Author Archives: Kimberly Parker

What is a loan?

Loan

Loan

A loan is a financial transaction in which one party (the lender) agrees to give another party (borrower) a certain amount of money with the expectation of partial repayment. The terms of a loan are often specified in the form of a debtor or other contract. The lender may ask for interest payments in addition to the original loan amount (principal). The borrower must accept the repayment terms, including the amount due, interest and maturity dates. Some lenders may also award fines for missing or delayed payments.

Because a loan can contain many hidden costs such as interest payments and finance charges, many people tend to avoid applying for one until it becomes absolutely necessary. Buying a new vehicle or home almost always requires some form of financial loan, whether it be a bank mortgage or a private loan with the seller. Jean Des Esseintes of higher education may also require a federally supported student loan. Interest rates on these types of large loans can be set at the time of the application or may vary depending on the federal prime rate.

There is a very significant legal difference between a gift and a loan.

There is a very significant legal difference between a gift and a loan.

A very generous relative or friend can give you $ 5000 for car repairs, eg. If there is no expectation of repayment, the money can be considered a gift. The donor could not sue for repayment later in a civil lawsuit. However, if the lender refers to money as a loan and the borrower repays, even a dollar, the money can be considered a legal loan and the lender can claim repayment any time. Small business courts spend much of their time deciding whether or not a transaction involving money was a gift or loan. This is why paperwork is crucial when making private loans to friends or family.

Most loan applications are handled by banks or other professional lending institutions. They can use any number of criteria to determine whether a potential borrower is eligible for a loan. Past credit history is almost always considered, along with current income and wealth. The purpose of the loan can also be a factor – a documented investment opportunity may have greater appeal than an untried idea for a new restaurant. An important consideration is the income to the debt ratio of the borrower. Can the borrower afford to repay the loan with interest? Professional lenders essentially “sell” money, so borrowers must realize how much a loan really “costs” in terms of real dollars and cents.

 

Never take a loan for parties! See why!

 

For many, the cost of a marriage is unreal, easily surpassing the thousands of reais. If you doubt it, try researching how much it costs to rent a wedding gown. In the face of despair and, almost always, pressure from family and friends, many couples feel obliged to marry. Some of these couples resort to financing marriages through loans or other financial means, ending up indebted.

Surely you know a story like that. It may not have been a wedding, it might have been a birthday party, a debutante ball or even a graduation: a wonderful party that resulted in debts for who organized it. Of course, the experience of the party is always worth it. But to bear the financial consequences afterwards is not at all amusing.

Holiday Loans

Holiday Loans

 

A wedding loan is essentially a personal loan, as well as loans for beginners dances and graduations. You will have to prove income, a risk analysis will be done by the financial institution and they will make a certain amount of money available for your party. In some cases, there are companies that divide the parties into several monthly installments. This is a way to disguise the interest on a loan and make you pay more and more for a party that is worth much less.

The Problem of Holiday Loans

The Problem of Holiday Loans

 

The fact is that the more money we have, the more money we want to have. In the matter of parties, more specifically, the bigger the party you can make, the bigger it will be, making you spend even more. This happens both because you do not have the money “in hand” making the least “painful” expenses in your pocket, and the excitement of bringing all friends, family and acquaintances to the party.

One good savings strategy is to charge 50% of the cost of the guest party. After all, they will enjoy the party more than you. (Photo: communicationisthekey.com)

Dangers of Party Loans

Dangers of Party Loans

Even if you do not have options and a party is a necessity, analyzing the dangers will help you get your feet on the ground. This means that you will care more about your pocket, your money, and plan the party in the best way possible.

You should throw a party without draining your savings. Party, except in case it’s a party for you to make money from it, it’s an expense with entertainment. If you have built good investments and have an emergency fund ready, you may not want to spend everything at a party, for more sentimental value than it does. Limit any party spending to a maximum of 10% of your available capital. Example: you have 10,000 in investments and emergency fund. For the party, then, you have only 1 thousand and nothing more besides.

