Bad Credit Auto Financing Mon, 24 Aug 2020 19:13:24 +0000 en-US hourly 1 Personal Car Loans For Bad Credit – Finding the Right One Mon, 24 Aug 2020 00:02:56 +0000 Read More]]> Personal car loans for bad credit have become so common today that they have almost become normal. The fact is, these loans can be a tremendous help for many people to get them out of debt and also help them rebuild their credit. The key is finding the right lender for these loans. See for an observation

It is true that there are lots of lenders who will offer you personal car loans for bad credit. But, only some of them are reliable and will be able to provide you with the best possible loan for your needs. Here are some things you need to look for in order to find the right one for you.

A personal loan for bad credit is a loan that has a high interest rate

A personal loan for bad credit is a loan that has a high interest rate

This is so because, lenders assume that borrowers with poor credit or bad credit will default on these loans. Lenders cannot afford to lose their money by letting a borrower goes without repaying his debt.

There are also loans that offer lower interest rates and shorter repayment terms to those borrowers with bad credit. This is so because lenders are interested in keeping their market share.

If you know that you have poor credit but do not have the knowledge to find these loans, then you need to get the education. You need to learn what the lenders can and cannot offer you in order to choose the right deal.

You can also turn to online personal car loans for bad credit for further information. Online lenders usually charge less money for the service, so this makes it an attractive option.

Find the lowest rates of interest and terms of personal car loans for bad credit

Find the & nbsp;  lowest rates of interest and terms of personal car loans for bad credit

It is advisable to shop around for the lowest rates of interest and terms of personal car loans for bad credit. Make sure you don’t pay more than you need to. It is very important to shop around before you settle on a personal loan for bad credit. Lenders have many different ways to advertise their personal loans, so make sure you read reviews on the web for the company.

Personal loans for bad credit are a perfect solution for people who have fallen into debt. Most of us will find ourselves in debt at some point or another, and with these loans, you are not alone.

Having bad credit is not always a problem

Having bad credit is not always a problem

As there are personal loans for bad credit available today. Finding the right lender can save you a lot of time and effort. A good lender will work with you in order to determine your needs and your level of debt. They will also work with you to set up a payment plan that will enable you to pay off your debt as quickly as possible.

These personal car loans for bad credit can help you overcome your financial problems. With these loans, you no longer have to worry about your credit being ruined and having trouble obtaining credit in the future.

Debt car loan: save interest and money Sun, 01 Mar 2020 16:07:45 +0000 Read More]]> What is debt restructuring?

What is debt restructuring?

Debt restructuring is the pdollarcess of replacing an old loan with a new loan. Debt restructuring can be used in two ways. On the one hand, rescheduling is a way of implementing follow-up financing. This means that if the fixed interest rate on your loan expires and you have to finance a remaining debt, you can pay it off with a new loan.

At the same time, you can also reschedule a loan to simply benefit dollar lower interest rates. Debt restructuring can thus be used as follow-up financing or to optimize your own credit and financial situation.

    Debt car loan or prefer to let it run?

    Debt car loan or prefer to let it run?

    So if you want to save interest and thus money, it is definitely advisable to reschedule your car loan. Especially if you have taken out your current car loan fdollarm a dealer bank, the thought of debt restructuring is worthwhile. Because dealer loans are often comparatively expensive. But older auto loans fdollarm independent banks should also be put to the test.

    Because lending rates have fallen in recent years and that has also made loans themselves cheaper. Banks can bordollarw money fdollarm the Central Bank for free thanks to the current key interest rate, which has stood at 0.00 percent since March 2016. The bank passes these low interest rates on to consumers. Since the bank naturally wants to earn something, it takes at least a small percentage of interest fdollarm the consumer.

    Banks and bordollarwers therefore benefit fdollarm the low interest rates on the market. Therefore, it is currently a good idea to take a close look at loan agreements, to look for cheaper offers and, if necessary, to change pdollarviders. Our installment loan calculator shows you quickly and without obligation how high the monthly installment of your desired loan can be and how much interest you pay over the term.

    When can I reschedule a car loan?

    When can I reschedule a car loan?

