Instant loan despite Credit bureau and Social Welfare.

Offer an instant loan despite Credit bureau and Social Welfare

Offer an instant loan despite Credit bureau and Social Welfare

In the past, numerous borrowers were literally excluded from lending. Borrowers who have a negative Credit bureau, for example, or who only have Social Welfare at their disposal, often had to count on being excluded from lending. An improvement for the borrower with Social Welfare and negative Credit bureau has emerged with the instant lending via the Internet.

The numerous online banks on the Internet have relaxed the access requirements for borrowing and, under certain circumstances, also offer an instant loan despite Credit bureau and Social Welfare. Borrowers can fall back on comparatively low interest rates, quick provision of the loan amount and simple application. The low interest rate level can be attributed to online providers in particular by dispensing with a large branch network and lower personnel expenses.

The significant increase in the number of offers created entirely new possibilities for the borrower with Credit bureau and Social Welfare, but not only did advantages result, but also disadvantages were identified. For example, the comparison of several offers has become significantly more difficult; it is almost impossible to get an objective impression of the overall situation on the market.

Find instant credit despite Credit bureau and Social Welfare 

Find instant credit despite Credit bureau and Social Welfare 

An instant loan despite Credit bureau and Social Welfare can best be found by comparing it with a loan calculator. Before starting the actual comparison, however, your own requirements should be noted. Social Welfare recipients in particular should view the effective interest rate as the most important comparison criterion with their low social income. Borrowers who have Social Welfare and a negative Credit bureau should generally only consider loan offers in comparison that are offered without Social Welfare. With regard to the effective interest rate, the borrower can gain influence in particular via the creditworthiness and the desired credit, but in addition to these individual factors, the processing fees of the bank also play a decisive role.

A low effective interest rate is difficult to obtain for a borrower with a negative Credit bureau and Social Welfare. However, since the credit check of a credit without Credit bureau does without Credit bureau, this results in an advantage for the borrower. The low level of social income makes it all the more important to additionally secure the loan. Loans that allow other means of securing credit, such as a guarantee, should be preferred.

In the case of a guarantee, the guarantor guarantees the successful repayment of the loan. If the repayment fails, the guarantor is fully liable. Last but not least, the term and loan amount must be calculated precisely in advance. The term and loan amount should be as short as possible, only in this way can the risk for the bank be reduced.

Requirements for quick loan paper contracts?

In 2015, an investigation was launched that would see how the rules around sms loans, or fast loans, could be tightened. There was talk of interest rate ceilings, cost ceilings, tougher marketing rules and requirements for written agreements, in any case what the investigative team would look at.

What is the inquiry about?

What is the inquiry about?

The report was intended to be presented to the Ministry of Finance no later than September 30, 2016, but so far it has not been presented even though it is the last September when this post is written. The status of the investigation is still “ongoing”, so we must see if they have reached anything sensible now in October. What the inquiry is about, you can read more about in our article tougher hold against sms mortgage companies.

No, it really does not go quickly when the government’s investigation groups are to arrive at something, it is almost 1 ½ years since the decision on the investigation took place, on April 23, 2015 more precisely. Of course, it would be desirable for them to put their papers on the table as soon as possible so that the industry can start adjusting their sms loans to the new rules that will probably be introduced at the turn of the year, if they are introduced.

Requirements for written paper agreements or not?

Requirements for written paper agreements or not?

We at Cream bank have previously stated that we have no major objections to most investigative teams looking at except for one point: It should be investigated if it is possible to introduce requirements for written agreements for fast loans and similar loans. Here is an excerpt from the Committee Directive that was presented in the spring of 2015:

However, the inquiry believes that consumer protection should be strengthened and that the introduction of a requirement for written confirmation should be considered.

A requirement for the consumer’s signature or other written confirmation can give the consumer more time and better opportunity to consider the offer before accepting it. In this way, the consumer would be better placed to make informed decisions. Such a requirement could thus contribute to fewer consumers applying for and being granted impulsive and rushed loans. The investigator should therefore

  • identify and analyze the extent to which the abolished consumer credit requirement has resulted in reduced consumer protection; and
  • decide whether to introduce a requirement for the consumer’s signature or other written confirmation.

