What is the credit?

Many Mexicans wonder what credit is and what is the difference with the loan. In this article we will answer your questions. If you need money for a problem that arose unexpectedly, to pay for a medical expense or to repair the car then you may need to know a little more about the credits.

Basically a credit is a financial method by which an entity or person lends money to another so that the latter can solve their liquidity problem. Of course, this operation also has the so-called “interest” which is a percentage of the total borrowed and which must be disbursed by the person receiving the loan (mostly it is added to the installments).

The lender trusts the borrower since the latter promises to pay the money and interest in a timely manner (according to what has been stipulated in advance).

For example, if a loan is obtained to buy a vehicle, the money of the financial company is being used to pay for the value of the car. Therefore, the client must comply with the payment of monthly payments.

There are different types of credits that we can highlight:

1.Credits to buy in installments: It is used to acquire real estate such as homes or cars. In installment loans the client must sign a contract in which he agrees to reimburse a certain amount of money each month during a pre-established period.

2. Rotating credits: In this case it gives us the option to pay the total of a debt or to make minimum payments per month. A clear example of revolving credit is credit cards (whether granted by banks or department stores). At the same time they allow financing purchases with a monthly interest rate and of course the additional charges generated by the use and possession of a card. As the customer pays the fees the available limit increases and it is possible to make new purchases.

3. Accounts open to 30 days: In this case the credits are offered in the form of, for example, entertainment or travel cards. They must be paid if or when the month ends and in its entirety. It would be like an advance of credit with expiration in 30 days.

What is the insured and unsecured credit?

Another way to differentiate the credits is through your insurance:

1. Secured credit: something of value must be provided as collateral or guarantee that guarantees the payment of the debt. If the payments are delayed the lender has the right to take possession of the object of value that guarantees the debt. One of the classic types of secured credit are mortgages (to buy a house) where the bank keeps the title to the property until the client finishes paying his debt. If the loan is not paid on time, the financial institution can keep the house. The same happens with car loans.

2. Unsecured credit: Unlike the previous one in this case, the lender does not ask for collateral nor do they have to present valuable assets to guarantee the payment. An unsecured loan allows you to buy varied products on credit and, in return, only the promise of fulfilling obligations is offered. Therefore, as the creditor has no guarantees, it may require charging more interest. No one can keep the car, the house or whatever it was bought in the case of not paying. However, of course there are other legal ways to collect (such as a trial or wage garnishment).

What is the credit and its cost?

What is the credit and its cost?

 

It is very important to know also what are the different costs that must be paid regardless of the type of credit requested. Basically the total value of the loan is divided into three “sections”:

1.Capital: is the amount of money requested.

2. Interest: the rate varies according to different aspects such as term, amount of cash, etc. It is presented as an annual percentage.

3. Associated costs: These are all additional payments that the client must pay related to the management and approval of the credit. For example, opening an account in a bank, paying a lawyer, paying the fees of a notary public, paying administrative expenses, stamps, etc.

Now that you know what is the credit the next step is to enter our site to perform a simulation according to the amount you need and when you can return it. Too easy!

Credit: Your money in record time.

Creditea is present in 14 countries and has granted loans to more than 2.9 million customers. It mainly offers 3 different types, depending on the needs: personal loans, line of credit and refinancing.

Advantage:

  • Fast loans of more value, up to € 5000. It is not usual to have such high amounts with this speed, therefore it is a highly recommended option when the urgency is for a high amount.
  • € 0 for opening commission, € 0 for management fees, € 0 for early cancellation. As you hear it, no customer cheating or small print. Everything is very clear so you do not find surprises.
  • Your money in record time. You will instantly receive the answer to your request, but also once accepted, if your bank allows it, you will receive the amount requested by transfer during that same day.

Requirements:

  • At the time of requesting the loan you must be between 18 and 70 years old.
  • Be registered in the Social Security.
  • Have a regular income that can be proven, such as a payroll, unemployment benefit pension or receiving money for a rental.
  • Have a mobile phone to follow the process, and receive validation and continuation SMS
  • Not be included in any list of defaulters. (Although you can accept ASNEF if the debt is declared lower than 150 euros and is not financial).

Loan details:

  • You can apply for a loan for securities between 250 and 5000 €.
  • € 0 for opening commission, € 0 for management fees, € 0 for early cancellation.
  • The interests will be conditioned by the type of profile of the client in addition to the chosen product.
  • The repayment terms will range between the 2 months of minimum duration, up to 3 years which will be the maximum.
  • In 15 minutes you will receive the money once your request is accepted.
  • Minimum TAE 24.90% and maximum 381.28%.