Loans from friends and family. In many cases, family and friends can volunteer to help. If this help is free, great, it’s more money for your party. If she has to pay herself back, be polite and refuse. Even without interest, making debts with friends or family can be a lousy deal.

Interest rates. While you are paying interest on a holiday loan, a smart investor is making compound interest on an investment. Interest rates in Brazil are too high for loans, making borrowing money too expensive and will not even compensate for the best party in the universe.

Loan limits. Getting a loan can hurt your access to lines of credit for really important purposes, such as buying a vehicle for work or a property for your family. These are goods that last much longer than the hours of a party.

After the party, debt begins. Especially for those who hold a wedding party, you will not want to start your first day as a couple already in debt. The hangover will heal at most in a few days, since the debt will not.

Final considerations

Final considerations

Even if the whole money goes out of your pocket, without making a loan, you are taking on a large amount of debt for a few hours’ event. You may well do something smaller, within your means, or postpone the party for a moment of financial reassurance. Everything planned is much cheaper and is much more profitable, both in the short and long term.

As an example, a friend took a loan for his wedding party and today finds himself having trouble investing in his own business. If he had planned, he would know that the loan money would get in the way, and the party would only be remembered. Of course, you want to give the parties that everyone will remember for the rest of their lives. But can not you do this with a Sunday barbecue ending with a lual at the beach house of some friend? Or a weekend trip to the house in the family mountains? Think, rethink and be rational when deciding where to put your money.

Already got into debt for a party? How did you get out of this mess? What do you do to plan spending at parties?

What are short-term loans?

We borrow money for large expenses, for example for the purchase or construction of real estate, as well as for smaller ones, everyday. In the first case, we are talking about long-term loans, but in the second case we are talking about short-term loans, which due to small amounts are to pay off in a short time. Currently, we can get a loan from both a bank and a non-bank company. We can then find for ourselves such an offer, which will suit us in terms of requirements and costs. Often loans made are short-term ones. What are these types of loans?

What are short-term loans?

What are short-term loans?

In general short-term loans are defined as loans offered for a shorter period than 2 years. So these are loans for example for a month, 10 months or also for 24 months. These loans, as we have already mentioned, often refer to smaller amounts, which are easier to repay by the borrower, up to about PLN 10,000. Also short-term loans will allow us to more freely determine the threat, because it is easier for us to look a year ahead than for a few decades before us. In addition, these loans are instantly awarded and do not require the submission of a number of documents. Many times we can obtain them only as evidence. Extremely common loans for short periods are also internet loans.

Where can we get a short-term loan?

Where can we get a short-term loan?

These types of loans are often available. We can get them at a bank or a non-bank company. We can also take advantage of comparison websites, such as the Po┼╝yczek 360 Center, to select the best offer.

Payday loan

Payday loan

It is a fast non-bank loan that is also offered on-line as well as on-line. The stands are for amounts ranging from nearly 200 to 3000 zlotys, but we also find institutions that can borrow significant amounts. The payback period usually ranges from 15 to 30 days, but we also find loans up to 60 days. We often pay loans in one installment. We can also take advantage of the possibility of extending the repayment period many times.

Installment loan

Installment loan

When we need money in a larger sum, which repayment is spread over “convenient installments”, we can also choose installment loans. Then we can get a larger sum for any expenses and individually choose a repayment period – from 10 to 24 months. Then the debt is divided into installments and is definitely easier to pay.

What conditions must we meet to obtain a short-term loan?

What conditions must we meet to obtain a short-term loan?

They are not exaggerated. In most financial companies, the basis for taking a loan is to have a source of income, for example under a contract of employment, pension, or old-age pension. However, we can also get a loan with irregular revenues, such as a contract for a work or order. With short-term loans, we do not usually have to provide documents confirming our earnings and only fill out a certain statement in the application.

Most borrowers also require the client to have a good credit history at BIK or other databases, for example KRD, BIG. We also have loans without BIK, which will allow you to get money without checking in the above mentioned databases.