We can understand the investigation group’s reasoning. Written agreements can mean that fewer people will take hasty sms loans and that is good, but of course there is a back side to this as well, maybe…

Thus, state directives are often unclear despite having written lots of pages about what the directive is about, so even in this case. What do you mean by “consumer’s signature or other written confirmation”? When it says “other written confirmation” is it the same as being able to sign their loan agreement with e-leg, eg with BankID on file or mobile BankID? What else does “other written confirmation” mean if it is not about “consumer signature”?

Will e-leg be counted as written confirmation?

If you can at least sign your agreement with BankID or any other e-leg, it will not change the industry very much, as most lenders of fast loans already offer it. And the lenders who don’t do it may simply start offering this service as well, it’s just positive.

But there is one thing that makes us wonder if they really mean that signing with e-leg would be what they call “other written confirmation”, and that is that the requirement for the confirmation will give the consumer more time to consider the “offer” before it is accepted. If signing with, for example, mobile BankID would be okay, the customer will no longer have time to consider any offer. It is true that sms loans paid out in direct are often signed with BankID. Thus, there is a certain risk that they refer to paper agreements when they talk about written requirements for fast loans.

So why are we against written paper contracts for quick loans? Well, because it’s hostile to technology and the future. At present, when most cases are carried out online, should that apply to fast loans as well? Calling for a paper contract is like taking a step back in time. Nowadays we can use BankID for lots of important and sensitive cases, for example for logging in to our internet banks, tax accounts, the insurance fund, CSN and when we take out large private loans. It would be completely absurd if this were not to apply to sms loans as well.

Sure, paper contracts may prevent some people from undoing their impulsive loan applications, but it will also affect everyone else in need of a fast loan, people who do not borrow from an impulse. In such cases, alcohol may as well be banned because some who consume alcohol become alcoholics. Should we ban anything that has a back (which most things have) or do we choose freedom and agility? We believe in the latter alternative.

Credit for Single Parents – Prepare Household Account

Single parents are often financially worse off than other people. You only have one income and still have to take care of at least two people. For this reason, lending can be very difficult. Before deciding to take out a single parent loan, you should always prepare a household account. This is the only way to assess whether and to what extent there is scope for the repayment of a loan.

Credit conditions

Credit conditions

A single parent loan is only granted if the monthly income is above the attachment limit. It must also be paid regularly and should come from work as an employee. If only social benefits are drawn, lending is almost always impossible. There are only a few exceptions to this rule. They are available, for example, if there is a guarantor or a co-applicant who meets the credit requirements.

A person who wants to take on this task must have a very good credit rating, be able to stand in for the loan installments at any time and still have enough money so that they do not neglect their own financial obligations. If a loan is taken out in Germany, the private credit checker information must be in order. In the case of a foreign loan, however, it plays no role at all.

Loan comparison

Loan comparison

Once the decision has been made to take out a loan, it would be important not only to know which loan amount and the maximum monthly repayment rate are possible, but also which loan offers are available to single parents. Not only the interest, but also the terms can differ significantly from each other. If you go to a comparison site on the Internet and use a loan calculator there, you will be presented with various loan offers within a few minutes, from which you can choose in peace.

A single parent loan is paid in one amount after approval and must be repaid in monthly installments. These rates do not change during the term and consist of a repayment and an interest component. The loan agreement regulates whether special repayments or early repayments are possible for a single parent loan. It must be signed by all contracting parties after the loan approval.

Loan in education without guarantor.

Especially in training, it can be important for many trainees to buy a car or to set up their first apartment. For this reason, a loan in training without a guarantor would be an option. But in most cases, such a loan cannot be obtained from the house bank. Since the borrower, in this case the trainee, cannot yet offer collateral, it will be very difficult to find a suitable loan in this situation in order to be able to fulfill his wishes. But a loan in training without a guarantor is also hopeless.

