Archive February 2019

Improve Credit Score – 9 tips to Improve Your Credit Rating

Commercials from low interest banks are always going well. But if the customer initially has the official loan offer, the terms are usually much worse. The reason: the amount of interest depends mostly on the creditworthiness of the applicant. This is where the private credit comes into play. With the following 9 tips you can optimize your score.

What is in the private credit?

What is in the private credit?

private credit has information about your current contracts, especially if they are related to installment payments. These include, for example, current loans, installments or mobile phone contracts. As soon as you conclude a contract with, for example, a bank, a mail-order company or a mobile phone provider, the respective company will not only ask you to check your creditworthiness with private credit. It also reports to the credit agency immediately the data of the newly concluded contract. At the same time the credit agency (if any) stores hard negative features, such as ongoing dunning procedures, executions, or affidavits. From the sum of the data your personal creditworthiness is determined within the framework of the so-called score, see further explanation below.

What is the score?

What is the score?

The number between 0 and 100 indicates the statistical probability with which a borrower will meet his payment obligations in the future. The higher the value, the better the credit rating of a person. The result is calculated from all available entries – both positive and negative – using a mathematical-statistical procedure. Please refer to the following table for the evaluation of the credit default risk score. private credit score table Score value probability of default 97.5% to 100% very low default risk for a loan 95% – 97.5% low to manageable risk of default 90% – 95% satisfactory to increased risk 80% – 90% significantly increased to high risk 50% – 80% very high risk less than 50% very critical risk

How to improve your private credit score

How to improve your private credit score

Now to the actual topic and the question : how can I improve my private credit? With the following 9 tips you can increase your own score. This will give you more attractive terms in the future, for example when you need a loan.

Cancel unused contracts

Cancel unused contracts

No longer needed or multiple existing contracts should be discontinued if possible. Because every financial commitment reduces your remaining monthly budget. A lower “available” income increases the potential risk of default on a future loan, which in turn rates the private credit with a lower score. Here are some examples of contracts you should cancel.

  • second mobile phone contract

    second mobile phone contract

  • second credit card
  • second account
  • no longer used mail-order account
  • more loans

Conditions – instead of credit request

If you are still in the comparison and selection phase of various offers, you should request from the respective bank no credit request, but a condition request. Multiple credit inquiries at various financial institutions also lower your score. Because it could theoretically be that your application was previously rejected at other banks. The “theoretically could be” enough for a deterioration of your credit rating, unfortunately.

High credit line improves credit rating

High credit line improves credit rating

A loan with a high sum should improve the private credit Score? That sounds contradictory at first. But a credit line actually has a positive effect on the credit rating. The whole thing is to be understood as follows: If the current account holder applies to his bank for a posting, the bank first checks its creditworthiness. Only if the result of the test is positive will a commitment be made. The trust of the bank signals to the outside that the customer is trustworthy. Another credit factor is the amount of the credit line. Banks set the maximum amount of the credit line according to income. Two to three times the monthly income is still used as a guideline. The private credit draws from the height of the limit, in turn, conclusions on the income of the user.

Tip: Be careful not to overdraw the account beyond the line of credit. Because the bank announces the limit, this in turn has a negative effect. Here it is only about “owning” the credit line.

Bills always pay on time

Also not or late paid bills are noted in the private credit. At the latest when a debt collection procedure has been initiated or a dunning procedure threatens, the accounts receivable should have been settled. For once the information has arrived at the credit reference agency, the later deletion often turns out to be costly. Important to know: the message to the private credit is made by the creditor. This is the person / company that gets money from you.

Tip: Since some creditors – such as mobile service providers – make overly zealous and premature private credit messages, you should as a debtor for arrears quickly contact the creditor. With a friendly solution, the entry can often be prevented.

Avoid installment purchases whenever possible

Avoid installment purchases whenever possible

Buy today, pay in six months, and do it for 0%? Do not touch it if your credit rating is worth it. Because a purchase on installments – no matter how cheap advertising advertises him – is equivalent to a loan, and is therefore reported to the private credit as another payment obligation.

Merge several loans

Merge several loans

Again, the motto is: less is more. Each additional loan increases the risk of default on a new loan, thus worsening your “situation”. If you want to take out a loan but you already own one or more old loans, you should take the opportunity to reschedule your debt. Merging several contracts has several advantages:

  • You gain a better overview of your own finances.
  • You can lower your overall loan rate if the terms of legacy contracts have been worse in the past. This is to be assumed in the current low-interest phase.
  • The future risk of default decreases and your credit rating improves as a result.

Correct incorrect entries

After you have obtained a personal information, you should definitely check the data in it. Because sometimes the listing is faulty, or contains no more current entries. If you find the data wrong, you should act immediately. The credit agency is obliged to delete or adjust incorrect entries. If out-of-date contracts are no longer valid, this will most likely also improve your private credit score.

