Credit for self-employed & freelancers: information and comparison

 

It is not always easy for the self-employed: banks are reluctant to grant Loan.

Many entrepreneurs, the self-employed and freelancers are only too familiar with the following scenario: Loan is advertised at low interest rates in bank advertisements. For example, if a tradesman asks the bank for this loan, in many cases it will be rejected. The reason for the non-approval lies in the often fluctuating and uncertain income compared to employees or civil servants.

Direct bank or branch bank?

Direct bank or branch bank?

Anyone who owns a small, regional company (e.g. painter or plumber) usually has regular contact with their house bank. If there is a longstanding business relationship here, the house bank can assess your situation well. A self-employed person should therefore make an initial request to your current bank.

No matter what your bank’s answer is, get a second or third offer from other banks.A difference of a few percentage points can quickly mean savings of several hundred euros. It is essential to compare different Loans.

Second borrower increases opportunities

Second borrower increases opportunities

Is your partner not employed in your own company and may be employed or civil servant at a company? Then you should think about the possibility of joint funding. The security for the bank increases significantly in this constellation and you are more likely to receive a loan approval. Even if your (spouse) partner is also self-employed, a joint loan application can pay off.

Additional collateral such as life insurance, general savings or real estate are advantageous for a positive Philo Vanc decision.

Your bank needs these documents

Your bank needs these documents

Various documents are required so that your credit inquiry can be processed promptly. Some banks require a relatively large amount of evidence. Other banks keep the request as simple as for other private individuals, such as Barclaycard. Depending on the bank and personal situation, the following evidence may be required:

  • Income tax assessment
  • Balance sheets for the past 1 to 3 years
  • Business evaluation
  • Income statement

Please note: Each bank has different requirements, the information is only a rough guide. On the website of the respective provider you can find out which documents are specifically required.

Loan from private individuals as an alternative?

Loan from private individuals as an alternative?

In recent years, another financing option for the self-employed has become established on the Internet. Private money investors and loan seekers meet in so-called credit marketplaces. Anyone who needs a credit introduces himself and his application. Investors can “invest” in your project and receive part of the interest payment as a return.

If the conditions for classic bank offers are too bad or your request has been rejected, credit marketplaces can be an alternative.

Some information about car credit

Offered by banks and credit organizations, auto credit is an attractive financing solution for individuals. Indeed, the acquisition of a car represents an important step at the level of the family budget and the best would be to be able to offer the ideal vehicle with a loan which will be reimbursed little by little over the months.

But between interest rates, fees and car loan formulas, there are many questions when it comes to finding the best offer on the Belgian car loan market.

What fees and what interest rates for a car loan?

What fees and what interest rates for a car loan?

The choice of the best car loan is essentially guided by the interest rate, mainly the APR or annual effective annual rate visible on the prior loan offer. This APR covers the interest on the loan, the administration fees and the insurance costs.

Often, application fees are offered for auto financing solutions offered by online banks, and if this is not the case, you can always negotiate this gesture by referring to an auto credit offer similar to that offered by the credit institution of your choice. To prevent possible periods of financial worries, ask your banker to grant you the possibility of carrying over monthly payments without penalty.

Auto credit: what is the purpose of online simulation?

Auto credit: what is the purpose of online simulation?

The online car loan simulation allows you to compare the many proposals of Belgian financial institutions, without having to travel to an agency. So, you only have to use your laptop or your Smartphone to connect to the online simulation site in order to search for the best car finance offer that most closely matches your search criteria: the amount of the loan , repayment tenure, interest rate and cost.

To properly compare car loan offers, you can direct your research based on the amount you want to borrow if you already have an idea of ​​the cost of the car to buy, or by indicating the cost of a monthly payment supported by your budget.

Apply online for immediate response credits.

Immediate response online loans, also known as quick loans, a financial product that provides flexibility to the financing market that was lacking until recently.

Traditional loans are usually loans in which the financial institution takes several days, if not weeks, to respond to the credit request. This time interval is necessary, among other things, because financial institutions perform various checks on the financial status of the applicant. For this reason, in addition to needing some time, it is common for them to involve a certain level of bureaucracy. To obtain them, the applicant must submit different documents, such as income receipts, ownership and guarantee documents, if any, etc.

With the new online credits of immediate response all these problems are solved.

With the new online credits of immediate response all these problems are solved.

This does not mean that immediate credits are a substitute for traditional credits. In reality they are, rather, a complement. While they are faster, have fewer requirements, are paperless, can be fully processed online, and offer the ability to get small amounts of money to return in a short period of approximately 30 days, they are also a much more expensive product than Credits to what we refer to as traditional, which in addition to allowing us to have more money, also allow us to have it for longer.