Payment Methods:

Payment Methods:

  • Payment by card: activates the option of recurrent payment by card in the private area. You just have to enter your card number and each month the fee is charged directly, like any other subscription. RECOMMENDED OPTION!
  • Through the Personal Area of ​​the web. You can do it for 24 hours, 7 days a week. Choose the possibility that you like the most:
    • By Bank transfer
    • By debit card
    • Telephone payment with your debit card on 917 935 899
    • Transfer from your bank to “International Personal Finance Digital Spain SAU” Account number: ES91 0049 1892 6223 1327 0010 (Banco Santander)
    • Payment by post: download the voucher in the Private Area and go to any post office to make the payment.

What happens if I can not pay on time?

What happens if I can not pay on time?

  • You must enter your Personal Area and inform, requesting an extension of the term. Once informed, they will be in contact to see the possible options in your case, being possible an extra charge for each day of delinquency.

 

Loans and salary-backed loans for employees and pensioners

The crisis bites the wallet and access to credit becomes increasingly difficult. Don’t despair, there is a solution. You can make a salary or pension transfer.

Remember? The fifth assignment is a small personal loan that the bank grants to holders of a fixed income. And the repayment installment cannot exceed 1/5 of the net monthly salary . The fee is taken from your salary and forfeited by the bank.

In other words, the fifth assignment is an alternative to consider if you need to get more liquidity. I know that giving up part of your salary is difficult and you just can’t make a decision.

Let’s start with the advantages

Cession of the fifth yes or Cession of the fifth no? Maybe you just have confused ideas. With this article I will show you the advantages and disadvantages of the sale of the fifth . A small advance? The advantages outweigh the disadvantages.

The assignment of the fifth is accessible to bad payers

You have not respected the payment times for the mortgage payment or you have issued overdraft checks. In the worst case you have a foreclosure in progress or you are a protestor . Result? You have been reported to the Central Credit Register as a bad payer. The alert usually lasts about three years.

So the banks and financial companies deny you any request for financing. Well, with the sale of the fifth you will not have to undergo credit checks. Your salary will suffice as a guarantee for the banks. The loan will have a duration from 24 to 120 months and an amount up to 50,000.00 .

You don’t have to motivate the loan request

The assignment of the fifth is a loan not finalized , therefore at the time of signing the contract you are not required to justify the request . Without words, the bank is not required to know what you will do with the money once it has disbursed the loan. You can give yourself a trip, fix your home or buy a new car. Then use the fifth assignment also to pay off debts.

It’s a secure loan

It

The assignment of the fifth is a loan secured by an employment risk insurance . This form of guarantee is provided for by law and is contained in the contract.

So if you lose your job and run the risk of not repaying the loan, the insurance company will pay you in your place. Afterwards you will have to reimburse the insurance when you have found a new job. Otherwise you will be reported to the Central Credit Register as a bad payer.

It’s an easy loan

It

The sale of the fifth is the perfect solution if you do not tolerate interminable bureaucratic procedures and complex contracts. There are no additional signatures, therefore, no mortgages or guarantees. To guarantee for you will be your salary or your pension.

Goodbye variable interest rates. This loan has a fixed interest rate for the duration of the contract. And you can also decide the number of installments to be paid. Yes, depending on the validity of the loan you can decide to defer payment fees over 24 or 120 months.

One more thing: you won’t have a fixed appointment with the bank . It will be your employer or the social security institution that withdraws one fifth of your salary or pension and directs it to the credit institution.

And the disadvantages? 

The disadvantages are few but it is good not to underestimate them. In the event of dismissal your employer is required to withhold your TFR and pay it to the bank to cover the outstanding debt. It may happen that the sum is not enough to cover the loan, well then get ready to say goodbye also to the holidays not taken and thirteenth. As a last resort you can resort to insurance which in this situation would represent other additional costs.

Business involvement

The involvement of the “boss” is fundamental to start the financing. Some employers are unwilling to agree to take over the fifth assignment. You’re wondering why, aren’t you?

Simple, they don’t want to be subjected to corporate checks by the bank. I will tell you more, the bank can question the granting of the loan if it considers the company for which you work unstable.

