My WordPress Blog Fri, 07 Jun 2019 20:52:26 +0000 en-US hourly 1 Our 5 Tips for Avoiding a Real Estate Loan Fri, 07 Jun 2019 20:52:26 +0000  

Discover our 5 tips and tricks so that your bank accepts for sure your mortgage application!

Before embarking on the process of obtaining a mortgage loan, there are some good practices to apply in order not to have your loan application refused. We give you 5 tips and advice so that your loan takes place in the best conditions!

Tip # 1. Attention to account management

Tip # 1. Attention to account management

Make sure the accounts are in order, no overdraft during the three months, see the six months before applying for a loan at the bank. In the case of a small gap in the budget, it is better to shift the loan request to the next month in order to show the bank a positive image, that of a serious borrower, who will keep his budget and repay his loan. time and time.


Tip # 2. The 33% debt rule

Tip # 2. The 33% debt rule

This rule varies from bank to bank, but in general, one-third of the monthly net income should not be more than a loan repayment. If you have outstanding credits when applying for a home loan, the bank will likely reject your application. If the borrower has the opportunity to repay them upstream, it’s better! Sometimes the location or the general condition of the real estate can play a role in the bank’s decision. To secure a purchase, it is necessary to have your borrowing capacity assessed by a bank or broker before signing a sales agreement.


Tip # 3. A good contribution

A good loan contribution

Ideally, it is better to have a personal contribution corresponding to 10% of the sum borrowed. This personal contribution is used to pay the notary fees, warranty fees and handling fees (here, offered by Loan for Loan). Having a contribution greatly facilitates the loan application. However, there is always the possibility to make a loan at 110%, that is to say that the bank finances the 10% that the borrower does not have in addition to the 100% of the loan. However, fewer and fewer banks offer this type of mortgage. And, in general, the rate is much higher than a conventional loan.


Tip # 4. Have a stable job

Have a stable job

Having a steady job is a determining factor in obtaining a home loan. Justifying regular monthly income secures the bank on your repayment ability. For young workers at the beginning of their careers, it is important to emphasize future professional opportunities and future developments that involve salary increases.


Tip # 5. Call a broker

Call a broker

Going through a mortgage broker makes it much easier to get credit. The broker guides the borrower in his research, accompanies him in the assembly of an irreproachable file, advises him on the optimization of his financing plan and negotiates for him the best conditions of financing: credit rate, delegation of insurance, choice of guarantee, exemption from bank fees and with Loan for Loan, 0 € brokerage fees.

Your ability to manage your accounts, save and repay will help you get a mortgage.

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Checklist Creditworthiness: 7 criteria for a loan Tue, 04 Jun 2019 19:40:49 +0000

Whether it’s a car, home-building, home furnishing or other major purchases – these are classic situations where consumers usually apply for an online loan. Those interested in obtaining a loan must meet a whole range of requirements in order to maintain their creditworthiness.

  • What requirements must be met in order to take out a loan?
  • Which criteria do banks use to grant credit?

Importance of creditworthiness

Importance of creditworthiness

What is meant by creditworthiness?

If you want to apply for a loan, you have to prove your creditworthiness. This term is replaced today by the term credit rating. In short, creditworthiness means that a bank trusts the claimant to pay back the installments in duly completed installments . The parameters that decide on the creditworthiness of a client are a positive information of the Bank and a fixed income that is appropriate to the loan amount. By providing guarantors or property as collateral , applicants have the opportunity to increase their creditworthiness . A debt service is defined as any encumbrance associated with taking out a loan. On the basis of all income, expenses and other financial expenses, the bank can see whether the applicant can provide this additional capital service due to the credit. If the decision is positive, the creditworthiness is proven.

Those interested in obtaining a loan must meet a number of requirements in order to obtain credit from the principal bank or another bank.

Checklist: 7 criteria for a loan

1. The age of the borrower

The credit rating is a matter of age. For both a regular installment loan and a credit line, the applicant must be of legal age. Only at the age of 18 are young people considered fully capable of business. If you want to apply for a loan before, you need the signature of your legal guardian.

Age also plays an important role in lending in another way. Often the banks at the age of 65 draw the line. The background is that the residual debt insurance ends at this age. Seniors would either have to teach a guarantor or have collateral to obtain a loan. Overall, the group of pensioners is underrepresented in terms of loan requests. So far, this age group has increased savings.