    Thanks to the Consumer Credit Directive, which applies to all consumer loans that were taken out after June 11, 2010, you can reschedule your car loan at any time. There is a notice period of one month. Specifically, this means that you can cancel your car loan after receiving the loan amount with one month’s notice if you wish. Of course, the loan amount must then also be paid.

    So you do not have to wait for the end of your fixed interest period for car debt rescheduling. The reasons why you want to reschedule your car loan are uninteresting. Be it that you can completely redeem the car loan due to an inheritance or some other sudden payment or because you just received a great loan offer fdollarm another bank.

    The old credit bank has to agree to the termination and thus the potentially early redemption of the car loan. This is regulated by law. You can see what you can save on car debt rescheduling in our sample calculation. The bordollarwer who took out a loan at an effective annual interest rate of 3.50 percent saves over 500 dollars in interest compared to the one who has the most expensive loan.

    If you took out your loan before June 11, 2010, the situation is somewhat different. Section 489 of the Civil Code regulates the handling of these old contracts. These credit contracts have a three-month notice period. The prerequisite is that you have already paid six monthly installments of the car loan.

    Debt multiple loans at the same time

    Debt multiple loans at the same time

    If you are already dealing with car loan rescheduling, do you want to see whether you would like to reschedule other loans? Debting one or more loans brings more clarity to your finances. Because you can directly combine several existing loans into one.

    How to find out if I’m in the debtors register Sat, 15 Feb 2020 13:45:38 +0000 Read More]]> In principle, simply: financial institutions share information in the registers. As soon as you apply for any loan as a non-entrepreneur, they will check you in the registers. They will also register your data. If the contract is not signed, you are already registered as an applicant.

    In addition to the identification data, this also includes information on whether or not the contract was concluded. Further information about the client’s obligations, ie the number of existing loan contracts, the amount of individual loans and installments.

    The repayment history and information on collateral obligations.

    The repayment history and information on collateral obligations.

    If you are a non-bank loan applicant, your data is registered for six months. In banks year. If you have received the loan, you are in the registers not only for the entire loan repayment period. But the next four years after repayment. That is, after termination of the contract.

    Our tip

    Did you request an extract from the registry and do you consider any of the recorded data to be correct? Or wrong or inaccurate? Do not hesitate to ask for repair or deletion.

    Register of debtors SOLUS

    In addition to banks and credit institutions, this special register also includes leasing companies. But also all mobile operators, energy suppliers and building societies. The register of SOLUS debtors is accessed by everyone who offers loans to non-business citizens. If you are in this registry, you also don’t have to despair.

    Solus keeps track of two non-entrepreneurs who owe something, two registers : the positive one is for those who pay off. Negatives are defaulters. These are currently in the register of about 600 thousand and owe overdue approximately 50 billion crowns. They can delete you from the positive registry on demand. You don’t have to be there if you don’t want to.

    Deletion from the negative register is not easy at all.

    money loan

    Negative Solus can be accessed quite simply : if you owe at least 500 USD and pay no more than a month, believe you are there. If you already have a notch, you are only eligible for deletion from SOLUS if the data is false. Otherwise you have no chance, the data will be in the register of debtors for quite some time

    • for rejected or withdrawn applications three months
    • in the event of default, not only for the period of delay
    • After paying debt for loans 3 years
    • after paying debts with energy suppliers and mobile operators 1 year
    • data that has been in the register for more than 10 years is automatically deleted.

    Did you know…

    … that bank and non-bank credit registers register around 5.80 million open contracts?

    However, only about 280,000 of them have significant repayment problems? There are about 600,000 Czechs and Czechs in the negative Solus register, which is not even 7% of the adult population.

    Is there a way out of the debtor’s records?

    money debt

    Certainly yes. It is simple – it is necessary to repay the debts properly. And in time to pay back. Being in the debtors’ registers is not a shame if banking and non-bank financial institutions keep positive information about you.

    However, if you are a debtor, financial institutions know about you, you will not get a loan and you may be in the registers for years. Removal from the register of debtors after insolvency may not be simple. Therefore, it is better to and in the register of debtors lack.

