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Business Loans

Repaying a business loan: early and penalty-free?

Entrepreneurs borrow money from a lender. Of course, the loan amount must be repaid. Usually an equal part of the loan is repaid every month. This amount plus the interest must be paid every month. This is often done via direct debit. northeasternwholesale.com for a critique

How does paying off a business loan work?

How does paying off a business loan work?

Business loans are repaid on a straight-line basis. When taking out business loans, you can opt for a fixed interest rate or a variable interest rate. With fixed-rate loans, the entrepreneur knows exactly what amount he has to repay monthly. In the case of floating rate loans, the interest, and therefore also the monthly repayable amount, may vary.

When applying, the lender assesses whether the entrepreneur is able to repay the business loan and the interest within the agreed term. This prevents problems with the refund.

Early repayment of a business loan

Early repayment of a business loan

Those who take out a business loan sometimes have more financial space than expected. It is then a good idea to repay the business loan earlier. The borrowing party has then already finished paying off the business loan. Entrepreneurs would do well to read the terms of their business loans carefully. Often only a limited part of a business loan can be repaid without penalty. The monthly amount will be reduced by repayment early without penalty.

Paying off a business loan: an example

Paying off a business loan: an example

For example, a sole proprietorship borrows $ 10,000 at an interest rate of 5.6%. The table shows what the company must pay if it repays $ 200, $ 150 or $ 100 per month.

Monthly amount Duration in months Total payment
$ 200 58 months $ 11,377
$ 150 81 months $ 11,954
$ 100 136 months $ 13,405

The monthly amount is repayment + the interest to be paid. For a monthly amount of $ 200, the sole proprietorship in this example pays $ 46.67 in interest for the first month. It therefore repays an amount of ($ 200 – $ 46.67 = $ 133.33) in the first month on the business loan of $ 10,000.

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Borrowing – Learn how to properly make your bank loan

When a person wishes to borrow it is important to take into account his ability to borrow, the amount borrowed, the duration, the rate of the loan and the costs related to this loan. This loan financing is intended to enable households to acquire property or life projects by facilitating their payment, within the limits of their repayment potential fixed by a debt ratio.

What are the different types of bank loan?

What are the different types of bank loan?

When talking about borrowing, it is important to define three main concepts, namely:

  • Depreciation which corresponds to the single refund of the sum borrowed;
  • The interest that is fixed by the lending institution and which corresponds to its rate of remuneration;
  • The annuity, which is the amortization at the end of the contractual period of the sum borrowed plus the sum of interest over the same period.

Two main categories of borrowings are then differentiated: undivided loans and bond loans. 
1. Undivided loans. 
This type of borrowing corresponds to loans made between two parties: a borrower and the institution that provides the loan. These loans are most often contracted by individuals and SMEs (Small and Medium Enterprises). 
Among the undivided loans, it is possible to distinguish three categories according to the form that depreciation takes (ie repayment):

  • With a refund in fine

When an amortization in fine, only interest is repaid each month, the entire amount borrowed will be returned at the end of the period defined at the signing of the loan. This type of loan is rarely used by individuals but is common for businesses. It allows to have more funds, without having to repay the capital. This reduces the interest of the business result.

  • With classic or constant amortization (degressive monthly payments)

In this case, the monthly payments of the loan cover both part of the interest and part of the amount to be repaid to the lending organization. The share of interest decreases over time which will reduce the amount of monthly payments. The share of the repaid capital remains the same.

  • With constant annuity

In this case, the amount of the annuity is constant and corresponds to a single repayment term. The amount of the annuity is fixed at the beginning of the loan and does not vary during the period during the loan. Over time, the amount of interest repaid will decrease while the sum of the borrowed capital will increase. 
Other repayment solutions exist, however. Thus, in certain situations the lending institution authorizes a deferral of repayment. In this case, the repayment period is divided in two: a first period where only the interest is repaid and then a second period during which the principal is repaid over the fixed annuity period (usually it is monthly) with a degressive interest share.