2. The residence of the applicant

It persists stubbornly the thesis that in the east of Germany it was worse for the creditworthiness

ordered as in the west. The fact is: wages in the new federal states are about 30 percent lower than those in the rest of the republic, unemployment is higher. That says nothing about how it is ordered to the payment moral. Because a countercheck at the Bank shows that the negative entries spread evenly across all federal states. In the top 10 cities with the worst payment behavior, Schwerin is the first East German city in 10th place. Leader is the small town of Pirmasens in the Palatinate. The data analysis shows that there is a gap between north and south . In conurbations such as the Ruhr area, the debt is greater than in rural Bavaria.

3. The income

The necessary income, which banks determine as the basis for the creditworthiness, is a question of the desired loan amount. But with the income alone, it is not enough, because monthly fixed costs go down as well

  • Rent and ancillary costs
  • Cost of living
  • Possible maintenance obligations towards children
  • Current loans and installment payments
  • leases
  • Existing real estate or construction financing

More transparency would come about when banks each define income limits for certain loan amounts. The requirements vary from bank to bank. Also for the monthly expenditure various calculation models are used. Some calculate the cost per person with 600 euros, others with 800 euros. Of this, the rent is deducted. For small loans , the formula can be used to calculate the monthly net income X 3 = maximum possible loan amount.

4. The income of self-employed

For self-employed, income must match the desired amount of credit and the monthly installment. Banks demand the lending of recent months in the lending. Anyone who has been self-employed for some time, has it easier than someone who has been running his own business for a short time. Also, forecasts from experts or expert opinions form a guide for the banks. Tax returns and annual accounts are always required. Sometimes banks want to have insight into order books. There is no general procedure, it applies the individual case. The procurement modalities also depend on the type of credit.

Business loan or credit for entrepreneurs:
In order for a start-up loan to be granted, the bank depends on the usual collateral. In addition, many things stand and fall with the business idea and the business plan. If the clerk sees profits for the foreseeable future, credit is usually granted.

KAC loans:

The KAC  lends money to start-ups at favorable conditions, which do not have to be repaid immediately. Here a conclusive business plan decides on the creditworthiness.

Real estate loans:

In contrast to other loans, the bank has a mortgage registered in the land register, so that the property in case of doubt as collateral. Like everyone else, self-employed people must have equity in the purchase of property in order to be creditworthy. Financial experts advise to 25-30 percent of the purchase price.

5. Credit rating and Bank

If you want to compare the conditions of the individual banks, you must pay attention to an important detail. If a loan request is made to several institutions and passed on to the Bank, the customer is suspected of wanting to apply for several loans. The Bank thus concludes on a bad creditworthiness and poor economic conditions. Thus, the simple wish for a bid comparison can lead to bad creditworthiness. Customers should be careful to ask for a credit term request . If this request is sent to Bank, it will have no impact on the scores and it will be safe to procure all necessary credit information.

6. The amount of credit installments

If income and desired loan amount match, the bank will create a budget to set the monthly installment and thus the term . Borrowers are often insecure: Should they choose small installments because of low interest rates or put the money saved into higher eradication? In addition, not all rate options are possible. Most banks start at a term of up to eight years , excluding real estate loans. Basically, if you pay faster, you save . The higher monthly installment reduces the residual debt, which ensures less interest. This has the pleasant effect that at the same rate the eradication increases and the residual debt thus shrinks . In principle, therefore, a compound interest effect in the opposite direction.

7. The employment contract: What conditions apply to the employment contract?

Even with good earnings, lending fails because an employee is still in probation. The bank fears that the applicant will fail the probationary period and thus can not meet its payment obligations. For these reasons, lending to people in the probationary period is complex. The situation is somewhat different for a fixed-term employment contract. Banks have now reacted to the reality that more and more people only have the option of a fixed-term employment contract. If the loan repayment term, desired loan amount and remaining period of employment coincide, the banks generally give the green light to persons with fixed-term employment contracts. Otherwise, probationary and fixed-term workers have the option of providing collateral or providing a guarantee.

The collateral in the lending

The collateral in the lending

What collateral helps with lending?

The amount of collateral is equal to the volume of credit. If collateral collapses during the life of the loan or the loan is increased, the bank can claim additional collateral for creditworthiness. Collateral is divided into two categories.

personal security

Private guarantee: A third person is liable for the private loan guarantee of the borrower. If the form of the enforceable guarantee is chosen, the bank can immediately resort to the assets of the guarantor. More frequent, however, is the deficiency guarantee . The guarantor will only be held liable after the process against the debtor has ended without success. Guarantors are liable like the borrower. As a rule, relatives guarantee, besides friends and business partners come into question. Spouses are less welcome as guarantors because of their emotional attachment, sometimes problems arise in court. A bank does not have to accept the respective guarantor. Private guaranties not only present the guarantor with the risk of having to pay for the debt in the end. This can have a negative effect on the interpersonal relationship.

