before the anniversary date of the edition of the loan offer. During this period, it is advisable to make several insurance quotes in order to identify the best coverage offer. The bank cannot refuse a delegation, but the borrower must nonetheless bring in minimum conditions similar to the initial contract.