Please note that it may take several weeks for the data to be completely deleted. Hard negative features such as an affidavit remain in the rating even after completion of up to three years.

Residential area affects score

Residential area affects score

This is the so-called GEO-scoring. The private credit incorporates information on the residential area in the calculation of creditworthiness. If the person lives in a good / prosperous residential area, this speaks for a solid financial basis. In contrast, for example, a flat in a neighborhood with a social focus is classified by the credit agency as negative. Unfortunately, GEO scoring does not depend on the actual financial situation of the person concerned. If this is a paid-up single-family dwelling within a residential area with many financially weaker persons, this can still have a negative effect on the score.

The credit agency assures on its homepage, “with sufficient data situation” to carry out no GEO scoring. However, different opinions circulate in specialist circles about this.

Consistency pays off

Consistency pays off

The private credit rewards “continuity”. For example, the calculation takes into account how long a person lives in the same place of residence. Frequent removals are considered by the credit agency also from a financial point of view. The same applies if a consumer changes the current account several times. A frequent bank transfer may indicate possible money problems, even if this is not the case.

The fact that a change of bank can in turn be related to a move, which in turn serves to improve the professional and financial situation, does not make this point seem very fair from a consumer point of view.

Conclusion: what do we take with us?

The operation of the credit reference agency is very mathematical. Expressing the probable payment behavior of a person in a single number may seem very effective. However, the calculation is based on many assumptions and contexts, which are actually not checked for objective accuracy. However, anyone who knows how private credit works and what data it stores can actually influence its own situation.

Internet loans up to PLN 8000 – Quick Cash

Each of us sometimes counts a financial hole. Once smaller, sometimes bigger, and sometimes they are regular problems with the addition of a monthly home budget. Some people run into problems of their own fault, others simply do not earn enough to meet all the basic needs of the family. They are usually people who have no savings to help them in case of problems.

So if you belong to this group or just looking for extra cash to buy new computer equipment or family vacations, we suggest a good and quick way to get it. It’s a cash loan from Quick Cash. We will tell you how to get it and prove that our payday has the same advantages.

Why do you like to take Cracow?

Why do you like to take Cracow?

The very existence of payday loans on the Polish financial market is nothing new. They have been functioning here for about two decades. But in recent years have undergone profound changes, have become more modern, safer and maximum available. An example is Skylan Creditme, which offers such loans. We will show you what our love loans Krakow, its immediate surroundings and all of Poland loved.

  1. Zero certificates . To borrow money from Quick Cash, you do not have to provide any income certificates. We do not require any other collateral, unlike banks. This is a great convenience, because obtaining such a document from an employer or from another source significantly extends the waiting time for additional cash. And we usually need it immediately, not in a few days.
  2. Equal treatment of clients . For us, it is not important who the client is or where he lives. We can easily get a loan without security Krakow and a tiny village in the Lublin region. We also do not reject applications from unemployed or non-income-earning students. Everyone who is over 18, Polish citizenship and has a bank account will get a loan. We do not only give further loans to people who already have debts with us or, what’s worse, overdue and unpaid payments.
  3. Maximum mobility . We give our customers a very functional and clear website and its mobile version for use. Thanks to this, you can apply for a loan using computers, laptops, tablets and smartphones. You can do it while at work, at home in front of the TV, on a train or a tram or during a trip. Thanks to this access to quick loans Krakow has virtually anywhere on the map, only mobile internet or public Wi-Fi is required.
  4. A totally simplified procedure . Our clients like Quick Cash for a simple approach to the case. By arranging a loan with us, you do not lose too much time and you certainly do not get tired of completing complicated documents. The registration process is short and child’s play, and the procedure for customers already registered is instant.
  5. Incredible speed . This advantage is a derivative of the previous one. Thanks to the simplified procedure, you can have money on your account in 15 minutes. You do not believe? Try it. The process can only extend the slow-moving internet, but if everything works smoothly, it will definitely get non-banking loans Kraków, Gdynia, Mrągowo and Suwałki will receive in the same, extremely short time.
  6. A lot of time to repay . We realize that customers need time to accumulate the right amount to pay off their debt. Therefore, in Quick Cash, we provide loans for 60 days. Two months of peace, without additional fees, is an advantage that our clients often stress.
  7. Favorable promotions . Quick Cash has great promotions for you. If you are a new customer, you will get the first loan from us for free, without fees, commissions and interest. We do not forget about our regular customers. The same free loan is waiting for them, which we give every fifth time.
  8. Clear rules . Quick Cash works professionally. We have nothing to hide, so on our site you will find all the information you need. You do not have to be afraid of hidden costs or insidious entries “with an asterisk”, because they simply do not exist here. So if you decide to borrow our Krakow or a client from a different place, you can read the rules, the table of fees and commissions and the framework loan agreement on the website. And if you do not understand something or a record will arouse his anxiety, he can call our helpline. The consultant will explain everything and dispel doubts.

