Increase the value of your home with a personal loan | Loans Quebec

Many homeowners would like to make some improvements to their home, but they simply do not have the funds. Although the value of your home may increase over the years, some criteria are more rigid than others. For example, where your home is located will strongly influence your home.

However, using a credit card is not a good idea because of the high interest rates. Other options, such as a residual value loan for your home, are available to you. But, often, people have not accumulated enough residual value to apply for this type of loan.

One of the ways to access these financial alternatives is the personal loan. A personal loan is a great alternative for homeowners with a good credit rating and a very good income, but who still do not have much residual value in their home.

Increase the value of your home

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By making changes to your home, you could increase its residual value significantly. This is especially useful if you consider selling your home later. Thus, by making the necessary renovations, you will be able to get more money at the time of the sale. Or, if you are thinking long term, renovations will help you enjoy your home for a long time.

Different ways to increase the value of the house

Many real estate agents agree that renovations increase the value of your home. By investing $ 5,000 or $ 10,000, homeowners will eventually be able to recover between 25 and 50 thousand dollars following the sale of the house. ( See our article on loans of $ 5,000 and under ) Plus, a renovated home sells faster.

Note that a large majority of buyers are looking for homes with renovated kitchens because they are considered the heart of the house. Buyers like renovated kitchens because kitchen repairs are expensive and are often very long. If you live in an old house, a good thing is to renovate your electrical ducts and plumbing. For example, homes that do not have a newly renovated electrical panel will lose a significant portion of their value at the time of sale; in addition to taking more time to be sold.

However, it is important to take precautions. When you are going to sell your home, do not think that the buyer will not notice the flaws. Many buyers hire professionals to evaluate the value of your home and find some hidden flaws.

Another tip: make your home more energy efficient. This kind of renovation is as beneficial if you consider the sale as if you intend to stay there for the rest of your days. For example, just replacing your windows and your home appliances will lower your ecological footprint.

Other benefits of personal loans

Image result for benefits A personal loan can help you refinance your home. When interest rates are low, it is recommended that you refinance your home. However, avoid refinancing too early because penalties will apply. What would be more beneficial is to pay the penalty with the loan and, when time is appropriate, refinance your home. The amount of money you will save on your monthly mortgage payments after refinancing will be greater than the cost of the personal loan.

You can also use the loan to buy a house. The loan could serve as a first down payment. See the loan as a tool that allows you, in the end, to avoid several months of mortgage. Remember that creditors will be more inclined to accept your loan application if your debt ratio and credit rating are higher or equal to normal.

Do your research before

Before applying for a personal loan, make sure you have completed your research. Think about the type of work you want to do in your home. These improvements must be reasonable. Personal loans are useful for small renovations, not for major works. Sometimes, it’s easy to underestimate the true cost of renovations and find yourself in a precarious financial situation. Make small changes to your home. If you make big changes and get into trouble, in the end you might not get that money back from resale.

In terms of renovations, the most important are the kitchen and appliances. Also, if you are thinking of selling the house, do not ask for a loan to only make changes to your taste. The buyer might not like the renovations. In fact, before making any changes, consult a real estate agent and ask if it is worth adding value to your home. Also, ask your real estate agent if the personal loan is the best way to finance these renovations.

Tips and tricks for the household budget: So you have the finances under control

“Oh, if at the end of the money only not so much month would be left.” You know this situation in your finances well? You’re not alone with that. Many people find it particularly difficult to reach the household budget towards the end of the month. There is a desire to finally get the finances under control. And the good news is: Arranging your finances is easy with little effort and thoughtful budgeting. We’ll show you how to keep an eye on your household budget with simple means such as a household book and always be well informed about your finances (income and expenses). And should the household budget at the end of the month but not enough, as an unexpected issue (eg for a repair) is pending, then we have a tip for you!

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The budget book – that’s how you keep your budget in writing

An orderly household budget, many want but to keep a budget book to keep the household budget in mind – that deters as many. It does not have to be! No bookkeeping skills are required to keep a household book. Your logical mind and the basic operations “add” and “subtract” are enough to get the finances under control. First comes in the household budget, the sum of your income such as wages, salary, child benefit, other income, etc. Thus, the household budget is initially well filled. Now you have to deduct from it the sum of the expenses. On the one hand, these are fixed costs – in other words, costs that burden your household budget at the same rate each month (eg rent) and the variable costs, which fluctuate monthly. Here it is recommended to enter the average value. What is left to you after deducting the total costs is your monthly free budget. You mean, such a housekeeping via budget book sounds in theory quite well, but how does that look in practice? The Xpresscredit team tells you.

