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Month: February 2020

Credit cards on a credit basis

Credit cards on a credit basis

Credit cards are a very practical means of payment, which can offer numerous advantages, particularly when used abroad, compared to paying with cash or an EC card. At the same time, however, the credit card companies have relatively clear requirements for the applicants – at least when it comes to real credit cards, which the bank repeatedly grants the owner temporary loans. The requirements for credit cards on a credit basis are dealt with more loosely.

 

Credit cards on the basis of credit

Credit cards on the basis of credit

It have the advantage that they can be used in almost the same way as ordinary credit cards, for example when it comes to car rental security deposit. At the same time, however, unlike a normal credit card, it is not possible to go into debt with a prepaid credit card, because only the same amount of money can be spent as was actually deposited on the card.

Such a card is suitable for people with a negative Schufa because no information is obtained from Schufa when the card is issued. Likewise, the card is also useful for pupils and students who want to or have to undergo strict cost control.

Comparison of prepaid credit cards

credit cards

Of course, it is important for most people that the credit card they use is as cheap as possible, because for most people the credit card is not used regularly, but rather for exceptions such as stays abroad or shopping on the Internet. Above all, the annual fee applies, regardless of the intensity of use of the card.

For example, the Wüstenrot Prepaid Visa is exempt from the annual fee, which also makes it possible to withdraw free cash 12 times a calendar year worldwide – a special feature when it comes to using credit cards. There is no fee when paying in a foreign country in Europe. In countries with other means of payment, the fee for using the card is 1.50% of sales and at least USD 2.50.

Among the prepaid cards, the Wüstenrotbank visa card appears to be the only one that completely waives the annual fee – the disadvantage of the card is that credit on the credit card account does not earn interest. This is the case with other credit cards on a credit basis, such as the PayMango Visa Card, which is issued by the Best Bank BW.

However, an annual fee of 25 dollars is required for the PayMango Visa card, young people between 12 and 18 years only pay 20 dollars, and you also get a discount of 5 dollars in the first year of card use. There are cash fees at the ATM, in the amount of at least 2.50 dollars per withdrawal or 2% of sales.

Loans for unemployed without Credit bureau and guarantors.

Loans for unemployed without Credit bureau and guarantors.

Getting loans for the unemployed without Credit bureau and guarantors is not easy. Unemployed people who have negative Credit bureau entries and would like to receive a loan should at least be able to provide a surety. Otherwise your loan application would have to be rejected.

Requirements for lending

Requirements for lending

In most cases, the banks insist that the future borrower can provide positive Credit bureau information, a secure income or other collateral. For this reason, not only unemployed or Social Welfare recipients, but also freelancers or the self-employed find it very difficult to find a suitable lender in Germany or in other European countries. The same applies to students, housewives, trainees or other groups of people who do not have a fixed or insufficiently high income.

In Germany, it is also imperative that the Credit bureau information is in order. Even minor negative entries can mean that it is no longer possible to grant loans. Abroad, Credit bureau information is dispensed with, but the greater importance is attached to a fixed and secure income. Here unemployed or Social Welfare recipients generally have bad cards.

Apply for an interest-free loan 

alternatives

Even if it is very difficult to find suitable loans for the unemployed without Credit bureau and guarantors, nobody should give up prematurely. There are various private credit intermediaries that specialize in particularly difficult cases and have good contacts with various domestic or foreign banks. However, you should never collect any fees in advance or make unrealistic promises. Should this happen, it would be a sure sign that the credit intermediary in question is dubious.

Loans for the unemployed without Credit bureau and guarantors are often granted in a private group. If a relative or acquaintance of the unemployed agrees to provide appropriate support here, the unemployed should resort to it. A personal loan has the great advantage that the lending and repayment modalities can be regulated individually and are not tied to any requirements. This is a very significant difference from most domestic or foreign bank loans.

For Social Welfare recipients, there is still another way to get loans for the unemployed without Credit bureau and guarantors. If necessary, you could contact your responsible service manager in the job center and apply for an interest-free loan there. However, there must be good reasons for this. Anyone who just wants to fulfill their consumption needs or go on vacation will not receive a loan from the job center. A broken washing machine, a broken TV or a broken fridge is a good reason to get an interest-free loan from the job center. It may only be used for the intended purpose and must be paid back to the job center in installments.

Take out a loan up to 50000 USD is possible.

Take out a loan up to 50000 USD is possible.

Borrow between 5,000 and 50,000 USD?

Borrow between 5,000 and 50,000 USD?

You are more creditworthy than you think. The average man with a regular income is easily able to take out a loan up to an amount of 50,000 USD.

There are many reasons why people would want to borrow an amount of, for example, 50,000 USD. It often concerns the purchase of a car, caravan or a boat. You may have saved a little and see the boat of your dreams for sale, but when you inquire it turns out to be more expensive than you can actually pay in cash. In such a case, a loan naturally offers a solution.

