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The great credit comparison for Austria with lots of information.

Direct Debit (LSV)

Direct Debit (LSV)

The direct debit procedure (LSV) is a written authorization to the creditor that he may collect the debt from the debtor’s account. The amount of money owed is deducted from the debtor’s account and credited to the creditor’s account. The bank holding the account does not necessarily have to be informed of this; it is an agreement between the creditor and the debtor. This method of payment is particularly.

Credit-worthiness

Creditworthiness is closely related to creditworthiness. Creditworthiness is a key feature when granting a loan. The creditworthiness is calculated on the basis of various signals (income,) and ultimately contributes to the decision as to whether or not someone receives a loan.

Credit Protection Association KSV 1870

Credit Protection Association KSV 1870

The Credit Protection Association KSV 1870 is an organization that collects information about the credit history of people and companies. The KSV makes this information available to other companies and banks. The aim is to avoid default and / or credit default from the outset. The scoring model is used here.

Credit payment protection insurance

Credit payment protection insurance

A credit residual debt insurance is a guarantee that the remaining credit claim, even in the event of a special event such as an accident, death, is paid by the insurance benefit. Which insurance benefits are included in credit residual debt insurance depends on the type of insurance and what you would like to have with you. As a rule, almost every insurance policy includes credit residual debt insurance or a similar.

Loan term

Loan term

The loan term is the time between the granting of a loan and the full payment or repayment of the loan.

Credit card

Credit card

The credit card is a plastic card from a credit card company with which you can buy goods and services without cash. To make the purchase you need to show your credit card and pay with your “good” signature and proof of the card. After that, the credit card holder is sent, mostly on a monthly basis, bills which.

credit history

credit history

On the one hand, credit history means the historical development of a loan, on the other hand, it is also a list or listing of the previous use of a loan and what the borrower’s previous payment behavior was.

Credit

credit

The loan is the transfer of an amount of money from the lender to the borrower under a fixed amount or up to a maximum amount of money. The loan is concluded for a certain period of time and on certain terms. These agreed conditions can be found in the loan application or loan contract.

Overdraft

Overdraft

The overdraft is an agreement between the bank and the customer. By overdrawing the bank, the bank allows the customer to overdraw his account. For the overdraft of the account, the account holder undertakes to pay a certain interest rate (debit interest). The overdraft is a type of credit, with no credit fee (0.8%). Typically, the overdraft occurs with a checking account.

Account balance

Account balance

The account balance is the amount that is in the account. It therefore corresponds to the amount currently available (a possible frame is not taken into account here!). The account balance is therefore the delta (difference) from the incoming or outgoing payments. There are 3 different types of balances (majority of balances): debit balance credit balance current balance

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Banking mobility: finding after one year – Credit Online

The Congilaw company on banking mobility was promulgated a year and a half ago. Supposed to simplify the life of customers who wish to change banks, it was to be a new factor of attrition for banking establishments. Back on the consequences on the banking market.

What is the principle of banking mobility?

What is the principle of banking mobility?

Before the entry into force of the Congilaw company, changing banks could prove to be a real headache. The client was in fact responsible for carrying out all of the procedures with his current bank and the bank he wished to bank with. But since February 2017, the Congilaw company on banking mobility has facilitated administrative procedures for customers.
Banks therefore have the entire task of transferring accounts as well as direct debit and transfer operations. A completely free device. To do this, a client must provide their current bank details and sign a transfer request mandate with their new bank, which will forward the document to the old bank.

Despite the automation of the system, it is preferable to have a certain vigilance as for the good transfer of all the operations. But also on the circulation of possible checks issued which are still not cashed before the final closing of the account to avoid unpleasant surprises.

The French, relatively loyal customers

The French, relatively loyal customers

With the simplification of the procedures for changing banks, one could have thought of a fairly substantial flow of transfers from bank accounts. Especially that among French customers, there are 20% who say they are dissatisfied. A dissatisfaction which can generate a need to change air. However, there are only 1.2 million people who took advantage of the implementation of the Congilaw company to change banks, according to the Financial Sector Advisory Committee (CCSF). A very relative proportion compared to the 80 million bank accounts in France.

