Month: November 2019

Loan Consolidation – What Does It Use When It Pays

If you accumulate more than one loan, interest can get high. In this case, consolidation is a good solution. Existing loans will be taken over by the chosen bank and combined into one large, often more advantageous, loan.

What is loan consolidation?

Loan consolidation is actually a merger of loans. It does not have to be just the loans and loans themselves. It is also possible to merge overdraft or credit card debts. The consolidation of loans can be significantly reduced by the amount of monthly installments. The interest and the total amount payable are also usually reduced.

People often confuse the difference between a debit card and a credit card, so it pays to read the difference between a credit card and a debit card.

Of course, the bank may not accept the request to merge the loans. There are several factors that can increase your chance of success. These include:

  • status of “creditworthy” client – ie a client able to repay a new loan
  • already present loan with a given bank – often people turn to consolidate loans to a bank where they already have a loan (usually the highest one)
  • rather than a request, it is better to send a question – if a bank rejects a credit merge request, it is written to the register, reducing the chances of compliance with other banks

It is worth seeing if the bank is already offering existing consolidation in Internet banking or in the Finance Manager application. For example, internet banking from Lite Lender called George based on personalized settings will, among other things, alert the client if it is appropriate to consolidate non-bank loans.

When does it pay off?

When does it pay off?

Consolidation is a good solution for cases where the family budget so Lite interest on several loans that they “extinguish” the majority of funding goes.

In this situation, people often subscribe to a non-banking organization for another loan to repay previous loans. The classical banking organization treats such loans very carefully. This is a very dangerous situation, any fluctuation (eg loss of employment, accident) can put the debtor in considerable trouble. In addition, execution or bankruptcy may follow.

Therefore, it is always better to see if credit consolidation can help relieve the monthly budget. It also allows for a better overview and control of existing loans and the number of repayments. If the above-mentioned problems arise, one would only negotiate with one bank about the possibility of postponing the repayment.

The difference between refinancing and consolidation

The difference between refinancing and consolidation

Consolidation and refinancing. Often these two terms are wrong. This is a similar purpose, but the difference is the number of loans. Refinancing is arranged for only one loan, while consolidation is possible for 2 or more loans. Both cases have the potential to save money in installments.

Where to set up the most advantageous consolidation?

Where to set up the most advantageous consolidation?

There are many banks that offer mergers of loans. Today, however, you no longer need to run the banks personally or visit each bank’s website separately to get the best loan merger. Consolidation can either be compared or you can enter data into the Internet consolidation calculator.

Using the Loan Comparison Chart, you can keep track of various interest rates, fees, and maximum consolidation rates. The most advantageous loan, however, is to choose yourself. On the contrary, the consolidation calculator will show the menu from the consolidation of banks, to allow for the situation. So you can choose the cheapest loan.

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Credit without credit bureau from Liechtenstein – indicates existing debts

If you are looking for a loan in Germany and can only show a negative Credit Bureau, you have little chance of putting this loan into practice. Because the banks and savings banks will consistently reject such a loan application. The repayment is too uncertain, since a negative Credit Bureau actually always indicates existing debts.

Most borrowers then try their own way to take out a loan. Most of these routes lead to dubious loan brokers who promise a lot and do little. Also in combination with a prepayment and the conclusion of unnecessary insurance. What remains in the end are disappointed prospective creditors who have no credit but additional debt.

It is actually not that difficult to take out a fair loan even with a negative Credit Bureau. The magic word is foreign banks. You handle the “problem” with the Credit Bureau completely differently. Since they have no access to Credit Bureau’s data, they cannot query it and the data cannot be used in the credit decision. The focus is therefore on other collateral that the borrower must fulfill. Such loans are popularly referred to as “Swiss loans”. The loans do not come from Switzerland, but from a small bank from the Principality of Liechtenstein, Best Bank.

Why creditworthiness is so important

Why creditworthiness is so important

A negative entry is quickly created in the Credit Bureau. Here is a forgotten phone bill, because an additional electricity payment that was not followed up on time. The reasons for the negative entry can be so diverse and do not always have to refer to debts with a bank or serious offenses with other payment obligations. Unfortunately, such entries, regardless of their quality, remain in the Credit Bureau for up to three years. So even if all liabilities have been paid, this does not mean that the Credit Bureau is clean again.

Credit Bureau is known to cause the greatest problems when it comes to borrowing. But not only there. Even a new telephone contract cannot be concluded with a negative Credit Bureau. In many cases, even a purchase on account cannot take place. And if you want to apply for a new credit card, you will have to accept a prepaid card with a negative entry, because a regular credit card with a negative entry in the Credit Bureau is unfortunately not possible.

