How to detect traps when obtaining a credit

Sure you, like us, know many cases where the applicant ended up paying a huge amount at the end of the term of your credit, or worse, while running your loan things did not turn out as they seemed at first.

This is something to which we are all exposed, mainly due to a lack of culture and financial education, this to some extent is not anyone’s fault, however, it is also everyone’s fault.

At Credifiel we continually receive applicants who have previously had bad and very unpleasant experiences when they had the need to request a loan.

It is true that in most cases, this happens because of a lack of information but it also happens because they do not talk about all the “Details” that involve the credits.    Usually, when people apply for a loan, it is because there is a great need behind them and it really afflicts them, so all they want is to get the money to solve a situation.

That is why it usually happens that at the time of the request, they do not pay attention to the details and in the end, people do not know exactly what they hire. In Credifiel we are aware of all this, for which, it is important for us to talk about the seriousness of the credit institutions and also, give you the necessary tips so that you can detect the most common, and not so common, traps that exist at the moment of request a financing.

Do you want to know them?

Let’s see them below:

  • The institution is not registered in CONDUSEF: CONDUSEF is the body in charge of regulating and overseeing your finances. The way to do it is through the regulation of financial and credit institutions.
  • That is why, before approaching any of them, you must verify that this body actually endorses it. With this, you can be sure that the credit is 100% reliable and that your needs will be covered in the best way.
  • Otherwise, what could you expect from an unrecognized company? It is also important that you report on your success stories, all recognized and reliable credit companies must have enough and in addition, in a visible manner.
  • Try to search the news all the evidence and references that exist of this organization, always the recommendations and the ratings given by the clients are one of the values that you should see in your suppliers.
  • Excessive and harmful use of technical language: One of the most common pitfalls that financial advisors use when they wish to cheat is the excessive use of bombastic words and technical language.
  • The reason is obvious, when people do not know about the industry, to listen to all the explanations with a language that is not very understandable, it makes people not understand and then it is easier to “turn the matter around”.
  • Most likely, if the applicants ask for an explanation in a more “digestible” way, the advisors use other words or terms that sound convincing as long as people accept the loan product.

If you notice that the language with which they explain the details and the operation of the credit is not very understandable, then do not trust them.

Much less you do it if under any criteria they can speak to you in a clear way. Maybe all they want is to cheat you.

  • Fees, guarantees and commissions: This is a point that for any reason you can lose sight of during the explanation of the credit provided by the advisor, on the contrary, it will be necessary that you focus a large percentage of your attention on it.
  • Do the first years have a low quota? Do they offer you great credits without an endorsement? To avoid any kind of bad experience or surprise, ask about the numbers to pay throughout the term of the credit, only then you can have a bigger picture of the amount you are going to pay during all the time you have the money.
  • For example, if they tell you that during the first years you will pay a low-interest rate, you should ask what happens after that period of time. Do interests accumulate? Is the interest rate multiplied?

It is also important that you watch the type of endorsement they ask for, for example, if the credit is small and they ask you for a real estate guarantee it will be better if you do not even think about taking it and withdrawing it with your healthy and safe finances.

Remember that a loan is to satisfy your needs and help you start your projects, so you should avoid in the greatest amount any type of “Rare” situation that may arise.

Many of them do not notice but they do feel.

In Credifiel we have granted more than 285, 040 loans, with which, more than 324, 694 families have been satisfied and completely happy because they made their dreams and projects come true.

Do you already know which one is yours and those of your family? So if you are a worker of a government agency request your credit via payroll right now, remember that it is already July and the time to meet goals does not wait.

Be part of our more than 1, 018, 520 smiles that have happily been able to meet your needs.

At Credifiel we listen to you and understand your needs, that is why we provide loans to workers from different government agencies who often do not have ample access to financial products.

Thewritingblockonline process your loan immediately.

The process is very simple since we have agreements with the government companies and the validation of data is carried out very quickly.

All you have to do is contact us to become one of our success stories.

Once you provide us with some information, we will verify it and within no more than 48 business hours you will have news. The advantage that gives you working in a public education institution is that the payment of your credit can be done under the process of “Payroll Discount”, so the interest is reduced so you can take better advantage of your credit.

If interest rates are low, you can save money by rescheduling an old loan

In this context, 15,000 euros is a popular loan. However, the long-awaited dream of a new car can also be realized in this way: according to the FinanceScout24 2014 Credit Study, eight percent of all loans are taken out. These are funded on average with 18,567 euros.

How to find the right € 15,000 loan

Whether the new car, a new kitchen or the move – with 15,000 euros, many dreams can be put into action. Even if you can not wait any longer: Before borrowing, you should take enough time. After all, this is also associated with financial obligations. If you stick to the following tips, you will find the right € 15,000 loan for your needs relatively quickly.