Banking mobility did not have the expected impact, since it went from 4.8% to 4.5% last year. We note that 2016 was a year with a greater flow of mobility, without the presence of Congilaw company. The French were in fact more sensitive to the drop in rates in 2016 and therefore put competition to draw savings on their credits. Beyond credits, banks fail to provide differentiation services and pricing. Congilaw company is not enough to encourage customers to look elsewhere since they believe that the financial benefits will not be attractive.

Concerning customers who have taken the steps to benefit from the Congilaw company system, the mobility rate varies according to their typology. According to the Banque de France, there is more mobility among the youngest, with a peak of 7% among those aged 25 to 34. Those with the highest annual income are the most concerned by the desire to change their banking brand.

Online banks expected more migrations

Online banks expected more migrations

The big disappointed with the low mobility, it is obviously the online banks who thought they were witnessing a significant increase in new customers. Despite everything, they gain 10% of new customers per year and currently hold 5% of market share. But they still rarely manage to become the main bank since 78% of their customers use online banking as a secondary bank, despite competitive prices and encouraging welcome offers.

It must be said that physical establishments are doing everything to remain the main bank, with the rise in transfer fees from savings accounts, discouraging for total bank flight. In addition, the French always have a need for proximity and a physical network. Human contact remains a necessary factor on the banking market.

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Real estate loan: borrowing conditions still favorable over the last months of the year.

Appreciable interest rates for the best profiles

Appreciable interest rates for the best profiles

The real estate market is currently in a relatively gloomy phase. While activity started to boil at the start of the year, the last quarter saw weaker transactions. Faced with this drastic drop in the demand for credit, banking establishments choose to relax their conditions for granting credit to access home ownership. The purpose of this measure is obviously to encourage households to embark on an acquisition project.

As a result, it is still possible to borrow with competitive interest, even if a rise in rates has started in recent weeks. However, it remains relatively minimal and particularly targets subprime borrowers. Those with an advantageous profile can still successfully negotiate a competitive rate.

In fact, according to the Housing Credit Observatory / CSA, the average borrowing rate in November stood at 1.44%. But by obtaining a loan repaid over 15 years, it is possible to obtain an average rate of 1.22%. The same is true for a 20-year loan where the average rate is around 1.4%. And seniors are particularly concerned by shorter depreciation periods, due to their older age and their sometimes higher financial capacity (financial and real estate). Those with an attractive profile for banks are therefore able to negotiate a rate of this ilk.

The average duration of mortgage loans has never been higher

The average duration of mortgage loans has never been higher

Finally, the Observatory also notes that the average duration of loans continues to increase over the months. A record was even recorded in November with an average duration of 227 months. Since the start of 2018, the progression has even been an additional 8 months. Compared to the first half of 2014, this is practically an increase of 24 months.

But how to explain this increase in household debts? Already thanks to the phase of relaxation of the conditions for granting loans to maintain activity. Banking professionals take the risk of lending over longer periods. But also because the real estate market is experiencing a price appreciation in certain areas. Especially in major cities. Households therefore have no choice but to finance themselves over a longer period to become owners.

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Fixed mortgage loan Austria

Repayment is built up separately

Repayment is built up separately

In real estate finance, a fixed mortgage is a loan that is not repaid directly. Unlike the repayment mortgage, the repayment is built up separately. In the case of a fixed-rate mortgage, also called a repayment suspension loan, no repayment is made directly into the loan over the entire term of an interest period that has been agreed with the financing institution.

The repayment is suspended, for example, by a home savings contract concluded at the same time as the loan loan agreement. The amount of the home savings sum to be concluded must be congruent with the contractually agreed loan amount. However, an existing home savings contract can also be used, but here too, the home savings sum must at least correspond to the amount of the loan.