What are the requirements?

What are the requirements?

One of the most important factors for a loan in training is that the borrower is of legal age. Because only an adult can get a loan according to the legal requirements. In addition, the Private credit checker information should be free of negative entries, which also applies to many other borrowers. If a smaller amount of money is sufficient in training, in some cases an overdraft facility can help, which trainees can also obtain relatively easily. However, the financial scope is not particularly high here and interest rates are also very high here. This ranges from a disposition framework from a training salary for craftsmen to three monthly salaries, possibly for civil servants on revocation.

Loan in training without a guarantor

Loan in training without a guarantor

Trainee lawyers who want to work in higher civil service may have a relatively realistic chance of obtaining a loan in training without a guarantor, as their income is already above the garnishment-free limit during the traineeship period. One way for commercial trainees to get an installment loan is through mail order companies. Here, for example, the furnishings for your first apartment can be bought and paid off in monthly installments. These mail order rates are usually available with a term of 3 to 48 months. Here, too, a regular income, the age of majority and, of course, a clean Private credit checker information are requirements.

Another option for commercial trainees to receive a smaller sum than a loan in training without a guarantor is the wage advance. Commercial trainees have an advantage here because public employers have to adhere to certain advance guidelines. A larger bank loan cannot usually be obtained with noisy means during the training.

Will fast loans be cheaper?

In September of next year, it is most likely that no quick loans may have a higher interest rate than 40% plus the reference rate. In the near future, the government will put forward a bill in the Riksdag that will in all likelihood be voted through. This has of course been praised by the media, but many believe that an interest rate of just over 40% is still too high, but is it really? And will the interest rate ceiling make the quick loans cheaper or not? We shall discuss these two issues a little now.

Is 40% in interest okay?

Is 40% in interest okay?

We know that it is easy to stare blindly at the effective interest rate and then 40% seems to be extremely high. And of course, if you take out a loan of a few hundred thousand USD that you pay off for years, it is pure ocher. Not to mention how extreme it would be if mortgages had such a high interest rate, because then even 4% is extremely much in the current situation.

It’s no wonder that people often have the effective interest rate on their heads as most loans are quite large and have a long repayment period. Then the effective interest rate is a reasonable measure of how expensive or cheap a loan really is and works well when you want to compare loans. But this does not work with regard to fast loans and sms loans because many of these loans have a maturity of less than one year, and in addition they are small.

It is, among other things, the maturity and the amount of the loan that affect how high the interest rate a loan gets. If a loan of USD 100,000 would have an interest rate of 40%, it would have a loan cost over USD 100,000 if it was repaid over 5 years. This would mean that the loan cost will be higher than 100% of the loan size. And it would be almost useless.

However, a sms loan of USD 4000 with an interest rate of 40% would cost around USD 800 if it is repaid monthly for 1 year, and that is “only” 20% of the amount you borrowed. It doesn’t feel as unfair at all. In addition, you can always redeem their loans early, so even if you take out a loan of USD 4000 with a 1 year maturity, you can make extra mortgages and get rid of it already after a month. Then it will only cost a few hundred dollars.

Rather, such a small loan must have a fairly high interest rate for it to be profitable for the lender to lend money. For example, an interest rate of 5% for such a small loan would only result in a loan cost of just over USD 100. There is no fast lender that would get their business going around with such a low return. It can certainly work for lenders of private loans, but only because they also lend large sums of money.

Not sure that quick loans will be cheaper

Not sure that quick loans will be cheaper

As you can see, a 40 percent interest rate must be so dangerous, unless the loan amount is small and the maturity is short. However, there is a risk with an interest rate ceiling of 40%. If the interest rate ceiling is introduced, there are certainly some lenders who are attracted to settle around 40% and then offer rather large loans with long maturities.

If this happens, a loan amount of USD 50000 which is repaid in 5 years would cost more than the loan itself. That in itself will not work because fast loans will not cost more than the loan amount when the new rules are introduced, but even 100% in loan cost is not cheap exactly.