    Peer-to-Peer Loans – Private Loans from Private Individuals? Tue, 21 Jan 2020 13:18:10 +0000 Read More]]> Currently there are 6 different companies in the Czech Republic that mediate private P2P loans. Most intermediaries will charge a one-time fee of 1 – 2.5% of the loan amount.

    Do you think that money can only be borrowed from a bank or from a non-bank credit company? This may not be the case. In recent years, a new type of loans has emerged. There are several different websites where people are looking for a loan with people who have some savings they want to appreciate.


    What are peer-to-peer (P2P) loans

    peer-to-peer loans

    The development of these private, shared loans (also known as Peer-to-Peer, or P2P) is also strongly supported by the fact that banks on the one hand provide ridiculously low interest rates. Even with a term deposit or some convenient savings account, you will not achieve more than 1-2% appreciation.

    At the same time, when the bank borrows money, so it says about 10-20% interest on the loan. And yet the bank works similarly to these P2P platforms. It is also a mediator between people who want to value their savings and people who need to borrow.

    If the intermediary in the form of a bank is omitted, the whole loan can be many times cheaper. With these private loans from ordinary people, you can have a loan or loan, even as low as 3%. Or you can borrow money here, even if you are not currently eligible for a bank loan approval.


    How do private loans from ordinary people work?

    private loans from ordinary people work?

    The whole system of these private loans consists of 3 elements:

    • People who want to borrow money (they want a loan)
    • People who want to invest their money
    • A website intermediary that mediates the entire transaction and verifies the applicant’s identity and verifies it in the registries, mediates financial transactions between investors and the borrower

    The person interested in the loan registers on the relevant website, submits the required data and submits a request. It is then displayed to those who want to invest money. It is always the case that personal data such as name, address and other information about the applicant are not public – they are only seen by the platform operators. So there’s no need to worry about someone in your area learning that you are borrowing money.

    One or more often (sometimes several dozen) private investors may respond to this loan demand. They will offer all or part of the required amount (some platforms do not even allow one investor to finance the entire loan in order to reduce the risk, so that the potential default is spread among multiple investors).

    Once the required amount is met (and sometimes does not have to be the full amount), the funds are transferred to the borrower, who then repays it in monthly installments.


    What are the risks of these private loans?

    debt loans

    The risks to the investor are probably clear. There will always be cases where a candidate will not repay. That is also why these loans are financed by several different persons in order to minimize the risk for the investor.

    There is no significant risk for the borrower. It should be borne in mind that these private loans are strictly controlled and recovered in the event of default. Often it is only 30 days after the due date and the entire loan will be redeemed – the full amount due is required. There are also relatively high sanctions.

    However, similar “hard” measures against defaulters are common in banks or non-banking companies, so this is nothing special.


    How much does a private loan cost

    How much does a private loan cost

    The extent to which such a private loan comes to you is to some extent individual. Most intermediaries will charge a one-time fee of 1 – 2.5% of the loan amount, which is automatically deducted when the loan is paid out.

    In addition, standard interest is charged. These can often be as low as 3%. However, if you act as a risky client – low income, some negative records in the registry, have you ever had problems repaying a loan, etc., then the interest may be significantly higher.

    You are usually given a rating. The more information you provide (bank account statements, bank or non-bank account statements, etc.), the better your ranking and the lower your interest. Also, your rating can improve by taking even a small loan and repay it properly. The next time you can ask for more money.


    Where to find these private loans?

    Where to find these private loans?

    Currently there are 6 different companies in the Czech Republic that mediate private P2P loans. Their overview and comparison can be found here.

    In addition to Czech companies, it is also possible to find foreign providers of peer-to-peer loans on the Internet. But they need more caution. While Czech companies must be registered with the SaveYes Bank and are subject to its supervision, such foreign rules do not apply. Conditions for foreign P2P loans may be governed by the laws of another state. And they can be quite different from what is true in the Czech Republic.

    Interest on loans could soon drop below zero Sat, 18 Jan 2020 12:53:06 +0000 Read More]]> What was absolutely unthinkable a few years ago could become a reality in the near future: borrowers who are even rewarded by the bank for choosing a building loan. The Best Bank guidelines not only lower building interest rates towards 0 percent – there is even the possibility that loans with negative interest rates will soon be granted.

