Month: January 2020

Cheap credit cards don’t exist

by admin

Cheap credit cards:

Cheap credit cards:

As easy as it can be, credit cards are never cheap. You often pay the top prize for the plastic money and this convenience.

First of all, let's distinguish between a loyalty card and a credit card. Many consumers confuse this, because with a customer card you can often buy goods on credit. However, these loyalty cards are not issued directly by a bank. A credit card is, these are issued by banks and credit card organizations such as American Express, VISA or Mastercard.

Although credit cards were already invented in 1950, cheap credit cards are still to come.

The costs of a credit card are considerable and start with the annual costs. They start from a few tens to more than 100 USD per year. They are also happy to offer you an extra credit card, ideal for your partner, but you will also have to pay annual costs for this.

The convenience of your credit card is the big danger, before you know it you have reached your limit. Perhaps more than you wanted or could spend that month. The issuer of your credit card will charge you a hefty interest, even if you can pay your expenses immediately the month after.

It becomes even more expensive if you have to repay the expenses of that particular month in installments. Even though the maximum is at 16% interest, this is still many times more than with a revolving credit or personal loan.

For example, Across Lender's credit card made the news in 2007. The supermarket that is classified as cheap issued a credit card. Easy way of customer loyalty and to earn something extra. Something extra? The interest charged by Across Lender on credit card payments was between 15% and 17%!

Of course, credit cards also have advantages, sometimes the first year is free or free credit cards for your partner and with some credit card companies all purchases are insured as standard. However an insurance for which you pay 16% interest is a very expensive insurance!

You want a credit card, right?

You want a credit card, right?

Fine but take the following tips with you so that you do not pay too much and can enjoy all the conveniences that a credit card offers:

  • Where can you pay with your credit card?
    Take a good look at exactly where you can pay with your credit card. Using your credit card abroad? Some Dutch credit cards can only be used in the Netherlands. The most accepted credit card is VISA's credit card.

  • What extra services do you really need?
    A credit card with free access to the lounge at the airport, unnecessary luxury or badly needed on your business trip? Your luggage insured up to 10,000 USD while you only take the essentials with you? A helpline that is available 24 hours a day while you are already well insured?

    The credit card companies would like to spoil you and make the card exclusive. Interesting, but you pay a lot for this. Take a good look at what you need, an extra payment method for unforeseen situations or a pass that gives you a lot of privileges that you will use sporadically or never?

  • What does the credit card cost?
    View the annual costs of your credit card. They may offer you a free credit card for the 1st year and then pay the top prize. In addition, you must compare credit cards based on the interest you will pay for each payment.

  • Use your credit card only where necessary!
    Do they also accept your regular debit card? Then leave your credit card in your wallet and think about what you will save because you do not borrow the money temporarily but pay directly from your current account.

Student credit: how to get it?

by admin

 

 

Tuition, accommodation, daily life, IT equipment ... Being a student is expensive! To finance your studies without having to work like a madman, there is a solution: the student loan. How to get it from banks? Our advices.

What is a student loan?

What is a student loan?

The student loan is a consumer credit that is granted to finance your studies. His particuliarity? It is a credit with deferred reimbursement: the student begins to reimburse at the end of his studies. Another advantage of student credit: a reduced interest rate compared to a conventional consumer credit.

The amount of the loan can vary according to the banks, according to your income and that of your surety. The amount of your loan can vary from 1,000 to 45,000 $ for a repayment period spanning 2 to 10 years on average. While knowing that 2 years represent the legal minimum duration for this type of loan.

What conditions to obtain a student loan?

What conditions to obtain a student loan?

While many banking institutions currently offer student loans, the conditions for obtaining them are generally the same:

  • to be of age ;
  • be enrolled in an institution preparing for a higher education diploma;
  • be under the age of 28 - sometimes 30 in some banks - on the date the loan is made.

To obtain this personal loan, it is often necessary to have a surety, that of the parents for example. If it is not the case, it is possible in certain banks to make guarantee its credit by the State for a maximum of 15 000 $. In the event of default by the borrower, the State will therefore be responsible for paying the monthly payments of the loan, through the intermediary of the public investment bank.

How to find the best student loan offer?

How to find the best student loan offer?

From one financial institution to another, the conditions of a student loan can vary considerably. In particular in terms of rate, PRA (prepayment penalties), maximum duration, maximum amount and handling fees. To find the best student credit, do not hesitate to compare the offers:

  • First point to check: the APR or annual effective annual rate. Expressed as a percentage, it allows you to assess the total cost of a personal loan (the higher the better). The APR is freely set by the bank. For a student loan, it generally hovers around 1%.
  • Another point to study, the repayment terms. Duration of repayment, adjustable monthly payments, penalties (PRA) applied or not in the event of early repayment, you must ensure that the offer is the most compatible with its repayment capacities.

One last tip: some schools or universities have agreements with banks. They allow you to benefit from a student loan at preferential rate. Students can also take advantage of lower rates at a financial institution whose parents are clients. Ask your bank, you never know!

Tip: don't delay!
You should also be aware that, conversely, a student loan file could potentially be refused by a bank if the applicant is outside of it. It all depends on his goodwill. The bank can also limit the annual quota of government guaranteed student loans. It is therefore best to approach banks and financial institutions as soon as possible.

Is the full amount of a student loan paid right away?

Is the full amount of a student loan paid right away?

In fact, students have a choice. By opting for a progressive payment of his student loan (a certain annual amount), the borrower reduces the cost of interest, but also the cost of insurance.

As with any consumer loan, borrower insurance is optional here. But in reality, the granting of a student loan is very often conditioned by the purchase of insurance. If the financial institution granting the loan can offer an insurance offer, students remain free to insure their loan elsewhere. So don't hesitate to compare insurance!