Points to Consider When Making a Loan Application

There is a need and you will apply for a loan. However, you do not know how to apply for a loan. Well, then this article will guide you. Please continue reading.

First of all, let’s determine which need you made the loan application. Let’s start by determining whether you are getting a loan for buying a car, buying a house, for your needs in general, to close your other debts, or for your business business.

If you meet these conditions or if there is no contradiction, let’s look at which loan how to apply.

Consumer Loan Application

Consumer Loan Application

A personal loan is the most preferred type of loan among all loans. Most of the retail loans used (in units) are consumer loans. The bank does not ask you where to spend this money. It does not apply for any pledge or mortgage. However, the interest on these loans is somewhat high and their usage limits are low.

If you have the conditions that we mentioned about the general-purpose loan, sms credit from the mobile line of the bank where you like to inquire from our site and like the interest rates and conditions, and web credit from the internet branch. Or you can go to the branch and apply directly through the customer representative. If you are going to use credit for the first time, it will be correct to have your income document with you. Self-employed and tradesmen should keep the VAT accrual receipt and the last income tax accrual receipt for the last month.

Vehicle Loan Application

Vehicle Loan Application

Car loan allocation has some additional conditions in addition to the above personal conditions. Vehicles over the age of 10 are not given second-hand loans and credit is not provided to all the costs of the vehicles. In addition, the licenses of the vehicles are put hostage and there is a car insurance obligation next to the compulsory traffic insurance.

In addition to the documents we mentioned in the consumer loan when applying, you will need to have a copy of the license for vehicle proforma invoices or used vehicles.

Housing Loan Application

One of the most frequently used types of loans is housing loans. Again, depending on the prerequisites mentioned above, credit is given to a certain part of the appraisal value of the house and a mortgage is put into the title deed. Before the application, a valuation is required for the home you will receive.

Commercial Loan Application

Commercial Loan Application

It is the loan application you make for your company’s financing needs. In addition to the above documents, for the real business companies, self-employed, a tax plate sample, the above documents and the financial statements of the company for the last 2 years will be required for the credit valuation of the dominant partners in the companies

In commercial loans, an allocation is made over the company, but dominant partners are held responsible. In other words, although it is allocated for the legal entity, the dominant partner and the signatory person who are automatically guarantor in case of negativity will be responsible for the loan. The application can only be made through the commercial customer representative at the bank branch.

As a result, if you have a reliable bank register to apply for a loan, you can easily apply through many channels. In other cases, it is recommended to correct your registry first. You should also make sure that you are applying for the right type of loan.

Click Let’s Lend Money Without Promissory Notes

Nowadays, it is seen that many people have trouble with cash from time to time. This situation has a negative effect on morale and motivation for both the person and the people around him.

In this regard, the fact that every person finds a way of interest depends on the correct functioning of a natural process. Any reason for the person may cause it to be in need of cash. For cash needs, an attempt can be made to borrow money in order to meet the need that is there.

The lender or institutions aim to make a secured trade

The lender or institutions aim to make a secured trade

While borrowing money, the lender or institutions aim to make a secured trade by filling in some documents so that both the person and the lender do not become victimized. Choosing the right person or institution to borrow money is of great importance for the person in need of cash.

Although banks are generally preferred to meet their cash needs today, in the light of a number of legal procedures, legal persons are now lending money. For people in need of cash, finding a loan with the deed is one of the ways to be applied in case of any cash need arising.

With the promissory note, it is aimed to choose the easiest way to repay the cash that the person has received, based on a certain payment period between the person in need of debt and cash and the person who will meet the cash need. The type of periodic payment that the banks have made with the applicants to take out loans from them, is like buying and paying back.

The features of a contract regarding the interests of the borrower

The features of a contract regarding the interests of the borrower

When the debt is to be borrowed, the deed, which has the feature of a contract regarding the interests of the borrower and the creditor, and a deed debtor for each paid amount and installment is provided to him and followed up.

This is one of the most frequently used ways of obtaining debt money through legal entities without applying to any institution. When you are stuck with cash or when a need to be met with cash appears, you can borrow money with the promissory note method and easily meet your cash needs.

You do not need to apply to an institution for your cash needs. There are many people around us that provide this opportunity. One of the different options you will consider for all your cash needs.

How do banks determine their credit rating?

To get credit, of course, you need to meet some criteria. Do you have any information about the credit rating, a sweat we have heard in recent years? How to determine the credit score, who keeps the record, what are the criteria.

The Central Bank monitors and records the financial information of all citizens for use in determining both statistics and financial strategies. These data Treasury, Ministry of Economy, Ministry of Finance and Turkey Statistical Institute is committed to the database.