    Are the negative interest loans now coming?

    But what effects would negative interest-bearing construction and real estate loans have? If one assumes that the house or apartment buyer borrows building money, whereby the loan is “charged” with a minus interest, then the bank gives a discount. In this case, the borrower would not pay any interest, but would not even have to repay the entire loan amount in the end. The borrower would have taken up 220,000 dollars, but the amount to be repaid would amount to, for example, 219,000 dollars. The interest burden on repayments would therefore no longer play any role.

    Is this scenario a dream of the future or are there already such loans? The experts agree: not yet. With a good credit rating, the interest rate for ten-year bonds is less than 0.5 percent. If you follow the research of the Munich evening newspaper, the banks are already preparing for negative-interest real estate loans.

    In the end, you can probably assume that negative real estate interest rates will only play a role in very few individual cases. Finally, there are numerous banks that have introduced a minimum interest rate, which is very positive. However, negative-interest real estate loans can become the lesser evil for a bank: banks that have overnight money with the Best Bank have to pay a higher penalty rate – this has now been increased and is now 0.5 percent instead of 0.4 percent. “The banks want to get rid of their money because the Best Bank is becoming too expensive,” said Marx Hebre from FMM financial advice. “The pressure is getting bigger.”

    Are real estate prices now rising?

    The current interest rate development will of course also appeal to citizens. The lower the interest rate, the smaller the debt burden, of course.

    Of course, the real estate boom has caused real estate loans to swell: In recent years, Germans’ debts have increased by around a quarter – in 2018, according to the Ministry of Finance, households raised 995 billion dollars for housing or housing finance – and more and more More financiers are springing up, as this list of the best licensed lenders in Singapore shows.

    But do you have to fear that real estate prices will rise again? At the current time, it is impossible to predict how prices will develop. The fact is: Of course, cheap financing drives investors into the industry who, due to the low interest rate policy, have hardly any profitable investment opportunities anymore and have to switch to short-term loans or P2P loans. So there is a real risk that house prices will rise. However, there are always more voices warning of a real estate bubble – including the VNB banking association.

    Consumers shouldn’t be fooled

    Consumers shouldn

    Finally, there is still the question of how the consumer should react. Just because the current building rates are low, prospective tenants should not buy right away – the prices are extremely high. One should also not believe that the loans are given away; as a rule, it is only a change in the decimal range. Whoever borrows 250,000 dollars must therefore repay around 250,000 dollars.

    Car loan with a term of 120 months Wed, 15 Jan 2020 13:42:31 +0000 Read More]]>  

    Some consumers are interested in a long-term loan. This is also the case when buying a car, because a new vehicle costs several thousand USD. A long term always guarantees low monthly rates, so that the financial burden is not too high.

    This is why more and more people are asking for a car loan with a term of 120 months. However, it must be noted that a loan will run for the next ten years. Nobody can know what the future holds and such a long term is only awarded if the credit rating is excellent.

    Who gets this loan?

    Who gets this loan?

    Banks always want collateral when lending. It is the same with car financing. Borrowers with excellent credit ratings will benefit from a 120-month auto loan. Employees who get a normal salary will hardly be able to convince the bank to grant the loan. Officials or those with very high incomes often get the loan. This is because banks cannot be sure that an employee will still have a job in ten years. With an official, however, it is different. Here one speaks of a permanent employment relationship.

    What conditions can be expected?

    What conditions can be expected?

    With a car loan with a term of 120 months, it must be expected that the interest rate will be higher than with a normal loan. Banks can also pay collateral with interest. The younger the applicant is, the better the conditions will be. An applicant who will soon retire will not receive the 120-month car loan. As of retirement age, banks are given as risk persons, so that many banks reject the application.

    Car financing with residual debt insurance or life insurance

    Car financing with residual debt insurance or life insurance

    When this loan is taken out, residual debt insurance or capital life insurance is often offered. These should secure the loan. An official should not take out residual debt insurance because it is only intended for people who also lose their jobs. A life insurance policy makes sense for long terms, because if the worst-case scenario leads to the death of the borrower, the family does not have to repay the loan. In that case, life insurance would do it.

