Consumer credit guide: all about consumer credit

Consumer credit defines all loans excluding real estate whose amount exceeds $ 200 and / or reimbursed in more than 90 days. Our consumer credit guide answers all questions related to consumer credit products:

• Auto credit (new or used)
• Personal loan
• Revolving credit (credit card or small credit)
• The works loan
• Redemption of credits

Consumer credit guide: why different credit for each project?

Not all consumer loans are subject to the same conditions. There are offers of credit without proof, others implying on the contrary to provide a little more evidence to consolidate your project, etc.

There are also certain generalities according to a type of credit. New car credit and work credit involve, for example, most of the time providing the lender with proof of credit (invoice, order form from the dealer or craftsman). The consumer can, in return, hope to obtain a better rate than that of a credit without proof (personal loan or need for money). In this case, we are talking about a credit allocated to a very specific project.

Our comparator, ultimate guide to the best credit

The huge differences, however, do not concern the documents to be supplied, but rather the level of rates. The main credit players (online credit organizations, banks, insurers, dealers) stand out by offering very different APR rates on each project, amount or duration. Promotional rates also regularly shake up the hierarchy.

This is the reason why we have set up a credit comparator. Our tool guarantees two things:

• A classification of daily rates among the largest online credit organizations, specific to their project (type of loan, amount and duration)
• Obtaining an immediate and non-binding response in principle from each of the three best organizations

Our file on online credit provides a good understanding of the challenges of a comparator and compares the solutions of organizations vis-à-vis those of banks or other market players (dealers, car insurers, craftsmen or building professionals, for example).

Consumer Credit Guide: the APR rate explained

The APR rate is associated with all consumer loans. The law effectively requires all financial players to display this indicator on their consumer credit offers. The APR integrates the interest on the credit, but also all the ancillary costs, such as administration fees.

In the case of a loan without interest or fees, as is sometimes the case in certain stores (special promotions), the APR rate is then 0%. A zero rate means that the store has taken over the cost of the credit.

How can you take advantage of low interest rates when you have already financed your principal residence, a rental property or a second home? This is the main goal of loan renegotiation. Unlike the loan buyback that involves by another institution, the renegotiation is offered only by the creditor organization . It is therefore a simplified procedure that only involves signing an amendment to the initial loan offer. However, we must be vigilant and negotiate the new credit features. More commentary at http://sdsalvatierra.com/help-for-payday-loan-debt-sign-up-and-get-payday-loan-help/

Under what conditions should renegotiation be preferred to the purchase of real estate loans?

The financial terms of a loan redemption are always more attractive than in a real estate renegotiation. The repurchase of credit implies a new loan, it amounts to his real estate project at current interest rates. Conversely, renegotiation implies that the institution that initially financed the investment will adjust borrowing conditions to be close to current conditions. The interest of the creditor institution is primarily to preserve its client portfolio.

Interest rates related to renegotiation are higher than for loan buybacks, but in reality this is less expensive . Indeed, there are no additional costs inherent in setting up a new credit (administrative fees, any brokerage fees, mortgage fees). In addition, the renegotiation of the mortgage loan avoids the prepayment penalties that are applied in case of repurchase of loan by the competition. In this sense, renegotiation is preferred for investors who have already amortized their mortgage.

Renegotiation is also an interesting option for homes that want to avoid any complexities. The repurchase of mortgage involves a change of bank. Indeed, the body that repurchases credit requires debtors to domiciliate their income. This can be a long and tedious process since it must be notified to all organizations acting on the bank accounts.

Finally, given the cost of a loan buyout by the competition, it is better to opt for the renegotiation of the loan by his own bank if we consider selling the property in the medium term.

The keys to better renegotiate his banker?

To obtain the best conditions for renegotiating your home loan, you have to negotiate with your banker. You should know that some commercial counterparties will be in your favor. For example, taking out an insurance contract, even for just one year, will undoubtedly lead to better renegotiation conditions.

Do not hesitate to negotiate with several commercial counterparts. The more the client is ready to develop the banking relationship, the greater the trading margin will be. In addition, as part of the sponsorship of a loved one, the bank can make an additional effort to propose more favorable renegotiation conditions.

If the borrower submits a competing bank proposal, then the institution will, most of the time, make the maximum to keep the credit outstanding in order not to see his client leave. This is a good time to negotiate at the highest rates of current loan interest rates.

