Monthly Archives: October 2019

Child loan guarantee

 

There is always a risk of having a certain amount on any credit account, even if you do it for your son or daughter. When you take out a car loan for your child, you take full responsibility for the debt. If your son does not pay or pays less than the minimum amount due, the delay will be included in his credit report and yours.

Risk related to taking a car loan

Risk related to taking a car loan

Even though your name would be on the loan, the bank cannot tell you if your son is in arrears, at least not immediately. It is your responsibility to ensure that you make each payment on time. Otherwise, you may cause damage to your credit report and assessments until you receive information about the default.

If your son stops paying in full, you will be responsible for the remaining loan amount. The creditor can then contact you to collect the debt.

If the account is sold, it will most likely be reported to your credit report, including your son’s.

Even if all payments are made on time, each time, lenders will consider the loan amount when assessing the credit report for the purpose of the loan. The debt will be included in the total amount due when credit points are calculated.

The increase in total debt can have a negative impact on your credit rating.

Benefits of car loan

Benefits of car loan

Let’s put the credit risk aside, thinking of a car loan for your child can certainly help him start building a strong credit history for himself. Because you have a strong credit rating, having you as guarantors is likely to allow him to receive better rates and deadlines than if he had submitted his own applications.

Just make sure that your son fully understands the role of the guarantor and that his actions, good or bad, will affect you directly. You do him a great favor and he must have serious responsibility to you.

Other options to help your child build a loan

Other options to help your child build a loan

If your son doesn’t have a credit card yet, adding him to one of your credit card accounts as an account partner or authorized user is another option that can help him build a loan. As a joint account holder, he not only has the option of using a credit card, but will also be responsible for payments. This means that any subsequent payment on your account will affect both credit histories.

New payday loans which one is the best?

The market of non-bank products is constantly evolving, as consumers’ demand for various forms of financial support is growing. Consumer expectations and their needs for non-banking services are changing, which forces companies to adapt to current industry trends. New payday loans are more and more improved in terms of the offer, and high competitiveness on the market makes non-bank companies try to precisely meet the needs of borrowers. What makes such offers stand out?

New payday loan – available to everyone

New payday loan - available to everyone

Until recently, few people who had met the restrictive requirements of banks could afford to take a loan. To get a loan, you must have an impeccable credit history, high income and a permanent employment contract. New payday loans are products in which formalities have been kept to a minimum. All you need is a valid ID to become a customer of a non-bank company and enjoy the injection of extra cash. Payday loans without checking your credit history are available to everyone, regardless of financial status or employment status. In determining creditworthiness, loan companies consider income from all sources, not just the employment contract. Non-bank loans are granted on the basis of retirement, student loan, 500+ or ‚Äč‚Äčother social benefits, included in living income.

Online payday loans – new for free

Online payday loans - new for free

An interesting offer on the market are free loans for new customers. You can use them only once, but it is a good opportunity to check the service level of the selected lender. In order for the new payday loan to be completely free, you only need to meet one condition, namely to pay off all debt on time. Before taking such a loan, it is worth analyzing your financial situation carefully so as not to be exposed to additional fees for late repayment. A safer option is to apply for a small amount that will be settled at the end of the loan period. Timely repayment of payday loans will make it easier to obtain larger amounts of funding in the future, as non-bank companies are happy to cooperate with clients that honestly meet their obligations.

Online payday loans – new without BIK and without certificates

Online payday loans - new without BIK and without certificates

Non-bank companies are trying to match the offer to each client. Even people who are struggling with debt and are entered in the database of debtors can benefit from such financial support. New payday loans are granted on a consolidation basis, which is why they are invaluable help in getting out of the spiral of debts. Gradual repayment of outstanding liabilities with payday loans can lead to financial independence and stability.

New loan companies – how not to be fooled?

New loan companies - how not to be fooled?

The offers of new companies that offer favorable conditions of cooperation are constantly appearing on the market. Before using the services of a new lender, you should check its credibility. A website offering quick payday loans can be a useful source of information. Vigilance should be aroused by unclear terms of cooperation, lack of clearly defined fees for the loan and incomplete contact details. New loan companies are trying to build their customer base by offering payday loans on attractive terms, which only seemingly are beneficial. Therefore, one should carefully examine the offer and additionally check the lender’s data in the register of the Polish Financial Supervision Authority.