Bank guarantee: In the case of a bank guarantee, the bank acts as guarantor , the debtor pays an annual fee for this. Thus, the debtor is able to prove to third parties that he is able to meet his financial obligations. For private individuals, the bank guarantee is often used for rent deposits. The advantage of a bank guarantee is that the liquidity of the debtor is spared.

physical collateral

Mortgage or mortgage: Mortgages and mortgages usually refer to real estate or land. The valuation is simple: If the debtor does not fulfill his obligations, the bank can foreclose the property. A mortgage is repaid after repayment from the land register. The mortgage remains even after the eradication in the land register.

Assigned by security: Assigned by security means that the borrower hands over a movable property to the bank in trust, but uses it on a continuous basis. This principle comes into play when buying a car.

Assignment of claims: A borrower has the option of assigning the monthly salary claim to the bank as collateral. In case of default, the bank can contact the employer directly. Real estate is often financed in this way.


Required documents for the loan application

Required documents for the loan application

Which documents are usually required for the loan application?

The documents required for a loan application depend on the professional profile, but also on the type and duration of the loan.

Employees usually need:

  • Payroll from last year
  • Proof of an existing employment relationship
  • Tax return or income tax assessment
  • Proof of regular payments such as rent, maintenance, other loans, insurance, private pension
  • additional income
  • Information about savings accounts, stocks and other investments
  • Proof of real estate

The self-employed additionally require:

  • Profit and loss account
  • Economic evaluation
  • tax certificates
  • Business plan for start-ups


Different conditions and special features

What are the differences in terms of credit requirements?

Banks are bound by very rigid framework conditions when it comes to lending. Whoever fulfills all conditions and financially wants to have everything under one roof, is certainly well served by the house bank. However, flexibility is particularly important in today’s installment payments, as many consumers only want to bridge a financial shortage in the short term and need amounts between 100 and 3000 euros. This sum is unattractive for many conventional banks. Exactly this gap closes the Small Lender small loan. The term lasts a maximum of six months, so that no one has to tie up long. Transparency is the top priority, there are no hidden costs.

What changed credit conditions for students, pensioners, civil servants, self-employed, apprentices and the unemployed?

While civil servants and permanent employees are almost always on the safe side with basic credit ratings, students, the self-employed, pensioners and the unemployed have big problems getting a loan . Small loans and express loans have the great advantage not to exclude this group of people. For Small Lender, the condition for lending is that a monthly income of 500 euros and corresponding creditworthiness must be guaranteed. These are points that both students and recipients of Unemployment II and pensioners can meet.

Notice periods and right of withdrawal

Notice periods and right of withdrawal

Can a loan be terminated early?

If the financial situation changes for the better, many consumers would like to repay their loan prematurely. If the loan is terminated, the banks are entitled to a so-called prepayment penalty . This may amount to a maximum of one percent of the remaining debt. For example, if you have to repay 3000 euros of debt, you have to pay 30 euros. The situation is different with mortgage lending . Anyone who quits here before the expiry of a ten-year period often has to pay thousands of euros as compensation. In the event of a faulty cancellation policy or a loan with variable interest, the prepayment penalty no longer applies.

Is there a right of withdrawal?

Up to 14 days after the conclusion of a contract, it is possible to cancel a loan. This includes all types of loans from auto finance to home loan. Excluded from this right of revocation are small loans and so-called short-term contracts. The borrower must declare his withdrawal in writing , preferably by registered letter. A justification is not necessary. Banks must inform their customers of this cancellation option. A faulty cancellation policy makes it possible to withdraw from the loan for many years after conclusion of the contract. Mortgage lending can often save thousands of dollars.

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Are there loans in 5 minutes? Mon, 20 May 2019 20:30:37 +0000 Today we all want to get things instantly. Fast and simple, with the minimum procedures in order to streamline the process. We do not like long queues, long and heavy paperwork, or having to wait a long time for nothing. That’s why the loans were born in 5 minutes , which you can enjoy with Honest Credit. The leading company in loans and quick money throughout Spain.
If you want to know how they work and you do not like to wait, we recommend reading this article. In five minutes you will become a real loan expert and you can request the one that best suits your circumstances. Attentive!

What are the loans in 5 minutes?

What are the loans in 5 minutes?

