Mortgage loan rate: it started again for a fall.

They had tumbled before stopping then even increasing but this time the mortgage rates fall!
So of course, no euphoria, we are not talking about a net fall like the ones we saw at the start of the year since this is a drop of 0.05%. It is not much but it is already that.

An average drop in mortgage rates of 0.05%

Aside from those over 20 and 30 years which have held up compared to last month, the overall rate drops by 0.05%. With an average file, a borrower can therefore clearly obtain a credit at 3.20% over 15 years, 3.55% over 20 years and 3.90% over 25 years. The very good files can expect respectively 2.30%, 2.95% and 3.24%.

Big differences between banks

But beware, as usual these are averages and if you look at the offers more closely, you will see that not all banking establishments offer these figures. Far from there. Only a large third of them actually lowered their rates. For others it is the status quo.

But don’t banks have an interest in lowering their rates?

Unfortunately no. “Like last month, the difference in banks can be explained by the analysis they make of their business prospects, ” comments Good Bank spokesperson Miel Cannor.

And obviously not all do the same analyzes. There are those who lower their rates to attract customers who will conclude their contract next year, and those who, satisfied with their figures, just keep their volume.

“To simplify, continues Miel Cannor, there are those who are already preparing for 2014 and those who are focusing for the moment only on the end of 2013 which they consider for many of them rather good, in particular thanks to the buyback operations credit “.

It remains to be seen in which category your bank is located and if you cannot find a cheaper elsewhere by comparing.

And tomorrow ?

Tomorrow there is no reason for rates to go up since, as Miel Cannor reminds us, “the fall in the French rating was without influence on the level of OATs and, moreover, the EB’s announcement to lower its main key rate rather has a bearish action ”. In short, no increases or decreases or very slight, bet instead on stability.

Microcredit, what you have to know?

Have you ever considered asking for a microcredit? If this financial alternative went through your head, it is likely that you are starting a family business and that your current situation prevents you from meeting the requirements offered by traditional banking, right?

In case your answer is affirmative or you want to know more about this possibility of accessing micro loans, keep reading because in this text we will discover together all about them, what you should consider if you access one and what alternatives exist. Let us begin.

What is a microcredit?

A microcredit is a loan aimed primarily at people who want to self-employment. They are granted by banks specialized in microfinance, Cooperatives, or entities. Of these last two, what is to be understood is that they are entities that do not have the possibility of attracting resources from the public in the form of deposits and savings accounts (as banks do), but are specialized in granting loans and receiving financing of its partners through government funds or debt issues.

According to the National Commission for the Protection and Defense of Users of Financial Services (Condusef), these financings are based on trust and solidarity payment, thus reaching remote communities where there are simply no financial services. That is, attending to vulnerable populations that require a greater number of facilities at the time of granting.

There are two types of microcredit

That’s right, before applying for a microcredit, it is important to be clear that there are two types: individual and group. The first is very similar to any loan, so it is necessary to have a guarantee or collateral guarantee for the credit to be authorized. In the case of the second type of microcredit, a guarantee is not necessary or in between, the alternative is to form groups of five or more people.

Among the characteristics of these micro loans, the following points stand out, according to public information of the Condusef:

1. The people in the group must know each other and have confidence.
2. An individual loan is granted to each of the members of the group.
3. Payments are made weekly or biweekly and the group meets to collect the payment.
4. If one of the members does not comply, the group is responsible for the payment, that is, the guarantee is joint and several.
5. In the event that any of the members defaults with a payment, all members will be reported with a negative note to the Credit Bureau.

A lot of eye before asking for a microcredit!

It may seem an alternative if your group of friends or family decides to request one of these group microcredits, but it is very important to note that in case you decide to request it in most cases the Total Annual Cost (CAT), that is the rates of interest, annuity and all commissions charged to its accredited, are located above 100%. This means that the higher the amount requested and the longer the term, the interest will increase exponentially, even up to 800%, according to information published by the newspaper Reforma.

On the other hand, according to information taken by various media outlets, the Inter-American Development Bank (IDB) points out that the costs that users pay are linked to the rates that microfinance companies have to cover for granting these types of services “operating costs, the risk of loans being bad, lack of economic stability and an environment that is not favorable to business ”are the argument that it is necessary that their operations be economically sustainable and argue that doing so guarantees permanence and expansion of the services they offer .

Therefore, it is advisable to evaluate the commitment that is acquired with a microcredit against the economic possibilities of people to ensure that they have sufficient resources to settle their debt. Otherwise, they will end up damaging your credit history, which will make it difficult to access other types of financing.

