Purchase of credits with new project

It is possible during a grouping of credits to reduce its monthly payments and to finance a new project, here are the modalities to know concerning this financing.

Projects, monthly payments: buying back credits

Projects, monthly payments: buying back credits

Borrowers with monthly payments deemed too high or wanting to facilitate the management of their budget turn to the repurchase of credits in order to readjust the amount of the maturities to the financial capacities of the household.

The principle is simple, with this banking operation the borrower has the possibility of grouping part or all of his outstanding amounts in a single loan with reduced monthly payment. The reduction of the monthly payment is possible thanks to an extension of the duration of the loan.

When assembling the file, it is possible to include a sum which will be allocated to a new project. The feasibility of funding should be checked beforehand.

Include new project in loan repurchase

Include new project in loan repurchase

Today, the owners as the tenants engaged by their credits (real estate, with the consumption) do not dare to carry out their new project for lack of financial means and for fear of losing the control of their budget.

It is obvious that nobody wants to find themselves in a complicated situation, this is why the repurchase of credits makes it possible to readjust the charges of credits and to profit from an additional sum for the realization of a project on condition that that -It is affected (works, furnishings, purchase of a car, travel).

In other words, when the loan consolidation is carried out, the borrower will be granted an additional sum for the realization of his defined project, this sum is recorded in the total amount of the loan. The customer can then agree on the monthly payment that best suits his needs, the most in line with his income to allow him to honor the terms of the contract.

The online simulation allows you to quickly know if the project is feasible and then to know the amount of the reduced monthly payment and also the amount granted for the new project. Ideally, the loan has a lower interest rate than your existing debt and allows you to pay off the debt faster.

The credit blockchain: with or without the banks?

Our first reflex when we wish to take out a loan is to contact one or more banks through the intermediary (or not) of a broker. You may also sometimes use the services of a comparator. But with the advent of Blockchain, will this model still exist in 5 years, 10 years, 20 years, ..? No one can really say today. We are in 2018 and the technology is too recent, and its applications too anecdotal, so that we can really draw a certain trend. But nothing prevents us from making some assumptions.

We know that what essentially makes the rate of a loan is the rate at which the bank finances itself (on the market or thanks to other elements of its liabilities such as savings collected) and the risk taken.

 

Let’s take a look at the latter. The risk taken

credit loans

It is ultimately only the estimation of a probability that you will not repay, or partially. Banking establishments or brokers who do not know you, have decided to get an idea of ​​your ability to repay by asking for a certain number of administrative documents.

A tax sheet, an employment contract, the number of children, … are all parameters that will be integrated into a mathematical formula that will indicate whether the bank lends you or not, and at what rate.

 

What could blockchain change?

credit loans

As the blockchain wants to be both completely reliable and transparent, one could imagine that it could meet the needs of banks and even lenders who are not banks.

Imagine that you are part of a blockchain dedicated to credit, in which you authorize trusted third parties to publish information about you. We could imagine that you authorize the administration or your employer to place certain information concerning you there.

You could also authorize your creditors to indicate the loans that you have in progress, the quality of your repayments, the number of loans that you have repaid,…

 

In this blockchain will pass completely reliable and quality information.

credit loans

Also imagine that this platform generates a scoring (note that you assign to the banks, based on your borrower profile). The scoring would be carried out, not on a probability of reimbursement, but on the confidence that you have in the actors present in your blockchain. And what a better asset than the rating given by those who lent you … even a little. It should not be forgotten that a loyalty and payment card in installments remains a credit, and that if you have reimbursed this credit without problem, it should raise your rating on this blockchain.

When you want to take out a new loan, or when, why not, you want to resell your receivables to a third party, all you have to do is open this blockchain and solicit your trusted third parties.

The miracle of this technology is that you wouldn’t be asked to do anything. No information, no document. Nothing.

It is a safe bet that the rate that you will be offered will be lower than the rates charged elsewhere. Why? Simply because the risk of fraud will be extremely low and you will not be charged this in your rate.

And then maybe something else will happen. Maybe it will not be a bank that will lend you but an individual or a business.

The first job of a bank in terms of credit is to estimate a risk (which it never shares with other third parties). But if this work is already done, and if it is also reliable, then why would others not want to lend you? They could then lend you to you directly or to a pool of people who have the same rating as you.

 

Banks would therefore find themselves in competition with private lenders

The companies that invest their money, etc. which would not necessarily be subject to the same regulations. Today it is only a scenario, but it makes you think.