 

Cash: Your advance of € 300 without interest

 

Money is obtained instantaneously without having to go through paperwork. Contante also works successfully internationally. It is a financial entity, part of the group previously named Click Finance SL, which supports and includes other similar companies in the sector such as CreditoSI, or Lendon, in various parts of the world. It offers a new technology called Hal-Cash, which will be discussed below, as a method of thanking the loyalty of good customers, and that greatly facilitates the procedures of collecting the money. It also has several certificates and guarantees of security and customer satisfaction, which bring us a step closer to that is our choice.

What are the advantages of Content?

  • It is a 100% safe and reliable loan. Being part of the Spanish Association of Microcredit (AEMIP) ensures that ethical and responsible treatment is ensured.
  • You can access, as a new user, a loan worth up to 300 euros without interest, and return within 30 days, which is an opportunity more than appetizing as an advance of your salary.
  • It has a variety of contact forms
  • It is an international company, with proven experience in several countries of the globe in several continents.
  • The loan is made in 3 simple steps, which makes it quick and easy, so that everyone can access it without complications.
  • For clients, the loan can be up to € 1,000. Once you have proven your worth, you can be entitled to larger amounts, and very convenient payment systems, such as Hal-Cash.
  • It offers discounts to well-known customers.
  • It has live chat that will make the process more bearable and solve all the doubts you may have.
  • Easy, fast and safe. It uses SSL encryption systems that will allow all information to be encrypted and safe.

What requirements do you require to offer the loan?

  • Reside in Spain, and be in possession of a valid and current National Identity Document.
  • At the time you apply for the loan, you must be over 21 years of age.
  • Have a mobile phone and an email account, usual needs to share information, validate and certify necessary processes.
  • Have a debit card associated with the usual bank account of which you need to be the owner.
  • Have a job, or at least be able to demonstrate that money is entered through a regular form, such as by receiving payment for a rent, or a benefit.

What are the details of the loan?

What are the details of the loan?

  • Loans of up to € 300 for new clients, which will be returned in 30 days without interest.
  • The interest will depend on the amount and duration requested for the rest of the cases. These repayment terms may vary between 1 day, and 62.
  • At the time of expiration, an automatic debit card will be made on the customer’s debit card, and in that way the debt will be paid.
  • You can also return the money before the expiration date, thus saving the interests of the days not enjoyed

What do I do to return the borrowed amount?

What do I do to return the borrowed amount?

So that you can return the money without complications, contante offers you the following alternatives:

  • By default, contante will automatically discount the amount of the card you have linked.
  • It is possible to make the payment by bank transfer, or by an income at the window, but you must not forget that you have to notify in cash that you have made this type of payment, so that you do not have the amount of the card re-charged.
  • Another option is to make the payment directly from the contante website.

Is there anything else I need to know about Contante?

  • You can return the amount of the credit, in a time inferior to the established one initially, but you must know that it can bring two consequences:
    • On the one hand, you will only pay the commission for the days you have had the credit, which is positive and saves money.
    • On the other hand, it is possible that Contante may request a maximum commission of 0.50% of the amount returned in advance.
  • If you can not pay the installment on time, you should always notify as soon as possible and before the deadline is expired, to reach the best agreement with them, being the most advantageous for both parties. Then you can be in the following cases:
    • Informing in cash, you can count on an extension of 10, 15 or 30 days, which will involve an extra cost, but always lower than the payment for delay.
    • If you have not been able to pay the fee, and you have not reported it to extend the payment, you will face a commission for delay of 1% for each day of delay, to apply on the total. Also, if the delays accumulate, the days go by and you can not settle the debt, the chances of being included in files of defaulters will grow exponentially.
  • It has a high level of customer satisfaction according to the Ekomi guarantee, obtaining a score of 94% of the possible points.

 

Personal loans immediately

Credifranco was born with a mission: Transform financial and credit inclusion in Latin America, using the highest technology and compassion. Reliable services, without tricks or hidden charges are your hallmarks. Smart management of your finances 24 hours a day. To be better at carrying your finances, it is not enough to practice. It is also necessary to know some tips that will make the path easier: this is what financial education calls to have that intelligent management of the finances that they sustain.

Advantage:

 

  • It is a quick credit to obtain and of course easy to pay.
  • You can perform the entire process from your Smartphone or your computer which makes everything more comfortable, as well as being able to visualize all the movements and status of the operation.
  • It also offers rewards if you pay your credit on time, giving access to larger loans with lower rates.
  • Online help by email, phone and even by whatsapp 24 hours a day, 365 days a year.

