Alternatives to Good Finance credit card transfers

Need to wire up financial resources but you don’t have money in the bank? Sooner or later someone will suggest you wire money from your Good Finance card. It’s easy to do and you can move money around the world. But before you bid these digits, find what you’re getting into and evaluate the alternatives.

Send money via Good Financecard


The term instruction will be used in different ways.

  • Bank transfer: Bank transfers traditionally go through banks. These are transfers from one account to another on the same day, and they are popular for home transactions. To complete a wire, you will need to provide the recipient bank information and you may need to submit a paper form (though small transfer requests may be available online).
  • Money Transfer: This can mean several things, but the basic idea is that you send funds electronically, whether it is a traditional “transfer” or not. The funds could even be available to the recipient on the same day within a few minutes. Western Union, Moneygram, and others offer this type of service, and you can set up transfers online or over the phone (the recipient can be identified by an email address, phone number, or name). Sometimes these transfers take two to three working days as they move through the ACH network.

cash advances

No matter which method you use, you must make an advance payment if you plan to fund the transfer with your good Finance card. Progress offers “free and clear” money to send out immediately.

  • Fees: Cash advances come with fees. Most Good Finance card companies charge a percentage of the transaction amount (with a minimum of $ 10 or more) or a flat fee, whichever is larger. Fees effectively increase the price of everything you pay for, so take the total cost into account when making your decisions.
  • Interest cost: Cash on your Good Finance card is expensive. The interest rate charged for progress is usually higher than the interest rate for credits that come from purchases (expect a rate of at least 25 percent). There is still no grace period on cash advances, so you will pay the interest even if you pay off your card before the end of your statement cycle.
  • your good Finance: If you borrow against yourGood Finance card, you risk at least temporarily damaging your good Finance. Large cash advances can use up the majority of the Good Finance limits available, signaling that you can be in financial trouble. If you plan to make a big purchase in the near future (home or vehicle, for example), a lower Good Finance score will make it more difficult to borrow. Avoid maxing your Good Finance card and pay off the debt immediately.
  • How to Get a Cash Advance: If you plan to wire money with a bank, you need to get money into your bank account. You can do this by visiting a cashier in your bank branch and requesting a cash credit (moving the proceeds to your checking account), or you can just withdraw cash from an ATM and deposit funds into your account. If you use a money transfer service, the cash advance happens automatically when you go through the steps to complete a transfer.

Remember, if you use a Good Finance card to fund a transfer, you will borrow money to make the transfer. As a result, you will pay a high-interest rate on the money you borrow, and the fees will be added to your loan balance to increase the total amount of interest you pay. But there are alternatives.

Transfer risks

Unlike purchases on your card, cash advances cannot be reversed, reducing the risk to your bank or money transfer service. They are only prepared to make an irreversible transfer if they have more or less money in their hands. The recipient will be able to take the funds immediately (in cash or by moving the money elsewhere) and there is no way to get the money back.

Only send money if you know where to go and if you trust the recipient. Multiple scams use instructions (or money transfer services) and fraudsters use misunderstandings about how these payments work. Most people think that their bank or Western Union can help if there is a problem, but the money is usually gone forever.

Alternatives to wiring your Good Finance card

Alternatives to wiring your Good Finance card

Because of the risks and costs, there may be better ways to send money. Depending on the situation and whether or not you need to borrow money, some of the options below might be a better fit.