What is an Unsecured Loan?

Unsecured loan 

Unsecured loan 

An unsecured loan is a loan obtained without collateral. A person getting an unsecured loan agrees to repay the loan within a set period and sign documents certifying this. This type of loan can also be called a signature loan.

The simplest unsecured loan is a personal loan from a friend or family member with an IOU as a sign of agreement to repay the loan. This kind of unsecured loan should be considered whether you are a lender or a borrower. Large sums not yet paid can be detrimental to relationships with family or friends. Either the lender or the borrower may be dissatisfied with the rate at which the loan is being paid and there is very little use but the small court if the loan is paid.

Another common form of unsecured loan is a purchase made on a credit card. Each time a person makes a credit card purchase, he or she signs a form that allows payment and stands as an agreement to pay borrowed money. Once the person has obtained the credit card, the terms and size of the loan are predetermined.

Use of the card represents agreement to terms the credit card company can set. The money is not borrowed on the basis of security, such as home or property ownership. The credit card company simply has the borrower’s agreement to pay any borrowed funds. If the loan is not paid on time, additional fees may be assessed, the account may be sent to collections, and lawsuits may be taken against the borrower.

Should the borrower not be able to repay the loan due to a significant reduction in economic well-being, claiming bankruptcy can stop the collection. The credit card company cannot, in most cases, require the borrower to sell all assets he or she owns to pay the loan when the bankruptcy has been claimed. However, claiming bankruptcy can seriously damage credit ratings and make banks less willing to offer a person an unsecured loan in the future.

Banks can also offer an unsecured loan to a borrower. Usually, both banks and credit card companies assess the borrower’s creditworthiness before handing out cash without collateral. Those who have lower credit scores tend to have less luck getting an unsecured loan and if they can get one, they can be rated high interest rates as the lender takes more of a risk.

Usually an unsecured loan is for a smaller amount, perhaps for a single time medical fee or a vacation. When a credit is good, shopping around for the best interest rates for an unsecured loan is advisable. Often, the best rates are for an unsecured loan offered through credit unions. If you have an existing account with the Credit Union, obtaining an unsecured loan should not be problematic.

What is a Discount Loan?

Discount Loan

Discount Loan

A discount loan is a loan arrangement where interest and any other related costs are calculated at the time the loan is granted. At the same time, the sum of interest and other costs is deducted from the amount of the discounted loan. Instead of receiving the face value of the loan, the borrower receives the reduced amount but is still responsible for repaying the full face value of the loan.

Discount loans are often issued when the borrower wants nothing more than a short-term loan. Because interest and fees are already accounting up front, setting up the schedule of payments with a discount loan requires nothing more than dividing the face value by the number of installment payments to be made. This approach allows the borrower to start paying on the principle the same without any of the repayments going to cover the interest expense.

For the lender, the discount loan is also beneficial, as this type of loan usually does not allow for breaks on the interest charges that apply to the loan. Since current interest rates and similar charges are upfront, there is no need for the lender to apply early payoff penalties or to recalculate the interest rate the borrower pays for the loan prior to the schedule. This keeps accounts required to keep the details of the loan in order relatively simple.

Discount loans are usually written as short-term loans. The idea is that the borrower needs resources faster to cover expenses in the near future, and will be able to repay the face value of the loan within a period of anywhere between three months to one calendar year. It is not uncommon for the actual rate of interest for these types of loans to be slightly higher than longer-term loans, although not necessarily so. Borrowers who have a solid credit rating and have done business with the institution in the past may be eligible for interest rates that are a little more competitive.

As a simple solution to a temporary situation, a discount loan can be an idea option. The borrowers get what they need to meet the immediate needs, and lenders are assured that the loan can reasonably be expected to be repaid in full for a short period of time. With benefits for both parties, the discount loan represents a viable Varner family opportunity for both small and large businesses.

Is an Online Loan Reliable?

