Improve Your Financial Health – The First Step to Fixing Your Financial Problems

Learning how to Improve Your Financial Health can help you build a better future for yourself and your family. It is something that you can do in the comfort of your own home. You need to realize though that there are many different reasons for your financial problems, and knowing how to identify them is going to be the first step in helping you fix them.

Knowing the symptoms of financial hardship isn’t something that you can just jump into because it will just make you feel frustrated that you can’t seem to do anything about it. You need to take the time to make a list of the causes for your finances. This is the beginning of learning how to Improve Your Financial Health.

There are different types of solutions for financial problems

Some people want to take out loans and pay installment payments for them to fix their financial problems, others want to create a budget to help them handle their money better, and others want to work with their employers to fix the situation they are facing. Each of these types of solutions can bring about a change in your financial health.

It is important to understand that it takes time to Improve Your Financial Health. There are plenty of steps that you can take to address your underlying problems. One of the most important steps is learning how to identify the cause of your financial problems.

You can start by looking at your spending habits to see if you are managing your money properly. If you find that you are living beyond your means, then you can start trying to cut back on the things that you do that are important to your financial health. You should try to avoid spending more than you can afford.

You can also see that you aren’t saving enough money. While you may think that you have enough money saved up to live comfortably, that is not always the case. By setting up a savings account you can be more confident that you will be able to provide for your family without having to rely on someone else.

Another way to Improve Your Financial Health is to stop using credit cards. Even if you may be able to manage to pay your bills on time, you should never spend more than you can afford. You need to learn to manage your money, and you should try to limit the number of credit cards you have.

Another way to Improve Your Financial Health is to avoid gambling. This may sound obvious, but you may have a difficult time keeping your spending under control if you gamble. The world is not a better place if you spend your money on things that you don’t really need or enjoy.

Financial hardship can come from a variety of different sources

Some of the most common causes are unemployment, illnesses, divorce, and the loss of a job. Other things you may consider to be examples of financial hardship are the unexpected costs of unexpected things. These can include tuition, vacations, health care, and even rent.

Each of these different factors has different effects on your finances. You may be able to solve one problem, but you will only be covering up another. When you begin to Identify the underlying causes of your financial problems, you will be able to take corrective action to fix them.

How important is improving one’s financial health?

Learning how to improve your financial health is going to require you to find a solution for your underlying issues. If you find that you have a lot of bills and you need to pay them on time then you should do what you can to lower your monthly payments. You can also try to create a budget that helps you to eliminate all of your expenses and leave you with the money you need to pay your bills.

This type of Personal Finance Management can allow you to Take Control of Your Finances. Remember that these solutions may take some time to work but it is well worth the effort if you want to improve your Financial Health.

How To Get Low Credit Scores

There are several types of consumer credit available, and most people with the ability to purchase consumer credit are going to be classified as a high risk consumer. The reason for this is that many credit agencies see high risk consumers as a lower risk to lend money. While some credit agencies are only lowering their standards for consumers, many do not; there are exceptions to the rule.

Credit scores

When looking for a loan on the internet, many consumers get mixed signals regarding their credit scores. You can find this same confusion when applying for financing for home and auto purchases online.
When you apply for any type of financing you need to make sure that you have the same credit history with all companies. Otherwise, if any changes occur in your credit score you could be considered a higher risk consumer by these companies.
Next, you need to have all of your financial and credit bureau reports available to all companies. The credit bureau is the company that makes the decision on your credit score. Any mistakes or errors will show up on your credit report and make it difficult to obtain financing or a loan.

Keep monitoring

You also need to maintain an active monitoring account with the credit bureau to keep your credit score current. You can access your credit score at any time from the credit bureau website. This can be helpful when you are unsure of whether or not you will be approved for financing or a loan.
Many consumers often do not realize that they can help their credit score by making just one of the three payments required per month. In fact, consumers can save up to ten percent by making just one payment per month. Consumers can choose to make a down payment for one of the types of loans that are offered by the credit companies.
By paying a down payment for a vehicle you can significantly increase your credit score. A down payment can be as little as two percent of the loan amount. The down payment will help your credit score up and you will end up with a very affordable rate.

