Apply for a credit card

The credit card is rapidly gaining popularity. The growing use of the internet, and the associated online purchases, is causing the credit card to gain popularity rapidly. In addition, it is of course true that the credit card can also be used in offline stores. We learn more and more about the advantages of the credit card. The advantages of the convenience of the deferred payments, the possibility for online purchases. And not to forget, the advantages of the extra insurance with online purchases. There are different forms of credit cards. Each with its own specific characteristics. Because we are also increasingly buying outside the borders, the credit card often offers the solution. Because of the fast and secure payment convenience of the credit card, more people discover the advantage of the credit card.

Apply for a credit card

Apply for a credit card

Applying for a credit card can be done quickly and easily online. Applying online takes you a few minutes of your time to fill in your details. You will receive a response from the credit card company within minutes, they will let you know online. Because the card must also be physically issued, you will often only receive your credit card by post a few days later. If you have received it, you can also start using it immediately.

Credit card acceptance conditions

Credit card acceptance conditions

The exact acceptance conditions for the credit card vary by credit card provider. It is true that the acceptance guidelines for credit cards are generally much more flexible than the guidelines for a regular revolving credit or a personal loan . The age criteria have been adjusted to begin with. You can take out a credit card from the age of 18. A “normal” loan is only possible from the age of 21. The income tests seem to be more flexible. If you have been rejected by various authorities, a credit card could therefore still be a solution.

Compare credit card

Compare credit card

Comparing credit cards is a chore, there are many different companies. And often these companies also have different cards, so it is not transparent what the costs per card are. We will make an overview here as soon as possible, this will give you a good overview of the costs. In addition, we will also state the acceptance criteria as fully as possible.

Credit card and BKR

Credit card and BKR

A credit card is seen as a loan , so it is also registered with the BKR. And an assessment will be done at the BKR. Because credit cards are taken out for smaller amounts, the BKR assessments are also more flexible. You will therefore receive a card with a negative BKR registration earlier. With a card you can also simply withdraw money at payment terminals. Withdrawing money from the ATM does have a drawback. And that is that you will be charged for such transactions.

The right profile for negotiating a mortgage

To obtain a mortgage, the profile of the co-borrower (s) is a determining condition. The more “good” your profile, the more opportunity you will have to negotiate your loan.

What is the ideal profile for negotiating a mortgage?

What is the ideal profile for negotiating a mortgage?

Before granting you a mortgage, the bank will determine the level of security guaranteed by your profile. The latter will, therefore, learn about certain aspects of your personal and professional life.

Your professional situation is the first element that the bank will ask you to specify. In order to borrow at the best rate, it is preferable to be on a permanent contract with more than one year of seniority.

However, being on a permanent contract is not essential to obtain credit. Indeed, temporary workers or people on fixed-term contracts of more than 3 years can also borrow (under certain conditions).

Determine your repayment capacity

money

Your income and assets will also be studied by the bank to determine your repayment capacity. On the basis of your income, the bank will calculate your debt ratio by integrating any other loans already in progress and will determine your ” remainder to live “. This is the money available each month, once the monthly loan payments have been paid.

The amount of the remainder is important for you as for the bank. It helps to determine if you will have enough money for everyday life. Thus, the amount of the remaining living will depend on your family situation.

Finally, the amount of personal contribution can allow the bank to know your savings capacity.

Be aware that in addition to your profile, the property you wish to buy will also be studied. Indeed, the bank will seek to determine its value and therefore it is potential in the event of resale.

What role will your profile play?

cash

Your borrower profile, in addition to being a condition for obtaining a loan, will have an impact on negotiation. In order to implement this negotiation, it will be easier to hire a broker who knows much better the trading potential and the best rates you can get.

He will also be able to advise you on how to lower the entire cost of your credit by negotiating several aspects: the interest rate, the delegation of insurance, the administration fees or even the prepayment fees.

In conclusion: It is, therefore, important to look at your borrowing profile and to call on a broker before starting your process. You will maximize your chances of getting the best credit deal.

How to calculate loans under Government Agency rate tables

What is the Government Agency loan handbook

What is the Government Agency loan handbook

Despite the elimination of the Government Agency, public employees and boarders can still take advantage of loans on favorable terms. Products that are granted directly by Social Institute and have special conditions. Those who wish to get an idea of ​​the repayment terms of these loans can use the Government Agency loan rate table.

In fact, there is a handbook on the Social Institute official website that allows you to calculate the amount of the installment on the basis of the amount financed. Specifically, the handbook is made up of several financial tables, each referring to a specific type of loan.

There is therefore a table for the small annual loan, one for the small two-year loan, one for the five-year multi-year loan, and so on. The main characteristics are indicated for each loan, including the various expense items.

How to use the tables for the Government Agency loan calculation

How to use the tables for the Government Agency loan calculation

The tables of the Government Agency loan rate table are designed so that no special instructions for use are necessary. The understanding of the data is almost immediate and in order to embrace the potential loan requests as much as possible, for each loan the Government Agency has examined a wide range of financeable amounts.

All the factors that contribute to the determination of the net loan are indicated for each amount (based on the conditions established by Social Institute for the disbursement of direct loans).

In other words, in addition to the monthly payment, the Government Agency loan tables also allow you to calculate what is owed by way of:

  • administration fees
  • deferral interests
  • guarantee fund Social Institute

In this regard, we would like to remind you that while the administration costs envisage a fixed rate (0.5%), the premium for the Guarantee Fund varies according to the age of the applicant. In the Government Agency loan handbook, installments tables there is also a table which indicates all the rates applied for the calculation of the Guarantee Fund premium.

Example of small Government Agency loan calculation

Example of small Government Agency loan calculation

Let’s take an example of a small loan calculation using the handbook available on the Social Institute website. Let’s assume to request a small three-year loan with an amount equal to 15 thousand USD.

The interest rate is 3.5% while the monthly payment is equal to 443.99 USD. Administration costs and deferral interest are equal to 75.00 USD and 77.84 USD respectively. As regards the charges for the Guarantee Fund, these vary according to the age of the applicant. They range from a minimum of 81.00 USD, for applicants aged between 18 and 59 years, to a maximum of 2,133.00 USD (87-90 years).