Quick loans are economic transactions that are made between two parties, a lender and a borrower . The lender is leaving an economic amount in exchange for a commission. The borrower who requests the money for what he needs or wants.
Being ” fast ” or “instant” are characterized by having a certainly high commission, but the truth is that, if you request it with a minimum bank, you will need 20 days to take the money into account. So most people prefer to request money in this way, since in a few hours they have it in their bank account, available to be used at all times.

How to apply for a quick loan with Honest Credit?

How to apply for a quick loan with Honest Credit?

Applying for a quick loan with Honest Credit is a quick and easy process. You just have to enter the main page of Honest Credit and select the economic amount that you prefer. From 50 to 750 euros , you can choose the amount that best suits your circumstances. At this time you will also have to select the temporary period that best suits you, with a maximum of 30 days.
Both the time period and the money will be reflected in the contract, so that both parties abide by the agreement and do not violate the terms or conditions.
Once you click on the button ” request it now ” you will be directed to another page where you must fill in some basic information, such as, for example, personal data, direct debit and economic situation. You do not have to worry, 90% of cases are accepted and this process only takes a couple of minutes to cover it.
After 15 minutes or so, you will be informed if the process is accepted and, in less than 24 hours, you will have it available in your bank account to use it as soon as possible.

Advantages of applying for a quick loan

Advantages of applying for a quick loan

The advantages of asking for instant money through the Honest Credit platform are many, especially if you take into account the temporary deadlines. Next, we will detail what they consist of.

Quick and easy

The process to request a loan with us is super easy and intuitive. In our main page you will only have to move some bars to the sides to select the amount and on the next page, cover some blank boxes. We ensure that the process is so simple that you will not even notice it.
On the other hand, with the banking entities you will have to present a lot of procedures that with Honest Credit are totally unnecessary.

No paperwork

As we said in the previous section. We do not need you to do any additional paperwork or paperwork. Just fill in the questions we ask you on the second page. That way you will not have to worry about anything else. You will not waste your time and everything will be very comfortable.

No more justifications

Forget about having to justify why you want the money. With Honest Credit that has ceased to be a requirement. The financiers of your locality will ask you for what you want the economic amount, if it is necessary, what is your economic solvency, if you have a nomic, what is the project that you are going to play … Our team will never ask for justifications or you will have to explain the purpose of the money you request.

Without endorsement

You do not need to have a guarantee to request a quick money. The banks do require that you present a property, such as your home, or a natural person who supports the return of the loan without an endorsement if you can not cope. In case you do not meet the deadlines stipulated in the contract, you will have to attend to the consequences, be it a major economic sanction or the relevant judicial process.

It does not matter if you do not have a payroll

Payroll is not an essential requirement for us either. Of course, you must present economic solvency through an aid, grant or scholarship. In this way we will know that you can return the amount enjoyed in full, at the end of the contract.

Disadvantages of quick loans

Disadvantages of quick loans

In our company we like to be clear and transparent from the first moment, so we will tell you what the disadvantages of online loans are. They have two main ones. One of them focuses on the fact that the commissions are high, so you will have to return a much higher amount than the one you enjoyed. And, the other is that the time frame is relatively low, 30 days do not convince everyone.
Although, this is the best solution when you need a quick money as soon as possible . So weigh carefully the pros and cons. When you make a decision contact our customer service, we will be happy to answer your questions 24 hours a day.

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What financing method for your investments? Thu, 25 Apr 2019 19:48:04 +0000 That’s it you decided. You know what equipment to invest in and you know the purchase price. Now we have to fund it. In cash? By borrowing or renting?
To find the right financing method, reassure increasingly demanding financial partners, your accountant is at your side to help you choose the best solution and evaluate with you the economic benefits of this investment.

Because whatever the amount of your investment, you will have to motivate your request and present a solid financing plan that demonstrates the feasibility of your project.



Do you want to self-finance your purchase? The advantage of self-financing is that it is free (thanks to previous profits) and protects you from the high cost of credit. You will not have any repayments to expect and you return the image of a healthy and prosperous company.

But to choose this solution you need to know your real self-financing capacity by avoiding spending all your cash, which could be used more judiciously especially if the interest rates are low.

Moreover, the use of profits for self-financing does not make it possible to remunerate the shareholders. Finally, most often, self-financing can only cover part of the investment. An expert accountant like Finexcom in Montpellier then performs for you a simulation by optimizing the assumptions and helps you to find the most appropriate level of financing.

Bank loan


Another obvious solution is the classic loan. It will require establishing a complete file for the bank. The accountant can help you design this file to meet the criteria for obtaining financing, by collecting all the necessary information. It assesses your financial situation based on your balance sheets and the impact of your investment on your financial situation.