Fixed-rate mortgage as well as a repayment mortgage

Fixed-rate mortgage as well as a repayment mortgage

There is also the option of suspending repayment using a life insurance policy. Here, instead of a home savings contract, life insurance will have to be taken out. With both redemption suspension instruments, with life insurance, as well as with the home savings contract, these must be ceded to the lender. This also happens immediately when applying for a loan. It should also be mentioned that, like all other real estate loans, a fixed-rate mortgage must be secured under land register law.

It should therefore be noted that a fixed-rate mortgage as well as a repayment mortgage can only be used to finance real estate.

The decisive disadvantage of a fixed-rate mortgage, however, is definitely the fact that no repayment is made directly into the loan during the entire fixed-interest period of the loan. This eliminates the repayment effect, which arises with the repayment mortgage by the fact that repayment is permanent and the repayment immediately reduces the loan debt. As a result, the interest saved in this way is immediately added back to the repayment and the interest payments decrease continuously and in a progressive manner.

Home Loan: Go Against Misconceptions

Making your first mortgage is always a major step in life. This is why it is necessary to provide you with the baggage required to combat misconceptions. And you will see, there are many!

For the following test, it is necessary to have a paver and a small chisel (a buret). The idea is to take notes on your little pad by reading these lines.

Here are some basic tips to help you get started.

 

1. Borrowing with little contribution is possible!

You don’t have to have a lot of savings to get a mortgage. It is even sometimes possible to borrow without any contribution.

In truth if the banks appreciate that you have the contribution, it is essentially because it provides that you know how to save (yes the savings holds no more secret for you). They are thus reassured about your ability to repay your monthly payments.

Be aware that in fact, there are no strict rules on intake (first block in the pond). It is even possible, in certain cases, that the banks accept that you borrow without contribution. Eh yes!

For example, this may be the case if you are young or if you are considering a rental investment.
In the first case, the bankers can understand that you do not have much savings yet. In the second case, it is also understandable to want to borrow without contribution to make your savings grow.

It is possible that your bank advisor will tell you that this contribution must be at least 10% of the price, otherwise it is not worth going further. Well, that’s wrong! (second paving stone in the pond)

So finally, take note on the paveme

nt that you will throw in the pond around: it is not imperative to have a contribution to finance his real estate project.

 

2. Your bank will not always offer you the best credit

credit loan

Banks are making more efforts to attract new customers than for their existing customers (third paving stone thrown into the pond). This is why going through a broker to compare a maximum of offers is the right method.

We talked about this previously in an article on borrower insurance: online brokers are really cool! Unsurprisingly, online brokers are also an option with many advantages for your loan (note on your block):

  • Save time: in France, only banks can grant home loans. Going through a broker therefore allows you to compare the best market rates in the blink of an eye. No more visits to bank branches!
  • Save money: brokers have access to preferential rates from banks (because they are a business provider). So they know which banks are the best and can offer better rates than the banks themselves to their customers.
  • Delegate the creation of the file: some brokers offer to assemble and gather all the documents in the file for your loan. And this, depending on your project and your situation.
  • Low cost: broker rates may vary, but some brokers offer quality services at low cost. And note (still on your block) that some online brokers are completely free.

 

3. Rates are still at their lowest

home loan

Right now, the planets are aligned and the rates are low. But it is likely that rates will rise in the coming months, reducing your real estate purchasing power all the more: this is the right time to buy!

For example, for a loan of $ 200,000, it is estimated that good rates can vary from 0.84% ​​to 1.9% depending on the amount of the monthly payments and the duration of the repayment.

The double reason justifying the purchase is that given the very low rates of the moment, it is often more interesting to keep your savings and borrow the difference. In other words, it would be interesting to borrow without contribution and to borrow the difference (fourth block in the pond).

 

4. Credit takes time: start now!

4. Credit takes time: start now!

65% of French people believe that the various procedures required to take out a mortgage are “complicated”, according to a survey by Opinion Way.