Requirements:

 

  • Valid voter card (INE or IFE).
  • Have an age between 25 and 44 years.
  • Have Mexican nationality as well as reside in Mexico.
  • Have the school graduate.
  • CFE light receipt, or any other proof of your address, with no more than 3 months old.
  • Personal e-mail and cell phone.
  • Bank account (CLABE) in your name.
  • Have a smartphone, since you must download the application, whose resolution is at least 720p.

It is important that the phone you include is a mobile phone, since you will receive an SMS with the code you need. The same case occurs with the contact email. You must ensure that the email is correct and valid because through it you will receive the verification email to continue with the process.

Loan details:

 

  • Up to $ 50,000 loan for VIP plan, which you can acquire if you are a good customer.
  • For new users, the loans can be made in amounts between 1000 and 2000 pesos.
  • The interest rates, from 4.16% to 33.33% depending on the plan, are very low, compared with other market platforms, which is a fact to be taken into account.
  • The repayment terms of the loan, can range between 2 and 12 weeks, you are the one who chooses what conditions are more favorable for you.

Payment Methods:

 

  • Payment at OXXO convenience stores.
  • Bank transfer or cash deposit (if this is your preferred method, do not forget to put your loan number as a payment reference, this way we can correctly identify your payment).
  • Open payment service at many convenience stores such as 7-Eleven, Savings Pharmacies, Wal-Mart, SAM’s Club, Superama, Waldo’s and many others (coming soon): our team is currently testing this payment channel.
  • It is also possible to make the payment in cash. In this option you must enter the number of your loan

In addition, CrediFranco offers you the possibility of making the refund of the amount before the marked deadlines, and without paying extra commissions. Although on the other hand there will be no discounts for it either.

What happens if I can not pay on time ?

What happens if I can not pay on time ?

 

  • Contact Credifranco to extend the date of your loan through the “Contact us” button. You must do it before 12 PM on the business day prior to the expiration date of your loan.
  • Loans may be extended for 14, 21 or 30 days, at the customer’s discretion.
  • Extend your loan from the mobile application: currently working so that soon you can log in to your Credifranco account and simply click on the “Extend” button to extend the date of payment of your loan.
  • In both cases, after the loan has been extended, you must pay the corresponding extension fee to complete the process of extending your loan.
  • If you do not pay on time, and you have not requested the extension of the term, default interest will appear: the amount is added 1.5% of it for each day.

 

Card debt: how to settle with a loan?

Credit card related debts are usually a sign that your budget has not been up for a while. plainsnews.com for clarification

And if this lack of planning is maintained for a longer time, you have a good chance of spending much more than you receive monthly. And what does that mean? Suddenly, you see yourself inside a large snowball. The interest rates for these debts are among the highest in Brazil.

To get out of this kind of ambush without significant help is getting harder and harder.

Do you know which is the best option to clear debts? The best alternative is to be able to replace the debt, with higher interest rates, for one that has lower interest rates. It may seem a bit strange, but Good Credit will make you understand the next.

The revolving credit card currently has interest with an average of up to 334% per year. Many institutions will be able to offer credits that start with amounts of up to 25% per year. Here’s how it is possible to pay off credit card debt through personal loan.

Is it worth getting out of debt by getting another debt?

Is it worth getting out of debt by getting another debt?

The credit card is a modality that assists the life of the majority of Brazilians. But he is also responsible for one of the biggest debts in the country.

It is with the credit card that the individual gains the facility of parceling their purchases. Through so-called plastic money, we often end up buying a lot more than we earn.

Because the money is not spent on the purchase, many people end up buying more than they should, acquiring heavy debts with the operators of their cards.

Time is running out, debts are increasing, and people who have more cards can not find a way to reconcile what they earn monthly with what they end up spending on all their bills.

The financial market has a large supply of credit cards, and those who have no restriction on their behalf end up having advantages in the midst of so many options.

Every new debt the consumer contracts, it becomes more complicated to get out of a process that, in most cases, takes you even further into the hole.

Credit Card Rates x Personal Loan Rates

The interest on the credit card , on average, is around 17%. Meaning that bills that are paid off partially, quickly, turn into snowballs of interest. Not to mention that card operators still charge different fees on the amounts that will be paid in arrears.

In the personal loan, interest rates are around 4% to 8% monthly. That is, it is much more worthwhile to acquire a debt with this amount of interest, than will be charged through the card companies.

