News Archive – Cheap Credit Comparison

 

For two years, the President of the German Credito Banks and Giro Group, Gauger, announces that the savings banks must be cost-conscious. Against the background of dwindling interest margins, he announced in the summer, the free checking account of the savings banks would be removed from the market. Irritating to the statement was only that there are free current accounts only for students, trainees and students at the public-law houses.

For some time, however, the savings banks have found another “twist” to compensate for dwindling profits. Branch closures and mergers inevitably result in too high an employment rate. This causes unnecessary personnel costs. The logical consequence is a job reduction through dismissal. While a 40-year-old still has opportunities in the labor market, it can be critical for an employee aged 59.

Free buys with the employment office

Free buys with the employment office

As reported in th issue of 21.10.2017, the savings banks are using a concept by the Yans and Lians management consultants, which has the greatest approval among the savings banks.

The procedure is simple. The employee receives 95 per cent of his last net salary outstanding up to the age of 63 in one sum. However, these salaries are reduced by the precisely calculated potential unemployment benefit I. The employee must now sign up for a job in order to receive the difference. Without the bill will not work.

Around 96 percent of affected employees have accepted the “early retirement Flex” model. The boss of  TwinkerCredit sees the whole thing quite pragmatic. That’s what other companies do and we’re in the competition.

If one looks at this graph, 14 percent of the employees are in the foreground for this “social plan”.

Communities benefit

Communities benefit

If you look at the “ownership” of those affected, it is clear why the municipalities are good at this handle in the public coffers. The owners of the savings banks are the municipalities and districts. The members of the Board of Directors are representatives of the respective municipalities. The profits of the savings banks benefit the bearers. The lower the cost burden, for example, through salaries, fails, the more money is available for other municipal tasks.

303 of the 408 nationwide job centers act as a cooperation between the Federal Employment Agency and the respective municipality or district. The division of labor, however, looks like this: The Federal Agency is responsible for the provision of funds, for retraining or just for unemployment benefits I and II. The municipality only provides the premises for accommodation.

Only in 105 cases is the municipality the sole sponsor of the job center. Of the 438 savings banks in Germany, three quarters of the beneficiaries benefit from the concept of “early retirement flex”.

What do the unions and the employment agency say?

What do the unions and the employment agency say?

The Federal Employment Agency has a very clear position. “Early retirement and unemployment are contradictory.”

The head of financial services at the state district of Lower Bravo-Caxo of the trade union finds even more explicit words: “Savings banks have a public mission and not the goal of illegally plundering the public coffers.”

Just how little the “red” institutes complains, is made clear by an action of the Friendly Loan Banks Association: This has concluded a framework agreement with the management consultancy, workshops on the subject are now taking place nationwide.

After the massive sale of Lelman certificates especially to older, inexperienced investors, the savings banks move once again in a morally very doubtful light. The times of the public service mission are probably over.

Rent or buy? Calculator for determining the benefits.

Anyone planning their own future inevitably asks at some point whether the construction or purchase of a home is not more useful in the long term than continuing to live for rent. Rent or buy? When is a home equity financing worthwhile, under what circumstances is it better to consult with a rental property?

If you have already decided to buy a house or apartment, you can use our mortgage calculator to determine the monthly rates of mortgage loans offered by various banks and intermediaries based on working day updated conditions. You can set all relevant parameters for an annuity loan – from the initial repayment to the interest rate commitment, the mortgage lending spell and the request rate you are looking for.

Important questions

Important questions

For the vast majority of buyers and builders, having one’s own home is a life-long decision – both financially and emotionally. Extremely important for decision-making is the factor economy. For an in-depth answer, there are several factors to consider:

  • Are the living conditions correct, is the income regular and secure?
  • Does family planning play a part in the decision?
  • Is there enough equity capital available?
  • How high may the interest on the financing be?
  • After how many years does the decision pay off financially?

In many cases, the acquisition of a property financially does not pay for itself in the same year. Only after some time the owner of a home profits against the tenant – at least as far as the costs are concerned.