For the borrower

For the borrower

Before signing a loan, an information sheet must be given to the borrower. This form must gather all the necessary information on credit, offers, costs, insurance. It is from this information sheet that the loan is written. This offer is in the case of a mortgage loan sent by post. 
Following the analysis of the situation and needs, the contract must therefore include the following concepts to ensure the validity of the loan from the borrower:

  • The identity and address of the lender;
  • The type of loan;
  • The total amount of the latter with the terms of repayment (a table of repayments must be provided, with the share of the capital and interest repaid at each monthly payment);
  • The total cost of the fees;
  • APR
  • The indemnities to be paid in the event of non-reimbursement;
  • The rights of the borrower with respect to the 14 calendar retraction period;
  • The articles of the code of consumption corresponding to the type of loan subscribed;
  • The right to obtain a copy of the loan offer;
  • In the case of a credit assigned to the good or service financed by the credit.

The borrower has indeed a period of reflection and a right of withdrawal. In the case of a consumer credit, this period is 14 days following the signature of the contract. As stated in the paragraph on mortgage, a waiting period of 10 days is mandatory before accepting the offer made by the bank. This delay is called the reflection period. The contract is therefore signed only 11 days after receipt of the offer. 
With regard to the cost of the credit, the APR must be clearly indicated on the advertisements and the loan agreement. This will allow the borrower to compare offers made by different agencies. Finally, to ensure transparency to the borrower, in addition to the APR, advertisements should include numerical examples to have a clear idea of ​​a real cost of a loan. Advertisements must also include the phrase “A credit commits you and must be repaid. 

Particular case of the mortgage loan for which the advertisement must specify the proposed duration and the total cost of the operation.

Particular case of the mortgage loan for which the advertisement must specify the proposed duration and the total cost of the operation.

2. For the lender 
Before imposing guarantees, the lender will have to make sure that the borrower is able to repay his debt, through a study of income, according to the quantity and quality of the latter. In addition, the lender can ask for guarantees, such as a bond or the mortgage, which makes it possible, if necessary to protect themselves and to have solutions when the borrower is not able to repay his debt. 
In general, the financing body offers insurance to the borrower in the event that the borrower is no longer able to repay the loan. Insurance, although legally not compulsory, is made compulsory by banking institutions. It will therefore reassure the lender and protect the borrower. This insurance may be different depending on the loan taken out. 
Nevertheless, the borrower is entitled, since the Lagarde law of September 1, 2010, to compete in institutions offering insurance contracts to compare offers. The only limit to this approach is that the insurance taken out must be identical to that proposed by the financier with regard to the guarantees it offers. It is important to mention that since October 2015, the lender has been obliged to provide borrowers with a sheet summarizing insurance offers, guarantees, costs, etc. The borrower must also find the mention stipulating his the right to purchase borrower insurance in another institution. 
Finally, concerning the loans signed as of July 26, 2014, the borrower has the right under the Hamon law, to change insurance. The lending organization is entitled to refuse this change. 
The borrower insurance is the most suitable solution to cover the maximum of cases. It insures the repayment of the loan during a loss of income such as the death of the borrower, loss of autonomy, disability, loss of a job … The amount of this insurance may vary according to different criteria like the duration of the loan or the age of the borrower. It is therefore very important for the latter to compare offers from different organizations. 
-Employment loss insurance 
This guarantee can be covered in case of dismissal. It is often contracted during a mortgage. It is intended for employees at the time of signing the loan agreement. In order to assert your rights, you will be asked to justify to your insurer (if necessary the body to which you have taken out insurance) the situation by presenting for example the employment contract, the letter of dismissal etc. Solutions will then be found based on the clauses in your contract. Any change or resumption of activity must be notified to your insurer. 
-Disability Insurance 
The term disability refers to the concept of permanent incapacity, whether total or partial. As with the loss of his job, this change of situation must be declared to his insurer who will put in place the clauses provided for this purpose in the contract following receipt of a file containing the documents justifying this situation. 
-Insurance work incapacity 
Unlike disability, incapacity for work is temporary. The insured can no longer exercise his professional activity in a partial or total way. After finding by a doctor, the situation will be declared to the insurer who will receive the necessary measures after receiving the supporting documents. A waiting period may be applied in this case. 
-Death insurance 
When death or a total loss of independence, several situations are possible: if the contract (loan and insurance) is made with a single person, in this case, the insurance will cover the full refund the loan from the bank.

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Learn why the end of the year is the worst time to get a loan!

