Categories
Uncategorized

Payroll Credit Card: Know What It Is.

Have you ever heard of the payroll credit card or considered applying for it? Although much like a conventional card, this financial product is known to be one where the minimum invoice amount is automatically deducted from the customer’s paycheck.

Moreover, it is unique to people who may have a payroll loan. However, to better understand this card, its advantages and disadvantages, how about reading more about this subject? Follow the article we prepared for you to answer your main questions:

Can you make a payroll credit card?

Can you make a payroll credit card?

This option is considered as a more affordable personal line of credit compared to the conventional card . However, the product is suitable for those who are civil servants (including Armed Forces employees), retired and pensioners, provided they have a limit on the payable margin.

And despite having rates up to 5x lower than credit card, ideally always pay attention to pay the bill on time and not get into debt. Therefore, to have the card payroll is important to have a source of fixed income that has an agreement with one or more banks to do this type of operation.

Advantages and disadvantages of payroll card

Advantages and disadvantages of payroll card

To help you understand if this is an option for you, it is worth knowing the advantages and disadvantages of the financial product:

What is good?

  • Annuity free;
  • Some card banners have dot programs;
  • Cash withdrawals 90% of your card limit;
  • If you do not pay the full amount of the invoice, only 5% of your salary is deducted;
  • Invoice with description of place of purchase, date, among other important data;
  • 72 months to pay off the credit.

What’s not so good?

  • Interest is higher than payroll loans;
  • The minimum card payment is automatically deducted from your salary or benefit;
  • Some carriers charge a payroll credit card issuance fee;
  • Increased risk of debt if you do not know how to control spending.

Differences between payroll and conventional card

Differences between payroll and conventional card

The biggest differences between these two credit alternatives is the interest rate and repayment term . This is because the payroll-deductible credit card has a lower cost as the bank guarantees the repayment of the loan. After all, he discounts the minimum wage or benefit even before he falls into the account.

On the other hand, when it comes to payment terms, the payroll card can provide up to 50 days to settle the demands. Meanwhile, on the conventional card, this period can reach 35 days. Other relevant differences between the two are:

  • With the payroll card you do not need to be an account holder at the bank where you applied for credit
Categories
Uncategorized

Take over loan – easily online

You are happy to help a good friend, partner or family member get rid of that loan. You can pay the costs for this yourself, but the other person barely makes ends meet. Yet it is important to arrange this properly. In this article you can read how these ways work in practice and what you should take into account.

Takeover loan – Repay the debt in one go

Takeover loan - Repay the debt in one go

If you choose this option, it is important that you first check a number of things at the bank or creditor. First, you request a statement of the total outstanding debt including the interest that still has to be paid. That way you know for sure that you really pay off everything. The bank or creditor makes it no further problem that you pay off the debt instead of your friend or family member.

However, sometimes banks charge a fine if you pay off a loan earlier than planned. For a revolving credit or overdraft this never applies, but it does for a mortgage or personal loan. So always ask yourself whether you can pay off without penalty. With this option, keep in mind that with a large repayment you quickly exceed the annual gift tax exemption.

Take over loan – Define installments by name

Take over loan - Define installments by name

But you are not always financially so spacious that you can pay off everything at once. Most banks do cooperate in taking over the loan from someone else, but they do check whether the repayments fit in with your financial situation. If it is not a loan from the bank but a different debt, then you have to check whether you can put the repayment in your name. Whether this is allowed, of course, depends on the creditor.

However, the other person always remains liable for the loan. If you stop making repayments, the bank or creditor will come to him or her.

Take over debt – Pay for another

Take over debt - Pay for another

Of course you don’t have to put the loan in your name to help. By regularly giving money for the repayment you also help with the repayment. Don’t forget to report any amount you give for the repayment to the Tax Authorities for gift tax.

Take over loan – Transfer

Take over loan - Transfer

Finally, you can take out a new loan with the same or a different bank to repay the other person’s loan immediately. You then retain the loan you take out, with the conditions that apply. The other hereby loses all liability, which you take over completely.

Keep in mind that you may be confronted with a fine with the old loan and that you will soon go over the gift tax exemption. It also depends on your financial situation whether the bank accepts your request. The bank always checks whether you can actually repay the new loan.

Categories
Uncategorized

Private loan – what are the interest rates?

If you need money but do not want to go to a bank, a private loan can help. In that case, borrowing money from family or friends is an obvious option. You would think that such a loan is a friend service and you can therefore generate a lower interest. But unfortunately that is slightly different.

Interest on the market

Interest on the market

According to the tax authorities, the interest charged on a private loan must be in line with the market. This means that the interest rate must be at least as high as is customary in the market. You can calculate this yourself by taking the average of the interest rates that banks and lenders charge for a similar loan.

Return interest on private loan

Return interest on private loan

When you as a parent lend money to one of your children, you can return the interest rate that your child pays in interest on the loan by donating it. You can donate more than USD 5000 tax-free to your child per year. For most loans, the interest that is paid does not exceed this amount. 

Private loan interest – Register

Private loan interest - Register

When you take out a private loan, it is very important to have it registered properly. Even if it concerns relatives or friends. The last thing you want is that money matters between both problems start to cause. When all agreements have been recorded in black and white, it can never be unclear and everyone knows where he or she stands.

The document where you record these agreements is called a private deed  and is best recorded by a notary. In this agreement you must at least include the following:

  • Name and address details of both parties
  • Start date, duration and end date of the loan
  • The highest of the total amount borrowed
  • The interest rate used

There are numerous ways to borrow money these days. Banks and credit unions are sometimes hesitant to lend to borrowers with less-than-perfect credit (although that’s not always the case). But several borrowing sources should be available.