With our rental / purchase calculator can be quickly and easily determine which option brings more benefits for you. Simply enter your individual details in the following form.

The rental / purchase calculator shows you the duration until the purchase pays off in relation to the annual charges. You will also see your savings advantage over the next 10, 20, 30 and 40 years.

Operation manual

operation manual

Property

  • Annual cold rent: Here, the annual cold rent, ie rent without operating or ancillary costs, must be entered. Take a look at your rental agreement and multiply the basic rent you put in by 12.
  • Rent increase pa: As rents increase in the course of the year, this point must also be taken into account. As a rule, an expected “increase in tenants” of up to 1.50% per year is assumed. For a better insight, below you will find the data of the Federal Statistical Office from the years 2005 to 2014.
    The default is an estimated 1% per year. Statistically speaking, net cold rents have risen by an average of 1.1% per annum in the years 2005 to 2010, with the increase in southern Germany rising by approx. This was around 1.5% and only 0.5% in the East (Source: Federal Statistical Office).

Property for sale

  • Total price of the property: Enter the pure purchase price or the construction costs of your property.
  • Purchase costs: The costs that you have to pay in addition to the purchase price include, for example, brokerage costs, notary and court costs as well as land transfer tax. For a construction project, land and construction costs must be stated. If you do not have this value at hand, you are priced between 10 and 15 percent of the total price of the property.
  • Maintenance costs pa: Homeowners not only incur the usual additional costs, but also the costs of maintenance. As a rule, a lump sum of 3 to 6 euros per square meter of living space per year is used.
    For older properties, the maintenance or modernization costs are generally slightly higher. Often, certain refurbishment or modernization measures can be co-financed when buying a home, eg. B. a new heating system. This saves in the long term by lower energy costs. Real estate is considered to be very stable in value and can even increase in value over the years.
  • Value increase pa: The value of building land and real estate is also rising continuously. In the expected “increase in value” of the object as a rule of thumb, 1.50 percent per year.

Financing

  • Equity: Higher equity and faster repayment benefit in view of the shorter loan term for real estate acquisition. With low equity and repayments, as well as higher investment rates, the trend is towards rented apartments.
    Caution: Although employer loans are considered by banks as equity, in this calculation you should only state the equity that you own.
  • Debit Interest: The debit interest rate is the interest rate with which the loan actually earns interest.
  • Repayment rate: Use the phases of low interest during construction to pull up the repayment component. This reduces the loan term and at the same time reduces your interest charges.

Calculation of a comparison facility

  • With the interest rate , we assume that free capital is saved and attracts interest. Depending on your choice, the z. B. as at any time available overnight money or as a fixed deposit with a defined term.
  • Finally, indicate whether you are married or not, because for married people the saver tax credit is 1,602 euros, otherwise only 801 euros.

Although the calculator can not give an accurate forecast, it can be examined – even under the assumption of different scenarios regarding the future rent and performance – under what conditions the investment in your own four walls can be worthwhile.

Infographic

Infographic

What advantages and disadvantages of buying a property or renting it from the consumer’s point of view is shown by our infographic:

If you decide to build or buy a property, you can take advantage of the free and non-binding financing offer. Get an individually tailor-made offer and include this in your considerations.

Request a free quotation for individual mortgage lending

Request a free quotation for individual mortgage lending

As every home loan should be tailored to your needs, we recommend that you consult an expert when planning the financing. Using the form below, you can request a free and non-binding financing consultation and a corresponding offer from Interhyp AG, one of the leading mortgage loan intermediaries in Germany:

The financial calculators provided on this portal under the section Computer Collection are own developments that have been constructed strictly according to regular formulas of financial mathematics. Nevertheless, the results serve only as guidelines and orientation. We assume no liability for the correctness. Are you interested in the calculator as a white-label solution? Please feel free to contact the editors.