The end of the year arrives, the children ask for presents, that her third-grade aunt will come to the Christmas dinner, the family needs to change cars… And all this is aggravated by the arrival of Christmas, the biggest symbol of annual consumerism. You start to get infected with the symptoms of this generous time. His fingers itch. That personal line of credit in the bank becomes increasingly attractive and seductive. The eyes shine. And when you see it, it ends up getting into another debt.

The Dangers of the New Year

The Dangers of the New Year

Everything would be fine if the world ended on December 31 after you took out your loan. It turns out that, despite all the apocalyptic promises, it will not happen anytime soon. And the beginning of the year will come again.

Along with the beginning of the year, comes IPVA, IPTU, DPVAT, licensing fee, income tax return, increase in rent. Have you stopped to make the record and at least think that you may not have the money to honor all the payments? Include an unplanned trip or year-end shopping there and next Christmas you’ll still be paying with debt this Christmas.

Why not get a loan at New Year’s Eve?

Why not get a loan at New Year

Except for the fact that you are out of clothes, an essential household appliance no longer works, your bed has mocked, a health emergency happened in the family, a loan should be avoided at all times.

Loans are emergency lines of credit. They are used when you have no choice and need that money urgently. I will try to give a practical example and not so dramatic below.

This year I decided to try masters. To do this, I would have to stop working a little to devote myself to my studies. I had a very small emergency fund to support me during this time, but even if it did not, I had to try to get used to the routine of studies and tests. I studied, did not pass (but I learned a lot and will try again next year) and I ended up with no money at the end of the month. For this, I took out a loan, but only did it after planning the payment. I will pay 50% more of the installments every year to see me free of the debt sooner, in addition to investing in an emergency fund for the next season of masters’ tests. I am already studying for the next exam and keeping myself informed to be better prepared and not having to depend on a loan again.

It was an emergency situation, because it took me a long time to make the decision to take the master’s degree. Could have waited next year and have not taken over the debt. Many things influenced my decision. And at the end of the year you can be absolutely sure, the closeness to a date as solemn as Christmas will greatly alter your perception of things.

Christmas with money or lack of it. The choice is yours and a loan will only steal you money in the medium and long term. (Photo: www.oneloansource.com)

Banks and interest rates

Banks and interest rates

At this time of year, it is not just the trade that profits. Have you stopped to think about the number of people who use the 13th to pay debts or who borrows this end of the year? Do you think that the bank will have difficulties to beat financial goals?

With more cash in the box, the bank has the advantage of negotiating debt and interest. Hence, it will become more difficult to get better interest and payment terms for a loan. Now try asking for a loan in March or July and compare the conditions that different banks will give you.

Of course, the bank may also want even more money and give you good conditions. But again, the one who has the advantage in negotiating is the bank.

End of the year it’s time to reflect and save

End of the year it

Think differently at the end of the year. And thinking differently means putting your bills on paper, figuring out how you will get out of debt and thinking about how you will pay each of your creditors. Reflect well with your family and even friends, envelop them to help you get out of debt.

Buy less. Save more money to start the year by paying all taxes in cash. Escape the temptation of debt. It’s going to be strange at first, maybe some family and even some friends do not understand. But only who will know the peace that will bring to your mind is you.

Final considerations

Final considerations

The spirit of Christmas spreads. Absolutely sure. And we’re not telling you to get away completely from this climate. Parties with family and friends, gifts (cheap) for who is really important. You only have to learn to plan yourself better and so, start a happy and smiling new year with your pocket full for all those resolutions you have made.

Want more year-end tips? Please comment below asking what you want to know!

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What is a Collateral Loan?

Security loan

Security loan

A security loan, also called a secured loan. It is a loan from a bank or other financial institution where, in return, the creditor can sell what is offered for security if the loan is unpaid. A collateral loan is often offered at a lower interest rate than an unsecured loan because there is a guarantee of repayment if the borrower defaults on the loan.

A collateral loan can use different things to secure the loan. Often people use stocks or bonds to establish a collateral loan. They can use their ownership in properties where part of perhaps a home, or a piece of land, is created as security. If the borrower defaults, he must sell the property to repay the loan and the lender has the right to sell the property, even if only part of the full value belongs to them. In these cases, a lender will sell the home and give the former the funds that are not offered on collateral.