It establishes your real repayment capacity, one that will not put the company in danger, and credibility your application with the bank. Finally he enlighten you on taxation. Once the necessary file has been established, he can contact the bank directly to negotiate the best terms possible with him. At the key of substantial savings.



The long-term lease or LLD is to buy the property for professional use necessary for the activity by a financial institution. In exchange, the latter rent it to you via a lease agreement with no option to purchase at the end of the financing. The costs are related to the booking fees, the deposit (returned at the end of the contract) and rents HT. Here again, the accountant helps you by performing a simulation, accompanies you to your bank if you want to finance this rental and takes stock of VAT.

Leasing or leasing


It saves cash by renting your equipment rather than buying it. Leasing, which is tax efficient, usually has an option to purchase at the end of the period of use. Be careful though of the penalties if you break the contract before the end. The lease-back is a variant that allows you to sell your property while continuing to use it against rents.

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Investment and asset accumulation: the loan investment types Sat, 20 Apr 2019 03:28:29 +0000 The topics of investment, asset accumulation and old-age provision are ubiquitously relevant. With interest rates on the rise, many investors are forced to rethink their asset-building strategy. The recent discussion about the poor means of the statutory pension insurance, which for many predetermine old-age poverty mean, give rise to more in-depth attention to financial products and investment forms.

Principles of investment and rules for asset accumulation

Principles of investment and rules for asset accumulation

Regardless of which investment type an investor is counting on, every responsible saver should know and consider some important rules and principles in order to be successful in asset accumulation:

  • Debt settlement is a top priority
  • Successful asset accumulation requires thorough planning
  • Pursue a long-term and consistent plan
  • Distribute savings on different investment forms to minimize the risk of loss
  • Keep an eye on the entire portfolio for every investment decision
  • Pay attention to the interplay between return and risk
  • Long-term investments prefer
  • Pay attention to the costs of the investment forms

 A new car, the dream of your own home or retirement – there are many reasons to save.

Debt settlement: the most effective form of investment

Debt settlement: the most effective form of investment

A new car, the dream of your own home or retirement – there are many reasons to save. Nevertheless, anyone who wants to save systematically and regularly repay part of their income should first repay their debts. It is more advantageous to use an inheritance or a one-time payment from his employer to replace existing loans or to compensate for the credit line than to invest the money. In general, the interest rates on loans are significantly higher than the return that can be earned with an investment.

Proceed systematically

Saving requires a high degree of self-discipline. Anyone who plans his asset accumulation and proceeds systematically will find it easier to reach his savings target. Experience shows that the savers, who act according to plan, react more calmly in the event of violent price fluctuations and are better protected against panic-related misbehavior.

Diversification: The A and O at the investment

The best financial experts can not predict how an investment will develop in the future. Economic development is determined by the interplay of many factors that can not be calculated even with complex models. In addition, sometimes political events have a dramatic impact on the price of stocks, bonds, currencies or commodity prices. To compensate for such fluctuations and minimize the risk of loss, investors should invest their savings as widely as possible . In the financial world, this diversification of invested money into various forms of investment is called diversification. Anyone who invests scattered money can compensate for losses on an investment with profits from other investment forms.

Relationship between investment duration and investment performance

Relationship between investment duration and investment performance

Experience shows that long-term oriented investors are the most successful. Therefore, anyone who wants to build a financial cushion for old age, as early as possible to start retirement . Over many years, short-term price fluctuations play a subordinate role. In addition, many investors underestimate the positive impact of the compounding effect , which significantly increases the return on long-term investments.

Often ignored: The cost of investing

Often ignored: The cost of investing

Every form of investment causes costs. When buying and selling shares and other securities, transaction costs, fees and sometimes brokerage commissions are due. In addition, owners of securities need a deposit for which the financial institution collects custody fees. Shareholders of funds will not only participate in the profits generated, but also in the costs of managing the assets. Many investors are interested in gold to safely invest savings. Those who buy physical gold must keep in mind that safekeeping entails the cost of a safe deposit box or the purchase of a safe.

The costs incurred must be carefully considered when planning your investment because they reduce the return on the investment.

The main criteria of investment for asset accumulation:

Risk, security, availability

After all, the financial market offers a wealth of products that should be used differently depending on the individual situation. In any case, when wealth is accumulated, never put everything on one card.

An effective asset accumulation can only be achieved through a sensible mix of risk, security and availability.

How the weighting of the individual shares in the individual investment portfolio should turn out, however, is determined by the initial situation of the individual saver and, of course, the type of investor.

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