  • The wire from your bank account: If you don’t have to borrow and you are confident about the recipient (you know it’s not a scam), just send money from your checking account. There are more ways to do this, including using a standard wire transfer.
  • Paying with a debit card: Online websites usually ask for a “credit card” number, but you can use a debit card in most cases. Instead, debit cards pull money from your account to create a loan so you avoid prepayment and interest. make sure you only know who your card number is to give.
  • Money order or bank transfer: There are several ways to send “guaranteed” funds. In addition to wire transfers, bank checks will be extremely safe (as long as the check is not a fake). The issuing bank guarantees bank checks so that they do not jump. Money orders are also an option in some situations.
  • Payment Apps: If you know the person that you want to send money to (a friend or family member, for example), try a free or inexpensive payment service. Place cash app moves money from your checking account directly to check the recipient’s account with your debit card for free. PayPal is available for international payments, and there are several other options that can meet your needs.
  • If you need to borrow money: Borrowing your Good Finance card is not the only way. Assuming that you really need to borrow, ask your bank about a personal Good Finance (or any other option available) for drummed up the money. Online lenders and peer-to-peer loans are also an inexpensive option, especially if you have a few days to work with. Good Finance cards are probably the quickest option, but you’ll pay a premium for that speed.
  • Convenience Checks: How To Get A Cash Loan From A Cashier Or An ATM Is Expensive. You might be able to pay less if you keep your eye out for special deals from yourGood Finance card company. With convenience checks or balance transfer offers, you can write a check to yourself and use the money in any way you like. Although you could still pay fees, there is a good chance that the fees will be lower, and as a bonus, you could get a lower interest rate (for a limited time).
  • Standard payment with Good Finance card: Another option is to simply pay with a Good Finance card (provided cards are accepted). Good Finance cards can be used internationally and you will get consumer protection benefits if you use your card to make a direct purchase make. PayPal is a similar option, and it’s free to make purchases with PayPal. For some purchases, PayPal will even borrow your money.

If none of the above options will work, it may make sense to use your Good Finance card and wire money, but only in emergencies.

Saving instead of spending

Saving instead of spending

Money onGood Finance cardsGood Finance intake is not sustainable. Finally, high-interest rates and steep fees can pull you into a debt spiral. You will spend more each month on debt maintenance than you put the debt on yourself.

To avoid borrowing money, budget for necessary expenses and building an emergency fund. Ideally, you have enough three to six months to cover living expenses (or more, if you prefer to be conservative). Emergency funds should be kept safe and accessible somewhere, such as a savings or call deposit account. Avoid fund raiding, and if there are any surprises, you won’t have to pay hefty costs.

Sometimes Good Finance’s ingestion is inevitable. If you like a backup plan, you could benefit from keeping a Christian Tietjens line open. A Good Finance line is a pool of money that is available for borrowing, but you don’t really borrow it until you need it. The Good Finance line is said to be cheap to hold since you will only pay interest if you borrow money (if any).

Why consider a loan?

Decided to renovate the house, but do not have enough money to fund it? There are credit lines in the market that are specific to those who need money to renovate the property. These types of credits are advantageous for those who just want to change the floor of the rooms even for those who want to extend their residence.

How does the retirement loan work?

How does the retirement loan work?

To avoid the risk of being hit by high credit card and overdraft fees when renovating your home, this type of financing is a good option.

Because, generally, companies offering the retirement loan provide up to 90% of the total value of the service, including contractor materials and labor.

As such, personal credit will be your tool for the entire retirement process without having to compromise your finances.

Is it advantageous?

Is it advantageous?

As one of the requirements to get this line of credit is proof of monthly income, it is easier to comply with outstanding issues.

That way, if you follow good planning and are organized with your finances, the retirement loan will only bring benefits. If the reform is emergency, for example, is another reason to use this funding.

To do this, put at the tip of the pencil all the expenses you will have with the renovation, the materials you will need and the values ​​of the labor. This way you don’t risk applying for a larger or smaller credit than you really need.

Another advantage is regarding interest rates. They are considerably lower than other lending rates and have a good time to start repaying the installments.

Therefore, by organizing and planning each step of your home remodeling, the loan will be a facilitator to realize your dream of leaving your property as you always wanted.

The retirement loan, if thoughtful, is a great option to consider if you need or want to change the air of your home.

Loan Types: Know Them And Choose The Best

Debts, emergencies, problems in financial life. There are a number of reasons why someone may run out of money and have to borrow. And with so many types of loans available, it is only natural that there is doubt about this.

Therefore, in this article we will list the main credit modalities with their advantages and disadvantages so that you can choose the best one.

