My WordPress Blog Sun, 23 Feb 2020 05:49:06 +0000 en-US hourly 1 How do fast loans work? Requirements, APR and more Sun, 23 Feb 2020 05:49:06 +0000

Quick loans are a new kind of financing that has been installed strongly in the Spanish market. Its great accessibility is joined by the fact that they will demand less administrative procedures for its concession. To the point that if everything goes well you will have the amount demanded in your checking account in a few hours. However, in many cases fast loans have an interest rate that is considered excessively high. Here we tell you everything you need to know about a quick loan.


What are fast loans, where to hire them, advantages and disadvantages

credit loans

Fast loans are characterized by offering small amounts of money, between 50 and 1,000 and that you can allocate to cover any purpose: from paying off a debt to third parties to giving yourself a small personal whim. You can hire it through the numerous financial platforms that market their services in Spain. Through an operation that is carried out in online format.dollars

Strengths of fast loans:

  • It is not necessary that you have to go to any office, but the management can be done at any time of the day on the Internet.
  • It is a business niche that is not covered by banks as it is a very small amount of financing.
  • The speed to arrange the money in the current account since the requests are resolved in a very short space of time.
  • You can find promotions with 0% interest if it is the first time you ask for a loan with that platform. For example, a fast lending entity such as Moneyman offers the first loan of up to $ 300 without interest to be repaid between 5 and 30 days.

Weaknesses of fast loans:

  • If what you want is to get amounts over 1,000 , you will have to resort to a personal loan.dollars
  • The interest rate they apply to this product is much higher, so interest can skyrocket. Some fast loans offer TAEs of up to 1,000%.
  • In some cases, the platforms are not as transparent as they should be regarding the interests, commissions and penalties that apply. Therefore it is advisable to review the fine print of the contracts.


Requirements to apply for a quick loan Can I apply if I am in ASNEF?

quick loan

Access to fast loans can be the last chance to access a loan. If the bank rejects the loan because you do not meet their requirements or are included in a list of delinquents, fast loans can be a solution to find a small liquidity tip for your personal accounts. Of course, you will have to meet a series of basic requirements: to be of legal age and not to have a pending debt on that particular platform.


APR in fast loans

quick loans

In all cases, the interest rate you will have to pay on a fast loan is higher than for conventional loans or personal loans. Instead, fast loans are usually exempt from commissions and links.

In any case, the equivalent annual rate, better known as APR, moves in strong oscillations depending on the financial platform responsible for marketing them. In a fork that goes from 20% to four figures. In the current offer of fast loans, a series of proposals with high interests and sometimes exceed 3,000% are concentrated. How is it possible to reach these levels? There are 2 reasons mainly:

  1. In Spain you can lend money without being regulated by the Agree Bank. As a consequence, the platforms are free to make the loan more expensive as the solvency of the claimant is lower. This practice is perfectly legal since they base their strategy on the payment compliance before the penalties for not respecting the return deadlines.
  2. The APR represents an Annual Equivalent Rate, that is, the interest rate applicable for 12 months. As fast loans are contracted only for 1 or 2 months, the APR is multiplied to fit what this same 12-month loan would provide proportionally. If it were hired for 365 days instead of only 30 days, the APR would be reduced.
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Do microcredits generate employment? Fri, 21 Feb 2020 06:20:04 +0000

Fine Bank is the social bank fully owned by Agree Bank dedicated to the granting of loans to entrepreneurs. According to the report on the impact of micro-credits prepared by the Institute for Social Innovation of the ESADE School of Business, since the creation of Fine Bank in 2007, 155,000 jobs have been created. This report has been made among Fine Bank loan beneficiaries in recent years.


What results are extracted from this report?

money loan

During 2015, 21,321 jobs were created through the microcredits granted by Fine Bank. Thanks to the possibility of having this financing, the creation of employment is facilitated both in processes of constitution of new businesses or expanding the existing ones.

The most relevant data extracted from the study are the following:

  • 43% of entrepreneurs plan to hire a worker in the next 12 months.
  • 69% of microcredit beneficiaries say their business is going well or very well, and most expect growth in the coming months.
  • The entrepreneur’s profile responds to a freelancer, who had not previously run a business and who, with the creation of the business, contributed 65% to the family budget.

In addition, 93% of those entrepreneurs who obtained financing with Fine Bank continue to work in their own business and 29% of these have hired a worker.

What loans does Fine Bank offer for entrepreneurs?

bank loans

Fine Bank offers differentiated loans depending on the purpose: for entrepreneurs and businesses, personal and family, eco loans and for social businesses. We will focus on seeing the characteristics of loans for entrepreneurs and businesses:

Within the section of microcredits for entrepreneurs and businesses, we find that Fine Bank offers two different ones: microcredit for entrepreneurs and social microcredit.


