Consumer credit, consumer loan comparator

The consumer credit is a loan granted to individuals by banks or financial subsidiaries, with the aim of subsidizing acquisitions involving significant costs, such as completely restoring a car or the interior of a home.

The borrowing rate of the consumer credit is generally lower and the repayment period is shorter compared to other loans.

The different types of financing

In the financial market, there are about ten or so of which:

  • the loan “affected” (with proof of purchase),
  • the “unaffected” personal loan (without proof of purchase) ,
  • the permanent credit (renewable) often linked to the use of the bank card and whose loaned money is renewed as and when repayments,
  • online credit through computer sites,
  • the leasing or leasing which consists in the payment of the commitments,
  • the student loan insured by the State service (with a certificate of schooling in support), whose role is to grant the student a sum of money only to finance his higher education, such as business schools ,
  • the free loan which is an ex gratia loan because its interest rate is null and void and equal to the amount requested. It allows to pay a purchase submitted immediately on the place of sale. The qualified personnel who propose it must assure the customer to pay the article at the most attractive price,
  • the Mortgage Life Loan dissimilar from the sale in life and the current mortgage. It allows you to collect money to finance a private or individual concept. At the death of the debtor the bank office can recover his money by selling an apartment or a house put on bail at the time of the loan,
  • Personal Microcredit, which is a loan designed for people who have been withdrawn from the usual banking system because of their much too low income or the proven weakness of their professional status.

The main purpose of the consumption credit is to lend a certain amount of money, hence the name of lender or creditor to an individual who requests it and who becomes the debtor. The amount accepted by the bank is between two hundred and seventy-five thousand Euros, with a monthly maturity of more than three months.

What are the essential clauses to respect

First of all, the financial advisor must give you the best information on the vagaries of a loan before signing it. He must highlight the particularities of the loan and must give you a manuscript containing separate information with the aim that you previously performed a comparative study of all the various banking proposals.

Then he must take into consideration:

  • the financial and family situation of the debtor, what he receives per month and what he spends,
  • the professional situation of the applicant, knowing that it is preferable to have an indefinite contract rather than a fixed-term contract. It is also recognized that civil servants, for example, are slightly more likely to have the desired consumption credit,
  • its precise rate of indebtedness if the individual has taken out other loans. The rate set to date is between thirty and thirty-three percent that must not be exceeded to be sure that the credit file is accepted. Indeed, it is vital for the debtor that the new loan does not lead to a more disastrous position and this is the reason why the banking service is required to respect this regulatory rate. The financial advisor can also perform calculations for the loan rate depending on the city where the applicant lives. In fact, and as everyone knows, the cost of food or clothing can be more expensive sometimes, from one place to another, and therefore the banker can quite take note in his calculations while respecting the legislation In progress.

The demand for consumable credit can be done either by going directly to our quick simulator with immediate response . Then, it is necessary to constitute the file by supplying the official documents like the French identity card, the payslips, the notice of taxation …

Once the prior agreement is submitted to the borrower by the bank agent, the latter has seven days of reflection where he can cancel without having additional costs.

Beyond these seven days and after notification of his request, he becomes a debtor and must honor his monthly repayments until the end of his consumption credit . Once your decision is made and after signing your contract, a duplicate of it is given to you by the banking service.

As part of the consumer credit, it is quite possible to make a prepayment of the remaining amount to be paid without having to pay expenses related to the anticipation.

Insurance is provided for the consumer credit as for all other loans in general. You are not obliged to subscribe to it at all, but the applicant understands immediately that it is essential for the smooth running of the credit in question.

The insurance serves as a kind of absolute protection throughout the credit period, both for the debtor and for his entire family. For that reason, it would be very detrimental not to include it in its consumer credit application.

8 financial mistakes you should avoid in your twenties

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We would all like to know how we should prepare ourselves for the challenges and stages of life before they happen. However, we learn from our mistakes with each experience we experience, hence the knowledge and maturity. But who would not like to get wisdom without having to constantly stumble over the stones of the road?

And although it is impossible to skip all the obstacles that will be faced, you can always learn from the mistakes and teachings of others. We just have to be aware of what is happening around us. Learning from the mistakes of oneself so as not to commit them again is very good, but learning from the mistakes of others so as not to commit them is doubly better.

The twenties are the best stages in life. You finished college and you start working, you have your own income and not many responsibilities. There are no children, no wife or husband, or significant health problems. It is said that when you are in your twenties you can experiment different ways to find what you are passionate about without taking the work or personal world so seriously.

However, if you are not careful with the responsibilities and freedoms that you have, you can make mistakes that will have a negative impact on your future, that is, in your 30’s and 40’s. Therefore, Finerio tells you the mistakes you should avoid in the financial area of ​​your life and that you are surely already committing. Do not say no, accept it and start learning from the teachings we give you.

1. Not having a budget

Image result for budgeting graphicThe most important point and to which almost nobody pays attention: the budget. It does not matter how much you win, but how you distribute and use your money. A person with high incomes can have bad finances and be very indebted. A person with average income who has good finances is because he has financial planning.

