Month: October 2019

Is it possible to take a private loan if you have payment notes?

by Elizabeth Jimenez

One or more payment notes can put a spanner in a variety of financial matters. It can be anything from mobile subscriptions to renting an apartment and of course also borrowing money.

In the eyes of a lender, simply a person with a payment note is at greater risk of lending money to another when he has not previously repaid his debts. Here we will take a closer look at this particular problem and see if there are any solutions.

Are there opportunities to borrow?

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You should never say that it is impossible to get a private loan even though there are active payment notes, however, you should know that it will probably be very difficult. If you want to borrow from one of the larger banks, you will probably need to visit them in person and then be able to show a very good economy so that they even consider lending money.

This means a stable income and all old debts are repaid. Even if you have this and make a good impression, there is nothing to say that they will approve you as a borrower. But there is a possibility.

The best chance to get a loan from a regular bank is to talk to the bank you are a customer of or any of the other major banks in your city. You must then be able to explain your situation, why you have problems and why you feel that you can manage a loan despite having payment remarks.

If you can show a strong economy or other good reasons why you are able to borrow the money, it can go the way, but there are no guarantees. The more arguments you have for getting a loan, the better it is. It will be easier if it is an old payment note that has long been resolved.

Loan institutions that target people with remarks

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It is a bit different how it looks on the loan market between opportunity and opportunity but if you are lucky there may sometimes be lenders who have chosen to specialize in lending money to people with payment complaints.

They will also do a credit check only that they automatically do not say no if there is a payment note, but they include this as a negative part of the overall rating. Positive things like capital and income can be big enough to weigh up the overall rating.

Loan with the guarantor

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Another option for those who want to borrow money but have payment notes is to try to find a person who enters as guarantor for the loan. However, this is something to be careful of as the person going to the guarantor will be liable for repayment if the borrower does not pay his repayments.

For this reason, you should only use a guarantor if you are really sure of being able to repay the loan. It is often a family member or friend who enters as guarantor and it is important not to ruin the friendship for a loan.

If you feel confident about the repayments, a guarantor is a good option as it gives the lender a greater security to lend money. They will then do a credit check on the guarantor also to see that that person has a sufficiently good finances.

Car loan with guarantor – low – take advantage of opportunities.

by Elizabeth Jimenez

Are you interested in a car loan with guarantors ? Would you like to start right now, because time is burning under your nails? Use the credit comparison. Enter the dealership as a cash payer. Save a lot of money

Not decided yet? Consider whether a guarantor may be avoidable? Use the text as a guide. With a little luck, it works with the car loan, without naming a guarantor.

Car loan with guarantors - why actually?

Car loan with guarantors - why actually?

After car loan with guarantors people search, if the personal credit rating for independent borrowing is not sufficient. This happens more and more often in Germany, because banks must meet requirements. All "systemically important" lenders, including all banks, are only allowed to grant secure credit. Unlike in the past, the legislator talks a little bit, "what is certain."

The focus of the legislative changes - after 2005 - was on the globalization of the lending business. Loans are traded. So it came that lazy loans from the US initiated the euro crisis. Multinational rules are now intended to prevent lenders from taking a risk and then passing it on to others. The father of the thought is good, but a car loan with guarantors is rather annoying.

Loan with guarantor - who is allowed to vouch?

Loan with guarantor - who is allowed to vouch?

Basically everyone is allowed to vouch. However, in order for the guarantee to be accepted for the desired loan, the guarantor must be solvent. In plain language, in case of difficulties, he must be able to bear the debts. As a result, many people are in fact excluded from the responsibility of a credit guarantee. Their financial capacity is not enough to take the blame in an emergency.

This rule has not been that long, but it makes sense. Because, it is contrary to the fact that someone vouches, who is in fact not up to the guarantee risk. The bottom line would be in surety two people facing the financial abyss. The lender would not get any money anyway. In order to avoid suffering and misery for "penniless" guarantors, the "safeguard clause" was drafted.

Credit with two applicants - difference to the guarantee

A car loan with guarantors is basically a loan with two applicants. But a special form of it. The guarantor is not automatically equated to the principal debtor. Only when the lender has exhausted his funds against the principal debtor, he may turn to the guarantor. This causes additional costs and time.

As a result, most banks today no longer like to rely on a straight credit guarantee. They only allow applications with two "equivalent" principal debtors. Thus, the modern car loan with guarantors is basically a loan with 2 equal debtors. The bottom line is that this results in enforcement benefits.

Guarantee Loan - not without reason

Guarantee Loan - not without reason

When banks demand a second liability, this rarely happens without good reason. The guarantor is required if the creditworthiness of the borrower is insufficient. In other words, the professional assessment regards the solvency of the applicant as being at risk. Not only capital is protected. Because, at the same time it is a serious warning shot.

If the car loan is demanded with guarantors of banks, it can be assumed that the borrower can not afford his loan. Good advice can only be to reconsider the credit. Banks like to sell money. If you give up a business, then there is a real risk in the room. Forcing a loan with a guarantor relocates the risk only to the guarantor.

Take over guarantee - car loan

Take over guarantee - car loan

The admonishing words are addressed to borrowers and guarantors alike. Nevertheless, a car loan is difficult to avoid. After all, the ready-to-use vehicle is largely indispensable for both job and family. Of course, this situation also sees the guarantor. He wants to help. His risk is quite manageable when car loan with guarantors.