A collateral loan can also be based on expected collateral, as well as the expected return on a harvested crop, or on an investment. Occasionally one can use property as highly valued jewelry as security or other highly valued goods. It is rare, as most security loans are based on paper assets, or on real estate.

If the given security falls in value and the borrower defaults, he or she will still be responsible for repaying the amount of security previously assessed. For example, a person borrows $ 100,000 on a home of the same value. If the home falls in value, say to $ 75,000, the borrower must still pay the full amount dictated by the terms of the collateral loan. If a borrower has defaulted on the security loan, his or her home will be sold. However, the borrower will still owe the lender $ 25,000. This may require the borrower to sell more assets or enter bankruptcy.

In most cases, people will not lend to the full value of a possession held as collateral to avoid the circumstances described above. Instead, the security loan is usually only part of the full value of a possession, or of paper trading as shares and bonds. People with a variety of high value goods, properties or shares and bonds can of course get greater security in loans. But with a loan, it is best to borrow only what you need as the interest rate will still mean a higher payback time than the actual loan.

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Small Loans For Big Business

Small loans!?

Small loans!?

If you are at a point in your life that has been a little complicated financially, and you happen to be in need of a small personal loan to help you – then let’s talk about possibilities. When we say – small loan – we refer to any amount borrowed between R $ 200 and R $ 3,500 reais, with the detail of the repayment that is usually returned in a short time, between 3 and 12 times a maximum.

This is one of the alternatives to get a personal loan fast, without delays and easy to repay in installments, as the period goes by quickly.

A personal loan of small value can be used for any purpose, like paying bills of light or water delayed, a ticket or card of Casas Bahia, Riachuelo, Pernambucanas etc. Or, unusual expenses to cover repairs in the car or in the house.

Most of the time, borrowing money from a private lender or banking institution will likely be the same operating mode as in the form of an online personal loan, although online there are many other alternatives.

If you’re worried that you’re being denied and therefore might be fumbling with your ability to access a small loan, we’re here to show you that you have a few options and extra features that you need that are at your fingertips.

But first, let’s see what your chances are if you are eligible for most credit schemes.

Different Personal Loan Options

Different Personal Loan Options

Individual Loan

A personal loan or bank loan is a way to borrow money with an agreement between you and the lender, most of the time there is no guarantee request or assets that you have.

The lenders will no doubt consult about your income and your credit history with the agencies like Serasa and SPC to make a decision assess that you can afford and have conditions to maintain keep payments of installments by the combined time.

A personal loan can be borrowed from banks, financial institutions and online sites over the Internet. The amount borrowed varies according to the borrower’s profile, between R $ 200 and R $ 50,000. However, in conventional operations, those with some credit restriction or do not have sufficient income for larger amounts, are less likely to get amounts over R $ 10,000.

The payment amount of the installments is agreed with the signing of a contract when you take the loan, the rebates can not exceed 30% of the monthly income, this is a way to balance the personal finances and the budget of the borrower.

The term of the personal loan (how long you need to pay it back) depends on how much you can afford each month, the terms vary between 3 and 60 months, but can be extended up to 180 months.

Secured Personal Loans

Secured loans always involve some asset or guarantee that the borrower owns or has to present to the lender. In the transaction, the lender asks for a guarantee so that the loan that they offer is released, the asset can be their property (real estate), (automobile) or assets, in that modality the accepted guarantees can be numerous.

In a secured loan application, the amounts approved and released vary from R $ 10,000 to R $ 250,000, however, amounts such as R $ 500,000 and R $ 2,000,000 million are easily reached, these are probably a little more than you are Needing, but worth the hint.

Another very interesting line of credit, which is still a guaranteed loan, including the most popular in Brazil, is the payroll loan. With it some follow-ups from the society have easier access to borrow up to $ 75,000 or more, this will depend on the assignable margin, the guarantee is the discount on the payroll that can be the salary, benefit, or salary.

Bad Credit Loans

Although it is the practice for lenders to analyze all your credit information and data when you make a loan application or any type of financing, for those who have records in the protection bodies, they are dirty, does not necessarily mean that it will not be accepted in a personal loan application.

However, when your credit is bad, that is, you are negatived in Serasa, SPC and Boa Vista SCPC, this means that you will be overwhelmed with higher interest rate than the conventional one, or maybe you will not have access to amounts of money like you would wish.

