Month: January 2019

Cash advance loan online -With which providers can I borrow a cash advance loan?

Do you need extra money quickly and do you want to quickly borrow an advance? You can now arrange this right away!

Borrowing short-term loans with streamlined approval processes is easier than you think. Where you get to deal with all sorts of complicated credit checks and paperwork at the bank, you can often borrow directly from online lenders without any problems. In this way, you arrange an advance on your salary, so that you can pay the bills quickly or you can immediately make an installment purchase. Borrowing extra money is, therefore, easier than ever! Also view online directly what the possibilities are for you.

With which providers can I borrow a cash advance loan?

The providers on the internet, also known as mini loan providers or flash loan providers, are providers that want to keep borrowing money as accessible as possible. That is why they do not use complex credit checks and paperwork, but ensure that you can often apply for a loan online. In this, they differ from regular lenders, but you have to take into account that it is only possible for these providers to borrow small amounts.

What you should pay attention to when borrowing

An important point when borrowing an advance via the internet independently is that you keep a close eye on the security of the loan. Because strict checks are not forthcoming, you have to keep a close eye on the safety of these loans. You do this with the following checklist: 
– Always check whether you are dealing with an officially registered lender 
– Never borrow more than necessary (and keep in mind that it is only small amounts 
– Calculate in advance whether you can have the borrowed money available again on time 
– View experiences of others with a specific loan or loan provider 
– Compare various providers online

All in all, it is therefore wise to read in advance about the conditions, to avoid misunderstandings and unnecessary costs.

For how much money can I immediately borrow an advance?

Would you like to borrow money directly? This is often possible with an online loan! However, you have to take into account that the security measures are only small amounts. Exactly how much you can borrow differs per lender, but usually, amounts are between 50 and 1000 euro, where you can determine the exact height yourself. That can be 250 euros for a new bike, 500 euros to make a purchase on payment or 900 euros for a trip. In most cases, you do not have to justify the reason for borrowing so that you have a lot of freedom with these loans.

In short, do you need extra money immediately? Borrowing via the internet is immediately arranged and in addition, you often receive money today! In addition, you do not suffer from complicated application procedures and strict conditions, so that you can borrow without hindrance when necessary and can arrange your affairs immediately!

Worldwide study: Consumer loans grow double-digit in emerging markets – Developed countries fall behind

Global per capita debt increased by 4.7% in 2012 compared to the previous year and stood at 910 euros at the end of the year. Here, however, there are strong regional differences, which result in particular from the population density and the economic power: While the average consumer credit burden in Africa is 96 euros, a North American pays back on average more than 5,600 euros. For comparison: The Germans occupy the midfield with receivables amounting to 2,741 euros per capita. The highest is the personal accounts receivable with 11.677 euro loan amount per capita in Canada.

The global consumer credit market continues to be dominated by North America: with a grand total of 2.162 billion euros, the US leads by far the highest credit outstandings ranking, followed by Japan (714 billion), China (433 billion) and Canada (401 billion). Germany ranks sixth with 225 billion euros between Great Britain and Brazil. “The German consumer credit market has been developing at a stable level for several years. The installment loan contained therein is by far the dominant product. As of the end of June 2013, installment loan portfolios grew by 1 percent to 147.8 billion euros, “says John K. Ortiz, CEO of our bank.

Demand is rising, especially in emerging markets

Despite generally weaker economic growth in 2012, emerging markets are showing remarkable developments: In Russia, consumer credit grew by 43 percent over the previous year, in Argentina by 35 percent and in Thailand and Azerbaijan by 32 percent each. However, the increase in Argentina is at least partly a consequence of continued inflation. In China, there was at least a growth of 18 percent in 2012. In South America’s largest market, Brazil, growth slowed slightly in 2012, as did Latin America (21.6 percent to 13.5 percent).

However, growth in Latin America is still high compared to developed countries. By contrast, North America and Europe only grew by 5.5 and 2.6 percent, respectively. If the emerging markets of Russia and Turkey did not influence the European value, there would be no growth at -1.7 percent, but a decline. The EU alone comes to a value of -1,9.

Magic limit: From 2,500 euros gross domestic product per capita, the consumer credit market is growing disproportionately

“Economic growth contributes significantly to the strengthening of the consumer credit market,” says CEO John K. Ortiz. “For emerging markets, it is clear that as soon as gross domestic product per capita reaches the” magic limit “of 2,500 euros, the consumption finance market will develop disproportionately – and the country will be heading for economic stability.”