Despite the credit crisis that we hear a lot about in the media, banks are still willing to lend people money. Not surprisingly, of course, borrowing money is the core business of a bank. Banks would get into trouble if they stopped lending. Although amounts of 50,000 USD are often borrowed by small companies as business credit, it also often happens that private individuals can borrow amounts of a few tens of thousands of USD.

If you intend to borrow an amount such as 50,000 USD, it is advisable to shop around considerably before you make a choice where you want to borrow this money. A small difference in interest makes an amount of 50,000 USD, of course, a big difference. Because borrowing money naturally costs money and why would you want to be a thief of your own wallet?

Most online loan websites have a test where you can simply see if you are eligible to borrow the desired loan amount by entering your data and the amount you wish to borrow.

Do you want to borrow 50,000 USD? Do not think that you are not eligible, because you are more creditworthy than you think. With a regular income you will soon be eligible for amounts of this amount.

Private loans to children and family are attractive

Private loans to children and family are attractive

You can of course go to the bank for a loan, but borrowing from family members might also be an attractive option. There are benefits to be gained for both the borrower and the lender.

When you want to take out a loan for the purchase of a car, a renovation of your house or perhaps for a business investment, it is not always necessary to do this through the official way at a bank. In case you have family members who are ‘well-off’ it can be an attractive option for both of you to agree a loan.

Some possible benefits at a glance:

For those who borrow money, it may be possible to mediate an interest-free loan with the family. This naturally saves a lot of money that you can invest in somewhere else.
Of course, the interest-free lending of money only has purely emotional benefits for the lender. You help a family member with it and you can see how your loan can reach its goal thanks to your loan.

For the lender, it can be a good and safe investment when interest is requested. Because it is a private loan within the family, you can agree on other interest rates or even agree that the repayments are interest-free, but that after receiving the loan amount you will receive a bonus. Your money does not stand still this way, and no investment risks are taken with it.

There are also tax breaks. You do not have to pay tax on an interest-free loan if this loan has been prepared on the condition that it is immediately payable. Otherwise the loan is not seen as a loan but as a gift. It is of course also possible to book the interest as a gift instead of the loan. This saves considerably when the Tax Authorities try to get a hold of the loan to your family.

Because it is a private loan, it does not mean that you cannot put the loan on paper. It is of course advisable to always do this. This keeps the agreements clear and even in the event of the lender’s death, it makes handling the estate a lot easier for the heir who can then take over the loan. In addition, the conditions under which the loan was drawn up to the Tax Authorities are much clearer. It is best to both visit the notary to write down the loan.

Thanks to a government subsidy, a business loan of 85,000 USD

Thanks to a government subsidy, a business loan of 85,000 USD

A business loan of 85,000 for entrepreneurs is absolutely possible thanks to subsidies. Various subsidies from the government are available to help you. There are various options depending on the category in which the SME company is located. Despite the economic situation, a subsidy for starters is certainly possible.

The UWV offers financial support for anyone who wants to set up an SME but is in danger of losing his job. You can receive an interest-bearing loan for the start-up of your business up to a maximum of around 30000 USD. You make agreements with your UWV work coach about your business plan and you report on progress every month.

The interesting thing is that the UWV not only grants subsidies to highly skilled starters, but also to typical crafts; for example, self-employed plasterer, starting your own shop, hairdresser, etc. What the interest rate for this loan is is not clear, but it will probably be lower than at the bank.

If you have already started as a starter, you can also apply for microcredit.
Innovation credit is also offered for NL Agency (part of the Ministry of Economic Affairs). The bottom line is that you can apply for a tax reduction on the one hand and you can apply for a subsidy to finance parts of the development of new technologies / products.

The WBSO scheme is a tax scheme to stimulate innovation (R&D). The bottom line is that the entrepreneur can get a considerable discount on the payroll tax that normally has to be paid above the wage costs of staff.

With the help of an innovation voucher (another subsidy instrument) you can have something researched by a knowledge institution and receive a subsidy for it. You can not only apply for a subsidy for pure research, but also for market research, innovation strategy and more of the business aspects of innovation.

Existing companies may also apply for microcredit.

An existing company can also apply for the SME Growth Facility instrument. The government guarantees a maximum of 50% of the risk capital (a maximum of 25 million USD), which an entrepreneur puts into the development of new technologies.

The innovation credit is also available for established SMEs. This is a risk-bearing credit for financing innovative projects. The credit is a maximum of 5 million USD.

In conclusion, it can be said that borrowing 85,000 USD through various subsidy pots is indeed possible. As a starting company, you can borrow around 70000 USD through the UWV and Microcredit.

You can also try the remaining 30,000 USD as a personal loan or revolving credit while you are still on loan with your bank. If you are a little further with your company, you can apply for innovation credits and apply for the SME Growth Facility instrument, which realizes a discount on your costs and risk.