How to find out your credit history, how to check your credit history for free online

The majority of the population of the Republic of Latvia has already come across it, especially those who have used credit offers or car leasing.

But what does “credit history” mean, and why do bank staff pay so much attention to credit applications? What can you find in your credit history and how do the borrower find out this information? These are the issues we will address in our article today .

What does “credit history” mean

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The credit history is identical to the financial liability statement that is created for a particular person. The credit history contains not only information about the loans already repaid , but also the person’s current liabilities. In addition to the basic information, the credit history also includes information on how each previous loan was repaid in good faith and whether the client is fully discharging his or her obligations to the utility companies (taking into account unpaid housing maintenance payments).

The proper execution of any of your financial obligations (loan repayments and utility bills) is the direct path to a clean and undamaged credit history that you will still need when applying for a cash loan, leasing, mortgage or car loan.

Not only banks, but also leasing companies can use the credit history database. In order to test yourself, it is advisable to review your personal credit history before each investor visit.

Individuals or prospective borrowers can check their details

Individuals or prospective borrowers can check their details

Verify their ideal credit file and then go to the lender for financial assistance. In this case, the probability that the potential borrower will be denied is zero.

For creditors, such a database is proof of the customer’s responsibility and good faith when applying for leasing or borrowing money. By looking at the credit database, the lender can immediately track the trend of past and present repayments. Often, it is this fact which is decisive when considering an application.

Completing all of the loan repayment terms can help you not to worry about your financial reputation. But it is enough to delay bills when negative marks appear in your credit history.

Such information is entered into the general database of the borrower and will be kept there for the next 5 years. In the event that the overdue payment has already been repaid together with the total credit debt, the negative information will also be visible to other credit organizations throughout this period.

Each bank or any other company you are processing a financial transaction in will enter their information about you in the credit history database. Later on, your future credit will be reviewed by a future investor in case you want to take out a loan again or apply for a lease.

What are the features of credit history?

What are the features of credit history?

For a potential borrower, the characteristics of their credit history influence various issues in the design of their next financial products . For example, if you have a perfect credit history and you decide to buy a new TV at a popular online store, you have a number of advantages over others who want to buy the same new TV model. Why: Firstly, you will certainly not be denied the option to purchase the installment, and secondly, you will be offered the most favorable terms. As a result, you will receive the TV as soon as it is shipped to your city and pay its value without the high commissions and annual rates.

The management of such stores, after applying for a hire purchase, will first check your reputation in the Solvency Database. If your credit history is “not dirty” and you have been “great” with many liabilities, then the creditor has no reason not to trust you. That is why he will offer you a number of perks, which will allow you to save substantially on your purchase.

When is it worth using a mortgage?

A mortgage or housing loan is a great solution for people who are looking for their own housing but cannot finance it with their savings. On the other hand, a mortgage loan will be convenient for those who are in a reverse situation – they already have property but need cash.

High amounts available to (almost) everyone

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Regardless of whether you decide on a mortgage loan in a bank or non-bank institution, this is a solution for those who need really high sums of money. In such situations, the room for maneuver is usually limited. Why? Let’s start with the easiest and fastest way to get cash: a non-bank loan, usually an online one.

Such loans are of course very convenient, fast and devoid of formalities, which means that even people with good creditworthiness reach for them. What’s more, the offer that non-bank companies can offer is really wide, which means that with a little help from a loan comparison tool you can easily choose the most advantageous and best suited loan. However, there is a snag – the amount of the loan. It is true that the maximum quota ceiling is much higher than a few years ago, but they are still rather average amounts.

If we need a really large amount of money, then we are unlikely to decide on payday loans – even if you can get up to 7,500 , 8,000 or 10,000 USD . Thanks to installment loans you can get more – up to 20 thousand dollar at GFI. Some also use a car loan (up to USD 100,000). However, even they may be insufficient and you have to take into account the fact that you must first have a vehicle of adequate value.

Meanwhile, mortgage loans are really large amounts, usually reaching several hundred thousand dollar. A non-bank mortgage loan at Good Finance gives the possibility of obtaining up to USD 5 million if the pledged property is worth this amount, although it must be remembered that the loan amount will not be greater than 60% of the property.

Another important issue is the ease of obtaining this amount of money compared to a regular bank cash loan. It is true that you can get up to several hundred thousand dollar using this form of financing, but you will need a really high creditworthiness, high earnings, high financial credibility (and a very rich repayment history), and in addition also another source of security – usually a guarantee.

A truly long-term mortgage

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Mortgage loans are especially recommended for those who are unable to pay back a high amount in a short period of time – a cash loan usually closes within a period not exceeding 10 years. Such a short time in relation to the amount of the commitment is too burdensome installments, for which the repayment can easily get a leg.

The longer repayment period, on the other hand, gives you greater certainty that the loan will be repaid without any disruption and risk of final property attachment. This does not mean, however, that you do not need to be careful. A mortgage with a long repayment period will work only if the borrower has a permanent, very stable employment and does not have to worry about sudden cut-off from the funds.