In the event that you need one of these fast online loans, we have no doubt that it will be clear to you that to obtain them you must surely look for them online. But you have to be careful, because since they are a relatively new financial product, some scammers have taken advantage of them to commit crimes. The most common scam is that someone uses your information to apply for a loan in your name, but in your bank account.

With this in mind, you can do little more than be careful with your personal data and report the fact when you realize what happened. Another common scam is that the alleged lender asks the applicant for an amount to process the credit and then disappears.

The truth is that among immediate online credit companies

It is not uncommon to request advance payments, since the amounts granted are small and the companies know that the client does not have liquidity.

But if you want to avoid having doubts, it is best to go to any of the companies proposed by on our website. We are a company with extensive experience in the comparison of online credits, which also offer services in other European countries through our affiliation networks.

By using these comparators, you can choose the company you want to deal with knowing that you are at least trustworthy. Plus, they give you the basic information to compare loans at a glance, but they do their homework. Once you have chosen one or two companies, read the terms of the contract carefully before accepting it.

At Good Lender you can apply for loans online in just a few minutes. Get fast credit thanks to our online credits.

Tips to pay less for your credit or loan

Repay a loan in advance, refinance the debt or compare between several entities, are some of the tips to pay less for your credit or loan. However, we will have to take out the calculator to find out if we are able to carry out these operations and estimate if the fee savings exceed the management costs and commissions.

How can we pay less when applying for a loan or loan?

How can we pay less when applying for a loan or loan?

Currently, there are many strategies you currently have to pay less money for the granting of a loan. Whatever its purpose: for consumption, personal financing or facing unforeseen expenses. Next, we will give tips to pay less for your credit: compare several loans before deciding, reduce the amount or term of credit financing, refinance the debt or cancel the loan in advance.

Compare among all loans and credits in the market

A very repeated phrase when you are looking for financing is “I’m going to ask my bank to see what it offers me.” This is not enough. There are more than 50 loans from 20 different entities that we must study in detail before deciding. With the E-Money loan comparator, you can find out the interest rate, commissions and links of all the loans in the market in just 5 minutes.

Request only the amount you need

When a loan is requested, you only have to ask for the money you need for your project or unforeseen. It is not advisable to request additional money “just in case” or “to have a mattress” since it is not free money, much less.

The first effect that you will notice in the balance of your checking account is that you will pay less money for formalization expenses, especially if the contracting of the loan has an opening commission, which can be around 1% of the requested amount.

Reduce the financing term

In the same way, as with the loan amount, it is important to choose the term that exactly matches your needs. Banks apply higher interest rates to loans that are requested with ample terms, but also, a broad time horizon ( 36 months or more) will grow your interests exponentially.

Refinancing the loan with other debts

Refinancing the loan with other debts

Another alternative is to refinance the credit under a new financing product in which other lines of credit that you have contracted (mini-loans, mortgages, etc.) are collected.

All accumulated debts would be concentrated in a single installment, but with substantially different conditions. These types of loans are known as ” loans to reunify debt .” Not all banks offer this type of credit and it is complicated that even your current bank accepts the operation.

Do not forget that granting loans is one of the bank’s most profitable businesses, so if they finally gave the OK to the operation, you would be in a position to improve the interest rate of this new loan, change the maturity term or the installment with the objective of paying less when paying a single loan instead of several.

Credit early repayment

Early amortization of credit is one of the most effective and easy to apply methods. There are two types of early amortization: amortization to reduce quota or amortization to reduce the term.

By reducing the term, you end up before paying off the loan and, since time is the variable that increases the interest of the loan, it means a greater saving than you can achieve by reducing the loan fee. The advantage of this second option is that you reduce your level of indebtedness, with the possibility of requesting a new loan when you need it.

Early repayment of the loan has a drawback:

Early repayment of the loan has a drawback:

Cancellation or early amortization fees. Law 16/2011 of consumer credit contracts in its article 30 sets the limits of the commission for early amortization:

The entity may not charge more than 1% of the amount reimbursed when the period between early repayment and the expiration of the contract is longer than 1 year. In the event that this period does not exceed one year, the commission may not be more than 0.5% of the amount reimbursed in advance.

It is advisable to check the money you will save by requesting an early repayment of the credit to see if it will be profitable or not to perform this banking movement since it is not the same to develop it under a very high amount to another scenario where you have few fees left for your expiration. On the other hand, it will be necessary for you to detect if you have the necessary conditions to amortize it (additional income, money from inheritances, gambling or other unforeseen).

