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How does a loan broker help?

Exploiting the potential of cooperation with an intermediary on the credit market is often a very profitable solution. How does the loan broker really help and is the borrower able to actually save on such cooperation? In the article you will learn the most important information regarding negotiations with a credit counselor (broker).

 

Improved qualifications of intermediariess

Improved qualifications of intermediariess

In recent years, the regulations on monitoring the qualifications of credit intermediaries have changed. The point is that most professionals from the credit industry did not have formal confirmation of qualifications. Borrowers did not quite know if they were reporting to a trustworthy person. Now the market of loan brokers looks different, mainly due to the Mortgage Act, which actually forces brokers to pass exams and qualification tests in order to be able to effectively serve clients. There is also third party liability insurance for credit intermediaries. As you can see, the credit intermediaries sector aims to achieve high standards in terms of building a qualification base and human capital.

 

What can you get thanks to such cooperation?

What can you get thanks to such cooperation?

The loan broker specializes primarily in comparing the cheapest mortgages possible, which allows for generating very large savings. The best, mainly independent mortgage brokers have a considerable negotiating advantage in various commercial banks. Thanks to this, the borrower, even with relatively poor creditworthiness, is able to obtain good real estate financing. The credit intermediary also takes over a large part of the formalities for the client. This clearly saves time. Not every borrower knows how to complete a loan application or other issues related to confirming the quality of real estate. It is good if you go to an independent mortgage broker and not depend only on one or a few retail bank offers. Do not sign contracts immediately, but examine the information obtained from the adviser yourself, e.g. through multimedia mortgage comparison websites. Under these conditions, you will not make critical mistakes.

Cash loan for $97,700 for 60 months – decreasing installments

When deciding to take out a cash loan for the amount of $ 97,700, it is worth checking several offers before choosing the one that is right for you. It is a loan for a fairly high amount and it is worth finding the offer that will be the cheapest possible solution for us. We will check the offers of such a loan assuming that it will be repaid over a period of sixty months in decreasing installments.

 

Cash loan at Gold Earners Bank

Cash loan at Gold Earners Bank

The first offer we will check is the cash loan offer at Gold Earners Bank. By borrowing our $ 97,700 for a period of sixty months, the cost we incur will be $ 36,162. When choosing decreasing installments, the first one will be 2 592 dollars, and the last 1 870 dollars. The monthly installments will decrease by $ 12. The minimum amount the bank offers is $ 12,001, while the maximum amount is $ 120,000. As for the loan period, it starts from 3 months and ends with a maximum of 108 months. The nominal interest rate on cash at Gold Earners Bank is usually constant and amounts to about 7.2% per annum. As for the commission for the bank, it constitutes from 9 to even 15% of the amount borrowed. The preparation fee is charged by the bank, but it is not high, because it equals only $ 100. Insurance is compulsory only if the borrower has a monthly income below $ 3,000 gross. In this case, the loan insurance is around 15%. In the event that the borrower redirects his remuneration to the account ROR, he will not pay anything for its keeping. The account that is set up by the bank and is to be used to service the loan repayment is also free. A big plus of this offer is the lack of fees associated with early repayment. We will pay 85 $ for the possible restructuring of the loan. Changing the installment repayment day will cost us $ 20, and each prompt from the bank within $ 15-19.

 

Take your ID card with you when you go to the bank for a loan

Take your ID card with you when you go to the bank for a loan

Other documents, such as a passport, are not considered by the bank. The borrower must also show the source of his income. Fortunately, the bank accepts many such sources. Gold Earners Bank accepts all employment contracts, pensions, as well as pre-retirement benefits. Income may also come from business activities and civil law contracts. Such large acceptance of various sources of income allows many clients to benefit from the offer. It is an ideal proposition in every respect.

Car loans increasingly popular

If you are planning to buy a new car, there will not be a better time. The reference interest rate of the Yellowline Bank fell to 1.5%. WIBOR (1.65%) also falls down. This is the interest rate that causes banks to borrow money from each other. This is a consequence of the so-called Anti-usury Act, which says that no bank or loan company can take from the client interest higher than four times the NBP lombard rate, which is currently 2.5 percent. Is that good For anyone who dreams of a new car, apparently, there could be no more favorable solution.

 

Car loans are now more popular than ever before

Car loans are now more popular than ever before

Paying attention to ratios, together with the margin imposed by banks, they constitute the nominal interest rate on consumer loans. As a result, in this case it is not recommended to accumulate any savings, because all deposits reach very low interest rates. However, this is a very good time to take out loans, see which ones are the best on 17banków.com, thanks to this ranking you will learn about current offers.