There are other alternatives

Now that you know more about these types of financial alternatives, you have more arguments to answer if you should request one or it is preferable that you put into action any of these recommendations:

Bank yourself

Take into account that, starting a banking relationship with a formal institution will bring long-term benefits. The first step you can take is to open a savings account in which you are not charged commissions, in this way you will begin to report to bank terms and gradually generate history; Once you are subject to credit, you will be able to access some credit product such as a credit card and in the long term a formal credit, but it will not be overnight (be patient).

Formalize yourself

If the reason you requested the microcredit is that you want to start your own business, with more reason you should lean towards the formal side. Remember that, from the first step, for example: obtain financing. It is necessary that you are registered with the SAT, since many institutions request that the person be up to date, have a good administrative and accounting management.

Make sure it is not fraud

If you have already evaluated all the alternatives and the solution at this time is to request one of these microcredits, be sure to sign a contract, carefully review the conditions under which they are granted, understand each of the clauses and do not miss the rate of interest that will apply in your case. Also inquire what are the fines that apply for delays, as well as the dates and conditions of payment, no question is over when it comes to money and your financial tranquility.

Credit Bureau free instant credit with instant approval

The words instant loan and instant promise have different meanings and refer to different facts when borrowing. The instant approval says that the decision to grant credit is made immediately after the loan application is submitted. The immediate payment only means that the requested loan amount is in the account after two bank working days at the latest. A Credit Bureau-free instant loan with instant approval is very popular.

Immediate acceptance – how safe is this?

A Credit Bureau-free instant credit with instant approval has the advantage that the applicant is informed of the approval immediately after the loan application has been submitted and has the money in the account within two bank working days. Since a Credit Bureau-free instant loan is mostly paid out by a foreign bank, for example the so-called Agree loans, the processing time can be extended by public holidays. For this, the immediate approval is made subject to the information in the loan application being confirmed.

When issuing an instant loan without Credit Bureau, the German banks partially waive proof of income or similar receipts, while the Agree banks always request them to grant a Credit Bureau-free loan. This is understandable, because for banks this proof is the only evidence of creditworthiness. The quality of the instant loan approval is based on the fact that the credit check is carried out by the lender himself. This is done according to their own current award criteria.

Who receives the Agree bank instant loan?

Most of the time, a Credit Bureau-free instant loan with an instant commitment is only given to employed borrowers, while only a few federal institutes accept self-employed and freelancers as customers. Most banks also limit the amount of loans without Credit Bureau request. However, a Credit Bureau-free instant loan does not mean that the taking out of the loan is not reported as a credit guarantee. Rather, a Agree bank must report all lending to the USD. This is a similar facility to the German Credit Bureau.

In spite of negative Credit Bureau entries, borrowing is still possible in Switzerland, because the federal credit protection department of course does not receive any data from loans that were taken out in Germany. A Credit Bureau-free instant loan with an instant commitment usually comes from a credit broker. It should be ensured that this works seriously and that no costs are incurred before the loan application is signed, for example.

A guarantor or other collateral can help with the application for the loan

Another possibility that a Credit Bureau-free instant loan with an instant commitment is granted is a guarantor. This significantly reduces the risk of a loan default for the bank, because the guarantor undertakes to pay the installments due in the event of payment difficulties on the part of the borrower. For this reason, the guarantor must have an impeccable Credit Bureau file and sufficient income to be able to meet the obligations resulting from the guarantee. A loan can also be secured with other collateral, for example with a property or a capital-building life insurance policy.

Personal loan as an alternative

If you are in a financial emergency and cannot get a loan, you can try to get a loan in your private environment. Maybe someone from your family or friends is willing to lend this amount. In the best case, this happens without interest and without red tape. Nevertheless, even within the family, a contract should be drawn up in which the loan amount, the installment amount and any interest are recorded in writing, so that both sides are secured and no disputes arise later.

If you cannot find anyone in the private environment who can or would like to lend the money, you still have the option of looking for a personal loan on the Internet. More and more private individuals are now making their money available here in order to generate a return. You have to ask individually whether a Credit Bureau-free instant loan with an immediate acceptance is possible.

Comparison of the offers is essential

When looking for a cheap loan, it is not possible to talk about a good offer. It always depends on the personal situation of the borrower. When choosing a loan, care should be taken to ensure that the loan is tailored to individual needs. A credit comparison on the Internet is highly recommended in order to find suitable providers with fair conditions easily and quickly.

It is only through a credit comparison that it is possible to choose a low-priced Credit Bureau-free instant loan with immediate approval without having to forego important services. The comparison is very simple and is also non-binding and free of charge. After the required credit data has been entered, the various providers are listed within a few minutes. Now it is possible to carefully examine the offers and choose the best loan.