New loans – what’s worth paying attention to?

New loans - what

Not all new companies on the payday loans market should raise doubts, as dishonest lenders are marginal cases. Most new loans are granted on favorable terms to convince clients to use the services. A novelty that is worth paying attention to are installment loans offered on simplified credit terms. Astro Finance offers new loans as proof, without requiring clients to provide employer certificates or any additional documents. Installment loans are comparable to traditional bank loans, which is why they had a similar granting procedure. The new non-bank installment loans were designed to be as beneficial as banking products, and at the same time did not require complicated formalities from customers.

New installment loans – who can take advantage of them?

New installment loans - who can take advantage of them?

Until now, simple payday loans have been the most popular among non-bank products. Increasingly, customers are choosing installment loans, because such an obligation is easier to pay back. The lending process is no different in both cases, because loan companies only require an identity card and a correctly completed application. In addition, it should be remembered that new non-bank installment loans are transferred to the account, therefore it is necessary to have a personal bank account. Due to the fact that it is a long-term commitment, you must reckon with checking the data in the BIK databases. This is to reduce the risk of late repayment and ensure customer safety so that they do not fall into a spiral of debt due to stratified liabilities that are difficult to pay off.

New in loans – payday loan or installment payment?

New in loans - payday loan or installment payment?

Competition on the loan market can cause that especially new customers may have a problem with choosing the best offer. Payday loans without checking your credit history are a good option if you are using the company’s services for the first time. Then you are entitled to a free loan not charged with additional fees. However, if you prefer to maintain financial stability and do not want to drastically burden your budget with a one-off repayment, choose a loan in installments. Just remember to pay all amounts due before submitting your application, because only then can you count on a positive decision from the non-bank company.

The concept of working capital loan, denominated loan and credit account loan.

What is a working capital loan and how does it work.

What is a working capital loan and how does it work.

There are many loans that are granted on different conditions and for different purposes. Such loans include working capital loan, denominated loan and social loan. Let’s start with a working capital loan. This is one of the bank loans that is taken to finance the current operations of the enterprise. Such money can be useful, inter alia, for payments to employees, or help in the purchase of some office equipment.

The company can maintain its financial liquidity thanks to revolving loans. It allows you to settle your current liabilities even if you have no cash on hand. Working capital loan is usually granted for up to a year, which makes it one of the short-term loans. If it is to be a seasonal inventory loan, it is granted for a longer period of time. Such a loan can be made available in a credit account as well as in a current account. There is no schedule for working capital loan payments, but it is implemented according to the limit set by the borrower. The same is true when paying off such a loan. There is no schedule for this. Usually, the bank wants the loan to be repaid until the loan is due. In some cases, the bank distributes the loan into installments, say repaid every month.

Denominated loan – concept and methods of operation.

Denominated loan - concept and methods of operation.

Another loan is a denominated loan. This is one of the foreign currency loans in which the debt in a foreign currency is calculated on the basis of the currency buying rate on the day when the loan agreement is signed. The exchange rate is constantly changing, which means that loans denominated are at risk. It may happen that the loan amount we applied for in the national currency will be lower in the foreign currency and thus we will receive less money than we needed to finance the investment. The opposite can also be the case. We may receive more money in a foreign currency than we requested in the national currency.

The concept and forms of credit in credit accounts.

The concept and forms of credit in credit accounts.

A loan in a credit account is a loan that requires the borrower to set up a separate credit account. All orders and transfers are made on this account, which is the opposite of overdraft facilities. Credit account loans are usually granted for a short period of time and for a medium term. Due to the fact that a separate loan account is kept, it is much easier to manage and monitor the loan. For the bank, it is much easier to control the borrower.

Credit account loans can be granted in several different forms. It can be granted as a target loan, loan for liabilities, as a cash loan, as a seasonal loan and as a credit line. Each of these forms can be a loan in a credit account, which is convenient for both the bank and the borrower.