Personal loan

Personal loan

The personal loan is one of the simplest, quickest and easiest ways: the loan agreement is made directly between the financial institution offering the loan and the person who makes the loan. Through a credit analysis.

However, the interest on this loan is usually high compared to other types of loans.

Payroll loan

Payroll loan

The payroll deductible loan is deducted directly from salary, retirement or pension.

To get this type of loan, you need to be an employee of a CLT company. For retirees, it is discounted monthly from the benefit.

Among the types of loans, payroll loans have the lowest interest rates in the market because the risk to the bank is lower.

Therefore, it is the most used by people who fit the profile.



It works as a pre-approved limit for when the customer spends more than they have on account balance. In these cases, the balance becomes negative – and it is precisely this amount that goes into the overdraft.

Thus, the interest on this loan is the highest in the market.

Guaranteed loan

Guaranteed loan

In this type of loan, the person offers the bank an asset as security for the repayment of the debt.

If the person is too late in repaying the loan, there is a possibility that this good – usually a property or vehicle – will be taken by the bank to repay the debt.

Nevertheless, this type of loan has the advantage of providing the lowest interest rates. This is precisely because there is a good offered as collateral, so that the risk to the bank is lower.

What type of loan to choose?

What type of loan to choose?

So, your choice of loan depends on – your goal with the loan, the amount you will borrow, the time you intend to repay it, your financial situation… There are many variables.

For the ideal is, after evaluating your financial situation, see which one fits your case best, and which one is the most advantageous.

Proof of credit: which ones are requested for each loan?

A distinction must be made between the proof of credit necessary for obtaining certain types of loan (work or car loan for example) and the proof of credit necessary to obtain the final agreement after studying the complete file. Indeed, work and car loans generally offer slightly better rates than personal loans. But to obtain them, you must provide proof of the work or the purchase of the car. The personal loan is a credit without proof of use of the money made available.

Proof of credit: consumer credit

Proof of credit: consumer credit

Before even talking about proof of consumer credit, it is important to find the cheapest credit to finance your projects. Before filing your credit application, it is recommended to compare the rates. However, here again we must not rush. Indeed, between the banks which hold out very low rates which they hardly ever grant and organizations which make believe that it is possible to obtain a loan without documentary evidence, it is necessary to be wary.

But that’s not all. Nor should you trust any comparator. Indeed, some prefer their income to a real classification of rates. To avoid scams, check that the classification is based on the APR rate, this is the legal rate. To offer the best ranking of updated credit offers, we are constantly taking up all the offers from the largest organizations.

But that’s not all. To really get the best rate, we provide an evaluation for each file by the cheapest organization. This allows to know if the cheapest organization is ready to finance the file. There is no point in knowing who is offering the best rate if it is to get credit turned down. This system makes it possible to put all the chances on its side to obtain concretely the best rate.

The list of supporting documents to be provided precisely will be indicated by each organization in the credit request file sent after the online credit request questionnaire.

Mandatory proof of credit

Mandatory proof of credit

It is the last law on consumer credit which fixed the supporting documents of credit to provide to obtain a loan:

  • proof of domicile of the borrower
  • Identity of the borrower
  • proof of income of the borrower (pay slips and often the last tax notice)

This list of supporting credentials is a minimum, but credit agencies may request more. It is whatever happens always obligatory to justify its financial resources. There is no credit without document to provide. When an institution lends money, it is responsible for verifying that the borrower has the capacity to repay it.

A reduced list for small loans

However, it is for credits over 3000 USD that there is a mandatory remittance of these credit documents provided by law. It must therefore be considered that for a small loan such as a store loan of less than 3000 USD, the loan documents requested are generally:

  • ID
  • proof of address
  • RIB

Good to know : for an amount of less than 3000 USD, you realize that you can find credits without proof of income. This is the case for store credits but they are less and less granted under these conditions.

