Month: May 2019

4 ways to get the best loan for buying a used car

by Bonnie Morgan

The times when the purchase of a used car was inseparably associated with a Sunday trip to the stock exchange, has passed forever. Today, the sachete, stuffed with banknotes, replaced a car loan. We advise what to do and what to look for in order to choose a solution that is fully adapted to your needs.

At the very beginning it is worth paying attention to the fact that when you decide to buy a vehicle, you can use both a cash loan and a car loan. The advantage of the first solution is unprecedented flexibility in spending funds, because financing is granted for any purpose. Thanks to this, nothing prevents you from buying even an old vehicle.

In turn, a car loan is a purposeful commitment, intended for the purchase of a specific vehicle, eg a car, motorcycle or caravan. The subject of financing becomes a loan security for the bank, thus lowering the risk related to the lack of repayment of the liability. It is mainly for this reason that a car loan is usually a cheaper solution than a cash loan.

Run a beauty contest

Run a beauty contest

In an environment of increased competition, banks are constantly adapting their loan offer, trying to adapt to the changing market expectations. Regular analysis of the parameters of individual solutions is time-consuming and can give you a headache. For this reason, choosing the best offer is worth supporting with the car loan comparator. This tool allows you to quickly narrow down the search area and focus on solutions tailored to the current expectations and financial situation of the client.

Compare the most important costs associated with the loan

Compare the most important costs associated with the loan

When we select the offers that are of interest to you, it is worth comparing items that directly affect the cost of the commitment. Let's pay attention to such parameters as interest rate, commission, as well as the Real Yearly Interest Rate (APRC). It is also worth x-raying the costs associated with compulsory car insurance. This applies in particular to the AC policy, from which the assignment to the bank is one of the loan collateral. Thanks to this, the funder is sure to recover funds in the event of theft or damage to the vehicle.

Check the other conditions

Check the other conditions

Do not kid yourself. A loan for a new car will always be cheaper than a loan for a used car. In the end, the vehicle straight from the living room, each time will be a better security than a car for several years. If you plan to take out a loan for a used vehicle, you must take into account the need to make a contribution. By taking part in the purchase of a vehicle, the borrower reduces the risk of debt repayment. Depending on the client's financial condition, the own contribution may vary from a few to several dozen percent of the vehicle's value.

Another important aspect is the maximum period for which the bank will grant us funding. The principle often works here - the older the vehicle, the shorter the loan period. And so, deciding to finance a 5-year vehicle at Sebank, we can count on a maximum loan period of 96 months. In turn, when you take a loan for a 10-year-old vehicle, you have to reckon with the reduction of this period to 36 months. Another approach is presented by Santander Bank, which will finance the purchase of cars up to 12 years of age, but not older than 16 years at the time of paying off the last installment.

Remember to secure the loan

Remember to secure the loan

We have mentioned before that securing the car loan is usually the subject of financing itself. For this purpose, banks use:

  • partial transfer, where the bank becomes a co-owner of the vehicle in 49%. Collateral is often accompanied by a vehicle card deposit, which prevents potential sale or re-registration of the vehicle,
  • registered pledge, where the financed vehicle is registered in the register of pledges kept by the district court. If the loan is stopped, the bank may take over the subject of the pledge and sell it to satisfy claims,
  • assignment from the rights of the AC policy, used as a complement to the transfer of ownership or registered pledge. Thanks to this, compensation resulting from the damage goes directly to the bank.

Depending on the financial and economic situation of the client, the lender may request additional security, eg a third party guarantee or a promissory note. When looking for the best loan offer, it is worth knowing in advance what kind of collateral the bank expects.

Car loan for a used vehicle - yes or no?

Car loan for a used vehicle - yes or no?

The answer to the question is not unambiguous. A lot depends on the vehicle itself, the purchase of which we intend to finance with the help of a loan. In the case of age groups, it may turn out that they are too old and do not constitute an appropriate security for a potential liability. In addition, the relation of the price of the old vehicle to the costs related to the compulsory AC policy, commission and costs of establishing other securities may prove to be unprofitable. In this situation, it is worth thinking about cash loans. In other cases, taking out a car loan may turn out to be the best solution.

How much can I borrow for a payday loan in Belgium?

by Bonnie Morgan

From the earliest stages of the payday loan application, the most common question is the amount of credit. Whether you plan to use this fund for your personal projects or make a reserve of money, know that the payday loan is governed by the code of consumption. Thus, Belgian banks will grant you a loan with a minimum value of 2,500 euros and a maximum amount of 75,000 euros. But when you talk to credit organizations, you can hope for better by focusing on a stable financial situation.

Payday loan, a form of commitment

Payday loan, a form of commitment

Even if it is tempting to borrow an exorbitant sum to fulfill your wildest dreams, remember that the payday loan commits you to repay the principal that is granted to you in monthly installments. What's more, you will have to pay interest. Before you decide, take the time to properly assess your needs and ask for only the amount you are missing. By doing so, you avoid a situation of over-indebtedness.

On average, the annual percentage rate of charge (APR) applied in Belgium represents between 5.7% and 15.5% of the total value of the capital borrowed. To find the best offers, take the time to compare the different formulas offered by the banks, and decide only when you have found the one that best fits your needs and your repayment capabilities.

Criteria to be met for granting a payday loan

Criteria to be met for granting a payday loan

The payday loan is by far the most simplified consumer credit formula. It is granted by the financial institution to an individual who requires financing for his personal projects, without any justification being requested.

But before you grant this loan, the bank will analyze your file and check if your ability to repay allows you. To attract the favor of the bank, do yourself the calculation of your expenses, your monthly expenses and your income to have your debt ratio. Moreover, you will know the amount of your "rest to live", this sum which indicates your standard of living, and which will be obtained after having removed your fixed charges which are the rent and the daily expenses like food, the invoices energy, child rearing and transportation costs.

Another important point, your professional situation will help tip the balance and attract you to the bank that will grant you the payday loan. When filling in your application form, do not hesitate to confirm that you are working well on a permanent contract, that you have many years of seniority within your company. And if your spouse has more advantages than you, do not hesitate to send the application on his behalf.

Payday loan: what about loans in progress?

Payday loan: what about loans in progress?

Always to get your debt ratio, this main element that will be used to calculate the amount you can borrow, you must take into account all the monthly payments that you must already pay for your other current credits: home loan, car loan, travel loan, etc. For your convenience, use an online credit comparator, this free calculator that helps you, without any commitment on your part. Moreover, it is always advisable to make comparisons between the many organizations that offer the payday loan to have a precise idea on the rates applied for the same amount of agent that you will repay over the same period.

In spite of your current loans, show your bank that you can manage your account well and still save money. So, make sure your balance is always in the green at the end of each month. What's more, the credit application is a responsible act, so avoid unexpected steps and urgent requests, because you may doubt your banker who will grant you a credit without asking for proof of use.

Following the payday loan simulation and payday loan search, you have finally chosen the bank that will grant you the requested amount. After the answer in principle, you will have to conclude a contract with the institution, while you will receive the loan in the form of a single payment to your current bank account. And according to the schedule, you will have to insure the repayments, with fixed monthly payment rates over the whole duration of the payday loan. But in any case, borrow smartly by asking only the amount you really need, specifying the project you will finance to better convince your bank.