    Tips for car financing Tue, 31 Dec 2019 13:22:54 +0000 Read More]]> First set the limit: What is the maximum you want to spend on a car? Then think about how best to choose the rates. In principle, you should find a good balance between the installment amount and the duration of the repayment. The rates should not be too high to have buffers for financial emergencies. But don’t choose the duration too long. Otherwise you will have to pay off a car at some point that you can no longer drive.

    To ensure that you are covered in the event of unemployment or other unforeseen events, you can also take out residual debt insurance. In the event of damage, this will repay your credit installments.

    How do I properly insure the vehicle?

    How do I properly insure the vehicle?

    A car is an important commodity. Many people rely on a car to get to work every day. Make absolutely sure that your car is adequately insured – depending on the age of the vehicle, the mileage, etc. Otherwise you risk serious damage that you actually need a new car but cannot afford one because you still have to pay off the old one.

    Who is insured and can drive the car?

    Who is insured and can drive the car?

    Car insurance is cheapest if only one driver is specified. If the spouse is also insured, this is usually not significant. If the number of people continues to increase or is even stated as unlimited, the costs can rise sharply. The policy is often significantly more expensive, especially if novice drivers are also insured. Here it is worth comparing offers and checking which variant is suitable for you and is the cheapest.

    When is a good time to buy a car?

    car loan

    You should also consider the season when buying a car. In winter, many people switch to the car, then the number of visitors in car dealerships increases. In summer, car dealers are often quieter and some have special offers during this time. It also depends on whether you want to buy a new car or a convertible, for example, which is the cheapest time to visit the dealer.

    What is the advantage of financing through a car dealer?

    You can often expect very good conditions if you finance your car directly from the dealer. It also saves you having to go to the bank separately. You simply apply for the loan through the dealer, who in turn works with a bank. This is how it works for car dealers who cooperate with Lite Lender.

    Car Insurance on Car Holidays Sun, 29 Dec 2019 13:35:43 +0000 Read More]]> The Danish summer has bad weather. That is why we Danes often travel abroad. Partly to experience something, and partly to get some better weather. A popular form of travel for the Danes is the car holidays, which are lower in price than air travel if there are more people traveling together.

    An essential part of the car holiday is, of course, the car

    car loan

    Many people have doubts about how the car is covered when driving across the Danish border. If you are one of them you can read about how you are covered and whether it is necessary to take out additional insurance or road assistance for the car.

    Before you continue reading, please note that this article is exclusively about how you are covered with your own car. If you rent a car, other rules apply.

    You MUST Know This: The Green and Red Cards

    You MUST Know This: The Green and Red Cards

    At Shylock, we believe that too few car owners know about the green and red card. These cards provide access to some fairly favorable schemes that many have the opportunity to use without actually knowing it.

    Here you get an overview of what the red and green card allows:

    • Green card = liability insurance: The green card is proof that you have valid liability insurance on your car. Since it is compulsory for all car owners in Denmark to have liability insurance, it also means that everyone has access to the green card. Read more about the green card further down in the article.

    • Red card = roadside assistance: If you have car insurance on your car, you have access to the red card. The red card allows you for roadside assistance abroad. Read more about this scheme further down in the article.

    The green card is your liability insurance abroad

    In Denmark, it is compulsory to have liability insurance on your car. The liability insurance covers the damage you may cause to your car or other persons or objects. For example, if you drive into a person on a bicycle, your liability insurance covers the damage both the bicycle and the person have suffered.

    Since you have liability insurance in Denmark, you should not be afraid of any consequences of damages as soon as you cross Denmark’s borders. The green card is your proof that you have liability insurance, and you are thus also covered by damage to other persons or objects abroad.

    Here you are covered with the green card:

    • EU countries, as well as Norway, Switzerland, Iceland, Andorra, and Serbia, where you do not need to bring the card but just your registration number.

    • Albania, Bosnia / Herzegovina, Belarus, Iran, Israel, Macedonia, Morocco, Moldova, Montenegro, Russia, Tunisia, Turkey, and Ukraine. Here you need to bring the card.