To create a personal budget it is necessary that you write down all your income (what you earn, what they give you, what you are) and all your expenses (the outputs, the chips, your dog’s food) of the month. Based on that you will realize how much your total spending is and how much monthly budget you can allocate to each category (home, transportation, food, health, entertainment, etc.). Once you are aware of that, you will know the amount you can really start saving month after month.

The key to having a good budget is not to exceed the limit you assign to each of the categories, and for that you need discipline, to record your expenses daily and not to spend more.

2. Do not save

“Do not save what you have left after spending. Spend what you have left after saving. ” Most young people hardly save or have little control over their savings. Just as money comes, it goes. Do not get carried away by the emotion of the moment and ask yourself if the expenses you are about to make are really necessary: ​​the clothes, the beers, the snacks, the trip, the car, the cell phone.

Why save? Most people save for short-term personal goals: buy something or go on a trip. However, when you start saving, it is essential to start with two things: a) A savings fund for emergencies and b) A savings fund for retirement.

The savings fund for emergencies is crucial in case you lose your source of income or have an accident. This fund should cover your expenses from 3 to 6 months. That is, if your monthly expenses are 6,000 Pesos, your savings fund should go from 18,000 to 36,000 Pesos.

It isn’t absurd to think about a retirement savings fund. Surely you will stay with the square eye. The earlier you start, the better.

Allocate a certain percentage of your income to savings. There is no strict rule to save, if you intend to save up to 50% of your income.

3. Spending a lot of money socializing

Related imageAlmost all young people are victims of spending money on banal things: restaurants, parties, outings with friends, with the bride or groom, gifts, concerts, trips, etc. It’s not a bad thing to spend at nice times, but if this happens very often it means that you’re probably not saving, or you could save more than you think; besides that you have based your happiness and your free time on activities that revolve around money. If you try other types of activities you will see that happiness can be achieved without spending too much.

 

4. Not having a credit history

Many people have the misconception that having a credit card or asking for a loan is a very bad thing that only gets you into debt. That is not like that. When people process a credit card or ask for a personal loan they begin to form a credit history that reflects their behavior as a debtor. If you always pay on time and make full payments, you have nothing to worry about. The credit history is in the Credit Bureau, which is the institution that collects this financial information. And no, being in Buró de Crédito is not bad either! The most normal thing in the world.

Why is it important to have a credit history? Form a credit history from an early age will help you in the future when you want to get a credit for a house, for a car or for your business. Financial institutions when they see your history will realize that you already have seniority and trust more in lending, likewise, if your rating is good, they will grant you better conditions and interest rates.

As you can see, the credit history opens the doors to several credits.

5. Do not pay your credit card on time

There are banks that are flexible giving credit cards to college students or recent graduates, which is a fantastic opportunity for you to start creating your credit history. However, if you do not pay your card on time or you only make minimum payments you will start to drag debts with the bank that in the end will turn into nightmares that will take away your sleep. The best thing is that you always be a totalero (make full payments) and do it on time.

Remember that a credit card is not “extra money” that you can avail month after month, it is money that, after all, you end up paying. Credit cards are recommended because they can be used for emergencies or because they offer different benefits.

6. Debt

Image result for debt graphicThe worst mistake you can have in your twenties is to start getting into debt and not make an effort to get out of debt. Debt is a bad habit that will end up consuming and wearing you out. Hence the importance of a budget, because you will avoid spending money that you do not have.

If you already have debts, we recommend ending them.

 

7. Do not educate yourself financially

If we live in a system that moves through money, it would be prudent to learn how it works in order to use it to our advantage. In our country, financial education is almost nil; However, that does not mean that we have to remain blank.

Surely when you have gone to the bank, when you have heard of investments, loans and personal finances you have been left with a “what” face, and you even feel that they see you as a fool. It is a fact that you need to know certain financial terms so that you understand that they are talking to you when you want to take out your credit card or want to hire a financial service. You will see that it is nothing special if you start to investigate little by little.

Dedicate about 2 hours a week to educate yourself financially. Subscribe to our blog and learn about personal finance, we will send you the best content of Finerio. Zero spam!

8. Do not invest

The last mistake you can make, but not the least, is not to invest your money. To invest? That’s right, it sounds complex, but it is not. Now there are several investment platforms that are online and with which you can start from 100 pesos.

Investing is essential so that your money does not lose value over time, that is, with inflation. Now it is not useful to save and leave your money under the mattress or in a bank account that does not generate returns, because that money in a few years will be worth less than it is worth today.

And if you do not convince, we tell you the best reason to start investing: generate income without having to work.

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Now you know the mistakes you should start avoiding, and that you were probably already committing. But, remember that, if you learn from these teachings and apply them, in a few years you will no longer have to trip over those stones. These teachings you will learn one way or another, but better to be for the good. What do you think? Would you add something else?