Boost your credit score

Boost your credit score
Another way to boost your credit score is to have a minimum amount of good credit. For example, most companies offer financing for cars and truck as long as the buyer has less than six months of good credit.
If you have a low credit score, it can impact your ability to obtain financing or a loan. You can still qualify for a very low interest rate, but you can pay more than you would to be able to take advantage of the lower interest rates.
Making sure that your credit report reflects your payment history as well as your credit score can help you with the approval process. If your reporting history is full of late payments and bankruptcy, you may not even be allowed to purchase a car with a certain company. To obtain a credit card or a loan, make sure that you are up to date on your reports.
When you apply for financing, it is a good idea to check your credit report to ensure that it is accurate. Make sure that all items are there that you expected. If you find any incorrect information, you need to have it corrected.
In conclusion, the best way to get a low credit score is to be proactive and take the necessary steps to repair your credit before applying for financing. Check your credit scores on a regular basis and pay your bills on time.

How to Avail a Loan With Bad Credit

A lot of students and young professionals have heard how to avail of a loan to get money for schooling. A lot of lenders and banks accept new students as borrowers and will offer a loan at a better interest rate than the typical one offered by a bank. It’s a fact that the rates are much lower with this type of loan.

For the most part, the best way to obtain a loan is to start saving for it. That way, if you’re eligible for a student loan, you can apply for one right away. You may need to save for this loan so it won’t affect your credit in the long run.

The best way to obtain a loan

The best way to obtain a loan

If you’re able to save up enough money to get a student loan, then you’re well on your way to becoming a better borrower. Just because you’re applying for this loan with bad credit, that doesn’t mean you can’t get a loan. A bad credit rating doesn’t necessarily mean you can’t get a loan.

Just make sure you do your research first before you apply for a loan with bad credit. Don’t assume that your credit history will be the deciding factor. There are other factors you should consider, but the first step is to determine if you have bad credit and if so, what type of loan you will be approved for.

Most lenders who deal with people with bad credit to consider a number of factors when considering whether or not to approve them for a loan. Some of these include your credit history, your income, your credit score, how much of a risk you are, and your ability to repay. Let’s look at each of these in more detail.

Your credit history will play a large role in your ability to be approved for a loan. Most lenders are looking for someone who is able to pay back loans on time. The easiest way to improve your credit is to have a secured credit card, which will allow you to increase your credit score. While credit cards can be used to improve your credit, they are not the only type of loans that can be applied for.

The other type of loan you can apply for is a personal loan

The other type of loan you can apply for is a personal loan

This is not a secured loan and it will require collateral. This means that if you default on this loan, your house or car could be repossessed. The lender may try to get you to sign a document where you agree to pay off the loan in full.

If you don’t want to risk being sued by the lender, you’ll probably want to try to get approved for an unsecured loan. These are the best loans for people with bad credit. Since they don’t require collateral, there is no worry about being sued if you cannot repay the loan.

The amount of the loan is another factor that will be considered. If you want to save money, then you may have to shop around for the best loan for you. Make sure you apply for a loan that is at least three times as much as you need so you can cover your expenses while paying down the loan as quickly as possible.

A lender will consider many things when determining how much of a risk you are and will offer different rates depending on their personal assessment. Bad credit loans will be expensive but this is because the lender knows that you may not be able to repay the loan.

On the other hand, if you do have bad credit, you will get a lower interest rate and possibly a longer loan term. This is why it’s important to begin saving for this loan as soon as possible.

Bad credit can affect you at any age

How to avail a loan with bad credit doesn’t mean you have to be a student. Bad credit can affect you at any age. Even though you’re still able to receive financial aid from the government, you should first find out if you can qualify for one from a private lender. Also, if you find you cannot afford to pay off your loans, you should consider getting a second job or taking out a line of credit with your next paycheck.

Finally, remember that getting a loan with bad credit does not mean you will be turned down for every lender. In fact, most will take your credit into consideration. before rejecting you.

Real estate credit: interest rates are now close to the historic low

French banks sharply lowered mortgage interest rates in April, their level now close to historic low, shows monthly study released Monday.

Never before has access to real estate loans been made easier by banking establishments, summarized in a press release by the Best Housing-CSA observatory. The first organization brings together the main French banks, the second is a market research institute.

All durations combined, competitive mortgage interest rates averaged 1.35% in April from 1.39% the previous month. “Real estate credit rates are therefore still falling and they have almost reached their historic minimum in November 2016, at 1.33%, the observatory points out.

1.49% on average for credit over 25 years

In detail, the 15-year loans were negotiated at 1.09% in April according to this observatory, the 20-year loans at 1.27% and the credits on 25 years at 1.49%.