You can think of this data as a National indebtedness database

You can think of this data as a National indebtedness database

Of course, the provision and recording of the data are under serious control within the scope of the protection of personal data. It is not accessible to everyone. Also, person-based information can be displayed anonymously, even by unauthorized institution officials. In other words, when viewing statistical data, contact information is not accessed.

Another institution that has direct access to this database is the Credit Registration Bureau, which records all the laws of citizens regarding banks. In fact, KKB data is provided by banks, not by the state. Because the credit registry office is a private enterprise where data traffic is processed between banks.

Credit Registry Office was established in 1995 as a joint venture of banks. The aim is to provide accurate and fast credit intelligence when citizens apply for loans. Nowadays, with the developing technology, access to the data has accelerated, and the credit research processes of the banks have been significantly shortened.

Credit registry office contacts cannot access every information

Like the Central Bank and other public institutions, it cannot access all financial transactions. It is only possible for individuals to access any data other than their relationship with banks within the scope of the protocols implemented with the relevant public institution.

KKB credit rating is also one of the many credit allocation decision factors determined only through the relations with banks. In addition to this factor, the banker must have access to a number of different data while allocating credit. While credit allocation is made, besides KKB status information, debt inquiries are made through the Ministry of Finance.

With the evolving digital age, access to a lot of data is now very easy. Until 10 years ago, people’s debt inquiries could hardly be made on a judicial scale, and some mistakes could be made in loan allocations. Especially since the debts transferred to the judicial justice could not be questioned, credit allocations were made to individuals with debts that were not visible in the bank records, and serious problems occurred in credit returns.

Thanks to the new generation of information technology, this problem has been eliminated, and thanks to the serious supervision of the credit purchasing process supported by the state within the scope of national economic strategies, the state is now able to access almost any data based on the authority to be granted by individuals who want to take credit.

The minimum conditions set for obtaining credit are actually very clear

The minimum conditions set for obtaining credit are actually very clear

First of all, your credit or credit card accounts in any bank should not be in a state of delay. Also, delays to be displayed in your last 6 months payment order will cause your credit rating to decrease.

The credit rating is based on a system in which the order of the financial relations of the individuals with the banks is followed. Your grade increases or decreases depending on your payment habits. Banks or other organizations cannot know your income because your income status is information that is not available from any source. Only documents containing income information that you will transmit to banks are effective.

In this context, if you are going to make credit transactions with banks for the first time, you may not get high amounts because your credit rating is undefined. However, the regular payments you make after the first credit or credit card you will receive will make your grade increase systematically.

Follow These 4 Steps to Get Rid of Your Credit Card Debt

How can I make a new start? –And how can you remain without debt?

Consumer Loans Independent Advisory Agencies Association President Jonas Dunes said, “The focus of getting rid of your debts lies in making a budget.” says.

 

Get organized

credit loan

For this, you can start by first matching your monthly income and expenses, and you can add the minimum payments that you have to pay on a monthly basis. To help you get organized, you can also consider using the bank’s online and automated bill payment services for your recurring payments every month. Then, check out what your regular expenses are, such as cable TV or eating out.

Then, see how much money you have every month after your monthly recurring payments with the highest interest rate on your credit card statement. For example; If your card has a debt balance of 6,000 USD, which applies an interest rate of 18 percent, instead of paying 200 USD per month, pay 300 dollars and thereby close your debt in a faster period of 17 months, and you will save over 800 USD from interest.

 

Consolidate your debts

Consolidate your debts

Consider transferring all your debts to a card with the lowest interest rate, rather than running around and stopping between a few cards. For this you will have to pay a transfer fee – usually 3 percent – but in this way you will reduce your total interest burden. Meanwhile, it will be easier for you to manage your debts, and because you also have a single card, you will reduce your risk of skipping any payments.

 

Claim a lower interest rate

Claim a lower interest rate

You might be surprised when you see how flexible card companies can be. You have a very high chance of turning off your phone with a significantly lower interest rate with a single phone call. This will save you hundreds or even thousands of USD – and help you end your debt faster.

 

Once you see your debt balance at zero, always try to keep it at zero

Promise yourself to cover all of your credit card debt every month. Keep keeping your budget, so you won’t spend more than you earn. Also, keep an amount of money to cover your few months’ expenses easily, keep it separate, so that when you encounter an emergency or dismissal, this will prevent you from returning to the debt swamp.

Advice on follow-up financing and forward loans

 

With real estate financing, builders and buyers agree fixed interest rates with the lending bank for, for example, five, ten or 15 years. A financing phase ends after the respective time. If there is still a residual debt, borrowers have to take care of follow-up financing.