    The red card is your roadside aid abroad

    The red card is your roadside aid abroad

    Although many people are not aware of this, you will actually have access to roadside assistance abroad if you have motor insurance on your car. Road assistance is done through the company, and it is actually a pretty solid help that you have access to.

    Through the Red Card and Car International, you can get the following help if you travel abroad:

    • Road assistance at the scene of injury – puncture, for example

    • Towing your car to a workshop if the car cannot be repaired at the scene of damage

    • Local transport and / or hotel stay costs if the car is not completed on the same day.

    • Car

    • Return of persons

    • Home transport of the car

    • Provision of spare parts if they are not available at the site of the damage or the workshop

    What about hull insurance?

    You have now read how you are covered in relation to liability insurance and roadside assistance, and this eventually leaves the question of how your hull insurance covers abroad.

    The hull insurance covers the damage done to your own car. This could be, for example, theft or bullying where the responsibility cannot be placed on some specific people.

    As a starting point, your hull insurance also covers when you drive the foreign roads. However, there may be variations depending on which insurance company you have. Therefore, we recommend that you contact them and get personalized advice on how your hull insurance covers abroad.

    Loans changed: loans changed online and loan with bills Sat, 23 Nov 2019 13:35:03 +0000 Read More]]> Introduction


    This article is a sort of complete guide to the loan changed, you can see the mirror with the main topics, each of which, if it deserves further clarification, has been deepened (see the menu on the right all the various topics covered. I hope you enjoy, we put the soul, also report any questions and clarifications and we will answer within our limits, the purpose is to make the most thorough guide to the loan with bills present on the internet, giving you only the information you need so that you can choose with maximum awareness: happy reading :).

    In recent times of economic crisis and with a macroeconomic scenario in serious recession and employment crisis, credit institutions and financial companies have made efforts to offer credit customers (individuals and / or companies) new commercial and large offers. added value such as bills of exchange or loans with bills of exchange. Although the imaginary collective may think that this contractual situation is “outdated” and atavistic, today, the operational and commercial practice has absolutely reassessed the credit product assisted with the exchange rate. We see in this guide to better understand what it is and what the contractual and commercial discipline that revolves around the loans assisted by the release of bills of exchange. But, first we start from the analysis of the guarantee and the payment instrument represented by the bill of exchange, whose regulatory source is the Royal Decree of 14 December 1933 n. 1669.

    The promissory note: peculiarities and requirements

    The promissory note: peculiarities and requirements

    The bills of exchange are securities of the order that attribute to the legitimate owner the unconditional right to be reimbursed a certain sum at a maturity indicated on the security; it is no coincidence that, in commercial practice, different types of bills of exchange exist according to the maturities such as: bills of sight, at a certain time, at a certain time, on a fixed day.

    As sanctioned and contained in the Royal Decree 14 December 1933 n. 1669, in article 1, the bill of exchange must contain the following elements :

    • the denomination of promissory note (or money order or promissory note) inserted in the context of the title and expressed in the language in which it is drawn up,
    • the unconditional order to pay a certain amount (for the route) or the unconditional promise to pay (for the money order),
    • the name, place and date of birth, or the tax code, of the person designated to pay (person called “drawee” for the routes and “issuer” for the promissory notes),
    • indication of the deadline and place of payment (intended as the Municipality),
    • the name of the person to whom or to the order of which the payment is to be made (subject called “beneficiary”),
    • an indication of the place and date where the promissory note is issued,
    • the signature of the person who issues the promissory note (a person called “tractor” in the case of trafficking and “issuer” in the case of promissory notes). In promissory notes (promissory notes) the tax code of the issuer or the place and date of birth must also be indicated

    The promissory note: commercial typologies

    The promissory note: commercial typologies

    The security or bills of exchange guaranteeing the loan can be issued in the form of draft bills or bills of exchange (the famous promissory note or promissory note).
    The bill of exchange is nothing more than a payment order that the signatory (the tractor) provides to a debtor (drawee) for complete personal benefit or a third party (creditor / beneficiary).
    The debtor is in the situation of accepting or not: in the first case, the subject becomes the principal obliged both towards those who will have to receive the payment of the debt and towards those who will be in possession of the documentary title by means of a turn.
    The drawing subject remains however responsible, towards the creditor, both for acceptance and for payment; the only way to exempt yourself is with the provision of the liability for acceptance clause. Each of the creditors will be protected against all those who, after the drawing, will come into possession of the title.