The process of applying for a home loan can be a race against time to get the funds on time. By starting now to prepare your loan application, you save a lot of time, and above all, immense serenity.

As you can see, going through an online broker to prepare your project now allows you to better negotiate the financial conditions of the mortgage.

The pond being full of the paving stones set out in this essay, I now invite you to reread the different notes taken at the burinet on your own paving stone. What can you read there? Yes that’s right, your eyes are not playing tricks on you, you are reading well: preparing your mortgage through an online broker can generate many savings!

You can now throw your pavement in the pond. This sixth block completes this essay and you can now find out about the most interesting online brokers on the market. Several members of the Bankin ‘team have practiced the pavement exercise with Pretto, our partner on mortgage, and they are more than satisfied. So go ahead, pass the info and the pad to your next one!

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Looking for a vacation? Take out a holiday loan!

You can finance your holiday with a variety of financing options. Through us, you can find the best partners to finance your holiday and apply for a loan directly on our partners website. It all starts with the amount of money you need to compare to get ahead of your vacation ideas. For this reason, it is a good idea to determine the amount of vacation loan you need, as it allows you to compare banks and financial institutions.

Would you like a malt drink in the Maldives? Or Would you like to dance hot salsa with your wife in Cuba? Or would you maybe go to a water park with your family in Turkey, for example? In order to get the budget for your vacation loan, you first need to properly dream of your dream vacation and then think carefully about how many you are leaving and at what time of year. This will help you find the most accurate budget for your vacation loan.

In addition to travel and accommodation, think about the supplies you need before and during your stay. Once you have reached your vacation dream budget, you can enter your planned vacation loan amount directly into our search engine along with your contact information and we will help you find the vacation loans that best fit your criteria. This gives you easy and quick access to the various financing options that our partners have to offer for a vacation loan.

Financing your vacation with a loan or credit

Financing your vacation with a loan or credit

You can apply for a consumer loan, flexible loan, loan or financing through our partners. The best way to get started is to explore the various loan options through our 5 different loan services.

Consumer credit is usually either unsecured or unsecured, and is granted on a one-off or continuous basis. Unsecured Flexibility Credit is often a continuous credit, and the pledged amount of the loan is returned as the debtor pays the installments to the lender. In unsecured credit, the lender does not require collateral from the borrower, but the credit is granted on the basis of credit and income information.

In secured credit, the borrower gives mortgage on the property and often receives a lower interest rate loan in exchange for a pledge that provides security to the lender. Through us, you can apply for the various loans and credits offered by a network of partners. Once you have determined the amount of your vacation loan or loan you need, we will list the best lenders or loans that will help you finance your vacation.

Holiday Loans – Compare Online

Holiday Loans - Compare Online

We will help you fulfill your holiday dream. We will not give you credit but we will help you find the best 5 vacation loans as options for financing your vacation. Once you have entered the loan amount and contact information you need into our search engine, we will list loans or loan services for you to compare more closely. When comparing the loan price, you should first pay attention to the amount of the loan and the expected repayment period.

This will give you an approximate monthly installment on which the loan providers will charge interest, processing fees, opening fees and any other costs. This total cost, often included in the monthly installment, is called the effective annual interest rate of the loan. By assigning the same amount, monthly installment, and repayment period to all loan providers, you can usually compare the actual cost of the loan, including the loan provider’s commission or commission on your loan.

There are almost as many ways to report different expenses on loans as there are loan companies, and by visiting our site, you can easily compare the actual charges and interest rates of our loan providers with our partners.

Save up on your money with a loan

Save up on your money with a loan

By using our service and giving your time a little, you can easily save up to several hundred euros on the cost of your holiday, so it is definitely worthwhile to spend time considering different loan options. We want to make sure that you get the best financing for your vacation and that is why we keep our search engine search criteria up to date.

This way you will get the best possible service and our search engine will find the best loan deals and loan providers that match your criteria. Dream about your vacation and let us help you make it your vacation by finding the vacation loans that work best for you.