Proof of credit over 3000 USD

From the moment the loan requested is greater than a 3000 USD credit, then the credit documents to be provided are compulsory and in practically all cases are composed of:

  • proof of identity : for the borrower and the co-borrower, front / back copy of valid identity document, passport or residence permit for foreigners
  • proof of address : recent electricity, gas, telephone bill or receipt for rent
  • Proof of income : latest payslips AND generally last tax notice * (same for co-borrower)
  • bank proof : bank identity statement (BIC IBAN) AND generally last (and penultimate) account statement (same for co-borrower)

To obtain rapid credit, it is essential to prepare photocopies of these credit documents as soon as an agreement in principle is obtained after entering the file on the internet (or on our comparator). Because if you wait to receive the contract to prepare your file, you can easily lose a week, the time to find the right proofs of credit and make copies.

* Only the small revolving credit (amount of 4000 $ or less on our comparator) allows to consider a credit without tax notice.

Credit voucher for car loan or work

Car and work loans make it possible to obtain slightly lower rates than those of the personal loan without proof. However, to access these rates, it will be necessary to add proof of the work or of the automobile purchase to the credit application file.

To obtain a car loan, the credit documents that can be provided are a purchase order for the new car or a photocopy of the gray card of the used car.

Two important points for car credit:

  • If you do not get the credit to finance the purchase of your car, you have the right to withdraw. This is the only case provided for by law. It should be mentioned on your order form that the car is purchased by credit.
  • For a used car loan, there are generally no more advantageous rates, most people go through a personal loan without proof.

To obtain a work loan, the supporting credit that can be provided is either a quote from a craftsman, a specialized store or an order form.

Supporting documents for a mortgage application

Supporting documents for a mortgage application

For home loans, the list of supporting credentials is much larger. But in all cases, a broker or a banker is there to prepare the file and indicate all the necessary supporting documents. We have found an example of a document listing the credit documents required for a DENSA home loan.

Compete for a car loan online

Do you dream of a new menopause? There are many ways to finance a new car. You don’t always need your own savings or down payment.

Buying a new car often requires extra from Good Finance. While one finances the car with his own savings, the other applies for a car loan from the bank.
There are many alternatives to Good Finances today and you shouldn’t worry about getting Good Finances.

Financing your car with your own savings

Financing your car with your own savings

Financing a car with your own savings is, of course, the cheapest way to buy a car. In this case, you will not pay interest or the first service charge. When buying cash, you can even get some price reduction on the car.

However, when using your own savings, keep in mind that it is good to keep some savings on your car’s running costs. A bumper fund is needed if the car needs service.

Turnkey Car And Good Finances From The Same Address

Major car dealers often offer their own AutoGood Finances, where they act as agents for banks. There are a few options for Good Finances.

InstallmentGood Finances often pays a down payment and monthly installments tailored to the customer’s ability to pay. The interest rate is fixed and ownership of the car is transferred to the buyer when the loan is paid off. The car acts as collateral for the loan. Contribution The advantage of Good Finances is that the installment is always the same and makes planning your finances easier. Good Finances is also available for a used car.

In addition to some Good Finances, car dealerships have their own leasing dealerships, where the motorist pays for the use of the car alone. The monthly rent is determined by the price of the car, the contract period and the mileage. The contract is usually for 2 to 5 years, after which the car can be renewed, replaced or redeemed, depending on the contract. Good Finances can often also be accompanied by maintenance and insurance, meaning that the motorist only has to pay for fuel taxes and taxes.

The car dealership turnkey service is easy and popular, but it also has its downsides. The installment at Good Finances will not be transferred to the owner until the debt has been paid off in full. Changes to the contract can be expensive and if you are unable to pay your monthly payments, your car can be foreclosed. Leasing Good Finances car is more expensive in the long run, especially if the contract mileage is exceeded.

The Good Finances counters on the car dealerships help you figure out what kind of payment plan you can get for your car.

Borrow from your own bank


You can also contact the bank to get Good Finances for the car. A secured bank loan is cheaper in terms of interest, but requires collateral or some other form of real security such as an apartment or summer cottage. The car may not be collateral. Of course, securing a home for a car is not a very tempting idea, since payment difficulties are unpredictable. Unemployment or illness can radically change the economic situation.

