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Consumer credit: preferred projects in the face of unforeseen events

Contrary to popular belief, the credits conso do not primarily serve to cope with the unexpected but rather to buy a car, do some work … Here is the robot portrait borrowers.

To subscribe a credit conso, a very thoughtful act

To subscribe a credit conso, a very thoughtful act

Cofidis drew a portrait of borrowers who take out a credit conso and it appears that in France this type of credit is mainly used to finance sustainable projects (car purchase, work …) Only 18% of French take a credit to offset their budget constraints, make ends meet.

To subscribe a credit would therefore be a considered act for most households and corresponds to a concrete project. The crisis has passed by, but also the consumer protection laws that have changed the credit landscape, such as the Lagarde or Hamon law.

More than 25% of French households have one credit and borrow on average 8585 euros. 14% of French people have taken three or more conso credits (54% have only one and 31% have asked for two in the year). Nine out of 10 borrowers report repaying without difficulty and the demand for online credit has increased sharply (30%).

Women have another approach to consumer credit

Women have another approach to consumer credit

Another survey was conducted by CSA on behalf of AstroFinance on consumer credit. It shows that women are more wary about the benefits of short-term credits. 14% of women say they do not subscribe to consumer credit because they do not trust banks or specialized organizations against 7% of men.

One in six men said they had applied for and received a consumer credit in the past year, compared to just over one in ten (11%). Women are more cautious and are twice as likely as men to be afraid to commit to a repayment period (13% versus 6%).

Purchase of credit and withdrawal period

Purchase of credit and withdrawal period

If you have several conso credits, it is possible to combine them into one via the purchase of credit with a certified body like Creditorte. A credit conso can not be greater than 75,000 euros, against 21,500 euros before the Lagarde law. In this case the credit offer signed the withdrawal period begins to run .

In the context of a purchase of consumer credit a 14-day period, called withdrawal, is triggered from the date of signature. This withdrawal period allows the consumer who has signed a contract to return to his commitment without being penalized. During this period of reflection you can accept or refuse the offer of the bank but the funds will not be released until the end of the 14 days. This period starts from the day of acceptance of the prior offer of credit agreement. To cancel you must return the withdrawal slip obligatorily attached to the offer.

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What is a payday loan?

The concept of credit is basically reserved only for banking operations and it can be used in promotional and advertising materials by banks and cooperative savings and credit unions. However, in practice, we also hear about loans in relation to parabolic companies, which should not have the right to grant loans. However, they advertise short-term loans, i.e. quick cash loans as loans. Therefore, in the offers of these companies, we will find the term “payday loan”. How should you understand such a financial product and do banks also provide quick cash loans to their clients?

Bank loan is a concept reserved for banks

Bank loan is a concept reserved for banks

A loan is actually a contract to be made in writing, regardless of its amount. The parties to the contract are the bank or SKOK and the borrower who meets the conditions set for granting the loan. The Bank, under a loan agreement, undertakes to provide the client with a certain amount of money for a specified time and purpose. Therefore, the loan is a special obligation, although its purpose is not always pre-determined in the bank’s offer, the best example of which is a cash loan, which can be used in principle in any way. In turn, the borrower decides to sign a loan agreement with the bank and assumes the obligation to use the loan in accordance with its purpose and to return the amount obtained along with interest calculated at a fixed interest rate. It is also the responsibility of him to pay commissions and all other credit fees.

The speed of granting loans in banks and non-bank companies

The speed of granting loans in banks and non-bank companies

Banks since the outbreak of the financial and economic crisis in the world are approaching in a more restrictive way to provide their clients with financial obligations. While it was possible to obtain a loan for the first time in a few minutes, with one visit at a bank branch, in the following years, according to the recommendation of the Polish Financial Supervision Authority, the banks had to scrupulously examine the creditworthiness and credibility of the client by controlling its financial situation at the Information Bureau credit. Currently, the banks’ lending policy has been slightly liberalized, and regular clients of banks with a positive history of cooperation may use simplified lending rules, thanks to which the credit process itself has been shortened. However, it is difficult to set the liabilities given by banks as a payday loan. “Waitors” as before, remain rather the domain of non-banking companies that are not subject to banking supervision and do not have to fulfill the conditions indicated in the recommendations of the Polish Financial Supervision Authority. They provide financing to their clients only on the basis of the Civil Code and the provisions of the anti-usury law.