Entrepreneurs and business microcredit

The microcredit for entrepreneurs and businesses is aimed at those who want to undertake or freelancers whose annual income is less than $ 60,000. They can also apply for microenterprises with less than 10 employees with a turnover equal to or greater than $ 2,000,000 per year.


  • Maximum amount: $ 25,000
  • Up to 100% of the project
  • Fixed interest rate during the entire life of the operation
  • Repayment term: 6 years (without lack or with up to 6 months of lack)
  • No real guarantee

The main requirement will be to present the Business Plan with the financing needs.


Social microcredit

The social microcredit is aimed at entrepreneurs who already have the advice of one of the Fine Bank collaborating entities.


  • Maximum amount: $ 25,000
  • Up to 95% of the project
  • Fixed interest rate during the entire life of the operation
  • Repayment term: 6 years (without lack or with up to 6 months of lack)
  • No real guarantee

One of the requirements will be the presentation of a Business Plan and a viability report of the business project issued by a Fine Bank collaborating entity.


Which loan suits you best?

money loans

If you are thinking of reforming your home, giving your business a change of look, or, you have to face any unexpected expenses this month, in Best Bank we help you find (and find) the loan that best suits your needs. We do it through a completely free study and without any commitment.

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What to do if you cannot pay the loan fee? Possible alternatives Thu, 30 Jan 2020 06:17:38 +0000

Applying for a loan is not an easy task, since there are many factors that we must take into account, especially when assessing our ability to pay the fees. We may have been cautious, but due to certain circumstances or unforeseen circumstances, we are unable to cope with the debt. From the Fine Bank blog, which once again offers us advice when requesting a loan, they recommend “talk to the bank as soon as possible and explain the situation”, to see what alternatives it offers us. What are these possibilities?


4 alternatives if I can’t pay my loan fee

Renegotiate the loan

Renegotiate the loan

As we have said, the first thing is to talk to our bank and see if there is the possibility of refinancing our loan. In this way, we are extending the return period of the same, so that we pay less monthly fee. The flip side of the coin is that the total refund could be increased by commissions; In addition to generating more interest, since the return period is longer.


Request a grace period

credit loan

The period of lack of a loan is a clause in the contract that entitles one of the parties to defaulting it totally or partially for a certain period of time. For example, in the case of mortgage loans there is a lack of repayment ; which means that during that time the holder only pays interest, without amortizing capital, which translates into a lower monthly fee. There is also a total deficiency, a period in which no repayment fee or interest is paid.

The disadvantage of the lack period is that usually the expiration date is delayed, and as we have said this supposes the generation of more interests. It may also be that instead of being postponed, the cost of return is increased.


Request a microcredit

credit loans

Although it is not recommended, there is the option of requesting a microcredit to pay off a debt, especially when it comes to specific and emergency cases, and for small amounts. It has the advantage of being fast and simple, but you have to value it well because there is a risk of over-indebtedness.


Gather Debts

Gather Debts

Debt reunification consists of grouping all our loans into one. This translates into the payment of a monthly amount whose amount is less than the sum of the monthly amounts that we would pay separately, in exchange for increasing the repayment term, which once again means paying more interest.

As main disadvantages of the reunification of debts we find the commissions for early cancellation of the debts, the rates that can be applied to us in the case that a mediating company manages us; and the cost of formalizing a new mortgage opening. Therefore, the cost of this alternative is high.

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Credit bureau free instant credit from Switzerland. Mon, 27 Jan 2020 06:29:29 +0000

A Credit bureau-free instant loan from Switzerland can be the optimal and above all inexpensive solution in many difficult cases. The borrower can choose between private donors from Switzerland or offers from Agree banks and find an offer that matches the terms and contractual basis of his personal criteria.

A cheap and Credit bureau-free instant loan from Switzerland

A cheap and Credit bureau-free instant loan from Switzerland

If urgent bills have to be paid off, new purchases made or repairs, relocations or renovations carried out, quick money is required and there is no waiting time. If a bad credit rating is added and an application to the house bank is excluded, good advice is often expensive. But not the loan that you choose with a Swiss lender and that you can compare interest, fees and contractual conditions in advance.

The comparison creates a basis for recognizing the cheapest loan and choosing from a wide range of offers. So that a Credit bureau-free instant loan from Switzerland is convincing even during the term and its repayment can be changed flexibly, you should rely on an offer with advantageous framework conditions.

If a deferral or extension of the term is offered without additional costs, an adjustment of the repayment is unproblematic and does not require any bureaucratic effort or the acceptance of an increase in the loan amount. The comparison shows which lender meets their own criteria and comes up with a loan that is convincing and can quickly produce the desired liquidity.