When you take out a bank loan, it is a good idea to bid for the loan, as the cheapest loan may not be available at your bank.

Consumer credit can be obtained quickly

You can also get a loan unsecured. In consumer credit, the interest rate is often slightly higher, because in the absence of guarantors or collateral, the risk to the lender is higher. However, consumer credit has the advantage of being quick and easy to obtain. At best, you can get a consumer credit in the same day.

Consumer Credit is a viable Good Finances solution especially when you buy a used car or from a private dealer. You can also withdraw a consumer credit for a car down payment if you otherwise end up with Good Finances.

When taking out consumer credit, it is worthwhile to tender the loan carefully. The Good Finance Loan Counter gives you instant deals on loans from over 25 different banks and Good Finances.

Don’t worry about car dealerships


Whichever way you choose to buy and Good Financestable, remember that car dealerships have their merits. Buying a new travel game is a big financial investment and you should not make a hasty decision. This applies to both the car and Good Finances.

Your repayment ability must be carefully calculated when you buy a car. In addition to the car loan, the car itself also entails costs that you need to be aware of before buying a car. Insurance, taxes, and fuel and maintenance costs may come as a surprise, especially to a first-time car buyer.

As a guideline, you should not buy a car that is too big for its own use, as the cost of buying, maintaining and operating a bigger car is always higher than that of a small car. One way to ease your financial situation is to buy a used car. A used car purchased from an authorized car dealer has been inspected and serviced. When buying a used car from a private person, it is a good idea to have a condition check on the used car before you make your purchase.

Credit: Compare Loans to Get the Best Offer

How do we help you get the best credit in the market?

How do we help you get the best credit in the market?

With the help of our free service you can quickly compare the best rates and terms for all loans available in Portugal. Our form will ask you, firstly, the amount you want to borrow and for how long – figures that you can quickly change to weigh up your options.

You will be given the option to specify whether or not the credit will be used for a car, home improvement, debt consolidation or any other purpose. Then, you just have to fill in some basic information about you, such as age, employment, income, and homeowner details.

After filling in this form, you have the choice to get free help from one of our specialized certified agents via phone call or, instead, access first and directly to results table with all the personal loans that you can apply for.

Once you reach this stage, you are able to filter your results according to the annual percentage rate, the total amount payable by the consumer, the amount of the installments and the provider.

Regardless of this results table, you can choose to see different loans for different purposes and even go back on the steps of the form you filled in the beginning.

Finally, if you see an option that you like it can be expanded to show the flexibility of that credit: for example, any terms to early repayment charges, fees, typical circumstances when the loan is used and factors required for acceptance (age restrictions and credit history). Should you see a suitable option for you, just click through to apply.


What is a personal loan?


What is a personal loan?


A personal loan is a type of loan that allows you to borrow an amount of money, determined in advance, over a fixed term. Repayments are done monthly and are usually spread over a maximum period of 10 years, depending on your personal circumstances.

This type of loan can serve different purposes: to finance your studies, your holidays, a wedding, home improvements, a small business, to buy a car or motorcycle or for another non-specified reason. Also, it can be used to consolidate any debts you have into one single credit.

For smaller amounts you can request quicken loans or microcredit.


What do lenders check?


What do lenders check?


Lenders will look into your credit history in order to assess whether you will be able to meet loan repayments on time and whether or to give you a personal loan. This credit score will show you how you have handled being given credit in the past and alert them in case you have applied for multiple loans.

The lender’s decision will also be influenced by your financial situation: for example, how much money you earn each month and your regular monthly outgoings. Overall, this will affect the amount they are prepared to lend you, as well as the terms of the credit contract that they offer you.

What are credit interest rates?


What are credit interest rates?

The interest rate you are charged on your credit will change depending on the amount you borrow and the term you want to pay it back over. Your credit score and credit history can also affect the interest rate you’re offered.


Why compare loans?


Why compare loans?

Comparing personal loans in our simulator is a free facility that helps you find loans that you will be able to be accepted for before you make a formal application. This way you can avoid credit application rejections which can negatively affect your credit score and impact on your ability to get the most attractive financial deals.