Unfortunately, seeking out lenders is somewhat risky when you have bad credit. Moving away from the stodgy world of traditional lenders may be necessary, but it requires caution. It’s easy to get your identity stolen online, and lenders promising to work with borrowers who have bad credit are often expensive (which can make things worse than they already are).

Categories
Uncategorized

Repeat car loan with another loan – small installments

Anyone who took out a car loan many years ago often paid far too high interest. Redeeming the loan can save a lot of money.

Watch out for the prepayment fee

Watch out for the prepayment fee

If you want to redeem your car loan with another loan, you have to pay attention to the prepayment fee. This will be charged when the loan is paid off in full. Even if the new loan is taken out from the same bank, this fee is often charged. The bank is losing interest and is therefore charging a fee. The customer should have the bank calculate how much the payment would be if one loan is replaced with the other. The question often prompts the bank to offer the new loan on very favorable terms.

Otherwise she fears losing the customer. Some banks could also waive the fee if the new loan is taken out there.

Debt restructuring – right!

Debt restructuring - right!

Debt restructuring is always an advantage when interest rates have dropped sharply. But if you want to replace a car loan with another loan, you shouldn’t forget some things. The new loan agreement should not be signed until the old bank has confirmed the redemption. If it was not possible to redeem the loan, there would be two loan installments.

Debt restructuring is only worthwhile if the total costs decrease. Interest plays a role in this. But if the credit rating is not the same after years, it can also lead to an expensive loan. If the car loan was taken out with a good credit rating, it does not mean that the credit rating has been reclassified after years.

A job change may have occurred. A non-binding offer should therefore be obtained. If the interest rate is now much higher due to poorly rated creditworthiness, no debt restructuring is worthwhile.

Compare first – then apply

Compare first - then apply

Many banks make it easy for customers to have a car loan replaced with another loan. The new bank will contact the old bank and will take care of everything for the customer. Before it gets that far, however, you should first compare and then apply for the new loan. Credit institution where the car loan was taken out should be included in the comparison.

So a new offer can be found, which is really cheaper. A loan calculator from the Internet only requires the details of a debt rescheduling, the loan amount and the term. In this way, the customer can find out which providers actually grant a debt rescheduling loan. Loan seekers often find this information in the further product details.

Repay car loan with another loan – collateral

Repay car loan with another loan - collateral

If the loan seeker wants to have a car loan replaced with another loan, collateral is not always necessary. The borrower must have a good income and a good credit bureau. In this case, loan collateral would not be required. It is different with people who have a low salary or a bad credit bureau.

Then the bank can certainly ask for a loan security. If the amount is not too high, a guarantee is often sufficient.

If the loan amount is well over 10,000 USD, life insurance or residual debt insurance should be considered. Securing a loan increases your credit opportunities. In addition, this also has a positive impact on interest rates and other conditions.

Categories
Uncategorized

Garage loan – Financing a garage

Would you like to buy a garage box? We recommend a personal loan . You then borrow the amount that the garage box costs and pay it back in fixed installments at a fixed interest.

You know in advance exactly where you stand and you will not be faced with financial surprises. However, it is smart to make a good comparison in advance. Pay particular attention to the amount of interest, the duration and the terms of the loan.

Financing garage box, what to pay attention to?

Financing garage box, what to pay attention to?

Our advice is therefore a personal loan. But if you want to find the most suitable loan, there are a number of things to look out for:

  • Conditions – In addition to the interest, also take a good look at the conditions. In many cases, these ensure that the loan is more expensive than previously thought. Pay attention, for example, to whether you can make additional repayments in the meantime and whether the remaining debt is remitted or not in the event of death.
  • Duration – Always choose the shortest possible duration for which the monthly charges are easy to bear. In general, the longer the term, the lower the monthly charges. This seems favorable. But with lower monthly payments, the loan runs longer. Below the line you are therefore more expensive.

Financing a garage, how much to borrow?

Financing a garage, how much to borrow?

The price of a garage box differs per city. For example, in a somewhat smaller municipality you pay 10,000 dollars for a garage box, while in a larger city you quickly lose 50,000 dollars. Build a garage box on your own land? Then you must quickly take into account a price between 10,000 and 20,000 dollars, depending on the size and degree of insulation.

Garage box loan deductible

Garage box loan deductible

If you take out a loan to finance a garage box, the interest is deductible if the garage box is attached to your home or placed on the floor around your home. A garage box is an improvement of your home at that time and increases the value of your home. If the garage box is somewhere else, the tax benefit does not apply.

Tip! Is the garage box on your own property and does this immediately increase the value of your house? Then don’t forget to adjust your home insurance. On the Lite Lender comparison site you can immediately see which insurer offers the most advantageous insurance for your home.

Financing an alternative garage box

Financing an alternative garage box

In addition to the personal loan, there are a few ways to finance the construction of a garage box:

Revolving credit: Build a garage box yourself, but you do not know exactly how much money you spend with it? Then a revolving credit may be a good option. With a revolving credit, you can withdraw and repay unlimited amounts up to an agreed amount. The great thing about this is that you only pay interest on the actually recorded part. If the construction of the garage box is cheaper, you will pay interest for a lower amount.

Pay attention! With a revolving credit, there is a strong temptation to use the credit for other purposes. The danger of borrowing too much and being tied to the loan for an unnecessarily long time is therefore certainly present. Self-discipline is therefore required.

Co-financing in mortgage: In addition to a personal loan and the revolving credit, there is another way to finance the garage box, namely through your mortgage. The advantage of this is that the interest is probably lower than with a loan. However, the disadvantage is that raising your mortgage costs entails and that you may not repay extra in the meantime.