 

Property tax is calculated on the basis of the unit value

 

 

Property tax assessment rates

Property tax assessment rates

The property tax distinguishes between two rates of levy:

  • The property tax A is levied on agricultural and forestry land.
  • Property tax B applies to all other buildings and undeveloped land.

Current property tax rates

Current property tax rates

The following interactive map of the Federal Statistical Office provides an overview of the current property tax rates for all municipalities in Germany. You can select the tax type in the upper area and then move the mouse over desired regions to display the current property tax rates.

In addition to the tax aspects, of course, the financing of the property itself is of crucial importance. Compare therefore now the daily updated conditions of selected offerers for mortgage lending.

Compare mortgage lending

Compare mortgage lending

Our mortgage calculator helps you to find the best mortgage lending:

Net loan amount: Running time: 5 years ten years 15 years 20 years Mortgage lending: 60% 80% repayment: 1 % 2% 3% 4% 5% 6% 7% 8th % 9% 10% full

What is the unit value?

What is the unit value?

There are two options for determining the unit value. On the one hand, the yield value method can be used as the basis for the annual gross rent. The legal basis for this can be found in Section 185 ff. Of the Valuation Act (BewG).

The asset value method (§ 189 BewG.) Is an alternative to the capitalized earnings method. The material value procedure applies if the income value of a building can not be determined. In the real value method, the tax office adds together the land value, the building value and the value of the outdoor facilities.

In the case of an undeveloped property, the sales value is taken as the basis. However, this is the only exception for which the market value is used. As a rule, the unit value and the market value are not identical.

In order to determine the unit value for a new building, the client must provide the tax office with the necessary information by means of a form.

The standard value adjustment screw for the basic control lowering

The standard value adjustment screw for the basic control lowering

When purchasing a property, it is worthwhile to question the amount of the future property tax. It can not be ruled out that the responsible tax office has set the unit value too high.

For example, discounts are possible if the terraced house is on a plot of less than 250 square meters, in the seventies still quite common. A flight path also leads to an impairment in the course of determining the earnings. The same applies to intermittent construction defects.

In principle, a change in the property tax can be made if there are massive deviations in the recalculation of the unit value. These deviations are given in

  • a deviation of more than 10 percent, thereby
  • more than 250 USD down
  • more than 2,500 USD upwards
  • more than 50,000 USD, regardless of the percentage deviation

Unit value – outdated instrument for calculating property tax

Unit value - outdated instrument for calculating property tax

The countries have been discussing for 15 years now that the property tax calculation needs to be reformed. The unit values ​​of the objects are anything but current, based in West Germany on the basis of 1964, in East Germany on the basis of 1935. This means that the unit value ranks in most cases only between 10 and 24 percent of the actual market value.

For discussion, a North and a South proposal as well as the Thuringian model are on the table. While the northern federal states favor a property tax based on market value, the south tends to base its calculation on a basis of area. Thuringia seeks a middle ground between the two approaches – so it may take some time.

The requirements for a new taxation model are high. For one thing, the tax revenues for the municipalities should not fall. Secondly, the administrative burden should be kept as low as possible. Thirdly, the area utilization of land and soil should be optimized.

The property tax reform

The property tax reform

Currently, the words of property tax reform hovers over the German housing market and affects both tenants and self-users alike. What is going on there?

Already in 2009, the Federal Finance Court found that the current treatment of property tax was unconstitutional, as it violated the principle of equality under Article 3 (1) of the Basic Law. (1)

Background is the different taxation of real estate in the eastern German states and the West German. While the guideline value of 1964 forms the basis of taxation in West Germany, it is based on the values ​​of 1935 in the eastern German states. Detached from the tax rate of the respective municipality, we can assume that the land tax in East Germany is predominantly lower than in western Germany.

Property tax is the most important source of income for the federal states. In 2017, German municipalities received around 14 billion USD in property tax. Depending on the region, there were clear differences for a comparable property:

  • Potsdam 126 USD
  • Dresden 211 USD
  • Berlin 227 USD
  • Hamburg 250 USD
  • Frankfurt am Main 305 USD.