How does this exchange work?

With a few simple tips, you will understand how simple it is to repay credit card debt with a personal loan.

First, you need to make a survey of how much your debt really is. Make an analysis with the institution or operator of your credit card and get the total of how much you really owe.

Another very important point is to apply for your personal loan at the same amount you are really owed. Nothing to ask for a higher amount, as this will make you pay unnecessary interest, and that’s certainly not the plan.

Compare all available rates and always opt for the best offer, that is, the one that is most compatible with your budget.

The next step will be to negotiate your debt . The same day that the loan falls on your account, you should contact the card operator and negotiate the full amount of your debt.

Do not forget that you will have the bargaining power in hand, which means you should ask for good discounts to pay cash. And the amount left over, you can pay other debts you may have incurred, or even save so that it can be used on your next bills.

Learning to control your future expenses

Learning to control your future expenses

Once you are more relieved by the situation, you will need to arrange to be able to repay the installments of your personal loan. One must understand that the loan is a debt, just like the credit card.

It is fundamental that you organize yourself, avoiding the delay of payment of your installments and, thus, managing to keep your financial health always up to date.

You will need to rethink your spending, if possible, make cuts in unnecessary spending and learn to balance between what you actually earn and what you are spending.

A spending spreadsheet can be very helpful to keep finances in order and you can download the free expense spreadsheet template we prepared!

It’s no use asking for your personal loan to repay an old debt and wind up reeling in a new one. You need to be aware of what you really need. And go in search of an alternative to finally get out of the red and have a fresh chance to regain the well-being of your financial health.

Do the math yourself. Review the rates available at the institutions that offer personal loans and the interest rates that are being charged by the credit card companies. You yourself will see clearly how it is advantageous to effect this exchange.

 

 

Mortgage annuity loan: what to know

Do you need to get new liquidity? With the lifetime mortgage loan your home becomes an ATM. What I mean? Simple, your home is your parachute. In other words, it guarantees the bank the return of the loan. Accessing this financial instrument is now easier. The law 44/2015 of May 6 has made it clearer about its operation.

The most important news concerns property owners: access to credit is allowed from 60 years of age . A net change compared to the past. Already, before the minimum age required to obtain this loan was 65 years.

Like the sale of the fifth , you will have realized that the mortgage loan for life represents a resource especially for the elderly . Men and women who are old and need money but do not have any other good outside their home.

Let’s go to the point, here’s what to know about the mortgage loan.

How the Mortgage Loan Works

How the Mortgage Loan Works

the mortgage life loan – as I told you before – is aimed at over 60s and allows you to transform part of the property value into cash . This way you can get liquidity without having to sell the property. In other words, it is an overturned mortgage . Turn on the loan in favor of the bank in exchange for the mortgage on your home.

But how much money can you get from financing? Well, I tell you right away that the cash you can get varies based on the market value of the home. The sum issued is also influenced by the applicant ‘s age and life expectancy . In general, the higher the age of the contractor, the greater the amount granted by the bank or financial intermediary.

Reimbursement

Before talking about reimbursement, I will immediately clarify the interest issue. The mortgage life loan behaves like other mortgages. In practice, the interest rate applied to the amount disbursed can be fixed or variable and will be established by the credit market.

As for the repayment of the loan, this can be done gradually. You can agree on times and ways with the credit institution and you no longer have to worry about the annual capitalization of the interests. Pay attention, the delayed payment of the installments (between 30 and 180 days), occurring at least seven times even if not consecutive, gives the bank the right to request the termination of the contract.

In the event that the bank does not find an agreement with the contractor for a gradual repayment, the law provides for three cases of full repayment in a single payment :

  1. Death of the person who requested and obtained the loan
  2. Property sale
  3. The bank must have a full repayment of the loan even if acts occur that reduce the value of the property , for example a new mortgage.

And what happens if the reimbursement does not take place even though at least one of these three cases has occurred? The legislation speaks clearly: “If the loan is not fully repaid within twelve months of the occurrence of events, the lender sells the property at a value equal to the market value”. I tell you more: the bank reduces the value of the house by 15% every twelve months until the time of sale. Subsequently the bank uses the sums obtained to extinguish the credit.

Is it ultimately a cheap loan?

loan money

The answer is yes. The mortgage life loan only pledges a portion of the property that can be repurchased by family members. In this way the silent is extinguished and the immovable returns in the hands of the legitimate owners.