So, will fast loans be more expensive or cheaper? It is not at all as secure as you may understand. Sure, we won’t see any effective interest rates of several hundred percent (plus reference rates), but that doesn’t necessarily mean that the loans will actually be cheaper. What will probably happen is that the short monthly loans turn into annual loans and then it is not certain that they will be cheaper if you look at the total cost for them.

Small loan for retirees compared.

Finding a small loan is very difficult for pensioners, because the banks want to see this group of people as customers, but not as borrowers. But pensioners do not have to put up with this exclusion. You can compare a small loan for retirees on the Internet.

Do not leave pensioners in the rain

Do not leave pensioners in the rain

There are banks on the Internet that do not leave pensioners in the rain, but also offer a small loan for pensioners in comparison. There are not many providers, but it is still worthwhile to study the offers carefully. At this point, however, it must also be mentioned that a small loan is exactly what the name suggests. The pensioner cannot expect much money. High demands cannot be met.

A comparison is worthwhile if only because some insurance companies do not use the residual debt insurance that is otherwise customary in this case, even though this makes sense for a pensioner. It covers the risk that relatives will have to pay for the loan in the event of death. But such insurance makes the loan more expensive, that must be made very clear.

Use the checking account

Use the checking account

Many account holders, including pensioners, have a overdraft facility in their checking account that was sometimes not used at all. This would also be a way to meet short-term money needs. The emphasis, however, is on the short term, because high interest rates accrue for the use of this disposable. It is actually only worthwhile if it can be quickly compensated within a few months.

Conclusion

Conclusion

A pensioner also needs money and it is actually irresponsible to refuse to give him a small loan. After all, they have a regular deposit on their checking account through their pension. In addition, a loan can be secured against default by means of residual debt insurance.

Immediate loan for unemployed people despite private credit checker.

Obtaining an instant loan for unemployed people despite private credit checker is not easy. Under no circumstances should the person concerned contact a Agree bank or savings bank. There are clear lending guidelines for installment and consumer loans that cannot be met by unemployed people with negative private credit checker information.

It doesn’t look any better at a foreign bank either. Although private credit checker information does not play a role here, income is all the more important. The only way to have an opportunity to get an instant loan despite unemployment benefits for unemployed people is to contact a reputable Agree credit broker.

Requirements for lending

Requirements for lending

Depending on who acts as the lender, the requirements for lending vary greatly. In addition to a regular income, Agree banks and savings banks require impeccable private credit checker information; the latter point does not matter for foreign banks. Whether and to what extent private credit intermediaries insist on a regular income cannot always be answered clearly. Here a detailed comparison and exact demand are worthwhile.

Under no circumstances should the unemployed believe any unrealistic promise or pay fees in advance. Both are sure signs that the credit broker in question is dubious. Here, one should either refrain from the instant loan despite unemployment benefits for unemployed people or look for another credit broker.

Application, approval and payment

Application, approval and payment

If a suitable credit intermediary is found, the unemployed person will receive more detailed information about which documents he has to submit for a credit decision. In most cases, an immediate loan can only be granted to unemployed people, despite private credit checker, if additional security is available. If a private or institutional lender agrees, the loan will be transferred to the unemployed person’s account within 24 hours or paid in cash.

Loans from the job center

Loans from the job center

In particular, reform recipients were given the opportunity to take out an interest-free loan from their job center in order to finance urgently needed purchases, repairs or similar things. An urgent need for action is always required if the unemployed person already has rent or energy debts and is now threatened with the termination of the rented apartment or the cessation of energy supply. Unless there are good reasons not to do so, the job center will always grant a loan in this case.

However, the loan amount is not paid to the unemployed or reform recipient, but is transferred to the responsible body. This is to avoid misuse of the loan. Another important reason for an instant loan despite the private credit checker for unemployed people is a broken TV, a broken washing machine or a broken fridge. In this case, the unemployed person receives the money and must prove that it has been used properly by the job center.