We are entering an era which values ​​data more than ever and even more the sharing of data. Even if this scenario does not happen exactly, the way we borrow and we are lent, will probably change quickly thanks to Blockchain.

Reserve Money – Quick and Easy Credit Comparator

Sometimes when you want to have fun or an unforeseen occasion causes an urgent need for money, some people prefer to have capital rather than to draw on their savings.

The opening of credit, also called revolving credit is a flexible and flexible form of credit consisting in making available to the borrower a sum of reusable money as and when repaid. And this, in order to finance non-predefined purchases and projects. The amounts loaned are often lower than for personal loans.

There are no restrictions on the use of this credit. The borrower is free to use it as he sees fit, he can make his withdrawals in various forms (cash withdrawal, transfer from an account, direct purchase using a card, etc.)

How it works ?

How it works ?

The money reserve is a very special consumer credit since this reserve is replenished as repayments are made and it is possible to borrow again the available part of the reserve granted. This type of loan is often accompanied by a credit card (or acquisition card) and allows you to have at your disposal a permanent financial resource.

The amount borrowed is based on income, other outstanding credits and the amount is calculated according to the debt ratio, and the remainder of the borrower’s living.

Interest is deducted from the sums remaining due at the end of each month. If no part has been taken from the reserve, no interest is due. Interest rates are often higher, vary according to banks and lending organizations, this can become a factor of over-indebtedness if you lose control.  Regardless of the amount withdrawn and the use made of it, the borrower is guaranteed to pay the same amount each month.

Very often, credit institutions allow the reserve used to be reimbursed more or less quickly by varying the amount of the monthly payments (plus interest), while taking into account a minimum decided according to the conditions agreed (at least interest). Certain types of credit facilities only provide for regular payment of interest, the capital being required at the end of the contract.

However, to avoid a risk of permanent debt, Belgian law obliges the borrower to repay the entire loan within a certain period without terminating the contract: this is zero.

The law which regulates consumer credit provides for maximum zeroing periods which vary according to the amount borrowed (from one to five years) and the lender is required to warn the consumer beforehand. Once the credit has returned to zero, it can again draw down.

Proper use of credit: a few tips

Proper use of credit: a few tips

The success of revolving credit rests on a significant demand for credits of small amounts. In most cases, the majority of consumers are creditworthy and aware of the commitment made.

The most important thing is to remember that we have on hand a sum of money that does not belong to us and that we will have to repay with interest! It is easy to lose the notion of your purchasing power and your ability to repay, to make impulse purchases.

It is therefore advisable to be well informed before embarking on a credit opening and to remember that borrowing money also costs money!

If this formula has the advantage of being flexible, it is generally expensive and can constitute a dangerous incentive to overconsumption, even to over-indebtedness and therefore requires very good management of your account. It is recommended to take out loss of employment or income insurance which will take over in the event of economic difficulties.

The opening of credit is often accompanied by a card or a payment instrument which makes it possible to draw credit. It’s easy because you can pay everywhere and withdraw cash. Be careful in this case, interest as well as additional costs will be counted on the sums withdrawn. The danger is that one is in debt longer than with an ordinary loan.

It is often difficult to estimate the exact total cost of the loan, the calculations to be carried out being often complicated: various costs, higher card contribution, higher rate, etc. In addition, because of the feeling of freedom that this opening of credit gives, one is more often tempted to borrow again. It should only be used as a last resort and not in place of conventional funding.

The choice of this type of credit depends on your goal: if the help you need remains punctual, for small expenses, purchases really essential, or when you do not know how to do otherwise, the opening of credit is very useful.

The opening of credit is suitable if you control your budget, that you have regular and sufficient income, but you must however avoid using it too frequently. However, it is a good alternative in the event of the unexpected and if it is used correctly.

It is however essential to request several offers and compare them. Using online simulation sites (“ready-to-temperament.be” for example) will help to make a wise and informed choice before committing to such credit.

It is advisable to negotiate the conditions for the opening of credit along two main axes: either the interest rate if you intend to use the credit card associated with the money reserve often; or the membership fee of the card (which can be free under certain conditions) if you intend to use it only in an emergency or exceptionally.

No credit opening if the borrower is already too indebted or with recurring difficulties! It would only make things worse.  A credit commits you, check your repayment capacity before you commit

How to manage your consumer credit?

Low rates and the timid return of confidence may encourage you to take out consumer credit. Whether to finance a new car, work in your home or finance the education of your children.

