Month: January 2020

  • Consumers with liquidity needs don’t always think that they have the necessary financial resources in the drawer. Policies that can be lent include life insurance and private pension schemes. However, life insurance and Rürüp and Riester pensions are not eligible for a loan. Depending on the duration of the savings phase and the amount of the contributions paid, a considerable sum can be accumulated over the years. Together with the interest earned, this creates the surrender value, which can be applied for in part or in full as a loan. A policy loan is not a classic loan within the meaning of the German Civil Code and the Banking Act, since the policyholder has his own capital saved in advance. He receives the discounted expiry payment from the insurance.   How are policy loans repaid? The policyholder has various options for repaying the loan. On the one hand, the repayment can be made by increasing the monthly contributions. Another way is the final loan – the loan amount is due at the end of the term. Special repayments are often possible, so that an arbitrary repayment at arbitrary amount can take place at different times during the term. The interest is only counted towards the remaining amount. That means it is always the cheapest to pay off as quickly as possible. Anyone who repays the loan at the end of the term continuously pays interest on the entire loan amount. In this case, a regular repayment of an installment loan can result in lower costs overall, despite a higher interest rate. Because with each repayment, the residual debt and thus the interest burden is reduced. Ultimately, there is also the option to pay the interest until the end of the term of the insurance and not to repay the advance...
  • Regardless of whether the car gives up its ghost, the washing machine on strike at home or a particularly cheap holiday bargain: in some situations, a credit simply cannot be delayed. With a fully digital loan, you save around a week from application to payment. This is made possible, among other things, by the digital account view.   Three digital solutions – a week saving time You usually have to provide your personal information when making a loan request. In order for the banks to be able to offer you loans, they also need information about your professional and financial situation. 1. Fully automatic credit check thanks to a digital account view The fully digital loan relieves you of a lot of work when you make your request. You only have to enter the loan amount and the desired term yourself. The bank obtains all other information required for the credit check by means of the so-called digital account view. With your online banking login, you give a unique insight into your account. The bank then checks your regular income and expenses yourself. The account view saves you the tedious search of all documents and you do not have to upload any documents. 2. Legitimation via video chat Based on the fully automatic credit check, you will receive all contract details for your loan by email. This way you can check all the conditions again before proceeding with your credit request. To complete the loan, you now have to identify yourself. Many banks use the so-called PostIdent procedure for this. You must identify yourself with your ID card or passport at the nearest post office. You can save yourself this route with the fully digital loan. Instead, they identify themselves using VideoIdent – in real time and without leaving the...
  •   By granting loans to individuals , the banks run a huge risk. This is also the case for any loan. This is why not all borrower profiles have the same value with regard to banks. Banks favor applicants who have financial stability because they are safer to reduce risk by granting a loan repurchase to these types of applicants and are more reassured to be reimbursed in full within the expected term of the contract. Reason why the constitution of your file is a determining stage in the request for loan repurchase . It is through the dossier that you will highlight your strengths to put the odds on your side. The criteria required to obtain a loan buy-back The assessments are different from one bank to another, but however, they are all based on the same basic criteria for granting or not a loan repurchase. – the age and situation of the borrower: the applicant must be of full age, be young and in good health to be more likely to obtain the loan repurchase. Couples in the process of divorcing cannot request a loan repurchase and it is the same for people without civil rights and foreigners with a temporary residence permit. – creditworthiness: the total amount of the monthly payments must not exceed one third of the applicant’s income. For a homeowner with sufficient living space, a debt ratio of up to half of the income can be accepted. – the guarantee: the applicant must offer a guarantee of repayment in capital, either a mortgage of his real estate, or a guarantee by a third party. – financial stability: the applicant must be able to justify the regular income he receives. It is for this reason that public servants are more likely to obtain a loan...
  • January 8, 2020

    Paying abroad with a credit card

    Paying by credit card is convenient. The credit card is a popular means of payment, especially abroad. It saves you from having to search for change in your wallet – often with an unfamiliar currency. If you want to pay by credit card on vacation, you should follow a few rules so that cashless payment works easily, quickly and securely.    Tip 1: Check the availability of the cards Before leaving, travelers should check the availability of the checking card and credit card. Otherwise it can be embarrassing when paying. If the limit is reached, the credit card will not be accepted. The credit card availability limit can vary depending on the provider. Customers can often have it increased if necessary.   Tip 2: Payout in local currency The following applies in non-European countries: Travelers should pay the invoice in the local currency to the dealer. The conversion to dollars is often offered, but the exchange rate is sometimes considerably worse. If the EC card or credit card is stolen abroad, those affected must have it blocked immediately. This also applies if the card is lost. It is best to save the phone number in your smartphone before traveling.   Tip 3: Use known local banks Travelers should look for ATMs from official banks on site if they want to withdraw cash with their credit card. It is best to use the machines in a branch during opening hours. Then a contact person is available to answer any questions or problems.   Tip 4: Card readers visible on the counter or table For cashless payments, travelers should always request that the card reader be placed on the counter or brought to the restaurant table. Credit or checking cards should never be given to people for payment. Then criminals have very...
  • In Germany, minors cannot apply for a loan. They are also denied a classic credit card, in which payments are deferred initially and later paid by the cardholder. A prepaid credit card is therefore suitable as a credit card for young people. It works on a credit basis.   Credit cards for young people are available from Visa and MasterCard Young people are not allowed to take out loans in Germany without further ado. For this reason, credit cards for adolescents have a very specific property: they have to be topped up by the parents or the card holders themselves. Similar to the prepaid mobile phone contract, holders of a prepaid credit card can then have the loaded credit until it is used up. They don’t get a credit line. This keeps expenses under control and defaults are eliminated. The most used prepaid credit cards are provided by Visa and MasterCard and can be requested through banks and savings banks. Our tip: pay attention to the annual costs. The fees differ considerably from provider to provider.   Abroad, the credit card offers advantages for young people But what is the advantage of a prepaid credit card compared to cash? More and more young people no longer go on vacation with their parents, but prefer to spend the best time of the year with their peers. They often get the money for their daily expenses in cash. However, if the cash is lost, the remaining vacation time becomes a problem. Many prepaid credit cards provide free cash at ATMs abroad. So teenagers can always get smaller amounts of cash and leave the rest of their financial reserves on the card. After that, nobody can have the credit on the card. The provider issues a replacement card and transfers the remaining credit...