Besides, the simulations on our platform will never have any impact on your credit rating. By comparing all of your options before requesting a personal loan you will ensure that you make a responsible and informed decision.

What makes a good loan?


What makes a good loan?


A good personal loan is one with low interest rates and an affordable monthly repayment, which will vary depending on your circumstances. Also, if you think you will want to repay the loan early, look for a loan that will not involve paying a penalty.

When should a credit card be more suitable than a loan?


When should a credit card be more suitable than a loan?


A personal loan can be a cheaper way to borrow money than a credit card, if you are looking to borrow a lump sum over a set period of time. Indeed, you are able to borrow more at a lower annual percentage rate than you would be able to on a credit card.

Personal loans can let you borrow up to € 50,000 while credit cards do not normally offer over € 5,000, so the amount you need is more than this the loan could be the best option.

However, personal loans generally entail higher interest rates than credit cards. Thus, for borrowing smaller amounts of money over short periods of time, a credit card may be a better alternative.

While some credit cards offer 0% interest rates for a set period of time on your larger purchases, the big advantage of loans relates to the ability it gives you to choose the period of time over which you can repay them. Use our credit card page and find the one that suits you the best.

What is a Bullet Loan?

You may have heard the term bullet loan and wondered what it really is. Bullet loans are not the most common types of private loans, but in some situations they can be a good alternative to a traditional monthly loan. Non-recurring loans have been used by investors and companies for a long time, but nowadays, one-off loans are also coming to the supply of ordinary retail clients, primarily senior clients, as a good alternative to various financing needs.

Thus, the bullet loan is a one-time mortgage loan or one-off loan loan , and its name implies, it is paid off once the agreed loan period has expired. When a traditional loan is repaid monthly at a steady rate until it is fully repaid, the lump sum loan is repaid in one installment. The repayment date is often agreed within a few years, typically 5-10 years.

Although there are no installments on the bullet loan during the loan period, the borrower still pays interest to the lender on the loan. In some cases, the loan has a zero interest rate, which is called a zero coupon loan. However, this is quite exceptional as such lending is not a very lucrative activity for the lender.

What situations is a bullet loan suitable for?

What situations is a bullet loan suitable for?

A bullet loan is suitable for situations where the borrower is seeking temporary financing and wants to minimize their expenses during the loan period. Loans are often made for a variety of investment activities, allowing the investor, in addition to minimizing costs, maximizing the funds invested and thus the return on investment. For example, buying an investment home is a typical bullet loan investment.

When an investor buys an apartment on a bullet loan and leases it, he not only has the apartment but also has a steady rental income. The purchased home serves as a collateral for the loan, and at the same time, the rental income can be invested productively in other investment instruments and earn a higher return. At the end of the loan period, the loan will be repaid with the proceeds of invested rental income or by selling the apartment.

Not only for private investors, a bullet loan can also be a good tool for companies that need temporary financing. Although a one-time mortgage loan is typically a form of loan used by investors and is not usually taken for home use, for example, a one-time mortgage loan may become familiar to private clients, for example in the form of a reverse home. loan

Reverse Mortgage

Reverse Mortgage

Thus, although a one-time loan is typically not used to acquire a home, a so-called reverse mortgage is an opportunity, for example, to help an elderly person stay in an old family home for longer. Home-based housing may be debt-free and otherwise reasonable, but for example, major renovations in a housing association may increase your monthly living expenses so that the pensioner’s income is no longer sufficient to cover both the cost of living and other living expenses. In this case, a reverse mortgage can be an alternative to a home loan or a consumer loan. When using a reverse home loan to pay for a homeowner mortgage, the monthly expenses remain reasonable, and even a low-income pensioner can continue living in a home that has been home for decades.

Sometimes older people also want to use their wealth accumulated during their long working lives for travel or otherwise a comfortable life, and a reverse mortgage provides a great opportunity to use the savings that have been accumulated over the years and invested in a home.