 

Interest on car loans

Interest on car loans

Car loans are often the only solution for those planning to buy a new car. However, it is worth learning a few rules that will help you choose the best one. In practice, the nominal interest rate on a car loan is several times higher than the NBP reference rate. However, as it turns out, cooperation with specific car dealers can be very helpful here. Supported mainly by so-called busses or motobanks, salons, offer promotions related to nominal interest of 4-6%, while in bank branches reach 6-10%. There is, however, not a bad thing, which would not turn out well, because the nominal interest rate of each of the consumer loans taken out cannot be higher than 10% per annum. The time to take out loans to use us to buy a new car seems to be perfect. However, do not act lightly. Before you decide to sign a contract with the bank, you should familiarize yourself with all the possibilities available on the market. Thanks to the Internet access we can use the offer comparison engines and thanks to them choose the one that suits you best.

Learn the tricks when concluding car loans

To find a car loan that won’t cost you assets – compare all your financial options before getting into business. Banks and credit unions offer pre-approved loans that allow us to determine in advance how much we can borrow.

 

Tricks when concluding car loans

Tricks when concluding car loans

For a person who has already granted a loan, the change may be changed to car financing.

 

Mortgage extension

Homeowners may be able to extend their mortgage or use a “revolving loan”. In this way, we can borrow a car at a mortgage rate that is probably lower than other loan rates.

But if we add the cost of the car to the mortgage and we do not pay it back for many years, it will cost a lot more in general than when we pay for the car loan in one or two years.

So this way, it’s smart to increase your mortgage repayments to pay off your car debt as soon as possible. We don’t want to pay for the old car after all, trying to pay off the new one!

 

Loans for financial companies

Loans for financial companies

Car dealers often offer car loans that are actually provided by a finance company. The dealer often registers us for a car loan as part of the purchase process.

 

Finding the best interest rate

Car loan rates can vary significantly, so we have to look around. Accepting a car loan “secured” by a car usually means a lower interest rate. This means that if we do not pay you back, the lender can sell you a car to get the money back.

If we have an existing relationship with the lender, it is often easier to access cheaper loans. For example, a credit union may offer car loans with better access conditions for its current members.

 

Checking fees and charges

Checking fees and charges

There are always fees and commissions associated with getting a car loan. The documents that the lender provides should clearly disclose this. We should expect to pay for the loan. Some lenders may encourage optional insurance or guarantees. All these amounts will be added to the total amount borrowed.

It always helps – ask the lender to transfer all fees and charges throughout the repayment period. He should disclose one total amount in zlotys how much it will cost. We can also compare the price with the price of the car. It may happen that the fees are more than the interest that we would pay for a different type of loan. There may be fees for terminating the loan (penalties for early repayment) and non-default fees (missing payments).

 

Loan repayment insurance

Some lenders offer loan repayment insurance. Essentially, this means that if we die, the lender will receive the full amount due from the insurer. And if we lose our income through our own fault (e.g. accident, illness, dismissal), our repayments will be covered for the period specified in the policy.

The insurance premium can be expensive and not always easy to see in the loan agreement. If the bonus is added to the loan, we will pay interest on the premium, as well as the car loan itself. It can also be an unnecessary cost. For example, a person who does not have a paid job will not need protection against dismissal. Everyone will find information helpful in making a decision about possible insurance.

What to know before taking a cash loan?

Borrowing money is always associated with great responsibility, numerous consequences and sometimes consequences. Borrowing money from a bank is much more complicated, subject to numerous laws and regulations, and penalties for repaying a loan too long. It is better to find out in advance about everything about cash loans before you put yourself against the wall.

 

Credit formalities

credit application

Cash loans, unlike cash loans, can only be granted by banks and financial institutions. Due to their rather low amounts, they are granted for shorter periods than mortgage loans. Usually they are from a few hundred dollars to a dozen or even tens of thousands. Larger amounts of several hundred thousand are usually offered only to companies that meet the higher requirements that the bank will set for them. Taking into account all borrowers, the highest achievable value of cash loan is $ 150 thousand, and the longest repayment period up to 10 years.

Because they are granted for a much smaller amount, they do not require as much security as a mortgage. Despite this, the bank must check the applicant’s creditworthiness, the amount of his remuneration, and in the case of larger amounts can ask for a co-borrower, credit insurance, a guarantor or a pledge in the form of a car or real estate.

You can apply for a loan by phone, online or at a bank branch. Often, the bank’s regular customers get the biggest discounts, but it’s worth checking the conditions at various institutions.

The necessary documents will be an ID card and income certificate. The employment contract is rated best, but the commission contract and proof of regular payments do not compromise your credit chances. However, the larger the loan amount, the longer it will take to process your application. It is often even a few days. With less capital, it is limited to one day or even several hours or minutes.