    The promissory note or money order is issued directly by the debtor and contains his promise to honor the obligation contracted with a certain beneficiary. In this case, the issuer always remains the principal.

    Title of exchange: non-fulfillment, creditor’s actions

    Title of exchange: non-fulfillment, creditor

    If at the expiration of the exchange rate, the debtor does not ad hoc fulfill the contract, the creditor can proceed with the direct action, which can be asserted against the insolvent or any endorsers. This procedure is prescribed after three years from the expiry of the promissory note and entails a recovery of the credit, reported on the security by means of a payment order. In addition, the creditor in possession of an unsuccessful bill of exchange can raise the protest action and request the non-compliant the sum not collected, in addition to any expenses and interest. In addition, the beneficiary of the amount of the bill of exchange can act directly and automatically against the assets of the defaulting subject by means of an attachment, in order to satisfy them, by means of the liquidation.

    Peculiarities of a loan with bills

    Peculiarities of a loan with bills

    Recently on the credit and banking market, with the impetuous economic crisis and the “tightening” of credit, the changed loans have returned to fashion and by popular demand, which allow you to sign a loan contract, the amount of which (capital + interest) is reimbursed by paying the bills, which acts as a credit and as a payment instrument.

    The peculiarity of this form of loan is linked to the fact that the subscriber (both private / public employee and independent or retired person) will have to face the amortization plan by not paying a monthly installment with direct debit on the current account or postal order but, through the fulfillment of the bills of exchange effect at the bank branch indicated on the security itself.

    Requirements needed

    Requirements needed

    As regards the requirements required by financial companies or credit institutions, to take out a loan backed by a foreign exchange guarantee, they can be attributed to the following:

    • be employees (private and / or public sector) with a paycheck or regular guarantees (in particular for requests for large amounts),
    • self-employed or VAT number holders, who must present the Cud or Model 730,
    • pensioners, who must show the monthly pension slip as documentation.
    • creditworthiness of the applicant ( no foreign exchange protest ),
    • any presence of a guarantee such as a guarantor, a life insurance policy or severance pay (for employees),
    • patrimonial solidity and ownership of real estate.

    The amounts to be disbursed as a loan changed vary from a minimum of 1,500 USD up to the maximum amount of 50,000 USD, while as regards the duration of the installments, it varies from 1 year to a maximum of 10 years at the discretion of the credit institution or financial institution that provides it.

    Loans changed for bad payers and protested subjects

    Loans changed for bad payers and protested subjects

    The accessibility to the promoted loans is also extended to the bad payers registered on the CRIF lists and to the protested subjects. (Here you will find all the specific information on how to access it)
    In some cases, however, the bad payer must still meet the following requirements :
    be the owner of a real estate property and sign or present an additional guarantee such as a paycheck and severance pay in the case of employees.

    The maximum amount payable will be proportionate not only to the net monthly salary but also to the amount accrued for liquidation purposes.

    In the event that other loans are pending, the financial capital must not exceed 1/2 of the salary received.

    Additional guarantees are often and willingly required for subjects reported as bad payers or protested, especially for self-employed workers reported as bad payers to the CRIF: in this case it is necessary to present a life insurance policy or a guarantee that guarantees the obligation assumed from any contractual breach.

    Even if the exchange rate allows the creditor to initiate an attachment action against the assets of the insolvent debtor, however, in commercial practice, banks and financial companies to protect themselves from any risks, require the stipulation of a surety policy. This is a signature credit capable of representing an additional guarantee given against an obligation assumed towards a third party. As reported in article 1936 of the Civil Code: “A guarantor is the one who, personally obliging himself towards the creditor, guarantees the fulfillment of an obligation of others. The surety is effective even if the debtor has no knowledge of it. “.