Advised by your bank or broker, you may then decide to take out a loan and you agree to repay it. But this request is not trivial (although it sometimes seems so). Framed by law to avoid over-indebtedness, you will theoretically not be able to go into debt in a risky way, if you show total transparency on your income and your charges.

However, to avoid unpleasant surprises and ensure that you can repay your installments, you will have to learn how to manage your credit over its entire lifetime. Like an airline pilot preparing his flight plan and to ensure that you leave and arrive without incident, you will need to plan your trajectory.

 

Step 1 – The flight plan

Step 1 - The flight plan

The first step is to prepare your flight plan. For this you must build your budget forecast over the life of your loan.

First identify all of your income (the most certain): your salary, your rental income, etc., for the sake of security, avoid taking your possible premiums into account. This is your basis for paying all of your expenses.

Then identify all of your expenses. This exercise is more complex because you will have to identify the recurrent charges (rents, credits in progress, food, etc.) and exceptional charges (holidays, taxes and duties, Christmas and birthday gifts, medical expenses, etc.).

To help you carry out this flight plan, rely on your account statements. They track all your income and expenses and the banks have taken the initiative to categorize them (wages, housing, health, transport, leisure, animals, daily life, etc.).

By using these services you will have the assurance of not forgetting anything.

When you have completed this somewhat laborious exercise, you will know exactly what your monthly balance is (what you have left to spend). This constitutes your ability to repay a loan. So make sure that the monthly repayment amount of your loan does not exceed this balance.

Once you are sure of the viability of your flight plan, you can knowingly subscribe to your loan.

 

Step 2 – Takeoff

plane Takeoff

The subscription is a crucial step. Make sure you find all the elements that you had anticipated. For that, check of course the amount which is granted to you, but also that the monthly payments which you are asked are consistent with your forecasts. Otherwise, contact your credit institution immediately.

You will often be offered to take out insurance. This is not compulsory but recommended. Measure the benefits and costs carefully before rushing your decision.

 

Stage 3 – The cruise flight

flight loan

During this phase, you will have to check that your forecasts are realized and that they correspond to reality. It is ideally a monthly exercise, and at least a quarterly exercise.

To do this, you will need to know the date and the amount of the monthly payment of your loan.

A few days before the deadline, take the time to consult your bank account or your aggregator, you will then have an overview of your ability or not to meet this deadline. Your banking sites also allow you to consult the “operations to come”. Do not hesitate to consult them to ensure a serene flight.

Likewise, before embarking on an exceptional expenditure, check that this expenditure will not put your next direct debit at risk.

 

Step 4 – The unexpected storm

unexpected storm

Life and its surprises may lead you to change your flight plan. Some expenses may be as unpredictable as necessary. You will then find that you will be unable to repay the next installment of your loan. Then adopt the same attitude as an airline pilot in front of a thunderstorm. Contact air traffic to request a diversion.

Above all, do not adopt the attitude of ignoring and rushing into the cloud. The pilots will confirm it! You will then have a “payment incident”, numerous unpaid fees, reminders, etc. This situation will degrade your relationship with your banking establishment and your next loans will be made with higher rates because you will be identified as having had a “Incident”.

In your case, this will involve contacting the bank or credit institution to inform them of your diversion need. Indeed, these organizations do not know your exceptional situation and cannot guess it and in fact help you.

These organizations will then offer you to postpone one or more installments or to smooth the loan over a longer period with lower monthly payments if the storm spreads. You will then remain a “good” customer who knows how to manage his budget. You may even be able to renegotiate your loan on this occasion or have it repurchased by another organization if you are in a period of falling rates. You will then transform a difficulty into an opportunity.

If you have several credits and are unable to find an arrangement with your credit organization, you can then contact one of the many credit purchase agencies. On mindfinance website, you will soon find a list of reliable partners in your region. These organizations will offer to group all of your credits into one over a single period. The amount of your monthly payments will drop in favor of a longer loan term. But this operation has a cost and the broker who will offer it to you must inform you of the additional cost generated by this grouping of credits. On this occasion, you will have to recalculate your provisional budget to be able to manage your single deadline again and minimize the risk of a thunderstorm.

 

Step 5 – Landing

consumer credit

One of the essential tips in managing a consumer credit is to plan a landing. A pilot who would spend his life in the cabin would become exhausted and make his flight too risky. Like him, plan to repay your loan in full and get out of debt on a specific date.

