Month: May 2019

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Avoid Problems with Financing

May 6, 2019 | Credit | No Comments

Many people are familiar with the lines of real estate and car financing, but nowadays several additional lines of financing are offered by financial institutions, it is now possible to finance the college through student financing, to finance plastic surgery, to finance the purchase of equipment accessibility, such as hearing aids and prosthetics, in order to finance the most diverse types of goods and services.

Research among the various institutions in the market

It is very important to evaluate the costs involved in the operation, deadlines and guarantees that will be requested to effect the financing, there are many options for institution in the market, so research well before closing the deal.

Evaluate your income

One of the biggest reasons for refusing a loan is lack of sufficient income, whether you actually have the financial condition to take over the operation, if any, financial planning and increase the entry so that the amount financed will decrease. It is also important to consider unforeseen, if you have any problem with your current salary, is there any plan to honor the funding?

Simulate the situation

One of the best exercises is to simulate how your financial situation would be in the last few months with the payment of a portion in the amount that you want to contract the financing. If you’re not in a hurry, simulate in the next 3 to 6 months by making a financial application exactly the portion of your funding, see how that affects your budget, and take the test to build up a reserve and increase your income.

Extra costs

Often in contracting the financing we only evaluate the installments, but when financing a real estate, for example, we have several other costs involved, such as contractual elaboration, inspection of the property, registry in registry, besides taxes.

Do not stay in default

Default in a financing is one of the worst situations that can occur, especially if you allow to accumulate installments in arrears with more than 90 days. This is the period that the bank can execute the contract and initiate the arrangements to “take” the good that was used as collateral.

Evaluate the clauses of the contract

Always review the clauses of cancellation and termination of the contract, in case of unforeseen circumstances such as unemployment, or something that affects your income in an unpredictable way, you must know how to act with the financial institution in order not to increase the loss.

There are plenty of advertisements in which banks offer us favorable credit products, whether they are Personal Payday loans, mortgages for housing or other types of loans. There is competition between banks for customers, so they are trying to get the best deals for them. The more advantageous offer primarily involves lower interest rates, but not only can interest rates be the difference between offers, they can offer many other attractive and preferential terms.

Competition and the different profile and target groups of banks

Therefore, you should always look carefully at the offer, compare several bank offers before deciding which bank to use. In addition to the interest rate or the amount of the repayment installment, the benefits associated with the fulfillment of the various services or conditions, as well as the benefits associated with the contract, must be taken into account.

Due to the ongoing competition and the different profile and target groups of banks, you may find that when you want to apply for a loan, you will not find the most favorable conditions for your bank, where you have already managed your account or kept your savings.

For many, this causes a big dilemma: some who prefer to stay at their own customary bank, even if the conditions are more unfavorable, because they are already familiar to them, while others prefer to remove their previous account and transfer to the new bank in one place be your finances. Who’s right? What should you do?

If you are borrowing

If your bank does not provide you with the best conditions for a loan, you don’t have to doubt it. You may contract independently of an account with another bank and do not need to cancel it.

In most cases, the lending bank provides discounts if you manage other finances with them: these are usually the conditions for choosing a larger account package or receiving a certain amount of income. In such a case, it is worthwhile to change the bank – at least until the conditions are met – because the loan repayment installment can be significantly lower with the interest rebate, or you can allow the fees associated with the application for the purchase of the service. Choosing a more comprehensive account package can make your day-to-day finances cheaper too – while paying the package fee, the installment may be lower.

So you should take advantage of the discounts, but of course it doesn’t mean you have to cancel your previous bank account. You need to consider the cost of keeping the invoice, whether it will be needed later or whether it is a practical or convenience reason to maintain it. You should consider aspects of the fee for account management, card and transactions, or if you have savings, your original bank has the best investment opportunities for you.

If you already have a loan

There are two typical situations for a loan changeover: if you want to borrow another loan or take your existing loan or loan to another bank, you might be in debt settlement .

If you need a new loan alongside your existing loan, you can still search for another bank, and you might want to choose where you want to borrow based on your current credit offer. Not only are there promotional periods when a bank gives more discounts, but also because the banks’ credit policies may differ. If you have a mortgage for a bank that has received it on the most favorable terms, it is by no means the case that Personal Payday loans can be obtained at that bank with the best conditions. Don’t be bound to your original bank!

Replace several existing loans with a debt settlement loan

There may be a situation where you would like to take your existing loan to another bank, because you can continue to repay the loan on better terms or replace several existing loans with a debt settlement loan. In this case, you should definitely leave your bank if you only used your bank account with the lending bank as a debit account. You would then have to keep your current account unnecessarily, which would be costly, and it may be true that you can get preferential terms if you manage your finances with the lending bank.