Do you still think that you have to face queues at banks and go through revolving doors to solve financial issues? The world today is digital: even processes that tend to be more bureaucratic can be done wherever you are, without having to go to the traditional banking agencies.

Besides ease, speed is also a hallmark of online financial operations. Therefore, those looking for a fast loan, for example, can turn to companies that offer this type of service.

In April 2018, the National Monetary Council, linked to the Central Bank, approved a resolution that allows Fintechs to grant credit without the need for a bank intermediation. With this, the expectation is that the online loan offer will increase more and more.

But how do you know if making a loan online is reliable? To answer this question, we raise some very important points, which should be considered:

Do not make advance payments

Do not make advance payments

If the online credit granting company has requested any type of advance payment, the chances of it being fraudulent are great. So pay close attention! Many companies flag on their pages that they do not charge any payment. Bcredi, one of our main partners, indicates at the top of all its pages that it does not require any previous deposit for the client who wants to take out the credit or real estate financing.

Search the company thoroughly

Search the company thoroughly

With the internet, access to information has become much easier. So a good Google search can help you understand more about the credit company, check your financial history, and even news stories that talk about it. As information is never too much, it is important to devote enough attention to this moment as it can prevent you from falling into blows and having headaches in the future.

Search for the security certificate

Search for the security certificate

Data protection should be a top priority for serious businesses that work with online credit. So, look for the site’s security certificate, which is a green padlock that usually stays at the bottom of the pages, ensuring that this is a reliable company.

Check the market time of the company

Check the market time of the company

The longer the market, the greater the credibility attributed to it. As the process of contracting credit is a complex operation, experience is fundamental and indicates whether the company is prepared to offer the service with quality and, above all, responsibility.

A financial institution that in 10 years served more than 5 thousand clients. Combining all this market experience with technology and innovation, fintech curitibana offers real estate financing and real estate financing credit all over Brazil.

Reliable online loan is with Low Interest

Reliable online loan is with Low Interest

Our team works to help you to take out loans safely and fraud free. If you have any questions, leave your comment here. Count on us!s

How long does it take to verify a loan application? – Quick Payday Loan

 

To get a loan, we do not have to leave the house. We can also take her completely online. At present, non-bank companies are leading in online loans. Together with them, we can borrow money quickly and conveniently and use it for any purpose. Many of them even boast that the funds can be at the customer’s facility even in a quarter of an hour. In reality, however, verification of the loan application usually takes longer.

Quick payday loans and installment loans available via the Internet are an excellent option for anyone needing an injection of money in various life situations. We do not have to go to a lender’s office to receive the money, because we can also choose online loans that are currently offered by a number of different loan companies.

The scheme for applying for a loan over the internet is similar in most companies. In the beginning, we select the desired loan amount along with the repayment period, and then we fill in the loan application, in which we enter our personal data, address, we write a statement about the amount of income and expenses. Then we go through the identity verification procedure, which usually involves transferring to the lender’s account a symbolic amount of 1 PLN or 1 PLN. This is to prevent fraudsters from swindling loans. Verification can also take place by phone. Then there is nothing else to do but wait for the decision.

A quick loan exists – only on certain conditions

A quick loan exists - only on certain conditions

Today, the process of data verification and the processing of loan applications is largely automated. loan companies use special software and databases that help in preparing a quick loan decision. Therefore, the verification can take up to several minutes!

However, there are situations when this time is extended. Below we present the main ones. Parts can be avoided, and thus speed up the time of obtaining a loan. Others are independent of us.

Reasons for a long wait for a loan:

Reasons for a long wait for a loan:

• an account in a bank other than the one belonging to the lender – it is important both in the case of verification by transfer and receipt of a loan to the account, intra-bank transfers are usually booked immediately, while the interbank ones in 1-2 days without weekends

• submitting the application outside the business hours of the loan company – the companies stipulate that they will only process applications during their working hours

• errors in the application – if any errors appear in the loan application, even typos, then the time of examining the application may be extended and may end with its rejection.