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Refinancing and consolidation. Will it save money or is it just a trick?

Transfer your loans to us, you will save. This is the frequent advertising slogans of banks. But is that true? Can we really save money by transferring a loan or even several loans to another banking institution? More commentary at arbeiasociety.org.uk

Every person is quite skeptical about similar promises. The reader Jiří repays the mortgage, which he financed the reconstruction of the apartment. When the fixation period ended and the current bank offered 4.5 percent interest for the next period, at a time when banks, including his bank, offered new clients interest rates below three percent, he got angry and wanted to transfer the mortgage elsewhere.

The bank quantified the outstanding balance and he addressed several banking institutions. Although the competition offered almost half the interest, did not get under the payment then, and eventually stayed with his bank. “Now I am approaching the deadline for the end of fixation, does it make any sense to refinance the mortgage?” He asks.

What about the savings promises? Isn’t this just an advertising trick? Can we really save money by transferring a loan or mortgage? We asked for you.

Refinancing of one loan

Refinancing of one loan

We usually refinance mortgages when our bank does not want to accommodate us or offers such conditions that are unacceptable for us. If we refinance the loan on the anniversary of fixation, the repayment of such a loan will be without any sanctions. And in some cases, refinancing may pay off.

“In addition to the amount of interest, it is necessary to look at other parameters of the mortgage, such as fees for mortgage management, for drawing a loan, for maintaining a current account, which is usually a mortgage obligation and of course repayment or the possibility to adjust the amount of the repayment, ”recommends Lite bank spokesman.

 

According to George at Lite Bank, refinancing accounts for about half of mortgage clients. “Clients come to us not only because of the low-interest rate but also because they can repay any part of the loan at any time without fees and penalties,” says the spokesman.

With a market share of almost 30 percent, Lite Bank is the market leader in mortgage loans. Her spokeswoman says the importance of refinancing has been decreasing recently, as banks have focused more on high-quality services to retain their clients. 

“Refinancing is a more complicated process, there is not only a change in the bank but also a change in collateral or often insurance and so on. Therefore, we recommend that the client always inquire primarily in his bank what he/she offers, ”explains Andrea, a spokeswoman of Lite Bank.

If you are considering refinancing your mortgage, count well. The comparison is very simple. “The new loan will only be set for the remaining maturity, and if we change the interest rate, reduce the repayment and do not have a big cost to switch to another bank (cadastre, estimate, etc.), we can save tens of thousands of crowns,” Jenny.

Practical example

money

Since July 2008, the client has been repaying a mortgage loan of USD 1,700,000, with a maturity of 30 years, with an interest rate of 5.59% pa fixed for 10 years. 

In January 2018, when the client approached his bank to ask for a new rate for the next period because he was afraid of CNB interest rate growth and could have a significantly higher rate in the summer, the bank refused to provide it with it too early, and they will reach out to the client within a standard term of six weeks prior to fixation. 

The client, therefore, bet on the security and decided to refinance his loan. At another bank, he obtained a rate of 2.39% pa again for 10 years.

 

Refinancing the loan

Refinancing the loan

   Original loan New loan
Loan Amount USD 1,700,000     1 406 768 USD
Maturity 30 years 20 years
Interest rate     5.59% pa     2.39% pa
Amount of installment 9 749 USD 7 379 USD
Refinancing costs   3 100 USD
Savings in 10 years    284 440 USD

Consolidating multiple loans

Consolidating multiple loans

If we have more liabilities in the domestic loan portfolio with different maturities, the comparison of the final profit is much more difficult. Consolidation always depends on what we want to achieve and what is our priority. “It is not always the most important to save on interest at all costs, sometimes it is far more important to reduce monthly expenses to a minimum and thus free up the domestic budget,” explains Webank.

“By consolidating their loans, clients can reduce their monthly payment and in some cases save directly by getting a new lower rate,” says Rad Bank spokeswoman Jana. For higher loans are often lower interest rates.