    Advantages of a loan changed

    Advantages of a loan changed

    Compared to any other type of loan such as personal loans, assignments of the fifth and payment delegations, the exchanged loans are a form of fast financing for the applicant ; in particular, in cases where you need a sum in a few hours (24-48 hours) to face urgent expenses or to carry out unexpected projects. This is why we talk about fast, safe and online promissory notes: in less than 24 hours from the submission of the request, the credit company (bank or financial), assessed the documentation sent by the applicant and the reliability of the guarantees presented, approves or rejects the file communicating the outcome of the credit to the customer.

    In addition, as we have already had the opportunity to highlight, the subjects who can apply for a loan changed are, in commercial practice, all catchment areas :

    • applicants with ordinary outstanding credit requirements capable of obtaining both “canonical” loans and those with a guarantee of exchange effect; in general, the latter are the fastest ones even if, more expensive,
    • applicants with “problems” of creditworthiness and with a previous financial history to say the least rosy; these are people who do not have an employment relationship or are not holders of a paycheck or have had particular previous problems in returning other loans. Even housewives divorced without a job can apply for and obtain a loan: in this case, the maintenance allowance of the ex-spouse is required as a guarantee of the loan. The endorsement could be an additional source and instrument of guarantee to face any negative repercussions that would derive from the default of the credit title.

    For the beneficiary or creditor of the amount drawn up on the credit title, if the debtor does not punctually fulfill the obligation, the foreign exchange loan represents a “privileged” form since it can be based on the debtor’s assets in a faster, faster way and effective.

    What are the disadvantages instead

    If, on the one hand, we have highlighted the advantages of the loans changed for the applicant and for the beneficiary, on the other hand, the disadvantages of this peculiar form of loan assisted by the guarantee of the guarantee of exchange credit must be highlighted. A first “problem” is represented by the promissory note itself, which is a form of protection and guarantee for the bank or financial company, which can immediately raise the protest action and start the immediate debt recovery. Failure to comply with the payment of the promissory note has very negative costly consequences : registration in the Protest Register could aggravate the debt situation, which is already very precarious. No further loans and liquidity may be requested until the insolvent debtor has proceeded to regularize the ad hoc situation.

    Loans with bills of exchange are a form of financing which represent the “last valid opportunity” of access to the credit market. Often, a person who decides to use this form of credit has already tried the other credit routes with failure. The risk of taking out the foreign exchange loan is not free from rather expensive costs and burdens, which must be well assessed. Here is an example of a rate of interest rates required on a loan with bills:

    Amount required Months of refund 50% Rate with interests 50% Rate without interest
    $ 5,000 60 30 from $ 105.00 Taeg 8.33% 30 from $ 105.00 taeg 10.33%
    $ 10,000 60 30 from 210 $ Taeg 7.49% 30 from $ 210.00 taeg 9.50%
    $ 20,000 120 60 from $ 235 Taeg 6.49% 60 from $ 403.00 taeg 7.97%
    $ 30,000 120 60 from $ 602.00 Taeg 6.93% 60 from $ 349.00 taeg 6.42%

    As can be seen, the APR is rather exorbitant compared to the “average” of the interest rates applied on personal loans; to this must be added additional ancillary costs such as those related to the purchase of debt securities, the reloading of stamp duties, and the preliminary fees. That is why, before taking out such a form of loan, it is good that you evaluate all the cost items that weigh on the loan amount.

    A “negative” note is also represented by the ancillary guarantees that can be further requested and subscribed: the presence of a guarantor, the signing of a life insurance coverage, a real guarantee represented by the pledge given that, pursuant to article 2784, this relates to movable property, credits or other rights.

    Loans exchanged between serious private individuals

    Loans exchanged between serious private individuals

    In order to reduce brokerage or credit brokerage costs, an interesting variant of the changed loan was born on the social lending market, the one among serious private entities. It is a fast and reliable form of loan since it is possible to ask savers and lenders of funds and personal savings accumulated over time. Even a close family member or acquaintance can grant this form of loan through the issue of bills. A valid advice and form of protection for the lender of monetary funds is that of signing between the parties a private agreement which, according to the dictates of article 2702 of the Civil Code, it ” fully proves until the complaint of the fake, of the origin of the declarations by those who signed it, if the person against whom the writing is produced recognizes the subscription, or if this is legally considered as recognized “.