In addition, since the time of previous records in 2016, inflation has accelerated in France – prices were up 1.2% in April on an, which theoretically means that one can almost gain purchasing power by borrowing. However, the observatory’s figures are gross and do not include, for example, loan insurance, systematically requested by the creditor

An average loan of 20 years and 3 months to buy in the old


The particularly low level of rates is compounded by the historically long repayment periods granted by banks. The average delay, about two and a half years higher than it was in 2014, nonetheless marks a slight decline in April as already the previous month: loan durations fell to 227 months (18 years and 11 months) compared to 228 in March. Precision: this average includes several types of real estate loans. For new home loans the average duration is 248 months (20 years and 8 months), and it increases to 243 months (20 years and 3 months) for home loans. accession financing a purchase in the old.

Real estate credit entered a historic situation in several respects in France last year. Its total outstandings have notably reached an unprecedented level of more than 1,000 billion dollars, according to data from the Best Bank.

Loan and tax return

Yes he has. For example, did you know that you can reduce your personal income tax base by paying interest on your loan? You have thousands of crowns can be saved.


Which type of loan does it cover?


Reducing the tax base by the amount of interest paid on the loan is one of the ways in which the state helps its citizens to solve their housing situation. This clearly implies that the loans covered by this option must be drawn for housing or, as the law says: to finance housing needs. In principle, the following loans are involved:

  • Mortgage loan
  • Building savings loan
  • Loan granted on the basis of any of the aforementioned loans, ie pre-mortgage loan, bridging loan and other similar credit products

The discount can be applied once a year when drawing up the tax return for the previous year. One household can deduct a maximum of $ 300,000. With a 15% income tax rate, you can save up to $ 45,000.

You can only deduct interest paid, not loan repayments. Your bank or building society will confirm how much you have paid in the interest for the previous year.


What belongs to housing needs?

home loan

All possible options are listed in the Income Tax Act, in particular:

  • Construction, purchase or alteration of an apartment, family house or apartment building
  • Purchase of land on which you intend to build a house (construction must start within four years of the conclusion of the contract)


Conditions for deduction of interest on the tax base

tax loan

However, to finance a housing loan is not the only condition for claiming a tax base reduction. To do this, it is essential:

  • To participate in a credit agreement
  • To own the property and at the same time
  • To use it for permanent living (if it is already habitable)

In the case of a permanent residence condition, it can be not only your own person but also your spouse, your descendants, parents or grandparents. It is also important that you actually use the property for housing, simply registering for permanent residence may not be enough. If you have to prove this, if necessary, it may result in electricity bills, neighbor testimonies, etc.


Employees can apply a discount through an employer

apply loan

If you have signed a tax declaration with your employer, it will also deduct interest paid from your income tax base. However, the payroll office will ask you to confirm the interest paid by the bank / building society.

If you go to the payroll office for the first time, you will need to bring with you the extract from the Land Register, proof of permanent residence in the place and usually also a copy of the credit agreement.

Mistakes in lending are particularly widespread and unnecessarily cost money

If you want to take out a loan, you usually don’t do this between the hinges. Especially when it comes to the first loan, consumers have many questions and are unsettled when talking to their bank advisor.

Are you planning to take out a loan in the near future? Would you like to keep the costs as low as possible? Then read this article and find out which mistakes in lending are particularly widespread and unnecessarily cost money.

Using the disposable is not much more expensive


Are you also one of the bank customers who consider the overdrafting of the current checking account using the overdraft facility to be more advantageous than other credit options? Then you should rethink and consider alternatives. An installment loan, for example, is much more recommendable. For example, banks charge significantly lower interest rates and offer a higher level of security.

In contrast to the overdraft facility, the bank does not have the right to terminate you prematurely or to change the interest rate with this form of credit.

With the fictitious interest of 12.50% for the overdraft facility and 5.00% for the installment loan, there is an interest difference of 375 dollars after 12 months!

The nominal interest rate is decisive

Another misconception of many consumers is the assumption that the nominal interest rate is an appropriate benchmark for the terms of different loans. This is not the case: only the effective interest rate takes into account all factors that influence the cost of a loan. Specifically, these are:

  • nominal interest rate
  • discount
  • Account management fees
  • Payment and redemption dates

For this reason, you should definitely compare the effective interest rates on loan offers to find a good and cheap loan.

Processing fees for loans are annoying but tolerable

Processing fees for loans are annoying but tolerable

Do you count among the borrowers who have no hesitation in paying fees for checking their creditworthiness and preparing the contract? Then you were not fully informed. At the latest after the relevant judgment of the BGH, it is clear that credit institutions may not charge processing fees for the granting of a loan.