There are two ways to do this: First, the bank that has previously financed your property will submit an extension offer. On the other hand, you can also check the credit offers of other banks and conclude new financing.

It’s worth comparing

It

Because, although the conditions of the previous lender often seem very lucrative at first glance, borrowers should not act too quickly and respond to this supposedly cheap offer.

Because you not only give away cash, but also the opportunity to pay off your house or apartment faster – with the same monthly charge. Because the lower the loan interest rate, the more customers can repay the same total charge. Here you will find a daily overview of the available building finance:

Follow-up financing is nothing more than new construction financing. This applies both if you stay with your previous lender and if you change lenders. Incidentally, the latter often reveals better conditions.

The reason for this is that lenders who have been looking after a credit customer for years speculate that he will preferably stay with the previous bank and may not even look around. But you should. In our real estate financing comparison, you can see the current offers on the market.

If the date for follow-up financing is still quite far in the future and you would like to secure the current interest rate level, we recommend taking a look at the current offers for so-called forward loans.

If a larger amount is available to the borrower when the existing real estate financing expires, this time should be used to make a special repayment without a prepayment decision.

This reduces the remaining debt, which also reduces the interest burden on follow-up financing. The remaining amount can be repaid faster with higher monthly amounts. Most banks offer their existing customers an extension offer at the existing conditions and current market interest rates.

However, that is not enough. On the one hand, the amount of work that the extension of an existing loan relationship causes is significantly less than when concluding a contract (for example, credit check and property evaluation). On the other hand, the bank can assess payment behavior after many years of customer relationships.

Debt restructuring by changing the bank

Debt restructuring by changing the bank

However, many bank customers do not know that it is possible to switch to another bank and carry out a so-called “debt rescheduling” in the form of follow-up financing.

Every borrower should, therefore, get an overview of the conditions of other providers and also obtain concrete offers.

On the one hand, the threatened change of bank could create more room for negotiation at your own bank, on the other hand, it is often really cheaper to arrange follow-up financing with another bank.

Depending on the amount of financing, a change in the bank’s mortgage lending can result in high-interest savings after the expiry of the fixed interest period.

These deadlines must be observed

In order for follow-up financing to run smoothly, you have to observe a few important deadlines. This will prevent you from having to accept a loan offer that is disadvantageous for you at the last minute.

If borrowers take care of follow-up financing in good time, this not only saves nerves but also hard cash. Our infographic shows you what steps and considerations you need to take and when:

Follow-up financing process

bank

Successful follow-up financing does not only mean setting the lowest possible interest rate. We show what you have to consider and which five steps are necessary for optimal follow-up financing:

When can you get out of the current loan agreement?

A look at the end of the fixed interest period answers this important question. You must have provided follow-up financing by this date at the latest: Either with a new loan from the previous lender or with a loan from another bank that is used to repay the previous loan.

You can see which deadlines you have to consider in the graphic above this paragraph. If the interest rate is fixed for more than ten years, the loan can be terminated at any time with six months’ notice, provided that the loan was paid out more than ten years ago.

Key data on follow-up financing

Before you can obtain offers from the previous lender or from other banks, you have to define the key data for the follow-up financing. The key data include

  • required loan amount,
  • Duration of fixed interest rate,
  • maximum monthly rate,
  • and based on that, the repayment rate.

Once you have defined this and other key data that occur individually, you can proceed to plan your follow-up financing.

Planning follow-up financing

Once you have informed yourself when you can terminate your current loan contract and what the key data of your follow-up financing look like, you should take a look at the development of the interest rate level. The goal is, of course, to secure the lowest possible interest for follow-up financing.

Timing plays a crucial role in this. You should obtain offers – both from your previous lender and from other banks – at least six months before a possible exit from the current loan agreement.

You should also think about a so-called forward loan. With these forward loans, you can secure interest rates and fixed interest rates up to five years in advance. Above all, this brings you planning security for the future.

Specify repayment – the higher the better

Anyone who changes the provider of follow-up financing can usually enjoy lower interest rates than with the previous loan. However, this interest rate savings should not come at a lower monthly rate. Instead, the monthly installment should remain the same and the repayment increased.

Even better: If your income situation has improved since the previous loan was taken out, you can invest the additional income at a higher monthly rate. This means you are debt-free faster and save unnecessary interest payments.

The monthly repayment rate of your loan should not exceed 40 percent of your disposable income. Our household calculator will help you calculate your monthly disposable income.