Some lenders, such as Simplic, MoneyMan, Crefisa specialize in lending to clients with credit history with restriction records. So do not feel discouraged if you are looking for a small-value loan if you are struggling to manage your personal finances.

It is very important that you consider why you have had difficulties in the past so you do not overcharge by borrowing more than you think you can afford comfortably.

Loan alternatives for little money

Loan alternatives for little money

If you are looking to borrow a little money, borrowing with family or friends is a great choice. Getting loan with a credit card can also be an acceptable option depending on the circumstances. Credit card loan only serves to get you out of the way, and the amount can not be too much, ideally not to exceed the R $ 500 reais.

If you want to claim some of the benefits you are entitled to if you find yourself in a difficult situation, you can apply for the Government Family Loan loan that will go to help you pay for things like food, gas, clothing or travel expenses. The smallest amount you can borrow is $ 100, the loan has low interest rates.

Loan with FGTS, despite all the controversy, this personal loan line is also an option to borrow relatively low interest money amounts and for small or intermediate ones. By contracting the loan using the FGTS you can pay for the loan in several installments, which can make it easier to control your money.

In any type of loan, it is worth keeping an eye on the CET, and be cautious about taking out a loan if you are not completely confident that you can pay interest and installments on a monthly basis.

For some people, there is the option of approaching a family member or close friend for financial help, especially if you only need a small amount of money, this attempt may help you avoid the incidence of interest. Just combine with your friend, relative or family what you can afford per month.

Be responsible with financial commitments

In fact it does not matter how much money you are looking for, or what you are needing, the very same thing is to think about how you are going to pay it. Before you commit to any line of credit, consider the interest, the amount, and the time frame you will have to pay – think circumstances may change.

The good news is that by making your monthly payments on expiration and in full, you start to increase your credit score and create credit history if you do not have it. But, similarly, if you are approved in your loan application and then you have difficulties with repayment of the installments, remember that your financial life will be even more affected.

Being with the name negative already know that it hinders access to the best financial products, credit cards and obtaining loans with low rates and even lose the chance of public tenders and jobs in private companies.

With that in mind, it is very important that you ask only for what you can afford.

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5 Reasons to Choose an Online Loan – Low Interest

You’ve thought it through, evaluated all the options, and come to the conclusion that the loan is the best solution to accomplish your goal, whether it’s paying off more robust debt, getting a loan, or making that emergency trip.

And you’ve been hearing that there’s a possibility on the market to request this service from the comfort of your home, even if you’re not entirely convinced that you really should. If this is your case, then keep an eye, then the following are the main advantages of taking out an online loan. Check it out!

Reason # 1: Custom Loan

Reason # 1: Custom Loan

 

Through the internet, it is possible to make pre-simulations, which allows you to know exactly how much you will need to pay monthly for the amount you want to request. That way you can better organize your home budget.

And you can still make adaptations to the operation by choosing the ideal payment terms. The operation is somewhat different from the one in which banks often already have pre-established values ​​and forms of payment.

Reason # 2: Cash on hand within 48 hours *

Reason # 2: Cash on hand within 48 hours *

 

There are things that can not wait, right? So if in addition to extra money you need to solve your problem urgently, the online loan offers the advantage of being available in up to two days. It’s even a celebration!

Reason # 3: More Ease

Reason # 3: More Ease

 

Have you thought about getting the loan without facing a queue, without leaving home, or even from the street, if the request is via smartphone? And the best: without having to gather the paperwork of vouchers to take to the bank? This is one more benefit of online loan.

It is possible to make your request in a few minutes and you can still compare different offers and choose the one that is most advantageous for you, without any bureaucracy.

If in doubt, institutions also offer online support to give you all the help you need.

Reason # 4: Security Will Not Fail

Reason # 4: Security Will Not Fail

 Do your homework: research hard on the financial institution or correspondent bank before closing any deal. This allows you to enjoy all the security and discretion that the virtual environment offers, as well as protection against intruders.

So you’ll be able to say goodbye to the tension of having to make a loan at the bank or being led to bring cash home.

Reason # 5: No consultation with SPC and Mersas *

Reason # 5: No consultation with SPC and Serasa *

 If you are negative, you can find the loan solution online for your problem. Some of the financial institutions and banking correspondents that offer this service do not consult the credit protection agencies to evaluate the risk of granting the operation. It’s one more reason to consider that mode!