The numbers mentioned are annual values. The calculation of the property tax amount is initially based on the value of the land, which is determined from the (possible) rental income. This value is now multiplied by the measurement number. This results from the type, size and nature of the property.

Finally, a multiplication with the community-dependent Hebesatz takes place. In West Germany, this is on average 455 percent, in Berlin 810 percent. The absurd thing about Berlin is the significantly different levels of property tax, depending on whether the property is in the former East Berlin or West Berlin.

Apart from the unequal treatment between West and East, another circumstance is under discussion: The building values, especially for new buildings, are well above the theoretical design values ​​of 1964 and 1935. Against this background, the judges in Karlsruhe demanded a revision of the assessment basis for around 35 Millions of properties in Germany.

Now, the Federal Court finally took up the matter and announced on April 10, 1818 his verdict: The assessment of the property tax was unconstitutional. The reason contains the facts already mentioned here. Now a new regulation has to be established, namely until 2019. If this deadline is exceeded unused, the current rule will become obsolete. What happens then has not yet been published. A transitional reassessment should apply until the end of 2024. In a next step, it must therefore be decided which concrete assessment method should be used.

Ulrich Silberbach, head of the civil servants’ association dbb, worries about additional financial burdens for home ownership that could be accompanied by new regulations. If this happens, not only property owners will be asked to pay. Rather, landlords will move the increased tax costs on the additional costs of their tenants.

What would be the consequences of an adjustment?

What would be the consequences of an adjustment?

If everything stayed the same, the current excitement would be superfluous. Tenant associations and the owners’ association “House and Ground”, however, have the worst fears. Thus, “Haus und Grund” undertook 500 model calculations for real estate throughout Germany. (2)

The basis of calculation shall be a mixed calculation of land value and a building component. An example calculation for a terraced house in the Rhine-Main area should make the fictitious owner little joy. The starting point was a plot size of 295 square meters and a living area of ​​140 square meters. The property tax would rise from currently 256 USD a year to more than 2,000 USD a year. (3)

Redistribution without additional burden

Redistribution without additional burden

The examples given here make it clear that such a reform, as intended, would really act as a fire-accelerant in the housing market. As property tax is one of the recoverable ancillary costs, the warm rent would explode. The run on small apartments with low intrinsic value would be the result, four-room apartments in metropolitan areas priceless even with low rent.

What about the homeowner? The own, debt-free, real estate as part of the pension would suddenly break monthly holes of about two hundred USD in the budget, as the example above from main-reign illustrates.

Possibly for one or the other pensioner own property would be no longer tenable. Many potential buyers would have to refrain from a purchase or construction project due to the property tax burden.

The tenants’ association is already calling for the land tax to be taken out of the allocable ancillary costs and for this purpose to burden the owners of owner-occupied property more heavily. The basis for this would be a pure taxation of land, not the real estate. (4)

Property obligation – but would force one or the other landlord to part with his property, if the property tax payment would level the rental yield in the best case. Suppose that in the example of the residential building in Berlin-Mitte, the rent per housing unit is 700 USD, if there were any interest of the landlord to keep the house on.

What options are available for the property tax reform?

What options are available for the property tax reform?

Of course, it would be desirable if the legislature were able to establish tax equity in relation to property tax. How difficult this is, however, is shown by the three taxation models currently under discussion.

The market value model

This model would be catastrophic for the owners of the apartment building in Berlin. The calculation of the tax is based on the market value of the property and the property.

Even if an older house, for a property developer only good for the demolition good, little weight, the value of the property would break the neck of a normal earner in terms of taxation.

The equivalence model

The equivalence model does not consider the value of the property or the property. Both the building and the property will be allocated a lump sum per square meter. The product of square meter and lump sum gives the taxable amount.

The advantage would be that market changes, whether upwards or downwards, would not affect the tax liability, in contrast to the market value model.