By buying a car, a real asset is purchased. If the negative forecast of the bank is confirmed, not all money is lost. After all, the material value can become money again. By selling the vehicle, at least part of the guarantee sum can be reinsured. However, an additional written agreement should be concluded for the guarantee case.

Namely, that the guarantor gets the rights to the vehicle if the debtor does not pay. It's just a "little piece of paper" that hopefully never needs to be used. A reinsurance, which at the same time significantly reduces the guarantee risk.

Car loan without guarantor - find offers

Car loan without guarantor - find offers

The car loan with guarantors is not absolutely necessary. Each bank sets its own standards for the credit check. Thus, even a simple change of provider can prevent the guarantee credit. It can be seen that credit offers with higher credit risk are relatively easy on lending rates. The 2/3 example is compared to PAngV.

Increased interest rates indicate a "risk-taking" provider. In particular, the vehicle loan with guarantors could be prevented by bank credit of Von Eifel Bank. The bank is considered a problem solver in difficult cases. The extra loan can be conveniently applied for via the credit comparison. However, the interest rate level has left its mark on the cost balance.

A car loan with guarantor would be much cheaper. Instead of paying for 3.59 percent APR, as at carcredit, for example, 9.12 percent would be used to pay effective interest pa. (Compared to PAngV).

Alternative - credit from private

Alternative - credit from private

Credit portals such as Creditend or Trucredit offer serious ways to get credit from private investors. The portals do not offer a car loan with guarantors. But still, the vehicle can help to get a loan. In the amount of the mortgage lending value, the portals identify the loan as secured. This minimizes the risk for investors.

More bidders are the result. However, this way works only if the Credit Bureau is not completely ruined. With an unpaid negative Credit Bureau entry, the credit opportunities are limited. Either the credit comes from the private circle of friends or a foreign credit would be conceivable. The car loan with guarantors from abroad is guaranteed to be avoidable.

Credit Bureau-free car loan - without guarantor

Credit Bureau-free car loan - without guarantor

As far as known, only one bank grants Credit Bureaufreien credit to Germans. It is the Octa Kreditbank from Liechtenstein. Credit Bureau-free loans granted for security are used exclusively for earned income. The bank does not accept guarantor or collateral.

The application may be made through intermediaries, such as credit or directly. However, a downside remains when the car loan with guarantor is replaced by a Credit Bureau-free loan. The loan amount is very limited. The bank offers either 3,500 USD, 5,000 USD or 7,500 USD.

Ways to Save Thousand Notes on Your Car Insurance

by Elizabeth Jimenez

Have you just bought a car and are thinking about which insurance to choose?

Car insurance is something you must have under Swedish law, and there are many insurance companies to choose from. We assume you prefer to pay as little as possible for as much protection as possible. That's why we've listed things to keep in mind when looking for car insurance that can save you thousands of dollars each year.

Different types of traffic insurance

Different types of traffic insurance

To begin with, we have listed the three different traffic insurance policies that exist, as well as the protections that are included in each insurance.

The so-called traffic insurance is the very essence of car insurance that everyone must have, and if you want additional protection you can choose to add either full or half insurance.

What is a Traffic Insurance?

This basic cover covers damage to a vehicle, someone else's property or people in traffic caused by either your or someone else's car. You will be fined if you drive a car without traffic insurance.

What is a Half Insurance?

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All semi-insurance includes all the protection that is included in the traffic insurance and in most cases theft, fire, glass, machine, rescue and legal protection insurance. This means that you are protected against theft, fires, stone shoots and engine problems (only applies to new cars).

What is a health insurance?

If you take out a full insurance, you will receive, in addition to the half-insurance, a cover that covers compensation for car damage. Carriage damage includes:

  • Damage associated with a traffic accident, such as a car crash or ditch driving
  • Damage from third parties
  • Other external event such as a tree blowing down on the vehicle

Avoid being overinsured - therefore half insurance is usually sufficient

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Both when you buy a new car or have a slightly older car, it may be worthwhile to settle for a half insurance instead of a full insurance. Below we explain why.

Scenario 1: New car

A full insurance thus includes everything that the half insurance protects against plus a car damage insurance. What many people do not know is that most new cars already have a so-called car damage guarantee for up to 3 years, which is the same as the car insurance coverage of the car insurance.

This means that if you are protected by the car damage guarantee on your new car, you can do just as well with a semi-insurance. By avoiding double insuring yourself for the first three years, you can save thousands of dollars each year.

Calculation example new car:

Suppose that the annual cost of the various insurance policies is as follows:

  • Full insurance: USD 6,000 per year
  • Half-insurance: USD 4,000 per year

Since the car damage guarantee is valid for 3 years, in this case you would save 2,000 * 3 years = USD 6,000 on choosing a semi-insurance on the car.

Have you purchased a car recently and are unsure if you have a car damage guarantee?

Read through your purchase agreement or inquire with your car dealer / car manufacturer and ask them. If you have a car damage guarantee and full insurance, cancel the full insurance until the car damage guarantee expires.

Scenario 2: Older car

Has the car accumulated a few years in the garage and lost in second-hand value?

Then it may be time for you to review your car insurance

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If you have full insurance on the car, which means you receive compensation for car damage, and you know that the car has lost value, it may be time to switch to a half-insurance.

This is because the extra premium you pay does not compensate for the compensation you receive from the insurance company should you suffer a car damage.

What influences your decision on whether it is worth retaining your full insurance are the following factors: the value of your car's secondary value, the cost difference between the full and half insurance, your deductible cost and even the risk that your car would suffer some type of car damage.