Finally, it should be remembered that it is possible to maximize the gain of renegotiation by offering delegated loan insurance. Indeed, since the law in 2013, any borrower can replace the insurance of the loan during the amortization period. The only condition for an agreement on the part of the lending organization is the maintenance of the original guarantees or its expansion.

 

End-of-year crowds are threatened by new mortgage standards. Start your application for a mortgage on time under the current rules. Waiting can also be interesting.

Benefit from the current mortgage standards

The mortgage standards will be slightly stricter next year. In 2018 you cannot borrow more than the house is worth. Now the maximum mortgage is 101% of the home value. This means that you have to contribute more own money for the mortgage. For a home of € 250,000 around € 2,500.

In addition, the interest deduction for a residual debt financing will be canceled next year. Relocation with a residual debt will therefore become more expensive.

These may be reasons to buy that one house in 2017 or to relocate it, because that too is being tested against the currently applicable mortgage standards.

Binding mortgage offer required

Since last year, the binding mortgage offer has determined whether you fall under the old or new mortgage standards. Previously, a provisional quotation was sufficient to establish the old mortgage standards.

To get used to this new way of working, last year the deadline for the binding offer was extended by one month. This year there is no transition period for the new mortgage standards. Update: there will nevertheless be a transition period for the mortgage standards.

Be ahead of the busy season

This means that you must have a binding mortgage offer from the bank before 31 December in order to be able to use the old mortgage standards. Don’t think now: ‘oh, that will take 10 weeks’.

For a binding mortgage offer, all mortgage documents must be complete and approved. In addition, lenders receive many applications at the end of the year.

A mortgage within a week sounds nice, but this is rarely achieved. For a somewhat complex case (freelancer, flexible contract) or a rejected or missing mortgage document, you have to add a few more weeks.

Be ready for the end of the year and start your mortgage application before mid-November.

Reasons to postpone your mortgage plans

There are also reasons to postpone your mortgage plans until next year:

• The mortgage interest rate remains at the current low level for the time being.
• Double earners can borrow more next year.
• Next year you can borrow more under the National Mortgage Guarantee.

Celebrate Christmas without breaking the bank, is it possible? Good Lender, financial reorganization advisers and trustees in bankruptcy, offer you some tips to limit the consequences of the holiday season on your family budget. The multiplication of gifts, the invitations that accumulate left and right, the many trips made, the purchase of the new sports jacket of Monsieur and the beautiful dress of Madame inevitably put additional pressure on the family budget.

Purchasing

According to the most recent survey conducted by the Good Finance on behalf of the Quebec Retail Council on the purchasing behavior of Quebecers for the 2012 holiday season, the amount that Quebecers plan to spend as gifts for this period will be $ 676. on average per household. Thus, Quebeckers will give gifts to 7.1 people in 2012, an increase compared to 2011 (6.7 people). For comparison, the latest Honest Canadian Consumer Outlook Index reveals that Canadians plan to spend an average of $ 1,182 on their total holiday spending, including $ 629 in gifts.

Since caring for someone has nothing to do with the monetary value of the gift offered to them, giving a gift certificate is often a good way to make a difference. control over the budget. What are the other possible solutions?

Savings of time

It is now acceptable for each guest to participate in the preparations for a festive evening. Have you considered the possibility of organizing the New Year’s meal according to a ” community ” model? So, we do not hesitate to solicit the talents of everyone! Some planning is needed. It is necessary to establish the menu and to distribute the tasks. Savings of time and money insured!

The use of group purchases , derived from the term ” team buying “, is also a relevant solution. Thrift,  is some of the major players in the sector. For example, you could pay $ 29 for a $ 69 body care, protecting your budget limit while giving your loved one a value-added gift.

It is also possible to make substantial savings on the Internet through exclusive promotions , opting for free delivery , using price comparators and sharing greetings through virtual cards . Consumers seem to have understood it! According to a recent survey by Honest on behalf of Easy., 55% of Canadians will turn to e-commerce during this time of festivities. Canadian consumers most likely to shop online live in Alberta (70%) and British Columbia (67%).

The importance of the budget

The team of Good Lender wishes to remind you of the importance of respecting the budget established during the holiday season in order to avoid the excessive indebtedness that sometimes results from this period of festivities. Christmas or not, it is better to limit your future debt and take action to quickly tackle the repayment of debts that currently tarnish your balance sheet .

The proposal of a retailer who suggests buying the television of your dreams through a 72-month financing is far from tempting, especially if your budget only allows you to buy a standard TV 27 inches!