The land value model

The land value model is based solely on the value of the land, regardless of whether a high-rise, a carport or nothing stands on it. On the one hand, it would put owners of developed and undeveloped land equal. This would also punish those who for reasons of speculation have left fallow land in high-quality locations.

On the other hand, it would be a financial challenge for single-family homeowners with older properties and relatively large properties from times when they were still commonplace.

Anyone who owns a single-family home built in 1930 on a 600 m² plot in the Frankfurt district of the poets would have a problem.

Perhaps the best alternative to the real estate tax reform

The Ifo Institute in Munich favors the equivalence model as it brings with it the greatest tax fairness. The Federal Association of German economists and business economists sees another solution: simply abolish the property tax.

Conclusion

Conclusion

An approximation of the calculation basis of East and West Germany is to be welcomed. That is indisputable. Whatever the decision of the Federal Constitutional Court, whenever the real estate tax reform will take effect is currently still questionable.

However, if politicians decide to knit with a pinch, the housing market will become even more of a theater of war than it already is. Even if tenants and owners of self-occupied real estate then sit in a boat, the ditch should go further apart, as it is already torn open due to the ever increasing burdens on tenants.

Financial Tech banks – Requirements of the bank

What are the requirements of the centrum bank?

What are the requirements of the centrum bank?

The financial services sector is in transition. Financial Techs are the new generation of banks. What began harmlessly with the fact that comparison portals on the Internet suddenly made the market transparent to customers for loans, accounts and overnight money conditions was just the beginning of a new era.

The term Financial Tech appears today more and more often in connection with money transactions. But what exactly is behind it and what requirements does the centrum bank place on it?

  • “Financial Tech” means “Financial Technologies”.
  • If Financial Techs outsources the actual banking business to partner banks, they do not need their own banking license.
  • When applying for a banking license, a suitability test will be carried out.
  • For example, Boro Advisor as an asset manager must ensure that an investor is forced to answer questions in accordance with section 34 (2a) WpHG before making an investment decision.

What are Financial Techs?

What are Financial Techs?

The artificial word “Financial Tech” comes from the English and consists of the two words “finance” and “technologies” together – in German financial technology. These companies offer financial services based on computer-based elements.

A nice example are the so-called Boro Advisor. Robo is the English term “Robot”, so robots taken. Advisor means consultant in German. A Boro Advisor is therefore a machine advice. Boro Advisor can be found in the securities section.

In contrast to a bank employee whose buy recommendation is based on the sales requirements of his management and less on an objective market analysis, the sales recommendation of a Boro Advisors is based on a gigantic mathematical algorithm. He knows no sales figures or subjective perceptions. He balances the investor’s chance-risk profile soberly and emotionlessly with the market.

On the subject of Boro-advisor, the editorial office of our sister portal Brokervergleich.de has been running the only real-money test since May 2015 and since then has been monitoring monthly how the performance of digital asset managers develops: for a Boro-advisor comparison >>

Financial Techs can also be found in other areas: Current accounts. The new generation of current accounts with the core app and credit card was developed by Financial Techs. They are, as well as the Boro Advisor, contact person of the customer. The actual banking business, which lies behind it, is outsourced to a bank. However, this is not a savings bank around the corner, but on the one hand to banks specializing in the Internet business. These in turn make their technologies available to Financial Techs, for example the Solaris Bank. On the other hand, there are actually real Financial Tech banks that have the appropriate license in Germany

Financial Tech products and services

Financial Tech products and services

The Boro-advisor or digital current accounts referred to above can be broken down into the following sectors and services, according to the Bank for International Settlements (BIS):

The legal challenge

The legal challenge

Especially in the securities business, the legislature is required. Traditional banks must fully inform their clients about the risks and rewards of investing, checking whether the chosen asset class fits the client and correcting it where necessary.

The Boro Advisor as an asset manager can only do this in the form of electronic information. However, it must be ensured that the customer does not find information in accordance with the Securities Trading Act (WpHG) somewhere in secret. The online advisory process must be structured in such a way that the investor is forced to answer the questions in accordance with Article 34 (2a) WpHG before making an investment decision (1).