Credit for the new car: compare prices

Often only the comparison shows which offers are real bargains. Therefore, you should allow some time for a comparison of different new cars before borrowing. You can use independent comparison portals on the internet for this. Most of the time you can save hundreds or even thousands of Euros. So you lower the total loan amount and save interest.

Tip: put cars together online

On the websites of car manufacturers, you almost always have the opportunity to put together the desired car virtually. These configurators provide a 360-degree view, detail images of optional equipment and a detailed cost overview.

Budget calculation: find out your own scope

Before borrowing, be sure to find out what rate you can safely spend each month. This will prevent you from overburdening yourself financially. A household bill compares your monthly income with all expenses. These expenses include not only the rent but also, for example, the cost of:

free time activities
care products

Tip: Schedule buffers

If you have deducted all income from your income, you get your personal financial leeway. However, the credit should not exhaust this space: Plan for a buffer so you are prepared for extraordinary expenses. This includes, for example, the repair of the car or the purchase of a new washing machine.

Determine maximum credit volume

After finding out what rate you can afford on a monthly basis, you can now determine the maximum loan volume. This means the maximum you can afford for your desired term. Helpful here is a budget calculator on the Internet.

Before the rescheduling: Check current loan conditions

In some cases, it may make sense to replace the residual debt of an old loan with a new one – for example, if there is currently a lower interest rate than at the time of borrowing. Then you can get significantly better interest rates and reduce your overall costs. Above all, this is worthwhile if you have to repay several loans and combine them into a new loan.

How much you can save by rescheduling depends mainly on your current conditions. So take a look at your contract to find out the following key metrics:

Effective interest rate
Remaining time
remaining debt
Monthly repayment installment
Then you should compare your existing loan with other offers. For example, you can use independent comparison portals on the Internet. In any case, the comparison is worthwhile: Imagine having taken out a loan of 20,000 euros five years ago. Your remaining debt is currently 15,000 euros with an interest rate of eight percent. If you then find an offer with an effective interest rate of only five percent, you can save around a thousand euros.

Attention: Plan prepayment penalty

If you cancel your credit agreement early in favor of a new one, the bank may demand compensation for this. How high this is, you should find out in advance. Often a look into the contract is enough.

Consider your own needs and question them

Take a 15,000 euro loan, you can finally finance the long-awaited new car or make a beneficial debt restructuring. However, this also goes hand in hand with financial obligations. Therefore, ask yourself the following questions before going this step:

Do I really want to go into debt for a new car, even though it loses value quickly?
Would a cheaper used car be an alternative for me?
Is the rescheduling of my loan worth it, because, for example, I expect much more attractive interest rates?

Step by step to the 15,000 euro loan

The following step-by-step guide shows you how to quickly find the loan that suits your own needs and opportunities:

Compare providers
Before you decide on an option, you should compare the different providers. Basically, you have two options for taking out a loan for a new car:
Financing with the vehicle manufacturer
Credit at the bank
Often you will be courted with very attractive interest rates if you inquire directly from the car manufacturer for a financing. But the total funding is not only dependent on interest and therefore often much higher than initially thought. Also crucial is the amount of down payment, monthly installments, and final installments.

Good to know: Plan bargain discount

Most manufacturers offer discounts if you can pay the entire amount in one fell swoop. Not infrequently, this discount is ten to 15 percent of the purchase price. You can secure this with a loan from the bank. Overall, this is often cheaper, although financing from the manufacturer may offer more attractive interest rates.

compare offers
Via comparison portals on the Internet, you have the opportunity to compare countless offers for loans. To do this, you must enter your desired loan amount. The amount of money that you have to pay back depends on many factors. These should be taken before your decision under scrutiny: Annual percentage rate, duration, amount of monthly installments.
Even in the case of debt restructuring, a comprehensive comparison of the offers is worthwhile. However, before you cancel your existing loan agreement, you should present your chosen offers at your local bank. Often, but not always, the bank then comes to you and presents you with a new offer to keep you as a customer.
Make a loan application
If you have compared different offers and providers online, you can usually apply for the credit with just a few clicks. You will need to provide some personal information, such as:
name and address
marital status
In addition, many providers require that you also specify negative entries in your Schufa information. You can request the information online – but this may take some time, as you must send a copy of your identity card or passport and the application form by post to the Schufa.
Before concluding a loan, the bank must make sure that you are the person you impersonate. At the branch office, this is really easy: Simply present your identity card or passport here. For online loans, however, providers need to resort to other methods. The most common is the Postident procedure of Deutsche Post.
loan disbursement
Once you have successfully applied for the payday loan consolidation and verified your identity, the bank will now check your details- here you go. These include, for example, your credit rating and your income.