Protection for loans without Credit bureau

Protection for loans without Credit bureau

A Credit bureau-free instant loan from Switzerland cannot be paid out based on the credit rating. The borrower has various options for hedging and can choose between overwriting real assets or insurance with capital-forming properties, but also a guarantee or the appointment of a co-applicant.

It is only important that the level of security is relevant to the sum of the loan request and convinces the lender. You fill out the application form directly online and enter the existing collateral here. The loan will be approved in less than 24 hours and promptly transferred.

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 Loans and credit cards can increase Credit Bureau scoring. Wed, 15 Jan 2020 06:02:57 +0000

Loans and credit cards have a positive effect on Credit Bureau scoring

Loans and credit cards have a positive effect on Credit Bureau scoring

Anyone wishing to apply for a loan or credit card needs a certain Credit Bureau value so that banks can issue the loan or hand over the credit card. There are also loans without Credit Bureau, but these can only be obtained up to a certain amount and on poorer terms. Credit cards are now also available without a Credit Bureau query. However, these do not have a disposition frame and must be charged before use.

Credit Bureau scoring table (for banks)

Credit Bureau scoring table (for banks)

Rating level Credit Bureau Score Probability of failure
A 662-1000 1.38%
B 564-661 2.46%
C. 517-563 3.56%
D 467-516 4.41%
E 410-466 5.57%
F 341-409 7.16%
G 247-340 10.72%
H 177-246 15.02%
I. 137-176 20.95%
K 111-136 22.26%
L 77-110 27.01%
M 0 – 76 42.40%

The higher the Credit Bureau Score value (as can be seen in the table above), the sooner loans are granted and often on much more favorable terms. So if you want to apply for a loan, you usually want the Credit Bureau Score to be as good as possible so that the loan is not only granted but is also available on better terms.

Many people think that they have worsened their Credit Bureau Score value due to old, already paid off loans or credit cards. But the opposite is the case. If loans were repaid in full and without incident, this increases the Credit Bureau value, because it has created trust because you have shown dutiful behavior. It also proves that you are able to pay off a loan.

Having a credit card (with a credit card) is also proof of your credit rating. A credit card with a credit line will only be issued if the creditworthiness is sufficient. So even having a credit card, if you are not noticed negatively by late payments, has a positive effect on Credit Bureau scoring.

However, you should not have too many credit cards, as this creates a negative impression and a lack of continuity. Frequent account changes, credit card or loan cancellations also have a negative impact on the Credit Bureau Score value to be calculated.

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Loans in small installments. Mon, 30 Dec 2019 06:19:59 +0000

If borrowers repay a loan in small installments, the repayment of the loan takes a correspondingly long time. At the same time, low installment payments do not place an excessive burden on the monthly budget. It is also important for a borrower that the agreement of a long term and small installments improves the creditworthiness.

The installment amount and credit rating

The installment amount and credit rating

Before granting a loan, a lender checks whether the customer will properly meet his obligations. For this purpose, he makes a Credit bureau request, which informs him about other existing liabilities of the borrower and about any previous irregularities. Another important component of the creditworthiness check is the household account. For this purpose, the lender compares the credit customer’s stated income with the amount of the loan installments to be paid.

If he takes out a loan with small installments, he has a larger amount of money available monthly after deducting the loan repayment than for a loan with larger loan installments. Long terms and correspondingly low installments thus increase the creditworthiness of a credit customer. Even after a loan with a short term and correspondingly high installments has been rejected, a new application with a longer repayment period and thus lower monthly loan installments can often be successfully applied for.

How do small installments affect loan interest rates?

How do small installments affect loan interest rates?

With a few exceptions, longer loan terms lead to higher interest rates. This is understandable because the bank has to guarantee a borrower the interest rate for the entire term. The longer the term of a loan agreement, the more likely there is a risk that the bank will incur additional costs to refinance the loan. Since a loan with small installments can be linked to an above-average interest rate, a careful loan comparison before concluding the loan contract is particularly important.

For this purpose, the borrower obtains several offers and compares them in terms of the annual percentage rate and the contractual terms. Ideally, the lender allows special repayments, so that the lender can partially or completely redeem the loan early with small installments if he achieves extraordinary income.

Loan application on the Internet or in the bank?

Loan application on the Internet or in the bank?

Loans with low credit rates can be applied for both online and in a bank. Applying for a loan over the Internet usually leads to a low interest rate, as the bank passes on its cost savings. However, customers who rely on low monthly rates often have very low incomes or poor credit ratings. While lenders active on the Internet make decisions solely on the basis of the documents, a personal loan discussion also affects the personal impression on the loan decision, so that in some cases only personal borrowing is possible.

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