The advantages offered by consumer credit

Are you looking for the best way to finance purchases you have always wanted, or do you want to cover your daily expenses? Consumer credit is definitely what you need. This type of credit offers you freedom in your acquisitions, but, it should be noted that certain points must be considered when you want to subscribe to this type of loan.

 

Consumer credit, functionality

Consumer credit

 

Consumer loans are non-real estate loans with a sum of between 200 and 75,000 dollars. The repayment term of the loan must be more than 3 months. In terms of subscription conditions, this is often stipulated when signing the loan contract.

First, there is variable rate revolving credit, which is often used for short-term borrowing. This is used most of the time to build a fund which will be reimbursed as the borrower pays his monthly payments. Then you can find the fixed rate credit which is often appreciated for a slightly longer repayment term.

Aside from that, you can also choose between the assigned personal credit, intended for the purchase of a well-defined property and requiring proof to be presented to your bank; as well as unallocated personal credit to give you more freedom in its use. Note that in the case where the sale is canceled, the current credit is also canceled for the case of the consumer credit affected.

 

The advantages of this type of credit

credit loans

 

Consumer credit is attracting more and more households but also individuals who wish to constitute a fund for a personal project. Thanks to the funds granted by the bank or the financial institution, the borrower will not risk incurring expenses not proportional to his budget.

He also has a right of withdrawal of 14 days, in the event that the loan does not suit him or simply that he has changed his mind. This right gives him the opportunity to reconsider his purchasing decisions on the days indicated. If before the Lagarde law of 2011, the right of withdrawal was one week, today, this is extended by one week more.

The borrower will have the freedom to choose the borrowing rate that suits him, even if for purchases of more than 1,000 dollars, the conventional loan will be at a fixed rate. On the other hand, for purchases less than this amount, the borrower is free to opt for a fixed rate or a variable rate.

And, as consumer credit is one of the so-called legal loans, the bank must consult the FICP file before giving its approval for the granting of the loan. This avoids the problem of default or insolvency of the borrower in the short or long term.

For the bank or the financial institution, this operation constitutes a non-negligible profit because the interest rates charged are sometimes higher compared to the market rate. And from an economic point of view, growth is assured because consumer credit encourages people to spend and consume more.

Business loans for small businesses

Running or starting your own business and turning your business idea into action is something that many people dream of today. The freedom to run one’s own and to be one’s own manager is something that attracts many. Another reason may also be that you want to develop a business that you really are passionate about or test a new form of work that is different from being employed. Did you know that self-employment is actually the country’s most common profession.

According to data, there are 1.2 million companies in the country, about 96% are small companies with less than 10 employees and only 0.1% companies have more than 250 employees. Four out of five new jobs are created in small and medium-sized companies.

Financing a business

Financing a business

Other important aspects are budget and financing. As a small business, extra capital may be required during start-up or during the first business side. Those who already run a small business then have dreams and aspirations for it to grow and develop further. You may need to make the necessary purchases for your business to reach the next stage of development or funding for something else.

You can apply for funding in many different ways, of which the most common way is to borrow money, ie take out a corporate loan. A lot of help regarding business loans and financing can be found online. A convenient and effective way is to visit services where there are several different lenders available in one place. Such an approach gives many more opportunities and saves a lot of time and money.

Corporate loans for small businesses

Corporate loans for small businesses

Our company is a free service that gives your small business an opportunity to apply for a business loan and then compare different offers from more than 19 different banks and lenders. All companies registered in the country and active can use the service and apply for corporate loans. We cooperate with lenders who grant loans to individual companies, limited companies, limited liability companies and trading companies. We have already helped more than 1,000 small and medium-sized businesses to get competitive corporate loans. In addition, our advisors are ready to help in case you have questions and concerns regarding loan offers and your company’s financial situation.

Installment loan for unemployment

Getting the desired installment loan for unemployment can be the easiest thing in the world or almost impossible. Even being able to correctly assess the loan options helps to find the possible installment loan and saves disappointments.