What should be understood by the term payback loan?

What should be understood by the term payback loan?

A payday loan may mislead consumers because it is called a loan, and so in the same way as a banking product. However, such a financial product is granted only by parabank companies and it is a payday loan. Its determination is related to the speed of financial commitment to the client. A payday loan can be credited to the bank account indicated by the client at the stage of applying for money in a loan company, even within a dozen or so minutes, thanks to the automated process of checking the financial credibility of the client.

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P2P Loans

A brand new and most borrowed type of loan is P2P loans. The term P2P comes from English and is an abbreviation of peer to peer or person to person. These are online loans provided by people with each other through the Internet, without the participation of a bank or non-bank company. This type of loan has been operating in the world for a long time, and has only recently started to assert itself.

How Do P2P Loans Work?

How Do P2P Loans Work?

The principle of P2P loans is that the loan applicant registers on the relevant website, which covers these loans and completes the application, stating personal data and other important information about his person. If approved, the user can then place the application on a website to show potential investors who can invest their money into it and lend it to the applicant. The trade is thus advantageous for both sides – the loan applicant gets better interest, the investor will better appreciate his money. In our country, it is one of the largest providers of such loans, such as Bankerat, Benefi or Zonky.

How can you apply for this type of loan?

How can you apply for this type of loan?

While you can always ask for a bank loan in person at a bank branch and there are a number of non-bank loans, there is a possibility of personal contact; These loans are always executed completely via the Internet interface and there is no personal contact. A person who wants to borrow money does not have to go anywhere and can handle everything from home via his computer.

How are P2P loans beneficial for loan applicants?

How are P2P loans beneficial for loan applicants?

For those who want to borrow money, P2P loans are particularly beneficial in that they offer much lower interest rates than banks. The specific interest rate depends both on the company that operates the P2P loan portal and on specific requests – the more risky the credit, the higher the interest rate. In principle, however, average interest rates for P2P loans are significantly lower than those for bank loans. Another advantage of P2P credits is the overall fair and transparent conditions, with no hidden fees or charges in advance. Although no one can get a P2P loan (the applicant’s creditworthiness and ability to repay it is reviewed by the portal operator), those whose application is approved will definitely pay less than if they took the same loan from any bank.

How are P2P loans beneficial to investors?

How are P2P loans beneficial to investors?

On the other hand, P2P loans are also beneficial for investors, respectively. people who want to make good use of their money. By investing in these loans you can get much more interesting interest than if you left them in the bank and the risk is minimal due to the set conditions. Thus, P2P loans have become a new and very attractive option for all who have enough savings and would like to invest advantageously. In addition, some companies can invest in several hundred crowns in P2P loans, so this opportunity is open to virtually everyone.

How to orient yourself when choosing a P2P loan?

How to orient yourself when choosing a P2P loan?

The offer of companies that run P2P loans is not so big yet, but for some people, the bull doesn’t have to choose the best one. If you are unsure about which of the operators is best for you, you can look at the clear and independent comparison we offer on this page. We have prepared for you independent reviews of Czech P2P loan portals and you can easily find out the differences between them. You can also browse the websites of individual P2P loans for more detailed information that can make your decision easier. In any case, P2P loans are practically always worthwhile, and since they don’t have to pay anything in advance, by submitting an application, you have nothing to lose.

Who are P2P loans for?

Who are P2P loans for?

P2P non-bank loans are intended not only for those who want to borrow money, but are also a very interesting opportunity for those who have enough money and would like to invest them advantageously. So far, P2P loans are not so well-known on the Czech financial market and most people have not heard much about them. They are gradually becoming aware of this in our country and in the years to come their rise can be expected.

Who, on the other hand, are P2P loans?

Who, on the other hand, are P2P loans?

On the client side, P2P loans are not for everyone. As investors try to minimize their risk, they do not lend to some too risky clients. So if you don’t have any provable income, you have a record in the debtor’s register or you have been charged with execution, you will most likely not get the loan.

P2P loans – interest, fees and total cost of credit

P2P loans - interest, fees and total cost of credit

The actual amount of interest rates, fees and total costs depends on many factors, but it is substantial that it is lower than similar bank loans. P2P loans are cheaper for more creditworthy clients, while those with higher default risk are slightly higher. Overall, P2P loans are certainly a very interesting alternative to classic loans, and it will be very interesting to see how this part of the market will evolve in the coming years.