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What you need to know about online social micro credit

Reserved for people most in financial difficulty, social micro credit allows the borrower to finance property in order to improve his daily life and his situation. How to learn about social micro credit? Where to apply?

If the micro credit professional is granted to create or develop a professional activity, the micro credit social, it, aims to improve the situation of the borrower through a personal project. It allows the buyer to borrow between 300 and 5,000 euros. It is mainly intended for people who can not get a bank loan. It is a loan obtained at a reduced rate and guaranteed jointly by the State and the lending institution. The repayment period for this type of loan is five years maximum.

Created in 2005, the Social Cohesion Fund has promoted the development of personal microcredit by providing the Cassa Pat Consignations with a budget to guarantee these loans up to 50%. For institutions, personal microcredit serves to combat both bank exclusion and household over-indebtedness. In 2016, an estimated 5 million people can not qualify for a conventional bank loan.

Who can benefit from social micro credit online?

Who can benefit from social micro credit online?

Social micro-credit is rather reserved for people who can not obtain a conventional bank loan. Among these people, those with too low incomes whose debt ratio of a conventional loan, about 33%, would be too important. People with no job stability, such as permanent workers, often have difficulty borrowing money. Young people, job seekers or beneficiaries of the RSA can apply for social micro credit. Finally, prohibited bankers in the central check file can also claim a micro credit online.

What can a social micro credit fund?

What can a social micro credit fund?

If the basic loan is between 300 and 5,000 euros, this amount can be revised depending on the situation of the borrower. In many cases, microcredit can be used to purchase or repair a vehicle for the purpose of getting to work or getting a job. This is the case for more than 74% of loans granted in 2014, according to Cassa Pat Consignations , for an average loan amount of € 2,266. Nevertheless, the borrower is entitled to use this money to finance another type of property, to the extent that it relates to employment or professional mobility.

How to apply for a social micro credit online?

How to apply for a social micro credit online?

First of all, you should know that it is not possible to directly apply for a social micro credit online. However, it may be worthwhile to start some online approaches to the future social micro-credit application to find out which organizations might lend on more flexible terms.

Micro credit social online: where to inquire?

Micro credit social online: where to inquire?

Without being able to apply for a social micro credit online, it is possible to find which organizations lend easily money. Among them, the local missions or associations such as the Restos du coeur or the Red Cross. These associations can act as intermediaries with the bank or even sometimes act as guarantors of a bank loan. They will support the beneficiary in his efforts and guide him towards the most appropriate financial institution. A simple search on the internet will make an appointment with these various associations near your place of residence. If all banks do not offer the micro credit social option, some are partners.

Among the best known, Creditcole, Crediteriol, the Foster Bank or Credit Mutual. No organism is to be neglected, it is better to consult too much than not enough to have more chances to see the project succeed.

And if you prefer to apply for a social micro credit online, it is possible to proceed by mail, filling carefully some boxes. It is essential to explain the reason for the use of social micro-credit: in particular, what kind of property will it finance? It will also explain the cause of the refusal of conventional bank loan: income too low? Searching for a job? Finally, do not forget to indicate your availability and time slots to which you can be attached. You will be contacted to arrange an appointment and finalize the funding project.

This preliminary request will allow the organization to study the solutions before contacting you. Be careful, do not neglect this step, which can be decisive on the sequence of events and allow you to get a social credit or not. top

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Which credits to buy back? How to buy back credits?

The redemption of credits, for whom? Why? Which credits are concerned?

The redemption of credits, for whom? Why? Which credits are concerned?

The redemption of credit is a tempting solution when it becomes difficult to repay debts. It allows to group all its credits in one in the same bank by extending the repayment period but especially by reducing the monthly payment which gives us the feeling of lightening our budget.

Although it has short-term benefits, in the long run, buying back credit is not always an economical solution. Indeed, the longer the repayment period is to reduce the monthly payments, the more we increase the total cost of our credit via the additional interest that we will repay. So must we buy back all the credits? What credits can we buy?

First of all, when we talk about credit redemption, there are several situations open to us. The first is the purchase of real estate loans, which can be grouped together with one or more consumer credits. The second is the repurchase of unsecured credits (ie one or more consumer credits). Finally, the third situation corresponds to the repurchase loan redemption.

The repurchase of credit is a solution open to all, but is often chosen by people at the limit of over-indebtedness, not having filed a file with the Bank of France. However, we will need to justify a serene banking history (no registration at the Banque de France, no banking prohibition) as well as sustainable income at the time of the request for redemption. People on permanent contracts, retired or pre-retirement are therefore eligible for the repurchase of credit. In the case of a fixed-term contract or an interim contract, the files are studied on a case-by-case basis by the banking organizations. Remember: when you buy a credit, do not forget to make sure you can repay it. To accumulate small credits here and there can lead you to difficult situations at the end of the month.

Real estate loans case

Real estate loans case

You own a property and you want to change the conditions of your mortgage or your real estate loans, but also if necessary, that of your consumer credit, several solutions are possible depending on what you want: reduce monthly payments, reduce the repayment term, get better interest rates.

First of all, when we talk about the purchase of one-off real estate loans (without a built-in buy-out with one or more consumer loans), it is important to think first about the interest rates associated with this purchase. Indeed, the interest rates on the mortgage vary over the years, so it is sometimes interesting to resort to the redemption of credit, when the current rates are lower than the rates of your old credit (currently depending on your situation, you can find real estate loans with rates of 1.4%).
It is imperative to keep your objective in mind and to estimate the costs that this purchase will generate. So, when you are looking to reduce the monthly payments of your mortgage, look at the repayment period in which you are located. The redemption will not be the same if you are at the beginning or end of the repayment. So, for your redemption to be interesting, if you are in the first third of repayment, you will have to subscribe to a credit redemption with a new interest rate lower than 1 point (0.01%) whereas if you are in the 2nd third, you will need to look for rates lower than at least 2 points (0.03%). The other case is where you are looking to get rid by ending your mortgage sooner. In this case, you will seek to reduce the duration of your credit. In order for this to be beneficial for you, you will need to make sure that the sum of the monthly payments and the amount of interest you will repay is less than you would have had to repay without the repurchase of the credit.

