Monthly Archives: December 2019

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Credit Cards without Bureau: You need it and you can

Don’t have a credit history or want to improve it? Did you know that there is a class of products that can help you achieve it. That’s right, I mean secured credit cards or credit cards without a bureau. If you want to better understand its operation, here I explain.

Why get a line of credit?

Why get a line of credit?

This is the basic question that should guide us in the choice of this kind of products, since there are endless reasons why we might want a plastic, for example: as a method of payment for travel, to buy in department stores or online. But if you are interested in obtaining a credit card without a bureau, the best option is guaranteed cards.

Why do you ask the Bureau to get a credit card?

There are different types of credit cards and these are offered to the account holders according to the type of risk they represent for the institution . Imagine that you are a very responsible person with your payments, you have previously requested loans and have managed to settle them in a timely manner. All this behavior is based on your credit history (yes, the famous Bureau), it shows how reliable you are to offer you some type of product.

Banks look closely at this data to determine whether or not they approve of plastic. In the previous example it would be logical to think that if you have an excellent use of credit, then you will receive offers of cards with lower interests, which entails a very competitive CAT, better benefits and with a much higher credit line.

But what options does someone with bad credit history or no background have? That’s where secured credit cards come in.

What are secured credit cards?

What are secured credit cards?

Also known as insured, they are plastics backed by money that the same account holder deposits to the institution, hence it is a guarantee of payment. Generally, this amount must be equal to or greater than the line of credit that you are approved with the plastic and, although it does not give you any financial benefit to have your money in the plastic, it is the condition to provide you with this product, since it will charge from there if you miss a payment.

In the case of cards guaranteed with revolving credit, that is, those whose line is returned when you finish paying it, may have commissions and interests greater than the rest of the products in this range. This is understood as the client lacks a support that allows him to entrust another loan in better conditions.

However, according to CONDUSEF information, after showing good behavior for some time, your money is refunded and you can request an unsecured credit card.

Who offers guaranteed credit cards in Mexico?

Who offers guaranteed credit cards in Mexico?

You can currently find some kind of products in this class, but you would have to ask if they have this kind of products in their catalog. However, now you have the possibility to explore financial technology companies, fintech, to discover other options. I recommend you Check.

When should I get a credit card without a bureau?

As we mentioned earlier, there are a couple of cases in which the guaranteed cards could be very useful:

  • If you do not have a history that supports you as a good payer, getting this type of plastics can make your way.
  • If for some reason you stopped paying a loan and the institutions no longer entrust you with another similar service, this can be a good step to improve your history and thus straighten the relationship you had with the institutions.

On the other hand, if you plan to improve your credit score, do not forget that the first step is to settle all your debts. Therefore, consider going to a credit repair company to settle your outstanding accounts and thus start your new financial life on the right foot.

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Who repays the loan after divorce?

When marriage is nearing end, partners should also settle their common debts. From the perspective of banks, it does not matter who will repay the loan after the marriage breaks up. The only thing that matters to them is that they are solvent and pay on time.

The break-up of marriage is not a pleasant affair and may become more unpleasant if, in addition to the property of the spouses, they also share debt in the form of a loan or a mortgage. Good Finance looked at a few cases that are commonly dealt with in divorce.

The easiest way is to deal with a case where the credit was taken by the spouse before the wedding. At that time, it does not fall under the non-share ownership of spouses (BSM) and must be repaid by one of the partners.

Concealed loan

Concealed loan

A more complicated case arises if both spouses are to deal with the repayment of the loan because they were already married during the marriage, so it falls under BSM.

In practice, for example, one of the spouses takes a loan before divorcing the marriage, which he does not inform the other spouse. He then uses the loan for personal use. Should the other partner not wish to repay, it must demonstrate what the funds from the loan have been used for. “In some cases, it is difficult for the other spouse to bear the burden of proof,” adds Veronika Michalíková, Attorney at Law | A | K | MV .

In practice, Good Finance is confronted with the fact that it is not always so easy to reach an agreement that both parties would be happy with. “Most often one spouse may perceive such an act rather than an act of revenge and complicates and unnecessarily stretches such a process,” describes Lýdia Žáčková, the spokeswoman of Poštová Good Finance .

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Unless the spouses agree on the terms of the repayment of the loan, the court usually decides. In the case of divorce, there is an BSM Settlement Institute. It is part of the divorce process, and it is an agreement on how the spouses will have their common assets and the liabilities distributed after the divorce. Based on this agreement, it is possible to transfer a real estate with a mortgage to one of the partners , who will repay the loan.