The credits must allow you to access a particular project or to satisfy a crush, but not to live continuously on credit.

In addition, you will have come yourself that you are able to take out a loan, manage your budget over a long period and repay a loan. This will only confirm your ability to manage your deadlines well. You will be reassured and so will your bank. It will be all the more accommodating to lend you again.

How does online credit comparator works?

 

Online credit simulation and comparison

Online credit simulation and comparison

Why is it important to consult an online credit comparator before subscribing?
It is essential to have several loan offers in front of you before signing a contract. Compare makes it possible to determine which loan is the most suited to his needs and also his repayment capacity. Borrowing money also costs money, so why not give yourself the chance to minimize your spending?

How does a credit comparator work?

How does a credit comparator work?

To have a list of cheap credits, you just need to indicate the amount you plan to borrow as well as the repayment period. You will then have before you offers at attractive borrowing rates from different suppliers. They will be categorized according to the credit family to which they belong. They will also be presented with the rate (Annual Effective Annual Rate), the estimated monthly payments and the total interest.

Online credit comparators allow individuals to benefit from loans at the best rates without having to go around banks and other credit organizations. Saving time, energy and also money is what online simulators and comparators offer. A saving of time insofar as rapid results are obtained. Energy saving in the sense that there is no need to travel. A saving of money due to the fact that the borrower benefits from an offer adapted to his income.

How to subscribe after finding the loan we need?

How to subscribe after finding the loan we need?

A loan simulation cannot be considered as a loan request. This is the reason why it does not require any commitment. In addition, after making an online request, you must also confirm this same request by sending more detailed information on your financial situation.

What is interesting is that you do not have to travel or spend several hours on it. Of course, you will have to provide many supporting documents, but you just have to scan and send them so that the credit organization can have them in hand. Once all the steps have been completed, you will only have to wait for the examination of your file to be completed.

A credit commits you, check your repayment capacity before you commit

The different types of consumer credit

Financing a car, going on a trip or even buying a new computer, all these projects require a certain amount of cash. But it is not necessarily available when you need it. This is why, to deal with these situations, it is possible to turn to credit. Depending on your project, your income but also your borrowing capacity, there are several types of credit known as consumer credit.

 

Personal loan: free credit

Personal loan: free credit

Among consumer credits, the personal loan is a so-called “free loan”. In this sense, it is possible to release the funds without the need to present proof or quote. Thus, the borrower having subscribed to a personal loan will be able to spend the amount obtained as he wishes and at his own pace. Generally, personal loans are used to finance daily or leisure needs. In some cases, the personal loan can also be used to repay certain debts such as late rent or tax.

If this loan has the advantage of being free, the main drawback linked to a personal loan lies in the fact that in the event of default or non-delivery of the object concerned, the repayment of the loan will be maintained.

Currently, its rate is estimated at between 2% and 9% on average. This rate is fixed over the entire repayment period. It is possible to borrow between 200 dollars and 75,000 dollars for a maximum repayment period of 84 months. The personal loan is a consumer credit and as such it is governed by the Consumer Code. The borrower will have a withdrawal period of fourteen days after the signing of the contract.

 

Affected credit: making a specific project a reality

Affected credit: making a specific project a reality

The affected credit is a loan that relates to the completion of a specific project. To obtain the release of funds, the borrower must present to his creditor a quote or proof of purchase. This type of credit is mainly used to finance projects such as the purchase of a new or used car. It is possible to take out this loan from a bank, a credit institution, a dealer, a travel agency or even directly in a department store. This loan makes it possible to borrow between 200 dollars and 75,000 dollars repayable over a minimum period of three months. Regarding the rate applicable to this type of credit it varies between 2% and 9%.

The affected credit is inseparable from the purchase in question. Therefore, if the sale or delivery is canceled, the borrower will have nothing to repay. As with the personal loan, the credit assigned belongs to the category of consumer loans and as such it is governed by the Consumer Code. The credit holder will have a withdrawal period of fourteen after signing his contract.

 

Micro-credit for small cash needs

cash loans

The personal micro-credit is intended for anyone residing in France without income conditions. It is intended more particularly for individuals who find themselves excluded from the banking system due to a file at the Cream Bank or a difficult professional situation. This credit included in 300 dollars and 5,000 dollars can be used to finance projects such as: repairing a vehicle, financing training or a driving license, carrying out work or even health care. Its rate is set by the lender and it can vary between 1.5% and 4%.