Installment loan for unemployment – it’s that simple

Installment loan for unemployment - it

In some professions, regular short-term unemployment is inevitable. Roofing would be a profession that depends on the weather. If long-term installment loans were excluded for these people, all roofers would walk and live in a rented apartment. The installment loan for unemployment is normal for most providers for the weather-dependent business. As certain as short-term unemployment comes, overtime over the course of the season is as safe.

In addition to the usual job description, a lender also looks at other factors when lending. The ALG 1 must be able to carry the installments safely in bad weather. In addition, the borrower should have demonstrated over a long period of time that he can handle his money. A look at the checking account reveals a lot about the payment behavior of the applicant. The clerk does not want to see chargebacks due to insufficient funds or a permanent overdraft. Regardless of the salary account, as with almost all credit requests, the Credit Bureau information must of course be pure.

Installment loan with ALG 1 without a specific job prospect

Installment loan with ALG 1 without a specific job prospect

Not everyone affected by unemployment only has the problem of seasonal restrictions. In these cases, too, an installment loan for unemployment remains possible. However, based on ALG 1 only, the credit opportunities are drastically limited. A short-term installment loan from a mail order company remains possible without the help of friends or family.

Mail order credits are used to promote sales. In the interest of sales, the bar for lending is set as low as possible. Mail order house loans generally have a very short term, which is usually still covered by the remaining duration of ALG 1. In this case, only the Credit Bureau must be clean and allow the amount of ALG 1 to be repaid.

A small loan from an online provider would also be conceivable. Again, the simplified credit check process improves credit opportunities. However, not everyone can enjoy the desired small loan without help. A solvent guarantor can become indispensable for approval.

Credit from private

Credit from private

The private loan, without following the rules of the established banking system, offers loan offers to people who do not get a normal loan. Contact with private donors can now be easily established via the Internet.

The installment loan for unemployment via one of the two market-leading platforms is particularly promising. A clean Credit Bureau is also an advantage here, but not an absolute requirement for a microcredit. Even in ALG 2 – there are – from private – credit opportunities.

Ways to modify loans

 

Banks can change the terms of your loan to make payment more affordable. These changes are often referred to as loan modifications, and may be permanent or temporary. We will talk about the specific changes that could happen here. For an overview of modifications, including how to ask your lender, see What is a loan modification?

Types of loan modifications

Types of loan modifications

There are several ways to change a loan.

The ultimate goal is to make it easier for you to keep paying and stay home (and, most importantly, avoid foreclosure).

Some of these options are better than others – think about which one will benefit you the most so that you will be ready when talking to your lender. Lenders will not always offer all of these options, and you may need to negotiate and continue looking for the most useful results (such as a major reduction) – if those options are even available.

Gradual payment

In some cases, you can easily skip a few loan payments, which offers short-term relief from short-term issues. If you are between work (with payroll security on the horizon) or have several medical bills to pay, this might be a good option. Although you will need to make these payments at some point. Your lender will add those missed payments to the end of your loan, which means it will take several extra months to repay the debt.

Moreover, you will pay more interest in this option.

Major downside

Major downside

The most attractive option is for your lender to reduce the total amount of your loan. Simply, you would owe less on the loan, and you would get a new monthly payment based on a smaller loan amount. This solution is rarely available (but always worth a try) because lenders are usually unable or unwilling to forgive debt.

If you are lucky enough to have this opportunity, discuss the implications with your tax advisor before moving on.

Rate Reduction

If your lender reduces your accrued interest rate (APR) on your loan, your monthly payments will also fall. The rate cut may only be temporary, so be sure to read the details of your deal and plan ahead.

Long Term

Long Term

Your lender can also extend the loan term or the number of years you have to pay. The longer you pay, the lower your payments. However, you will pay more interest because you owe it for a longer period of time. See below for tips to find out exactly how much more you would pay.

Refinance a loan

You may be able to exchange credit for another loan. For example, you would pay for an existing loan and replace it with a loan that comes with a lower interest rate and a longer repayment period (which would result in reduced monthly payments). Again, this can lead to higher interest costs over the life of the loan, and closing down refinancing costs can be expensive.

To see how changes in interest rate, term and principal affect your monthly payment, see our Loan Amortization Calculator.