Apply for a full mortgage loan

If you can repay the follow-up loan within the next ten to 20 years, it makes sense to take out a full repayment loan. You pay this back in full during the fixed interest period. The advantage: You do not have to worry about follow-up financing again and have interest rate security for the rest of the loan repayment.

Change of provider for follow-up financing? 

Change of provider for follow-up financing? 

A change of the financing bank after the end of the fixed interest rate has the disadvantage that this is initially associated with additional costs. The property must be reassessed and the land charge entered in the land register again.

These costs do not apply if you continue the follow-up financing with the previous lender. There is also no need for a new credit check because the previous credit check was sufficient to pay a larger debt and now only a smaller remaining debt has to be paid.

In addition, the protection of the remaining debt is already entered in the land register and higher than the new loan to be secured. The level of mortgage lending plays an important role in real estate financing. A mortgage lending level below 60% of the property value strengthens the negotiating position with the lender.

One advantage of changing providers for follow-up financing is the lower interest rates. Because the current lender calculates the costs for a change of provider and the associated effort in his conditions.

Therefore, banks often trust the convenience of their customers and set the interest rate for follow-up financing above the usual market interest rate.

The customer saves the costs and the processing of a new property and credit rating including land register changes and notary contract; however, he will not receive the best possible interest for his follow-up financing. Checking and comparing offers is therefore essential.

Adjustment of follow-up financing to the current financial situation

Follow-up financing should be adjusted to the current income and expenditure situation. If the previous loan rate has so far been able to be paid without any problems, this amount should be maintained.

In this case, you may even be able to think about a reasonable increase in the monthly rate. This will help you pay off your real estate loan faster and reduce the interest burden.

Anyone who is clever will take care of inexpensive follow-up financing at least six months before the interest rate fixation expires. The interest rate market should be observed and comparisons should be made.

 

Credit card without Credit checker with credit limit vs. Prepaid credit card

Paying with a credit card is now becoming increasingly common in Germany. The popular plastic money also offers decisive advantages in terms of security and convenience during the payment process when paying in Internet shops.

These undisputed advantages naturally create the desire for many people in Germany to have their own cards so that they can also benefit personally from these advantages. Unfortunately, however, it is not possible for everyone to get a credit card in the normal way, since in most cases a check is carried out on the well-known credit bureaus, such as Credit Checker.

Some banks have now recognized this fact and consequently

Some banks have now recognized this fact and consequently

Offer a product that is accessible to everyone and yet provides almost all the advantages of a normal credit card. These offers are called credit cards on a credit basis or simply prepaid credit cards.

The only restriction to the “full” variant is the fact that credit cards on a credit basis do not offer a credit line. All amounts paid with this card are debited directly from the associated account.

Regardless of pure prepaid variants, there may also be options to get a real credit card without Credit Checker information, which will be explained in more detail below.

Credit card without Credit Checker with a credit line or credit line

Credit card without Credit Checker with a credit line or credit line

Most people see a certain credit line as one of the main reasons for choosing a credit card in addition to the possibility of cashless payment. However, the search for a real credit card with a credit limit (comparable to a bank account overdraft facility) presents a real challenge if there is a negative Credit Checker entry.

Anyone who already has a checking account at a local bank or savings bank or an internet bank and would like to reorder a credit card should not have such a bad chance of getting a fully-fledged credit card. Basically, it should be noted that almost every German bank requires Credit Checker information, but if you have been a good customer of the bank for many years (and have received the current account despite negative Credit Checker entries), a Mastercard can also be used in many cases or realize a Visa card with a credit line.

However, if you are looking for a combination of a current account and a full credit card, you are facing a challenge. But despite the rarity of these offers, current accounts without a Credit Checker can always be found with a credit card, especially on the Internet.

Here you only have to separate serious from dubious offers

It is not uncommon for these offers to come from banks, but from resourceful intermediaries who promise to broker financial products of this type for an upfront fee, but generally do not keep their word. As a customer with a negative Credit Checker, it is not unusual to get rid of the agency fee without having seen a single letter from the actual bank.

Above all, direct banks offer a better option. These are credit institutions that operate exclusively online and accordingly do not operate any branches. The main advantage is the low-cost tariffs. Current accounts at direct banks are often entirely free of charge and also come with a credit card.

At this point it should be pointed out the special meaning of the disposable income. Even if many direct banks do not require the checking account to receive monthly payments, the income of the account holders also plays a role for them. Of course, direct banks can also be convinced much faster with their offers if, despite the negative Credit Checker entry, a sufficiently high monthly income is generated.

The same applies, of course, if you try to convince the longstanding house bank to issue a credit card despite the negative Credit Checker. The local consumer advice centers can also be helpful here, as they are often happy to help mediate between banks and bank customers.