Real alternatives to big banks, many websites and online platforms like Finlog offer microloans to individuals. This credit is very quick to obtain and it is possible to complete all of the procedures online. After making their request directly on the site, the borrower will receive a response within 24 hours and the amount borrowed will be released within 48 working hours (time excluding weekends and holidays).

Realize your home loan quote

Whether it is short term or long term, if you are thinking of realizing your real estate project, plan to obtain your loan by starting with a request for a mortgage loan quote. This will allow you to optimize your home loan in order to benefit from the best borrowing conditions.

By using simulation tools on the web, you will be able to receive several personalized quotes in just a few clicks. Thus you will have an approximate idea (not final) of the total cost of your financing according to each financial organization.

 

Going through the online mortgage simulation

home loan

Your request will be forwarded to the most interesting financial institutions according to your project. The various quotes you will get will allow you to choose your mortgage from the best offers on the financial market.

Regarding the purchase of real estate, the construction of a house, or even repairs to be carried out for your current accommodation, it will be very useful for you to compare several quotes so that you can carry out your project at the best possible cost.

You will receive free mortgage loan quote proposals made by various specialized professionals without any commitment on your part. You can therefore compare the offers with complete peace of mind, and then choose the loan offer that best suits your profile. The credit rates being currently low, it is interesting to benefit from it to acquire its principal or secondary housing.

 

The main elements to consider

The main elements to consider

To optimize your home loan and enjoy the best borrowing conditions, it is necessary to take into account the essential elements in your real estate loan simulation.

  • The mortgage rate
  • Home loan insurance
  • The mortgage guarantee
  • Early repayment of mortgage
  • The modular mortgage option
  • Mortgage fees

 

Home loan quick comparison

The following situations can cause the rate to decrease:

A foreclosure of the property usually means proceeds that are not sufficient to cover the remaining debt. Since the borrower is already insolvent, the bank may have to wait a long time for the rest or have to post the shortfall entirely as a loss. The debtor, on the other hand, may still have debts after the auction and also have lost his property.

Residual debt insurance is a tried and tested means of avoiding a reduction. However, it does not apply in every case, but mainly in the event of sudden unemployment.

Another method is debt rescheduling. Debting the home loan gives more financial leeway. In this case, a new home loan is taken out that has a lower rate. 

Choose the right work loan.

Do you need reliable financing to carry out your renovation work? The work loan is the most suitable solution for individual requests. Indeed, it is a consumer credit formula often assigned to the realization of a specific project to allow owners or tenants to improve their living conditions.

Faced with a constant increase in the demand for works credit, banking establishments are increasing their offers and it is increasingly difficult to choose the work loan best suited to the real needs of the household.

Works loan: the specifics

Works loan: the specifics

Before even choosing the work loan, it is important to learn the specifics. As a consumer loan, the works loan gives you access to a sum of between 200 and 75,000 $, for a repayment period of 3 to 84 months.

For a larger amount, it is better to turn to a mortgage formula. In order to better locate your needs, do not hesitate to ask the assistance of a confirmed company to give you a detailed estimate, as well as the advice of your banker to make a summary of your current credits and review your charges in order to determine the amount that will be used to repay this work loan. This information is essential, because it will allow you to compare the different possibilities available to you.

The criteria for choosing the works loan

The criteria for choosing the works loan

To find the right work loan, do not hesitate to compare the offers of banks and other credit institutions. Besides, you now have online simulation tools that will provide you with the necessary information concerning the amount borrowed, the repayment period expressed in monthly installments, the APR (effective annual directory rate) applied, the total amount of the works credit.

This information will help you compare the offers of the banks and take advantage of the competition. It is also possible for you to call on a credit broker, an expert who will study your needs and your financial situation to put you in touch with the financial organizations that offer the best offers.

Work loan assigned or not assigned?

Work loan assigned or not assigned?

When subscribed in the form of assigned credit, the work loan will only be used for the interventions specified in the estimate, and proven by invoices or purchase orders previously provided with the credit request file sent to the bank. In addition, you must mention on the purchase order made by the contractor that the work is the subject of a work credit.

So, if you never get the credit, you can cancel everything, and in the event that the company is unable to provide the intervention, the work credit is automatically canceled. With the works credit allocated, the borrower has the right to make a partial or total prepayment, without facing penalties.

As for the unallocated works credit, this is a classic personal loan which is granted to you without proof of use. This money can therefore be used to finance do-it-yourself work, buy household appliances or even furnish oneself, giving you more freedom with this form of work loan.