Installment loans are interesting for high earners

Married couple show something on a tablet by a consultant - CreditPlus Credit Magazine

Not only low-income consumers use installment loans when planning a larger purchase. 

As a recent study by the Duresearch Institute (DI) on behalf of the Paleoband Show shows, this form of financing is also used by high earners with a monthly net income of more than 2,500 euros.

One in three households uses loans – including good earners

More than 1,800 Germans were interviewed for the representative survey, of which one third stated that their household had one or more installment loans. Of the borrowers, 31 percent are singles, 41 percent are families without children, and 28 percent are families with children. The credit users come from very different income classes: 22 percent have a net household income of less than 1,500 euros a month, with 34 percent of the income between 1,500 and 2,500 euros. But even well-earners have current loans: 29 percent earn between 2,500 and 3,500 euros and at 15 percent, the monthly net income of the household over 3,500 euros. It turns out that even high-income people often choose installment loans to finance their purchases. As explained by the banking association, it is interesting for high earners that they maintain their liquidity through a loan and are only burdened by the installment payments to a minimum. The average monthly rate that credit users pay is 250 euros.

Installment loans usually finance the purchase of a car

Most borrowers use the finance to buy a car. 33 percent of installment loans are used to finance a used car and 26 percent are for a new car. 17 percent of those surveyed purchased furniture or consumer electronics with the loan. Even large household appliances are still popular with 14 percent. In each case, 13 percent have not taken their credit for an acquisition, but to recapitalize older loans or to offset their bad debts.

Borrowing on the internet is becoming more popular

The survey also shows that 25 percent of installment loans are now being completed online, compared to 21 percent in 2015. Consumers are particularly likely to choose to borrow on the Internet if they want to finance consumer electronics or large household appliances. Forty-seven percent of the loans went to a bank, and 25 percent to a car dealer. Even with purchases in the retail or mail order, many customers opted for the possibility of a loan: 23 percent of financing run at such companies.

Is a car loan with final rate makes sense?

Man sits with a clipboard and pen in a car and signs a contract

Balloon financing or final installment financing is common practice, especially when buying a car. It impresses with small monthly installments – thanks to a large final installment. 

Small monthly installments and a large final rate sound very tempting at first, but this can certainly have its pitfalls.

Three way financing: car loan with final installment

A final installment financing, as the balloon financing for car purchases is also called, works as follows: You buy a car on loan with a maximum maturity of 48 months and pay monthly installments. At the end of the repayment term, you have three options:

  • You pay the big final installment from your reserves.
  • They are raising new funding to settle the final installment.
  • You return the car to the dealer for resale.

Therefore, a balloon financing is basically only for cars, because the final installment is based on the predicted residual value of the car. The turn is made dependent mainly on the mileage. Other goods, such as furniture or real estate, have only a small value or no well-organized market for secondary utilization at the end of the financing and therefore are not suitable for balloon financing.

Balloon financing usually more expensive than installment credit

Balloon financing usually more expensive than installment credit

When you complete a car loan, you always get monthly loan installments. For a car loan with a final installment, monthly payments are up to 50 percent lower than a classic installment loan. Overall, you pay for the car with a final installment but usually more. The reason: The high closing rate will earn interest over the entire term. So quickly come together several hundred euros in interest costs.

Even more expensive can be the balloon financing of the car when one of the following occurs:

  • You can not pay the final installment and have to take out a new loan. In the meantime, interest rates may have risen.
  • You have exceeded the agreed mileage and must compensate the dealer accordingly, because the residual value is lower than originally planned.
  • You have to sell the car to pay the final installment. The current market value is lower than the closing rate.

For whom is balloon financing worthwhile?

For whom is balloon financing worthwhile?

Balloon financing is useful only in a few cases, namely if you …

  • … can certainly expect a larger sum at the end of the repayment term, for example the payment of a life insurance, but want to preserve as much financial flexibility as possible during the financing period.
  • … anyway intend to repel the car after a few years. But even this can – depending on the market situation – turn out to be a loss.

Since you have to meet the same credit requirements for balloon financing as you would for a installment loan, in most cases you can do much better with a standard car loan at constant installments over the entire term.