Part of the challenge was to determine when a Financial Tech can act as a bank.

Requirements for the banking license

Requirements for the banking license

In 2017, the European Central Bank (centrum bank), as the supreme supervisory authority, presented the outline of a concept for the suitability assessment of banks. This was finalized in 2018 as a guide to banking operations. The Financial Techs were honored to have their own section.

As general criteria to operate as a bank, apply

  1. Suitability of the members of the management body and suitability of the shareholders to conduct banking business
  2. Requirements for proper internal organization. These include risk management, compliance and control frameworks
  3. A conclusive and resilient business plan
  4. Ultimately, capital, liquidity and solvency must be right

For Financial Techs, further aspects were also defined. Thus, the management bodies not only have to be suitable as bankers, but also have appropriate IT competence.

The shareholders of Financial Techs, which are mostly recruited from the start-up scene and lenders, are judged on reputation and financial solidity.

The application for authorization shall, in particular, take account of the candidates’ procedures

  • credit approval
  • Adjustment of existing loans
  • Assessment and enforcement of collateral
  • Classification and treatment of non-performing loans

Particular emphasis is placed on the security against cyberattacks, that is, which preventative defensive measures has hit the company.

When outsourcing processes to a third party, a due diligence review is generally required. (2) In addition, data of the service provider regarding market position and financial position must be provided.

If data is outsourced to a cloud, the questions to be answered are whether there is a dependency on the cloud operator and how its role in the market is to be assessed. In addition there are data protection requirements.

As part of data governance, Financial Techs must ensure that the integrity, confidentiality and availability of the data is guaranteed at all times.

Another requirement is the presentation of a solid exit plan. It must provide information about how the business is properly shut down, without harming customers in any way, be it financially, in terms of data protection, or in the financial system.

A Financial Tech bank must also prove sufficient capital that is sufficient to survive the start-up problems of the first three financial years.

The final point Financial Tech Bank has to fulfill in accordance with the centrum bank Guidelines is the capital, liquidity and solvency assessment. Initial capital and liquidity are particularly in focus here.

The centrum bank assumes that Financial Tech banks are initially exposed to higher default risks. Therefore, additional capital in excess of the statutory minimum capital requirement must be demonstrated.

Roles of Financial Techs and Banks

Roles of Financial Techs and Banks

When it comes to Financial Tech banks, of course, the distribution of roles between Financial Techs and established banks must also be discussed. The Laseb Committee on Banking Supervision has published a white paper (1) in which it outlines five scenarios:

  • The better bank
  • The new bank
  • The distributed bank
  • The relegated bank
  • The disintermediary bank

As for each of the five scenarios, the roles of Financial Tech and Bank as service providers and providers of the customer interface are divided, our infographic shows:

banking landscape. Also for this we have provided an infographic: 

Credit crisis: who has the buck?

The banks awarded in the opinion of many experts and politicians too few loans.

The banks awarded in the opinion of many experts and politicians too few loans.

This makes it difficult to overcome the economic crisis because companies can not invest and consumers can not consume. At the same time, banks are not passing on interest rate cuts from the European Central Bank to customers, but are expanding their margins at their expense. While interest rates on deposits are as low as (almost) never before, customers nowadays may have to pay even more for their loans than before. Nobody wants black Peter, though.

Union and SPD politicians have not saved in recent days with criticism of German credit institutions. First voices are loud, the banks want to force by law to lend. Certainly, this is partly due to the electoral fights, with which the parties want to gain attention and voters’ votes. The banks vehemently reject allegations and, more importantly, coercive measures and receive backing from many (but not all) experts.

The banks justify their reluctance to lend with the increased default risks and difficult refinancing conditions. In order to assess this argument, it is necessary to look at the business model of banks and lending in particular. Banks protect the default risk of their loan portfolio with economic models. These indicate a higher default risk if the general economic conditions worsen. This is not absurd: In the crisis, people lose their jobs and companies disappear from the market. It is certainly piquant that the banks and their lending practices are the cause of the crisis, in which fewer loans are now being lent.