See just how many advantages are brought with the loan online? But do not rush and make unnecessary transactions out there. You have to make this commitment with conscience and responsibility, so that you do not accumulate more debt and affect your domestic budget for nothing.

Remember: the health of your pocket should be in the first place!

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Is a Private Loan Secured Against Real Estate Secure?

 

Borrowing money always involves risks.

Borrowing money always involves risks.

And this is for both the institution that lends money to us and for the person who needs extra money. The lenders must take into account that the loan or loan will not be repaid and they will have to try to recover their receivables on the debt collection path. However, the borrower does not know until the end how his financial situation will look in a few months and therefore whether he will be able to pay back the debt within the time limit. And if he does not do it, he will have to incur certain costs associated with the recovery of the debt by the lender. And usually he tries to secure the loan in the best possible way, so that the money can be recovered as soon as possible. What’s more, he usually checks what the applicant’s financial situation looks like in order to be able to decide whether it is worth trusting him and transferring the requested amount to his account. And that’s why banks sometimes refuse a loan application. They simply believe that the client is not credible enough to give him a loan.

private loan secured against real estate

private loan secured against real estate

The companies or natural persons who provide loans look somewhat milder about the ability and credit history. However, in exchange for this, often the cost of their loans are higher than a bank loan, and we also need to guarantee them a very good loan security. Even with relatively small amounts, they often require a mortgage on real estate, as it is considered one of the best loan collateral. For lenders, it is also a good idea on the one hand, but on the other hand, it involves a lot of risk. The upside is that we do not have to look for a guarantor, which is not so easy. On the other hand, the downside is that we must incur certain fees related to the mortgage entry, and secondly, we risk that if we do not pay back the debt, our apartment will be taken over by the lender. And often even with a loan that is much lower than the value of the property. Therefore, one should be very careful and think well before such a step.

Does this mean that you should not use private secured property loans? Of course not. It is a product like any other, and with all precautions we can borrow as much as possible. But let’s think about it before. Above all, if we can not get a loan from the bank. Secondly, will we be able to settle our liabilities on time? If we have any doubts about it, let us just let go and let us not borrow, because we will lose our property only. A loan agreement is also very important. It is best to ask for one copy of the contract before signing it, so that we can get acquainted with its content, or if we can consult its content with a professional credit advisor. Of course, we should sign such a contract in the presence of a notary public, which will only confirm her power. Before we use such a private loan, please also ask for a lender. Let’s check whether it is not on the lists of warnings presented by the Polish Financial Supervision Authority, or whether on the credit forums customers themselves do not warn against its offer. And of course, before starting the loan, do not pay any advances or commission, nor do we send expensive SMSs, to the numbers that the lender will provide.

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Pre-approved credit. An Easy Way to Get Your Loan

Its relations with financial institutions are always observed. Have you ever received a pre-approved credit proposal? So this is a sign that you have a good reputation with the company that made you the offer.

This is the pre-approved credit principle. Based on a profile analysis, the financial institution proposes a loan to you.

But is it worth it? That is the question of many people. When the offer is good, we always distrust.

In this text we will unravel the mysteries of pre-approved credit. Let’s also show you the best scenarios for accepting this offer.

Pre-approved credit

Pre-approved credit

If you have ever needed a loan, you will know how the process works. First you go to the bank to apply for the loan. The institution, in turn, will analyze its entire financial profile.

It does this in order to know what your guarantees are. It is not good for the company to take risks. That is why, the more collateral you present, the more chances you have of getting the loan. This shows that you will pay that amount.

Pre-approved credit is a type of loan in which part of the profile analysis process is performed in advance by the financial institution. Your payer history is used as the basis.

In other words, the bank checks if you meet your financial obligations regularly. If you pay in full the installments of purchases on the credit card or even if you do not walk around getting involved in many debts. These are examples of good financial conduct.

So when that balance is positive, the chances of the bank or the financial company offering a pre-approved credit are higher.

How your profile is rated

How your profile is rated

There are bodies that feed databases with information from individuals who have past due debts. This is the case of Serasa Experian and the Credit Protection Service (SPC).