Tips to avoid frauds in an online loan this year

With the arrival of a new year it is normal to start worrying about the expenses that are coming and how to deal with them; from the payment of taxes, the enrollment for the children’s school or the maintenance of your car.

With all this, an online loan is presented as a financial push to get out of these complications, but it is not an excuse to trust, many unscrupulous people use these dates and the need of people to be able to make scams in order to keep the money of others.

Be careful in 2020 with your online credits

Be careful in 2020 with your online credits

There are many modalities that scammers use to deceive their victims; from giving them multiple false data in order to create a false trust, present offers or promotions at a very low cost for those seeking a loan or supplant the name of entities already recognized in the market; But, just as there are multiple forms of fraud, there are ways and tips to discover these supplanters.

Thinking about your safety and well-being, Good Credit wants to give you tips that will help you know if you are being the victim of any fraud or financial scam. You can also check our previous articles to learn more about how to avoid online fraud.

tips to avoid fraud in an online loan in 2020

tips to avoid fraud in an online loan in 2020

  1. Are they asking for money? Be wary

    To carry out any procedure concerning a loan or disbursement of money, credit institutions cannot request payment or some type of deposit in advance to make it. If they ask you for money before the disbursement is made to you, it is most likely that it is some kind of deception.

  2. Make sure the veracity of the company where you are applying.

    It does not matter if it is a physical or digital company, without exceptions it must always be registered with the different control entities, such as the Superintendence of Industry and Commerce, the Financial Superintendence or the Chamber of Commerce of your city. You can request the NIT of any company and validate it with any of these entities. If the company does not provide your NIT, you have a very clear reason to doubt its legality.

    With the rapid growth of information networks, it has become very easy to perform any information search on the Internet; Take advantage of this to find references, comments or reviews of the entity to which you are applying. Searching for references on Facebook is a good alternative to help keep in mind; Many companies manage networks to keep in touch with their customers, so one that doesn’t have them can be a reason for suspicion. Likewise, reviewing comments on networks will help give you a broader view of the entity.

  3. They offer prices well below their competition.

    One of the most common ways that scammers use to attract people is by showing offers that have charges or interests well below those of the market. When you find such an offer it is important that you verify because its value is lower than the others, or that other clauses handle to be able to offer this value.

  4. Does the website have security certifications?

    A very easy way to validate the security or reliability of a web page is through the certification of the HTTPS information security protocol. Through this protocol, any web page certifies that the information used within your domain is protected from attempted theft or duplication. But how do I know if a company uses HTTPS on its website? This is the easiest part, you just have to check the URL of the page where you are and there, at the beginning of the address you should find the HTTPS.

  5. Make sure you are applying with the company you claim to be.

    Another of the most common frauds is the impersonation of companies; In these cases, false entities take the name and prestige of consolidated companies to deceive their users. Before this, you must be cautious about where you apply. In addition to reviewing the HTTPS certification, it is important that you validate if you are on the website of the entity that it claims to be.

    If you came to the page through advertising or a recommendation link, make sure the page does not change address multiple times as this could send you to a different page than the one you are looking for.

  6. Do not contact through intermediaries or third parties.

    On other occasions, scams are not made by entities directly, but by intermediary assumptions. These people pose as intermediaries of the companies in order to guide the user in their procedures and to usurp their personal data or keep the loan money and leave the user in charge of a debt that he never used.

  7. Do not trust if they contact you through unofficial or formal means.

    If the offer to acquire a loan comes to you through a text message, WhatsApp or an email and you do not remember requesting information or registering on these channels, be very careful, your data may be in some illegal contact base, which They use scammers to send messages and trick their victims.

Extra Tip: Report all these acts of fraud or deception.

Whether you were a victim of some type of this fraud, or realized on time and managed to avoid it, it is important to report it. Although they are false pages that may not last more than 2 days on the internet; It is important to report the case to the relevant entities for investigation and thus prevent this type of fraud from continuing.

These tips will help you easily detect possible fraud or scam attempts you can find on the Internet; Even so, it is important that you always turn to recognized entities in the internet loan market, such as Good Credit.

Is Good Credit legal?

bank

Yes, Good Credit is a company that has been in the Colombian market for more than 6 years offering credit services online, quickly and easily.

The certificates of legality and security, together with its control system makes Good Credit the safest option in the online loan market, but if you still have any doubts, remember that we are always here to give you the best experience during the application for your Credit online