Just a few weeks ago, there were calls in the financial industry calling for a higher risk premium for loans and therefore calling for a rise in lending rates. The argument: too lax lending in the past is the cause of the debt crisis. Is this really true? The critical observer may unknowingly that the troubled German banks are currently trying to use the credit bubble in the US, which has found its way into the balance sheets of German credit institutions via complex financial structures, to strengthen their margins. In Germany, credits have never been granted restrictively to neither consumers nor companies (except large companies). Without a solid employee ratio and a sound payment history, banks almost never lend money.

The second argument of the banks,

The second argument of the banks,

The difficult refinancing conditions, can only be partially understood. The ECB currently provides up to one year of interest to banks with liquidity of up to one year. Disposition loans and short-term loans can therefore be refinanced very cheaply and without difficulty. Due to the collapse of the credit market, long-term loans can now be accommodated a bit on the market but the state guarantees of the rescue fund should remedy this situation.

As ambivalent as the reasoning of the banks is to be evaluated, the opinions of the experts about whether or not there is a credit crunch at all are also unclear. The DIHK currently sees no general shortage of the provision of debt. Ifo boss Wagen sense however calls the credit crunch as the “main problem of the German economy”. In any case, the Volksbanks and Raiffeisenbanks want to expand their new lending business by 2.7 per cent in May, while savings banks were given six per cent more loans in the first four months.

Does the credit crunch exist now or not? If so, who is to blame? If not, who has an interest in shying away from fear? If two experts are asked about the topic, three opinions quickly circulate. The politicians, however, can confidently be attributed to the election campaign or their own helplessness. The bank scolding is indicative of the (co-) responsibility of the politicians for the financial crisis and the lack of acknowledgment of their own failure.

Small payday loan – What should be considered when borrowing?

Small loans on this scale are held by many banks and also gladly forgiven. The cost of lending is limited, the interest rates are moderate and the term is within a reasonable time frame. Brings the credit interested then still a good credit rating, the borrowing is nothing in the way.

Your way to the 4000 USD payday loan:

Your way to the 4000 usd loan:

In order to be able to overlook the range of possibilities even in a rudimentary manner, a comparison is worthwhile. Here on the Internet helps a comparison computer. He shows worthwhile loan offers, which can be used directly if you like. No matter in which direction the borrowing should go.

On top of that, many retailers now offer financing that can directly go into the purchase of products. However, it should be noted that these are earmarked loans. Although it can also succeed at this point to get a 4000 USD payday loan. Since the loan amount is always based on the financing value, it is more likely that a “crooked sum” as a financing sum at the end of the sheet is. In addition, there are no possibilities for comparison, since the dealer always holds only a financing offer. Especially with mail-order companies should therefore be expected very accurately. Often these have very high interest rates on their financings, which at first sight are not noticed.

What should be considered when borrowing?

What should be considered when borrowing?

A 4000 USD payday loan is not a complicated loan. But a good hedge must be given despite all this. Only this allows a smooth repayment and reduces the risk of default. Two important factors, which among other things also influence the calculation of the effective interest rate.

The higher the default risk, the higher the effective interest rate. So the very simple formula. Anyone who pays attention to a low effective interest rate as a loan seeker and does everything to keep it, can save a lot of money. Even with a small loan such as a loan of 4,000 usd, the difference may lie in the hundreds of usd that have to be repaid more or less to the bank. Because interest is paid monthly. And a high effective interest rate presents itself therefore every month again and again negative.

By the way: A good credit rating is achieved with the help of a positive credit bureau and a sufficiently high income. If possible, the income should come from a permanent position and have been received for at least three months. If there are problems in this regard, we recommend that you take the 4000 USD payday loan together with a guarantor. If this solvent is solvent, this will reduce the risk of default and, at the same time, the effective interest rate.