 

Consumer Credit Act

Consumer Credit

Cash loans are limited and defined by numerous acts. The most important is the Consumer Credit Act. It provides us the opportunity to withdraw from the contract within 14 days without any consequences. At the same time, it guarantees us the right to repay the entire loan ahead of time without incurring additional costs. This is consumer protection because it is much less profitable for a bank to pay back a loan faster. The difference in insurance and commission fees due to the change in the repayment date should be returned to the customer.

 

Interest

The interest rate is constant throughout the deposit period

The most important thing to check when taking a loan is its interest rate, because it is this percentage that shows how expensive the cost of the loan will be. Its maximum value is four times the Lombard rate (16%). Often, commissions, margins and insurance costs are added to this amount, so the interest rate itself does not determine the final installments.

We can choose fixed or variable interest rate. Fixed interest is much more popular because it increases the chance of getting a loan. Creditworthiness is calculated on the basis of the first installment, which in the case of a fixed interest rate is lower than in a variable rate. Installments in this case are always the same, although the interest-capital ratio changes in each subsequent installment.

Floating interest consists of a constant margin and a variable market situation. If the interest rate on the interbank market changes, the interest rate will increase or decrease.

Car or cash loan

Usually, when deciding to buy a car with the help of a bank, we often reach for a car loan because banks usually offer such a loan. However, there are other loans that can also help us implement our plans to buy a new car. An alternative to car loans is, for example, cash loans. This type of loan can be found in the offer of every bank because it is a basic banking product that does not require borrowers to set up repayment guarantees.

A characteristic feature of a cash loan is that we don’t have to show the bank what we want to use the money for and we can spend it exactly on what we want. In the case of car loans, this is exactly the case, at the stage of applying for a car loan, we must determine what we want to buy for this money and the bank will not give us more than the potential car will cost. For this reason, if we want to first finance the investment in our own vehicle and only then look for it, we should choose a cash loan.

Very often when deciding to buy a car, we ask ourselves which loan to use for car or cash. As it turns out, both can be used to buy a new or old car.

 

A cheap car loan is definitely more profitable

car loan

As it involves lower costs for the customer than it does with a cash loan. This situation is due to the fact that banks, by granting us a car loan, have a number of different collateral in the event of non-repayment, i.e. in the event that we get through to pay off our debt.

As for this type of collateral, they are usually a registered pledge, appropriation of collateral and assignment from the AC policy. As it turns out, a cash loan has a much higher interest rate, because it does not have as much collateral as a car loan, which is why banks must protect themselves in the event of our lack of repayment and it must be simply more expensive.

As it turns out, we can not always take a car loan to buy a used vehicle over the age of 10 or 15 years, while with cash loans there is no problem to buy an older long-term car. When buying a used car with a car loan, we must expect a significantly higher interest rate on the loan than when crediting a new car.

 

Another option is leasing

Another option is leasing

In other words, a type of lease, i.e. nothing else than renting a vehicle. Leasing involves the right, but not the obligation, to buy a car after the end of the leasing contract. In this case, two solutions are possible: financial leasing very similar to a car loan and

operational leasing is treated as a service. The difference between leasing and car loan is that in the case of leasing you will need your own contribution.

Saving on cash loans

We do not realize that you can save on paying back a cash loan. Are you wondering how? Not everyone knows but the interest rate on cash loans can be negotiated.

 

When choosing a cash loan

When choosing a cash loan

Do not rush first. Usually if it is without formalities and quickly it must be expensive. Young people with no credit history and recently working people have nothing to cheat on. Certainly, people with regular incomes and a good credit history will get a better loan offer.

It’s best to review the loan offers at several banks yourself. In addition to interest, pay attention to commission and insurance. The commission is known that the smaller the better and for the most part it cannot be negotiated. Insurance is really a hidden commission. Most of the premium goes to the bank. Of course, it is good to look at insurance better and see what it protects us from and then consider whether we need it.

 

Interest rate negotiations

Interest rate negotiations

Given the low amount of credit for negotiations, there is nothing to count on. The situation changes with loans amounting to higher amounts, starting from $ 10,000. After receiving the decision on the loan, we can inform the adviser that we received a lower interest rate from another bank. If the bank is interested in another client, it is highly probable that he will accept such a proposal. A credit customer is a valuable acquisition for a bank and if we have a good credit standing it will be able to agree to our terms. As a last resort, if we fail, we will go to another bank or agree to the conditions offered to us by the bank.

The same applies to loans that we have been paying back in the bank for a long time. Paying installments on time, we are a reliable customer for the bank. And such a client is a less risky client, which allows him to be better served. If the bank would not agree to renegotiate the terms, you just have to look for another bank. The competition is very high especially nowadays and certainly another bank will offer us more favorable conditions.

 

Summary

This topic is very extensive and can not be exhausted in a few sentences. Taking a cash loan, the transaction is bundled. Thanks to money we can make dreams come true, but we are also fulfilling the bank’s dream. By giving us a cash loan with high commissions and interest, we become his client.