A reverse mortgage is thus a non-recurring loan with the borrower’s housing as collateral. The loan is not very common yet, but it is constantly gaining popularity. Older people, especially those living in the Helsinki metropolitan area, are most likely to seize the opportunity.

Thus, during the loan period, only the interest is paid on the loan. Therefore, it is good to consider whether you want to raise the entire loan amount immediately or whether you do not want to withdraw part of it for the future. If you raise the entire loan amount in one installment, you will, of course, pay a higher interest rate during the loan period. On the other hand, if you wish to draw down a loan in several installments, you will probably have to pay more for the loan withdrawal costs.

At the end of the loan period, the loan will be repaid in full to the lender. In a reverse mortgage loan, when the loan is due, the apartment is often sold, and the owner moves to a nursing home, for example. Reverse home loans usually only get about 50-75% of the value of the home, only at the time of sale, often the homeowner still has a nice amount after paying off the loan.

On the other hand, in the case of a reverse home loan, there is typically flexibility in the terms of the loan so that, for example, if the borrower is still in good shape and wants to continue living in the apartment, the loan period can be extended.

What are the terms for a bullet loan?

What are the terms for a bullet loan?

The terms of a bullet loan, like any other loan, always depend on the situation, both the borrower and the lender. When determining the terms of a loan, influencing factors may include, but are not limited to, the size of the loan, the time of the loan, the borrower’s prior payment history or, for example, the subject of the loan. The interest rate of a bullet loan may be fixed or floating, and the loan may be raised in installments or even paid off, depending on previously agreed terms. It is worth noting that the interest charges on a one-time loan are generally higher than the monthly repayment of the loan because, as the loan is not repaid during the loan period, interest is paid continuously on the entire loan. The interest rate on a one-time loan is also typically slightly higher than the repayable interest on a loan.

As the reverse mortgage loan is still relatively new to the loan market, it is a good idea to read the terms of the loan very carefully and make sure you understand all the features of the loan and the terms of the agreement. And of course, this loan is also worth bidding for and negotiating, as there are several providers on the market.

Risks of a one-time loan

Risks of a one-time loan

For example, in a reverse mortgage, the home serves as collateral for the loan, so there is little risk to the lender. When the loan is due, the apartment can be sold and the loan set off against the proceeds of the sale. For the borrower, this does mean that the home must be forfeited. Therefore, when borrowing, it is worthwhile for the borrower to find out carefully whether the loan period can be extended. If, for example, the borrower is still in such good condition at the time of loan repayment that it is not appropriate to move to a nursing home and would like to continue living in his / her home, the lender must be negotiated for repayment. If this possibility is not taken into account in the original loan terms, negotiation may be difficult.

However, due to the long loan period, it can be difficult to assess the development of the value of the dwellings. For this reason, a loan is usually only granted for 50-75% of the value of the home. In addition, the location of the dwelling affects the availability and terms of the loan. For example, in the Helsinki metropolitan area, the value of housing is likely to remain stable or increase, with a relatively low risk. In some other areas the situation may be different. It is also worth noting that if the value of the home has dropped significantly during the loan period, the lender may not be very keen to extend the loan period even if the borrower submits it. In this case, the mortgage is sold or the borrower has to repay the loan in some other way.

Of course, the borrower also faces some risk due to interest rate fluctuations. If no fixed interest rate is agreed on the loan, the interest rate of the loan may fluctuate a lot during the loan period. Before borrowing, it is good to think about what would happen if the interest rate suddenly doubled – could the borrower still be able to pay the monthly interest expenses?

Of course, the same laws apply when you take out a bullet loan for an investment home. Here too, the home you buy usually acts as a collateral for the loan, and if the other investments made during the loan period have not produced enough to pay off the loan, the home can be sold and the loan paid off with proceeds of sale .