The Bank is entitled to a loan from any spouse. Usually, he will wait for the outcome of the court and will recover the debt from the debtor or both.

Another problem is the misconception that one of the spouses who earns more has a greater right to an apartment or house. Thus, it claims exclusive ownership of the property without further settlement, arguing that the mortgage payments and the cost of the household went exclusively out of its income. “At the same time, spouses are economically equal even if they work both and their income is different,” adds experts.

Deletion of the debtor

Deletion of the debtor

If the spouses agree in court on who will repay the loan, the bank may or may not release one of them from the credit relationship. This is dealt with in addition to the loan agreement signed by both spouses.

The Bank decides to release one of the partners from the loan also according to its creditworthiness, ie the ability to repay the loan . If the new borrower does not meet the conditions required by the bank, the new borrower may decide not to release another borrower from the loan . And they will both have to repay. It is not decisive in terms of credit whether or not the debtors are spouses. Divorced are still co-borrowers.

The situation can be resolved by having someone else access the loan instead of one of the ex-spouses.

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Sale and purchase

Another possibility is that ex-partners sell a common apartment / house and repay the loan early. Or, he buys his share of each other in the form of either a refinancing mortgage or a new mortgage in the same bank.

Settlement before divorce

Settlement before divorce

Good Finance therefore advises to settle loans before divorce. A divorce agreement also avoids a situation where one partner stops paying off the loan and the bank can recover the debt from the other.

For example, if the wife has a decision to settle BSM, where it is clearly stated that the mortgage is to be repaid by the husband, but he does not, the bank should no longer bother her. Debt will be recovered from the ex-husband.

Oral agreements? Rather not

Sometimes the spouses only agree to repay the loan after the break-up only orally. This can end badly. Usually, the bank asks the ex-wife to repay the loan, although she and her husband agreed that he would repay it. Nothing will help her when it is not on paper.

Interestingly, if the ex-wife has to repay the loan, even if she has agreed otherwise with the ex-husband and repays the loan, she has the right to claim a refund for the loan from the ex-husband. But he must have some confirmation of the agreement. “In the event that after the termination of BSM the wife participated in the payment of the common debt of her income, she has the right to compensation for such expenses, ” adds Micka.

Joint repayment

The obligation to repay the loan has a woman or a man, even though they are both co-borrowers and guarantors. “The spouses who acquire the property together in BSM and take the mortgage loan as a purchase act as applicant and co-applicant. Both have the same rights and obligations and both are equally responsible for repaying the loan, ” explains experts from Poštová Good Finance.

In the case of a guarantee, the bank will primarily recover the claim from the debtor. If he fails to pay, the guarantor comes. “If the guarantor should change after the termination of the marriage, it will be necessary to conclude an agreement on the guarantor change with the creditor.

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Who is the Giro check loan for?

Both banking and non-banking institutions sometimes use, although quite rare, the form of receipt of a loan granted in the form of a Giro check. The most common practice of all financial institutions finalizing a bank loan agreement or payday loan is online transfer.

However, what should people who do not have a bank account and cannot transfer a set amount to them and at the same time be unable to withdraw cash from the institution in the bank window for various reasons?

Who is the Giro check loan for?

Who is the Giro check loan for?

The term Giro comes from the Italian idiom fare un giro, which means ride, walk, circular movement. The Giro check itself has a very long history dating back several hundred years. And apparently, the first to implement it into everyday practice, Medici receiving church commitments throughout Europe and carrying them, among others, in the form of checks to Rome and the current pope.

Today, this method of receiving money is most often used for older people who do not have a bank account and are unable to handle ATM cards. Not only that, the Giro check loan also works on people who don’t want the transfer to leave a mark on their account.

It is also very common for the Giro check to work faster than a transfer between different banks and different companies. This form of loan is also implemented when money is needed immediately. It is also used by people who do not want to wait for booking transfers in banks and prefer to collect money immediately, even at the post office.

Finalization of the Giro check loan

Finalization of the Giro check loan

The customer signing the loan or payday loan agreement simultaneously receives a Giro check. With this check he should go e.g. to one of the post offices. At the same time, there are many companies in Poland offering domestic and foreign transfers and transfers, which also support the Giro check service.

The Giro check is even honored in many stores, including grocery stores, DIY stores and hypermarkets, as well as large home appliances stores.