The second possible case to buy a mortgage is to couple it with one or more consumer credits. Note that you can not group credits such as the PTZ (zero rate loan) or the loan 1% housing. Other consumer loans and real estate loans can be grouped together to be bought back under the same credit.
In both cases, the new banking organization will cover the repayment of all or part of your debts and you will only repay a monthly payment to the latter, over a period ranging from 5 to 30 years. The monthly payment will therefore vary according to the interest rate at which you will have negotiated the new contract, your debt ratio and your income. Remember that when you redeem your mortgage, the bank can ask you for collateral and can do a mortgage on your property. If you do not repay your credit, your property will be seized and auctioned to compensate the financial institution.
Finally, you will note that when the share of real estate loans does not exceed 60% of the total sum due to the different funding organizations (or if applicable to the same organization, if all your credits were subscribed in the same place), the repurchase of credit is considered a buyback of consumer credit. The share of consumer credit must always be greater than 40% of the total amount to be repaid.

Case of the purchase of consumer credit

Case of the purchase of consumer credit

In this case, you do not need to have a real estate loan to request the redemption of your credits, you will just need to have one or more credits for consumption type assigned credits (for the purchase of a property, the financing of a defined project), personal loans (the funds can be used without proof), personal microcredits (when your situation does not allow you to subscribe to a consumer credit), revolving credits (revolving credits) or student loans.

As for the repurchase of a mortgage, you will call on a banking organization which will take care of the redemption of all or a part of the sums which you owe, thanks to the early repayment of your debts. This will allow you to benefit from advantageous rates. In the case of revolving loans, the rates can reach up to 20%. Redeeming your credit by linking it to others will allow you to lower the rate and costs associated with this credit. Beware anyway: the more you extend the duration (the maximum being set at 12 years) and lower monthly payments, the higher the costs are important. It is therefore imperative to perform simulations of real costs (there are a large number of websites that allow you to easily perform simulations, do not hesitate). Do not forget also that you will probably have a bank or brokerage fee (if you decide to use a broker to discount the best offer). In addition, the new organization may impose insurance on you, which will increase fees. Find out about the real gains and costs of this type of transaction.

Relay credit case

Relay credit case

Finally, when you want to move and you already own, it is possible to subscribe to a bridge loan. This loan will allow you to buy the new property while waiting to sell your old property. The time between the two transactions is short: from 6 months to a year. The purchase of your bridge loan allows you to increase the time between the purchase and sale of your property. Be careful though: if you have not sold your property during the term of the contract, the banking organization is obliged to renew this period once. Beyond this extension you may be forced to repay all of your credit to your bank… In this case, the purchase of your bridge loan can be a boon to get you out of a critical situation. If this case is the most common, it is not the only one. Buying a bridge loan can be achieved when you change your mind, for example when you decide not to sell but to rent your home.

Whatever your choice, you can either buy back your loan relay to subscribe to another bridge loan with another bank. This solution is very expensive, you will need to sell your property as soon as possible. Why ? Because when you buy your bridge loan, you will have to pay all of the principal due but also all the interest related to this amount. The other solution is to make a depreciable real estate loan that allows you to rent your property that you can not sell to repay the monthly payments of your credit. It is also important to note that many banking organizations are wary and ask for collateral, as in the case of the redemption of mortgage, the mortgage of your property. top

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What loan work for what situation?

Nowadays, insufficient funds for the realization of a real estate project is an easy problem to solve. The banks and organizations authorized in the financial loan nowadays offer a large inventory of financial credit offers. To finance an interior design and decoration, construction or renovation work or housing extension works, the loan works is a must credit proposal. It should be noted that the work loan is not difficult to ask. It suffices to justify the different charges that will be paid by this type of loan. Whether for the purchase of materials, furniture or home equipment, or for the payment of a professional service in the building, the loan works can be used, regardless of your project.

The loan works to pay a provider in construction or decoration

The loan works to pay a provider in construction or decoration

If you have used a professional service provider to carry out your interior construction or renovation project, a work loan is very useful. Whether it’s an architect or an interior designer, a bricklayer or a construction company … all the different building service providers who provide their service can be paid for with the help of a credit works. You just have to find the best job loan offer at the moment which allows you to benefit from an excellent rate and good repayment terms. How to find this kind of financial credit? The use of an online work loan comparator can be very useful in finding the best credit offer available on the market. Just a few minutes and you will get a list of different loan proposals works that perfectly fit your situation.

The loan works, the essential for a small or a large building site

Currently, you can discover loan offers work for small or large construction site. If you need only 5,000 euros for your construction project or interior refurbishment, it should be noted that the offers of revolving credit allow you to borrow this amount. For the justification of the use of these funds, it is not necessary to present supporting documents.

In case of major renovation work, it is possible to borrow up to 15,000 euros. For home improvement projects or renovation of your roof, your loan works can reach this amount. In this type of situation, the repayment of your loan works can go up to 84 months approximately. If you are planning the loan application works this amount, it is important to insure his credit works. Having a borrower insurance is essential to obtain this type of loan. Before applying for loan work, be sure to choose a borrower insurance aside so that your application can be accepted.