“Further savings can also come from paid premiums and account maintenance fees, which may be mandatory for the loan, especially if the client has loans with multiple banks,” confirms Goodbank spokeswoman Petra. As part of the consolidation, the client can even solve other financing needs and get new cash.

As a result, consolidation usually extends maturity and thus reduces the monthly payment. “If we then set up regular savings and reserve creation, we can consider our actions successful,” Webank says. 

For example, in the case of long-term savings, it will be possible to repay the loan early or later and to return the resulting balance of interest paid back to our advantage. However, carefully consider and calculate well before deciding on loan consolidation, or contact your financial advisor. In any case, remember that only those borrowers who are properly repaying their obligations can consolidate their loans.

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How to Clear a Credit Registry?

If there is a delay in the payments you make to the bank, unfavorable results appear on behalf of your credit registry. For this reason, it is useful to make payment transactions on time. Well, how to clear the credit registry, it is necessary to know the information about it.

What you need to pay attention to without applying for a loan

What you need to pay attention to without applying for a loan

One of the things you should be aware of before applying for a loan is to keep your credit record intact and to meet your loan requirement.

When you correctly determine the loan amount you need, you will meet your need, when you determine your monthly payments and maturity correctly, you will not have any problems while paying the loan and you will not experience any delay in payment. Not having a delay in payment increases your credit rating and protects your credit registry.

Difference Between Credit Rating and Credit Rating

Difference Between Credit Rating and Credit Rating

The credit registry refers to a report that covers everything you have experienced with banks. Included in your registration report are your credit limits, all your loans, deposit accounts and credit card limits.

In addition, there is a lot of information such as how many credit limits you use, what intervals you have paid your loan debts, whether you are in a delay or how much debt you have now. It is a more detailed report than your credit rating.

Determining Your Credit Rating

Determining Your Credit Rating

Your credit rating is determined by analyzing your relationship with banks. Your credit card consists of payment of your previously used loans and credit cards, income and expense status, credit applications you have made up to date and your intensity in using credit.

The credit score score range is between 1 and 1900. If your credit rating is below 900, you may not be able to get credit from banks. The score of 1200 and above is the ideal score range for obtaining credit. If your score is 1500 and above, you can get credit very comfortably.

What Should We Do To Avoid Black Listing In The Credit Registry?

What Should We Do To Avoid Black Listing In The Credit Registry?

If you are blacklisted in your credit registry, you have been referred for legal follow-up through the bank and have not paid for your credit installment for 90 days. To prevent this, you must first apply for a loan by paying attention to the payments before borrowing. After this phase is over, you should pay more attention to the relationship with the banks.

You should take advantage of all the configuration processes. In a situation where you cannot pay all of the debt, you should pay your debt, which is the earliest date. For your credit card, you should pay the minimum payment amount in the statement and get rid of the delay process.

If your bank registry is negative, it will be the right thing to wait for the record in your credit to be deleted for 5 years and not to experience any other legal follow-up process with the banks. You can also increase your credit rating by paying your debt on time in the following period.

What should you do to clear your credit registry?

What should you do to clear your credit registry?

First of all, it would be useful to evaluate banks’ alternative alternatives in order to pay your debts. You will have to use your time with 90-day bank lawyers in a beneficial way, as your loan will be difficult to get after your credit registry is broken. You can get rid of the delay event by paying the debt you need to pay first. For example, let’s assume that your first installment is delayed 60 days and your second installment is delayed 30 days.

Even if your payments are delayed 30 days or 60 days delay, your credit rating will be low. Since your debt, which is delayed for 60 days, is approaching 90 days, danger bells begin to ring on your behalf. Unlike all of your debt, you can get rid of the legal obligation by thinking in installments and paying your debt in this way.

When you decide to apply for a loan, it is useful to make an application considering your payment power. In order to correct your credit registry, pay attention to the payment of your debts.

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