When the individual is ” dirty name in the square ” is because their data (full name and CPF, at least) are in the files of one of these organs. Traders and financial institutions constantly consult these databases before offering or approving a loan to you.

What are the bad loan alternatives?

Moreover, in a connected world like today, there is an increasing chance that you will go through such an assessment without realizing it. Online shopping enabled companies collect good information part of your relationship with the market. These information can also be used as a basis for financial institutions to mount pre-approved credit proposals for their profile.

This is a way for banks to protect themselves. Every loan, as said before, represents a risk to the financier.

When a bank makes a pre-approved credit proposal it evaluates the good payors in advance. With that, in fact, the institution is trying to lower the risk of the loan. Most likely you will pay your debt on time if you have this recurring habit.

On the other hand, even the most disciplined person may need cash on hand in certain emergency situations. Sometimes she does not use the loan for fear of being rejected or of not being able to pay. Pre-approved credit is a way for the bank to say that there is money available in case you want to use it.

Main advantages of pre-approved credit and when to use

Main advantages of pre-approved credit and when to use

The great advantage of pre-approved mode is the lack of paperwork and the ease of having money in hand.

The way of hiring is almost automatic. It can be made directly into the bank’s system, be it online or ATM. And pre-approved credit can come not only in the form of a loan, but also as a credit card.

It is important to keep in mind that even after accepting the offer, you are subject to an analysis of the bank or financial agency. This assessment, however, serves more to confirm the data that has been obtained about you at some point in the past. Sometimes, if the information does not match, the bank does not authorize the loan and may withdraw the proposal for a while.

The best scenario for you to accept a pre-approved credit offer is when there is a debt to be paid off. Low bureaucracy is a determining factor in putting money quickly at your disposal.

If you have some good that you want to buy, it is also valid to accept the proposal. Before accepting, be sure to evaluate if the installments will fit within your budget.

Like all credit, you need to keep an eye on payment terms, interest and fees. All of these items vary from bank to bank and according to your profile.

One disadvantage of pre-approved credit is that this is a closed proposal. You will hardly be able to negotiate interest rates and installments with the bank. If you want more margin for negotiation, look for more traditional lending or financing options with a reputable financial institution.

Pre-approved is different from other automatic credits

Pre-approved is different from other automatic credits

Some people find that pre-approved credit is the same thing as overdraft. But they are not the same. Overdraft is a form of automatic credit that exists in most checking accounts. In this case, when the current account balance becomes negative, the customer automatically enters the overdraft.

The interest rate on pre-approved credit and overdraft are also very different. Since the overdraft is automatic, there is no profile analysis. Therefore, the risk of the bank default is high. So much so that in Brazil the overdraft interest is considered one of the largest in the world.

Pre-approved credit has fixed interest rates and is much lower. In some cases, it is advantageous to change the form of debt. For example, if you owe a high amount on overdraft, it may be worth the lower interest debt through a pre-approved credit.

Discipline is your biggest ally in accepting pre-approved credit. You are not required to accept the offer. Not even when she’s very tempting. By always maintaining a good relationship with the market and financial institutions, with current accounts, it is quite likely that you will receive other pre-approved credit proposals.

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How to Find the (Best Offer) Personal Loan. Look here!

Is asking for personal credit a good one?

Is asking for personal credit a good one?

Course is! Here in the ” Cathy Nomel Online Guide ” you have all the information you need to know if:

  • The lender company is reliable and safe.
  • What is the interest rate applied on the loan.
  • What is the company’s CNPJ if it is regular.
  • Where is the physical address (office or store).
  • What’s the phone, Whatsapp and the media.
  • What time does the service work?
  • What is the reputation on reviews of sites like the Claim Here.

In this article we will know how it works to ask for your personal credit online in most of the companies that are acting in the network of computers and attendance in stores, offices and credit agencies.

Our intent is to make sure that at least one lender listed here on the site is willing to provide the financial and cash resources you are needing.

Filing online form for personal credit is safe

Filing online form for personal credit is safe

On most online credit and loan company websites the average time is about two minutes to fill out the form, both on the online platforms and in the Android applications or iOS to make the request.

Do not worry, it is completely safe, especially in the companies and websites that we have partnered with. In most cases, artificial intelligence and the best high-level security software are used to analyze and protect you, with the advantage of not paying anything to fill out your registration or have the loan approved.