Money needed for any purpose

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Mortgages, especially non-bank loans, are often not targeted financing. This means that they can be taken for any purpose from which the customer does not have to translate or settle (unlike a cash loan). However, in some cases, banks may prohibit the use of loan money for speculative purposes, including for investment in stocks. However, those who want to invest may take advantage of a non-bank loan, which is unlikely to apply such provisions in the loan agreement.

You don’t always have to own property

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In crisis situations, even those who do not own real estate can take advantage of the mortgage loan. Some institutions may agree to grant financing against a third party mortgage – and it may not even be related or allied. The basic condition is only that the property owner agrees to establish a mortgage.

Risk-free mortgage loans

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As a summary, we will mention once again that mortgage loans will be perfect in situations where the borrower needs a large amount of money, prefers to pay back the loan for a long period and wants to spend money for any purpose (or purposes). Non-bank loans will not yet exclude people who do not have a good credit history and are even indebted. So they are perfect for those who want to quickly pay off high debt, but do not want to sell probably the most valuable things they have – a house or apartment. Thanks to the mortgage, they can continue to live and use it as their property.

Mortgage pledges, however, carry some risk. First of all, it risks losing property and considerable costs resulting mainly from large amounts and long repayment periods. Therefore, it is not always enough for the creditor to sell the property to cover the sum of the liability and interest. This should be borne in mind and remember that liability for the commitment increases in proportion to its amount.

Bank of Canada Announces Interest Rate

The Bank of Canada has once again decided to leave the key rate unchanged. The central bank keeps this rate, also called the target for the overnight rate, to 1% since September 2010.

Mark Carney said he would like to raise the interest rate soon

Mark Carney said he would like to raise the interest rate soon

In an effort to deter Canadians from getting into more debt. Ultra-low mortgage interest rates artificially inflate long-term affordability and encourage consumers to borrow money. Unfortunately, the debt of Canadian households has reached a record level of 163% of the debt-income ratio . The Bank of Canada has described this situation as a threat to the national economy.

“In Canada, while global turbulence continues to constrain economic activity, internal factors support moderate expansion. Following the recent period of below-potential growth, the economy is expected to recover and return to full capacity by the end of 2013, “the Bank of Canada said in a statement.

The central bank estimates household indebtedness will continue to grow

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“The housing market is expected to fall from its historically high level, while the household debt burden is expected to increase further before stabilizing at the end of the period. projection. ” The appraisal report also contains information about the basis on which a given person prepares the valuation and the basis on which it performs it, which sources it uses to describe the property. This is particularly important because the survey contains a detailed description of the property, its physical and legal status, and how it is used.

Lenders use the key interest rate to set their preferential interest rates. For example, if the key interest rate increased by 0.25%, lenders would increase their prime rate. Fortunately for variable rate mortgage holders, the key interest rate remained at 1.00%, leaving their mortgage rates safe and sound. At the moment, the best 5-year variable rate available on Roy Hobbs at a discount of – 0.45% or 2.55% on the key rate.

 

Loan and Credit and the Stock Exchange – differences in trading stocks and currencies

If you want money to earn for you, investing is a sensible idea. Normal savings accounts earn less than one percent interest, while investments generate an average of eight to 10 percent. Two of the most popular investment paths are shares and Loan and Credit.

Most people understand investing in shares

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Basically you buy a small stake in the company. As the company is doing well, the stock price is rising. When a company performs particularly well, some shares pay dividends. Shares are a popular part of most investment projects such as funds or individual retirement accounts. There are many online transaction services that will facilitate your trading. You can also use investment funds that handle transactions for you.

Loan and Credit means currency exchange. As the name implies (foreign exchange), it deals with the international market. However, trading on the currency market only focuses on one thing: currencies. If you’ve ever gone abroad and exchanged PLN to your local currency, you’ve made a transaction on the Loan and Credit market.

The difference is simply in scale. The Loan and Credit market generally revolves around eight major currency pairs including the Euro, US Dollar, Yen, British Pound, Australian Dollar, Swiss Franc, Canadian Dollar, Australian New Zealand Dollar and South African Rand.

Advantages and disadvantages of trading on the currency market

Advantages and disadvantages of trading on the currency market

Foreign exchange can last almost 24 hours a day from Monday to Friday. The Loan and Credit market is not related to the geographical area, so even when one stock market closes another opens. This gives you the opportunity to trade around the clock throughout the week. However, not all trading hours are optimal. Just because the market is open does not mean it is active. To earn money you must trade in an active market. The best trading periods occur when the markets that relate to the currency you trade overlap.

This is a volatile market. If you are interested in a fast, exciting pace of trading, trading on the Loan and Credit market provides you with it. The Loan and Credit market has more transactions every day than the New York Stock Exchange (NYSE). This means great opportunities for people who prefer short-term investments with high turnover.