This applies even if the fees are included in the general terms and conditions. As a borrower, take advantage of the opportunity to claim back the wrongly paid processing fees afterward!

With negative Credit Checker, it is impossible to lend

“Consumers about whom negative information is stored at Credit Checker do not get a loan.” – That sounds plausible but is often not always correct. By providing collateral, you replace a lack of creditworthiness with various forms of credit. For example, regardless of the Credit Checker information, it is possible to obtain a security loan. Your shares, bonds and other securitized securities serve as collateral for the loan.

A second borrower, such as your spouse, can also increase the likelihood of a loan approval if you have negative Credit Checker characteristics. In general, a single negative characteristic is not a knock-out criterion when lending!

Christmas loan, where to look for it?

Christmas is a time of joy, but also of huge expenses. We need money not only for gifts for loved ones, but also for preparing favorite dishes. Some of us will also face expenses related to traveling to the family. So the question is how to deal with all these commitments and not worry about running out of funds. The loan turns out to be the solution.


To take or not to take – that is the question

christmas loan

A lot of people are involved in Christmas madness. Some even count the days remaining until Christmas. They are also looking forward to dressing the Christmas tree and, above all, gathering in a family circle at the Christmas Eve table. It all has its charm, but gifts, food and meetings with family or friends absorb a fortune. Provisions that this time we will not give up and spend too much money usually sputter like soap bubbles. After all, holidays are once a year, so it’s worth making every effort to create a truly unforgettable atmosphere and at the same time give each one a special gift.
However, if the funds are shrinking at a rapid pace, we must seek some help.The way out of this difficult situation is a holiday loan that you can get on preferential terms. Christmas loan offers are available both in banks and in the non-banking sector. It is worth emphasizing that the latter do not require many formalities from us, and above all they are faster available. So take or not take? I think everyone must answer this question, but let’s try to look at the advantages of such a solution.


Christmas loan – why is it a good solution?

Christmas loan - why is it a good solution?

It often happens that even people who watch over their household budget have a problem in two situations a year. The first relates to the holiday trip, and the second to the holiday season. Let’s be honest – you don’t have to go crazy with spending so that your holidays end with a loan. After all, it’s not just three holidays, but also New Year’s Eve. On the other hand, thanks to the holiday loan, we can make this special time look as we dream. At the moment it is worth turning off reason, because the Christmas period is associated with positive emotions, the warmth of a home and sometimes a bit carefree joy.
A holiday loan is certainly a good solution when your home budget does not allow you to organize perfect holidays.It is hard to regard as a whim the desire to create a unique atmosphere, treat your beloved people with delicious, traditional dishes or really unique gifts. Therefore, if a Christmas loan turns out to be necessary, you just have to use it. Only we should calculate all its costs and carefully analyze our financial situation in terms of repayment of the liability within the time agreed with the lender.


Christmas loan – where to find it?

Christmas loan - where to find it?

It is very important to prepare for the holidays with your head. This means that at the beginning of December we have to make a shopping list and count exactly how much money we need. Thanks to this, we know how much we may miss. It is better not to decide on an excessive amount in relation to the needs and repayment possibilities. There are three loan sources to choose from:

  • Family or friends – theoretically, the easiest way to ask your loved ones for help, but they too can barely fasten their budget before Christmas;
  • Bank – in this case, we can use a personal account overdraft, credit card or cash loan. However, none of these options are available immediately and requires compliance with several requirements. Some people may find it difficult to meet the bank’s requirements (eg income criterion);
  • Non-bank sector – installment loan or payday loan offered by loan companies or private investors as part of social lending.

The quickest payout is available, but it has its limits. First, the loan amount is not high, especially if you want to take advantage of the promotional offer of the first free loan. Secondly, we pay off payday loans once, and usually after 30 days. We must therefore consider whether we will be able to collect the right amount almost immediately after the New Year. On the other hand, the advantage of payday loans is the speed of receipt of the amount requested and the minimum formalities to be met.

However, if we have concerns whether we can meet the short deadline for repayment of the entire loan amount, it is better to opt for an installment loan. It can be a private loan or offered by a loan company. The installment commitment pays off longer, but the monthly charges turn out to be much lower. In addition, higher loan amounts are available if required.
It is worth emphasizing that both payday loan and installment loan are available online, so the process of settling down does not consume much valuable time (which is usually even less before Christmas). Formal requirements are also not difficult to meet. Most often, it is enough to have an ID card, a bank account and some income to get a loan easily.