In closing, it is necessary to remember that the credit card is beneficial to the consumer only if the entire balance of it is paid monthly, thus avoiding the quasi-usurious rates charged by the issuing institutions.

Our best wishes for prosperity!

We take this opportunity to send you our best wishes of the holiday season. Take full advantage of this moment of respite to gather in family under the sign of sharing and simplicity. May this Christmas live up to your expectations. May the year 2013 be a worthy reflection of your wildest dreams, and be the renewal of a healthy and improved personal financial situation.

In recent years, local forms of exchanges between individuals have multiplied. A new type of economic exchange is spreading on the fringes of traditional circuits. Local groceries, short circuits, self-service vegetable gardens, new cooperatives … are illustrations.

These person-to-person links have taken on a new dimension with the use of digital technologies. Internet platforms put you in touch with an individual who offers the product or service you are looking for. All this, outside the usual commercial channels, thanks to the many links woven by the Web.

Perhaps we are living here a new industrial revolution …

With these peer to peer exchanges we enter a collaborative economy.

These platforms use the power of digital technologies to generate private responses to other individuals. They aim at the exchange in the interest of the partners themselves, without one of them gaining more.

They adapt to the current world and amplify mutual aid between neighbors. In doing so, they develop and adapt the will to work together cooperatives of the past. Think of Farmers-Craftsmen, Repair Cafes, Second Hand shops, Community vegetable gardens … Everyone finds his account because new opportunities meet the quality or price offer.

The perspective of these approaches is that everyone wins. Whoever proposes the good or the service finds new outlets. The one who looks for something sees his possibilities of choice multiplied and the platform itself gains in development. The basis of these exchanges is the search for the balance of earnings, the equitable distribution of added value!

It is truly a new economy that emerges as a model of peer-to-peer collaboration, with or without the exchange of money. By making room for people, she questions the excessive aspects of a liberal economy in the exclusive pursuit of profit.

The collaborative economy is based on three principles:

1. Use takes precedence over the property .

Why own each car if it’s to leave it in the parking lot for ¾ of the time? It is more economical, more ecological and more relaxing (no problem of taxes, maintenance …) to share the same vehicle. Shared cars, Co-Carriage illustrate this use.

These practices show the diminishing influence of the property. They reduce consumption. They create a more social economy, where private ownership is no longer the only goal.

2. Sharing is more effective than keeping it to yourself.

There is more in two heads than in one, says the saying. This is constantly being verified in both intellectual and practical domains.

By sharing what you own, you reduce consumption and you participate in a resource management more economical and more respectful of the environment. Thus, new consumer behaviors are set up.

3. It is possible to base even economic relations on trust .

It is because you agree to trust the product and the service offered, that you agree. You postulate that there are non-predatory relationships between humans that are not intended to maximize particular profit. And by going down this path, you activate and strengthen this community of trust. This creates relationships of cooperation that benefit everyone, but especially the weakest.

The collaborative economy opens up new approaches that augur the emergence of a world that is more respectful of people and the planet.

The collaborative economy has several interesting aspects.

1. She avoids a series of intermediaries . It is precisely one of his strengths to put the offerer and the claimant in a mutual relationship.
2. It is easy to access , fast and efficient. It is often enough just a few clicks to propose or get what you want. Saving time is valuable.
3. It plays on a new proximity, initiated by Internet.

Collaborative economy today concerns all sectors.

1. Finances

These platforms allow loans between individuals, peer to peer . They make connections between people wanting to invest their money and others who want to borrow money. This process does not go through the banks. It avoids a series of costs or losses related to their operation. This is called the collaborative finance sector.

In Belgium, Captain Ahab is the first platform to offer indirect contact between private investors and individual borrowers. Stability is one of the advantages of this new system. The combined effects of a known return on investment and the current 100% PROTECT Guarantee hedge prevent volatility.

2. But also culture, equipment, food, transportation, housing, clothing or assistance to people ….

In conclusion

We have further developed here the macro aspect of the collaborative economy, that is to say the putting in contact of individuals via the Internet. This aspect is today in full development and sees new initiatives constantly emerging.

But, as we have already said, there is also a micro aspect, also in full development, which concerns all local initiatives, which forge new links between local suppliers and local applicants.

These two points of view show how much the collaborative economy modifies traditional economic relations, thus opening up prospects for changing the economic system!