Loan for any purpose

 

We can get a loan for any purpose even on the day of submitting the application. The feature that characterizes this type of financial product and at the same time distinguishes it from a traditional bank loan is the fact that the borrower does not have to specify the purpose for which the money is to be allocated. The loan granting procedure is also usually less formalized than the bank granting procedure. Non-bank loan for any purpose – what is worth knowing about it?

A quick loan

A quick loan

A quick loan for any purpose is a financial product that must definitely be approached with a high degree of caution. When borrowing a certain amount of money, you usually have to pay back the borrowed amount plus interest due, usually for a short period of time, depending on the loan company ‘s offer. From a rational point of view, hardly anyone can afford such a loan. One of the possibilities offered by loan institutions is the possibility of spreading payments into installments.

Installment loan and informed borrowing rules

The solution decided by a significant number of borrowers is installment loan. Spreading the commitment over a longer period of time means that the home budget is not severely tarnished with the weekly or monthly repayment of the next installment.

Informed lending is based on certain rules. First, do not borrow more than we need. Secondly, the amount of the loan and repayment should be matched to our financial capabilities. What does it mean? The installment of the loan should not significantly burden your home finances. We cannot allow the situation that after paying the loan installment, we will no longer have enough funds for other obligations, e.g. rent or electricity. It is worth remembering when making a decision to take out a loan.

Despite the fact that non-bank loans do not have the best press, and some people even have negative associations with such loans, it is not bad to borrow money from non-bank companies. As economic advisor argues: We have two options: we collect money and spend what we have or borrow, buy and return to whoever lent us money. The most important question is: Am I able to repay a certain amount regularly? If it turns out that taking into account all the costs, I can – there is no reason to worry. We have to calculate, not count, that somehow it will be. Economic education is the key to solve many current problems.

Importantly, the borrower does not have to specify the purpose for which he takes out the loan. Such a financial product is freedom of choice. We borrow money and spend what we want, e.g. on new home appliances or electronics, spontaneous holidays or weekends, payment of bills and rent, buying fuel or holidays for children. A non-bank company is not interested in what we spend the money on. She only wants them to be returned within the period specified in the contract.

Who is a non-bank loan for any purpose?

Who is a non-bank loan for any purpose?

Who can get a non-bank loan for any purpose? Such commitment may be sought by persons who:

  • are at least 18 years old
  • are natural persons, capable of legal actions
  • are Polish citizens, live in Poland and have an ID card
  • they can be full-time employees, work contracts, work contracts, retirees, pensioners, students, farmers – anyone who receives a positive assessment of their creditworthiness
  • it’s a loan for people who don’t want to explain why they need money
  • in an emergency – unexpected expense, illness of a family member, job loss, car repair, holiday trip, organization of holidays, etc.

Advantages of a loan for any purpose

What are the benefits of being able to take out a loan for any purpose:

  • no need to explain why we need money
  • the money can reach our account the same day the application is submitted
  • limiting formalities to a minimum
  • a choice: a quick loan for a short time or an installment
  • flexible loan period: from several to several dozen weeks
  • transaction security – a transparent agreement that contains all the necessary information, including APRC, terms of repayment, consequences of not repaying on time

Loan without a bank account

Every fifth Pole does not have their own bank account. Therefore, cannot such people count on the possibility of borrowing money for any purpose? Of course not. More and more non-bank companies, in order not to close themselves to such a large group of customers, are introducing non-bank loans that do not require having a bank account. Let us remind you that the basic condition that must be met by applicants for a traditional non-bank loan is having their own bank account.

It is worth reading this article before taking a loan: BIK – what is it, how to check your credit history in BIK?

So how can clients lend if they don’t have their own bank account? A home service loan may be a good solution here. Deciding on such a way to take out a non-bank loan, the sales representative of the loan company will bring us money home.

A loan for any purpose at home

A loan for any purpose at home

If for some reason we do not want to take advantage of a standard non-bank loan granted to a bank account or simply do not have a bank account, we can consider a loan with a home service. It’s a way to get quick cash straight to our home.

Advantages of a home loan?

  • Borrowing comfort – we don’t have to go anywhere, a company representative will come to our house with cash and a contract ready to sign.
  • Anonymity – loan companies are well aware that their clients value anonymity and do not want everyone to know about their financial problems. Therefore, a car with an advertisement from a non-bank company will not come to our house, but an ordinary car. Nobody will know who visited us.
  • Transparency of contract provisions – if we have any doubts after reading the contract, we can always talk about them with a representative of the non-bank company. A direct conversation with a representative of a loan company is one of the biggest advantages of a home loan.
  • Possibility to adjust the date of the visit – the borrower has the option to adjust the date of the visit to his own day plan. Thanks to this, the representative’s visit will not interfere with other obligations.
  • Payment method – a company representative comes for the money. So we don’t have to worry about the necessity of paying the installments of the liability. Some companies additionally allow repayment to a bank account. Then it is up to the customer to choose which form of payment suits him or her.