LTV indicator – what is it and how does it affect the loan?

When lending real estate with a mortgage – banks use many different tricks that will secure the given investment. One such indicator is LTV. It significantly affects the final cost of the loan. What about this enigmatic abbreviation?  


LTV, or Loan To Value  

Loan To Value

Banks providing mortgage clearly defines the methods of commitment. It is intended only to finance the purchase of real estate, which is also the main mortgage security. Therefore, the LTV indicator, ie Loan To Value is the main parameter that determines the interest rate on the loan. Simply put, it is a bank conversion factor that allows you to assess the credit risk of a particular investment.   

LTV is very often confused with an indicator that measures the level of own contribution. Unfortunately, these are two separate concepts! Yes, the amount of funds for the purchase of real estate is undoubtedly reflected in LTV – but it cannot be synonymous with it. By developing the abbreviation “Loan To Value”, we think literally: “Credit to Value”. Therefore, the indicator shows – how the amount of money borrowed from the bank looks like up to the real value of the credited property. The lower the LTV, the more attractive the loan price!


How to calculate LTV?  

loan calculator

Currently, on the financial market it is very difficult to equal 100% LTV – and so the sum of the loan equal to the value of the investment. Why? This is the result of the fact that banks have ceased to grant loans that fully cover the cost of buying a mortgage. And that means having to make your own contribution. Also read: 8 ideas on how to get your own contribution!  

In order to calculate LTV for a specific investment, it is necessary to know the amount of the loan – ie the amount borrowed from the bank, as well as the value of the mortgage, which will be used as collateral for the entire loan. It is best to understand how the indicator works on a specific example. Namely – if the property is worth 250 thousand dollars and the bank grants a loan for 250,000 dollars, LTV is 100%. However, if the loan amounts to 200 thousand. by calculating LTV – we divide the loan amount by the value of the property and multiply it by 100%:  

LTV ratio: 200 00: 250,000 = 0.8 x 100% = 80%  

To sum up: m and higher Loan To Value, the higher the cost of the loan and the more likely that the lender will require additional security, eg. In the form of insurance, a one-time commission or margin. Therefore, the customer with a higher own deposit has a much better negotiating situation and a better chance of obtaining an attractive credit offer. From January 2017, on the basis of the “Recommendation S” adopted by the Polish Financial Supervision Authority – the client applying for a mortgage must have at least a 20% contribution of real estate value. This is to confirm the credibility and stable financial position of the potential borrower.


LTV and loan costs  

money loan

Interestingly, during the mortgage LTV may change! It may be the result of repayment of a portion of capital, changes in the value of real estate, as well as in the case of foreign currency loans – exchange rate fluctuations. A decrease in the LTV ratio may occur when taking loans in dollars. Because repayment of some funds means a decrease in the level of debt. Paradoxically, with LTV currency loans and the amount of credit itself can increase. After all, it is burdened with additional currency risk, ie a change in the exchange rate.


The higher the loan, the higher the LTV!  

money loan

The times when banks shaped the LTV ratio at a level exceeding 100% and granted loans without own contribution have gone forever … This means that we will no longer receive such an obligation that will cover 100% the costs of buying a given property. We will not find a loan with a rate higher than 80%. An exception may only be the proposals of some banking institutions, which, in exchange for a minimum 20% own contribution, offer redemption, so-called a safe ceiling, additional insurance for the missing amount. However, due to many threats resulting from the mismatch of the credit amount to the client’s financial situation – we can expect a tightening of lenders policy.  

That is why it is also worth remembering that not only additional cash will contribute to the improvement of credit conditions. Equally important is the property that we own, as well as the property in which we currently live, a construction plot or a family home. The only condition that must be met is no charge and acceptance by the bank. After all – each time it is necessary to thoroughly analyze and examine all the pros and cons. After all, a flat or house made available as part of a loan will provide its security for several long years!

Who can apply for a loan?

A loan , or loan, is a sum of money that a bank or financial agency grants as a loan. The sum will be repaid in monthly installments, with the application of an interest or, in the case of loans at rate 0, with the payment of the necessary costs of practice and investigation.

The various types of loan


There are various types of loans that a subject can ask for, to face a costly expense or to raise his finances in a time of difficulty:

  • mortgages: they are paid only on important figures and with a specific reason, for example the purchase or renovation of a house or the purchase of real estate to start a professional or commercial activity
  • credit card loans: these are particular credit cards, called revolving, which instead of paying the entire amount of monthly expenditure to the following month, spreads the sum of the purchases over different months, applying a percentage of interest
  • financing: it is the possibility of making a purchase and paying it in installments. Usually, it is the same shops that deal with making the request for the file, directly at the moment of the payment of the purchased good
  • personal loans : they are the most sought after and most useful solution in case of need for small sums, which are not used to purchase a specific object or service, but to obtain liquidity

How do you apply for a loan?