The difference between the cheapest and most expensive price differences in car policies for young people is huge. To insure an eleven-year-old city car, an expensive company charges almost four times as much as a cheap insurer. On average, a young car owner pays around 1000 euros per year for third-party coverage. In 18 months, young people pay just as much in premium as their car is worth. This is according to research by the independent comparator Good Finance.

Difference between cheapest and most expensive insurer

An 18-year-old motorist pays more than twice as much for his third-party insurance than someone who is over 24 years old. Insurers charge much higher rates for young people, because they have a higher accident risk than older drivers. Research by SWOV has shown that this risk is four times greater. However, the difference in premium between the cheapest and most expensive insurer is more striking.

For example, third-party coverage in Veenendaal for a Peugeot 205 from 1999 at Gaeon Bank costs 168 euros per month, while at Bruns ten Brink it is also possible for 40 euros.

Price difference for WA car insurance per month per municipality

The price differences were calculated on the basis of the following data:

• 18 years;
• 0 claim-free years;
• Peugeot 205 (’99);
• 8000 km / year.

	Cheapest car insurance	Most expensive car insurance	Price difference per month	Magnification factor
Amsterdam	Real: € 53	Gaeon Bank: € 181	€ 128	3.4
Veenendaal	Bruns ten Brink: € 40	Gaeon Bank: € 168	€ 128	4.2
Franeker	Bruns ten Brink: € 38	Gaeon Bank: € 147	€ 109	3.9

Car insurance costs

In addition, Good Finance investigated the relationship between the current market value of the car and the costs of third-party insurance (ie by far the most chosen cover). 24,900 premium calculations show that the average annual premium for 18 and 19-year-old car owners amounts to 981 euros. This amount is equal to 66 percent of the current value. “Assuming that young people have their cars for more than a year and a half, this means that they often have to spend more for their car insurance than for the purchase costs,” said Erik Hordijk, director of Good Finance.

Car insurance in the name of parents?

“It often happens that young people try to put the car insurance in the name of one of the parents. As a result, the premium is considerably lower, but this is strictly prohibited, “warns Hordijk. “It may seem difficult to check for an insurer who is actually the regular driver. But when in doubt, the insurance company can conduct a fraud investigation. And then the child and parents are further away from home. Moreover, a young person does not build up damage-free years in this way. ”

Smaller difference, premiums increased enormously

Update 07-03-2017

Good Finance did this test again in 2017, with the following data:

• 18 years;
• 0 claim-free years;
• Peugeot 206 (’00);
• 7,500-10,000 km / year.

	Cheapest car insurance	Most expensive car insurance	Price difference per month	Magnification factor
Amsterdam	Alli € 114.32	Overal € 311.32	€ 197	2.7
Veenendaal	Genz € 99.91	Overal € 284.04	€ 184.13	2.8
Franeker	Genz € 83.72	Overal € 244.34	€ 160.62	2.9

We can see here that the premiums have increased enormously compared to 2010, in most cases they have more than doubled. The difference in euros between the cheapest and most expensive insurance has also increased, while the magnification factor has actually decreased.

There is a sudden leak, its heating stops working, or you just can’t stand your old surfaces anymore. Home insurance will cover the cost of some repairs, but it does not always cover all of them. Having access to credit will allow you to make any repairs and improve to the standard you really want.

Sick pet

They are our best friends and contribute a lot to our lives, but pets can have a lot of expenses. In addition to the cost of pet insurance, animal medical bills can also add up. Although basic insurance will cover some of the costs, it may not cover everything. If your insurance only gives you a few thousand, then this could cover emergency surgery, but subsequent treatments, long-term medications and possible additional surgeries add up. Nobody wants to have to say goodbye to your pet ahead of time, so access to credit will ensure you can take care of your pet for longer.

Weddings and anniversaries

Weddings and anniversary parties are increasingly extravagant, with trips abroad, stag and hen parties, and the pressure to buy new clothes is becoming normal. These expenses can arise out of nowhere and the use of savings that were not intended for anything else can take away a special occasion from enjoyment. Using a small loan to cover expenses can mean that you will enjoy the event and pay it in several months or even years.

Car failures

Another time when many of us assume that our basic insurance will cover any problem and then we panic when the numbers do not add up. Having access to a loan means that you can repair or replace your car when you need it and if your job depends on a car, this is even more important!

Life is full of ups and downs, but having access to reasonable and reputable credit will make it much easier to manage, so look at your Financial Standing and future loan options now to reduce stress later.