The requested information that is required to connect you to a legitimate lender are basic in the first contact, and after submitting this information, they are referred to the system to find one or more reputable online personal creditors, generally the offers can range from R $ 200 up to R $ 500,000 depending on the modality, others such as the Home Equity credit line, up to R $ 2,000,000.

In short-term personal credit, the amounts are reduced, plus the money is released the same day or the next business day.

Review your credit offers without bureaucracy

Review your credit offers without bureaucracy

In a matter of minutes, after processing your information, you will be connected with one of our lenders and get an offer that meets your needs. You will never be forced to accept any offer.

So, if the offer you receive does not match with you, you simply reject it, and that’s it! That will cost you nothing.

How to get loaned in cash

How to get loaned in cash

Once you have found an offer that meets your financial needs regarding the amount, term and payment terms, you will go through the details of the finalization of the contract of your credit application.

Then your lender will ask you to provide more details about you and will ask you to make a signature card just like this in your documentation. Once this is done, the contract is closed and the lender will release your money into your bank account as soon as possible.

Depending on the time you make the request, the amounts will be released on the same day or generally the next business day.

How to repay your personal credit agreement online

How to repay your personal credit agreement online

The money received from a personal credit is refunded thanks to the agreement that stipulates which monthly amount will be returned to the bank, financial or alternative lender.

There are some rules for contracting the payment term of the parcels. Each modality has its pre-set deadlines which generally takes from 2 to 12 for short-term loan, but can reach up to 240 months on the loan with property of guarantee or more months according to the institution.

How can you set up a refund for monthly payment?

  1. With automatic bank account debit
  2. With discount on payroll.
  3. Discount Check Sheets
  4. Discounted credit card invoice
  5. With payment in boleto bancário
  6. Making the payment with card – credit card type

In these forms of loan discounts, payroll is the one that offers the lowest interest rates. Remember that by allowing automatic debit, this will allow the lender to withdraw the amount of the whole installment preventing you from having lost or delayed payments.

What qualifications to make personal credit

What qualifications to make personal credit

Qualifying to get an unsecured personal credit online for either a small amount or a high amount is simpler and easier than you might think. Here are the basic qualifications, documents and requirements for borrowing:

– You must be 18 years of age or older
– You must have proof of income when self-employed
– You must live and work legally in the Brazilian territory
– You must be employed with the same employer for at least 180 days
– You must have a bank account that is being moved
– You must have a valid physical address, email address and phone number
– You must meet minimum income requirements

Have credit history (dirty name and restriction) a problem?

Not! Some creditors who partner with Cathy Nomel, perform the credit check (consult Serasa and SPC), also consult the Credit score when necessary. But that does not mean that people with low scores or being negatived, are prevented from applying for personal credit and have the proposal approved.

Creditors, banks and financials of our partner network can also perform credit checks alternatively with their own BigDatas and through outside companies such as Equifax or TransUnion here in Brazil.

These credit inquiries and checks help the lender to ensure that you borrow the loan, that it is approved, and you can not afford it.

It is worth mentioning that these checks generally do not affect your financial life, but being restricted in name, meaning being denied prevents you from getting credit and loans at most private institutions.

Fortunately, we’ve been able to connect people even though they have their restricted CPF as a good payer.

Getting Advantages and Facilities in Personal Credit

For advantages and more benefits when applying for personal credit for small or large amounts online, it is important that you make payments on time and without delay.

This will help you avoid fines and additional costs with more interest rates on value. Just like on credit card, fail to pay on time, potentially creates barriers to better interest rates, while paying off creates better business relationships with your lender or lender.

You should always be sure that you will ensure that you will have the resources to make scheduled payments on installments on the due date before submitting your information or signing any online or face-to-face personal credit agreement.

Note: You should contact your lender immediately to discuss the available options if you are not able to repay your loan or make a scheduled payment on time. right

Cathy Nomel can help you how!?

We are always available to answer your questions about this site, our services and about online personal loans and general financing.

We strive to provide our users, users and consumers with relevant information and answers your questions as quickly as possible.

If you have problems with any particular loan agreement with any of our creditors partners, please contact him directly because we are not authorized or we have direct access to informing details of any loan agreement you have made from any indication or link left here from Cathy Nomel.