Many consumers do not understand why the banks insist so much on the Credit Bureau and rely on their entries. After all, they say nothing about the person behind it. Just something about his financial situation. And that is exactly what the banks are interested in when lending. How does the consumer meet his financial obligations? Is it reliable or does it handle it lightly?

The conditions of Best Bank for a loan without Credit Bureau from Liechtenstein

The conditions of Best Bank for a loan without Credit Bureau from Liechtenstein

If you don’t want to worry about such things, you should simply take out a loan without Credit Bureau from Liechtenstein. The Best Bank is highly recommended in this regard and has proven to be a reliable and competent bank.

Should a loan without Credit Bureau from Liechtenstein be taken out via the Best Bank. For this, a permanent and permanent employment relationship must be proven. This employment relationship must have existed for at least one year. In addition, the income must be above the garnishment allowance.

Loans up to 5,000 USD are offered. With the repayment you can take two months. After that, however, the loan has to be serviced every month. For forty months. Depending on the amount of the loan, the installments are between one hundred and one hundred and fifty USD per month. A maximum of ten days pass from the application for the loan without Credit Bureau from Liechtenstein to the payment.

How can I apply for a loan without Credit Bureau from Liechtenstein?

How can I apply for a loan without Credit Bureau from Liechtenstein?

The loan from Best Bank can easily be taken out over the Internet. The bank provides all the necessary forms on its website. In addition, the conditions are described in detail again, so that everyone can find out in advance exactly what advantages or disadvantages such a loan entails.

Once the forms have been completed and sent to the bank, the bank will review the application immediately. If a loan is granted, the borrower also has to sign the contract and have it authenticated. This is done via PostIdent. The bank will then transfer the money from the loan without Credit Bureau from Liechtenstein to the previously specified reference account. A cash payment is unfortunately not possible.

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Credit despite debt collection

If you have contact with a debt collection agency, this is usually not a good sign. Because that means that there are open claims that are currently not or only partially settled. Not a nice condition, since this usually also suggests that there must be massive money problems, which have often had a negative impact on the Credit Bureau.

Once you have slipped so far, you try to escape the impending over-indebtedness by all means. Often one thinks of a loan despite debt collection, which should summarize all debts and restore a fair amount of liquidity. But what sounds so easy and carefree is a very difficult undertaking. Because you cannot simply take out a loan from any bank or savings bank despite collection.

The requirements for borrowing are clearly defined

The requirements for borrowing are clearly defined

All German banks issue their loans according to a fixed motto. If the customer has a good credit rating, a loan can be taken out that is in line with his economic circumstances. However, despite a debt collection, these economic conditions are unfortunately not available for a loan. The customer is neither debt-free and has a sufficiently good Credit Bureau, nor does he receive an income that is high enough to cover all expenses. If this income were available, it would very likely not have any debts and the debt collection agency would not step on its feet.

Other general prerequisites for borrowing are permanent residence in Germany and the legal age of the borrower.

The credit rating needs to be improved

The credit rating needs to be improved

In order to be able to benefit from a loan despite debt collection, the borrower must stretch properly and improve his personal requirements significantly. Because only when a good credit rating is achieved will there be the desired credit.

Since the current financial situation makes it almost impossible to improve on your own, the creditworthiness must be raised to a solid level with the help of other people. A guarantor who is solvent and therefore has a good credit rating would be the best solution. Because in the eyes of the banking houses, a loan despite collection, with a guarantee, is again a good loan. In the event of a payment default, the bank always has the option of using the guarantor and asking them to checkout.

However, there is a lot at stake for the person who offers himself as a guarantor. A loan contract is signed quickly. The risks behind this, however, are rarely properly thought out. Since the guarantor can be held fully liable for the loan, it is not only in the guarantor of the guarantor, but it can also cause him financial difficulties. Therefore, it should always be considered very carefully whether such a guarantee should be taken and whether a loan is really the right solution despite debt collection in such a tight financial situation.

What else needs to be considered

What else needs to be considered

Depending on how far the debt collection agency has interfered in the life of the debtor, it may be advisable not to have the potential loan paid out to the debtor’s checking account. If an account were seized, all of the money would be gone from the loan and could not be used for other purposes.

Sometimes it can be good if the debtor does not let the loan be taken out by someone else. In this way, the money flows into the other person’s account and is not threatened with attachment.

On top of that, it should be borne in mind that a regular loan leaves its mark on Credit Bureau. The German banks report the borrowing to Credit Bureau, and if there is overindebtedness, the debtor can be assumed to have built up additional debt despite the known financial situation. If an intention is proven to him, this can be very uncomfortable. Therefore, a loan has to be thought through very carefully despite collection and should only be taken out if the loan is beneficial for the repayment of the debt and ensures that the future can be viewed positively.

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