How can I get a quick loan from Krakow?

How can I get a quick loan from Krakow?

The matter is child’s play. You enter the Columbine website and set the amount of the loan and the repayment date by means of large sliders. Then you register by entering your details, i.e. your name, surname, address, email, telephone number, account number and Pesel. After successfully verifying your data, the employee will process the loan application. If you are not on the list of our unreliable debtors, you will get it for sure in 15 minutes. Remember, however, that we do not work 24 hours. Check our working hours on the site and submit your application in a timely manner. If you put it on a day off work or at night, you will wait for money on the next working day.

If this number of advantages encouraged you to take advantage of our offer, we invite you to familiarize yourself with our site and terms. We have already been trusted by many clients, we regularly take Krakow and Cracow dozens of other cities. Join them and fund your budget with fast cash for any purpose.

Call-off Loan – Really an Alternative to the Dispo?

No negotiations with the bank and no paperwork – a credit line is flexible and convenient. But who covers his checking account, pays high interest. Especially with frequent use, it will be expensive. Cheaper it is with a call credit. But does the latter really offer an alternative? Who benefits from the call-off loan and who does not.

An upcoming move or the long-awaited holiday trip – with scarce savings consumers are all too happy to use their credit. But this is the most expensive way of financing. Those who regularly need additional liquidity should opt for cheaper alternatives. An on- demand loan – often referred to as a framework loan – offers the same advantages as a dispo, only at half price. The loan is requested on a separate credit account – usually with a cheap direct bank.

Use and costs

Use and costs

Whether the MRP or the framework loan is the better choice depends on the amount of the costs incurred. The amount of interest on the use of the credit line depends on the frequency of use, the period of time and the amount of money.

Short or long-term needs?

The bank calculates the accrued interest on a daily basis. Accordingly, the duration of use plays a crucial role. Anyone who covers their current account only for a short time, eg for a day or two, will be better off with the credit line. With longer-term use, alternatives such as the call-off credit certainly offer advantages . In the case of the latter, the interest costs can be halved for the same amount of utilization.

Frequent or rare use?

Those who need extra money only twice a year are well served with the credit line. But with increasing frequency of use, the interest costs rise. Customers who regularly use their credit line (eg every month for several days) can clearly benefit from the credit line.

High or low sums of money?

Smaller overdrafts of eg 50 € cause also with the Dispo no big hole in the household cash. At the latest when the customer with several hundred euros in the Dispo stands, the settled by the house bank amount in the wallet clearly noticeable. The decision for or against the credit line is thus also based on the amount of money in each case.

repayment

repayment

If you overdraw your account, you should ensure a targeted repayment. Otherwise, the amount owed threatens to continue to increase. As a rule, no scheduled repatriation is planned for the MRP. Some borrowers therefore use the MRP field like their own, and the flexibility is ultimately bought at a high price. On the other hand, call-off loans offer a clear repayment schedule. Either a minimum repayment is already included in the terms and conditions of the banks. Otherwise, an agreement can be reached with the bank here. A targeted repayment is guaranteed. The debt risk for the borrower is significantly reduced, partly due to lower interest rates.

Two bank accounts

Two bank accounts

As a rule, a call-off loan is not available from the house bank. Who would like to apply for the same, in Germany with some direct banks, such as the InDirect , the V Bank or Bank11 find. However, it is not necessary to transfer the entire bank details to the corresponding direct bank. The customer can use the checking account at the house bank as a clearing account. Bookings from the call credit account are made online and transferred to the account at the house bank. Who uses a frame loan, maintains in the result two bank connections. Exception: the account already exists at Indirect. Anyone looking for a cheap online loan today, will face the terms of different banks anyway, and often ends up at a direct bank.

Online Banking

Online Banking

A routine use of PC and Internet is a prerequisite. For whom this applies, you can benefit from the advantages of an online account. However, the personal contact person at the bank counter must be waived. As usual with direct banks, questions are answered on the mostly free hotline. In return, there are no longer any complicated ways to branch out, as well as the commitment to fixed opening hours.

Reposting debit

Reposting debit

A rescheduling of an overdrawn credit line can also be done with a call-off loan. In addition to saving interest, the borrower benefits from a regular, proportional repayment. As with installment credit, the rate and repayment period can be adjusted to personal circumstances.

Conclusion

An on-call loan combines the advantages of scheduling and installment credit in one product. The borrower benefits from significantly lower interest rates and a targeted repayment. With dispo interest costs in the amount of 25 € per year, the framework credit can already be worthwhile. Because of only a few cents, the cost of the extra credit account is too high. A credit line is the remedy of choice for infrequent use, small sums of money and short-term dispositions.