How do you apply for a loan?

For each type of loan there is a particular procedure to follow:

  • for mortgages, you must contact the bank where you are a current account holder or, at the limit, a banking institution where you will necessarily have to open a current account. To obtain a mortgage, all the documents relating to the property that is being purchased or to the activity that is being started must be delivered at the time of signing the contract.
  • the financing for the purchase of a specific good is requested, on behalf of the customer, directly from the shop that sells that good or that service
  • revolving credit cards or personal loans , however, are requested from financial agencies that deal with loans or credit to private individuals

For what reasons can a loan be requested?

For what reasons can a loan be requested?

We have already seen that, in the case of mortgages or loans, the money requested on loan must correspond to the exact cost of a property, an asset or a service that is being purchased, of which all commercial and legal documentation must be presented. As for personal loans , however, there is no obligation to specify to the lending agency what it is used for, how it will be used, spent or invested the sum loaned. The reasons why a person can choose to apply for a personal loan are many and can have several causes:

  • a moment of economic difficulty and the consequent need for liquids to be able to reach the end of the month, pay the bills, the installments of the rent or another asset that is being paid in installments, for example the car
  • the need to do small jobs for the home which, however, do not have a cost that justifies taking out a demanding mortgage
  • in the event of a wedding, to have the cash to face the preparation of the new house, the purchase of furniture or to enjoy the honeymoon
  • to go on vacation without having to affect the capital
  • to finance the studies of the children, in the absence of liquid, to face the school expenses and the first installments of the rent, if they go to stay away from home

What are the requirements for applying for a loan?

Financial agencies, of course, evaluate the application and the person before lending money. First of all, they verify that the applicant is not registered in the Register of Bad Payers. It is a register which includes the names of those who, in the past, have not honored mortgages, rents, loans. Anyone who has been included in this database, however, is aware of it, because it is a legal act that is done after communicating it to the Bad Payer. The other basic requirements to have access to a personal loan are:

  • an age between 18 and 70, although some financials are elastic in their age and agree to lend money even to older people
  • an income: as an employee, as a freelancer or as a pensioner. According to your situation, you will have to submit to the agency: the last paycheck, the last tax return or the last credit of the pension.
  • some financial companies consider income obtained from annuities such as houses, properties or land for rent to be valid, if they can be demonstrated with a regular contract
  • in the case of employees, the employment contract must be open-ended. Alternatively, the term of the contract must cover the entire term of the loan. An employee with a 12-month contract that has just started, therefore, can access a 6-month or 12-month loan, but not a 24-month loan
  • be resident in Italy or have a residence permit that covers the entire duration of the loan
  • have a bank account, in any bank, for which the bank statement of the last 4 months must be presented

Is credit always possible? – Credit

Increasing a loan is usually no problem. Financial institutions typically review their new request against the same criteria as the existing loan.

Another credit check when the loan amount increases


Since a new loan agreement is concluded with a new loan agreement, you will have to expect another credit check. An increase should, therefore, be considered well in advance if the economic situation has changed negatively since the last borrowing.

For example, if you are in arrears with payment in installments, this may have been noted in the GFI.

In this case, the conditions for the new loan are worse or the bank even refuses to increase it.

Two loans from two banks in parallel are also possible


If, after checking the conditions, it turns out that the repayment of the loan would become more expensive, but another bank offers more favorable conditions for the new loan amount, it makes sense to simply take out a second loan. Of course, this also depends on the volume.

Banks do not like to see a second loan, so they offer to take over on their own. However, this is not absolutely necessary but results from the cost calculation.

Easier to increase an existing loan


The process is easier to increase an existing loan with the old bank than to take out a second loan. We can quickly determine which variant is the cheaper one. It can, of course, also make sense to present the current bank with a competitor’s cheaper offer in order to negotiate a cheaper interest rate for the increase.

Before you top up, check whether your current financial situation allows rates to be increased at all.



Banks are generally open to an increase in the loan if the income is sufficient for the higher rate. If interest rates are significantly lower, paying off the loan can bring noticeable financial relief. If debt restructuring is not an option, a second loan is conceivable. Be wise to restructure your loan to increase net pay.

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