In general, therefore, earning a loan, especially from a traditional bank, requires collateral, sufficient income and also the borrower’s creditworthiness. Where do you lend without credit history ? Lack of credit information will, of course, limit access to credit, but it is by no means impossible. However, it’s always worth asking. In this case, it is a good idea to arrange a personal meeting with the lender and provide the lender with a detailed account of your income and ability to pay, as the weight of your youth bumps may be reduced if you can demonstrate that your ability to manage your finances is now in place. If the borrower has defaults and the loan is therefore considered to involve higher risks, the borrower is also likely to pay a higher interest rate on the loan than he would have paid without the defaults.

How do I compare loans? Compare Loans Wisely

The most important information is the interest rate, which is the price at which a loan can be obtained.

An even more accurate measure of loan comparisons is the actual APR, which also takes into account other credit-related fees and the repayment schedule. There are also differences in speed: at best, a loan can be obtained in minutes, sometimes having to wait several days.

How do you find the right loan for you?

How do you find the right loan for you?

In addition to the interest rate, many factors influence the price of a loan:

  • An account management fee will be charged for maintaining and managing your loan account. Usually you pay a few euros per month for account management. The amount may seem small, but especially in the case of small loans, the relative share of account management fees in the cost of the loan is significant.
  • The start -up fee is a one-time payment to open an account, depending on the amount of the loan, from a few tens of euros up to a couple of hundred euros.
  • The loan amount affects the total cost in two ways. A large loan often has a lower interest rate on a small loan, but on the other hand, the higher the loan amount, the higher the interest expense.
  • Loan time affects the total cost of a loan more than many people think. Example: The bank grants a loan of $ 10,000 at a 10% interest rate and a monthly fee of $ 4. When the loan period is 5 years, the loan costs are EUR 2 988. At 10 years, the cost of the loan is EUR 6,338, which is more than double.
  • Repayment gratuities may sometimes be chargeable, but the practices of creditors vary.

You can compare loans without applying for a loan on Good Finance

You can compare loans without applying for a loan on Good Finance

It is a good idea to compare your loans before applying for a loan offer in the Good Finance loan comparison, which helps consumers choose the right loan with data and genuine reviews. The service lists the pros and cons of different banks, lenders and also loan brokers. The site also reveals what kind of loan offer its test applicants received from various banks and loan services. Although the loan offer is mostly personal, it does give you a good idea of ​​what kind of offer and experience you could get yourself.

Loan comparisons also illustrate, for example, how large loan amounts often receive a lower interest rate on small loans. With a loan amount of between $ 20,000 and $ 25,000 and a 10-year term, the effective annual interest rate may be as low as 10% or even less. On the other hand, with smaller loan amounts of $ 2,000 – $ 3,000 – which will be repaid in a few years – the actual annual interest rate is typically higher: around 20-30% depending on the lender.

Another point of comparison is how extending the loan term increases the total cost of the loan. The importance of this issue is emphasized especially in large loan amounts.

With a real annual interest rate of 8.82% for a loan of EUR 25,000 and a 10-year term, the borrower will have to repay a total of EUR 36,480. The total cost of the loan is thus EUR 11 480 . With another loan brokerage offering the same $ 25,000 credit at a higher APR of 10.07% per annum and a shorter 5-year term, the repayment is only $ 31,598. The total cost is therefore € 6,598 , about half the cost of a ten-year loan – despite the higher interest rate.

Loan comparisons also provide information

Loan comparisons also provide information

In addition to price examples, the valuable benefits of loan comparisons are the experience with the speed of the credit companies’ application process and customer service.

One key difference between banks and financial institutions is whether you need to sign up for a loan with a bank ID to apply for a loan. Some require identification already at the application stage, others only at the time of the loan. Some Credit Companies may also require Instantor verification.

You can also read about loan repayment experiences from loan comparisons. A large number of operators apply for a loan so that the applicant first receives a loan offer in their email which can be consulted in peace. For example, if the interest rate is too high, the loan does not have to be raised. Sometimes, however, after an approved credit decision, the loan is automatically paid into the account specified by the applicant without the offer having to be approved separately. At the fastest, you can get a loan in one sitting.

On the other hand, there are differences in customer service channels and quality of service. The most common customer service channels are telephone and email, but some also use chat, for example. Sometimes there is no response from customer service, and sometimes very quickly.