The household budget in view – the finances in the checkerblock block

The household budget in view - the finances in the checkerblock block

You do not even need a PC to organize your finances. Buy a checkered DIN-A4 block and divide the sheet widthwise into columns (months) and rows (revenue minus costs). When looking at the annual budget, you will find that some payments are made monthly and not monthly. By registering these costs, you have the household budget in view and are not surprised by these annual costs.

Our tip: You can also divide the annual payments by 12 and distribute them over the months. Although the money is due only at the end of the year, but so you have an idea during the year, what is coming up to you and can align your housekeeping accordingly.

The electronic household book – with the PC or smartphone it is even easier

The electronic household book - with the PC or smartphone it is even easier

For many, PC and laptop have long been part of everyday life. A spreadsheet included in just about any office software (such as Windows Excel) makes housekeeping even easier with the household budget. Meanwhile there are numerous apps for your Smartphone for household cash registers, which make the listing of your costs more easily and quickly accessible. Columns and rows are already visible in the table. Here you enter the revenue and cost centers with the respective amounts.

Our tip: With simple “sum formulas” you automate the calculations and keep the overview. You can immediately see how changes per month and year will affect your finances. Even if you order a short time to borrow money want to apply for a loan, have the family budget in mind and will experience in your financial management no surprises. Especially the latter does not sound bad, but how does a bridging loan actually work?

Overcome a financial bottleneck with the bridging loan

As the name suggests, the bridging loan is not a long-term loan with repayment installments – the bridging loan should serve to overcome a bottleneck until the next salary payment. And there are many reasons to apply for such a loan. If unplanned bills for repairs or back payments end up in the mailbox, the bridging loan is a good solution.

With Xpresscredit’s bridging loan, you can apply for a loan and borrow money until the next payday. So you overcome financial shortages and can pay your bills on time without running the risk of receiving reminders. The bridging loan from Xpresscredit you can easily repay in two installments – so when you apply for a credit overview of the finances and your household budget always under control. In the following month, the belt would have to be strapped a little tighter and saved, but so can borrow several times a year with the bridging loan from Xpresscredit money .

 

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Credit without SCHUFA: How to recognize reputable providers

In many cases, a “loan without SCHUFA” or a “schufafreien credit” advertised. These are loans granted without a request to credit bureaus. For example, the SCHUFA as the largest organization. Instead, income and, if necessary, collateral is valued. Negative entries are no longer a hindrance.

But why is SCHUFA relevant at all when lending? This is mainly because virtually every bank belongs to this organization and thus by far, the largest private data collection is maintained. Whether you have borrowed, have been properly serviced, or have delayed payment is noted here.

Since the banks have a great influence on the features stored in them, they require the consent of every customer to the “SCHUFA clause”. So the permission to transmit data on the contractual relationship and in return to get information from other member companies. This can be, for example, mail-order companies, but also telecommunications companies. The loan without SCHUFA is, therefore, a loan that does not need the information and in which no entry is made in your database.

The difference to the classic loan?

The difference to the classic loan?

 

One of the major differences to traditional credit is the high audit effort required to process and classify your loan request. With the SCHUFA she would have the opportunity to experience positive as well as negative characteristics and be able to assess whether and for what sum you as a customer are “good”. Since she is not able to do so in this case, she confines herself above all to the examination of income and assets.

In this context, there is often talk of a “Swiss credit”. This is just another term – meaning the same thing. For in the past, it was primarily Swiss banks that wooed German customers. Today, banks of many other countries are in this area. This makes it necessary to deal in detail with the experience in this regard. Because “schufafrei” means in this sense that although Switzerland has similar credit bureaus, these do not apply to German citizens.

Check your SCHUFA entry regularly

Check your SCHUFA entry regularly

In many cases, negative features that should have been deleted become an obstacle. Therefore, regularly check whether completed items were actually deleted after the deadline (3 calendar years from completion). Once a year you can request a self-assessment free of charge.

In a few steps to the loan application?

In a few steps to the loan application?

 

A common problem with loans without SCHUFA is the fact that each intermediary has different procedures and therefore requires different information. Sometimes missing information on one side or the other, which can lead directly to the exclusion.

But even if everything seems to go well and smoothly, this is no guarantee for a successful loan application. It may happen that you will be presented with various additional contracts before the “final commitment”. The broker often justifies this by saying that additional “collateral” is needed and the bank can then initiate a payout. In many cases, these are residual debt insurance policies, which are relatively expensive and are not included in the interest rate. On the other hand, these insurance policies suggest you be safe in case of illness or unemployment. In fact, however, there are always different insurance conditions, and there are also exclusion criteria and maximum rates for the loan amount. In that case, it is helpful to provide your own collateral.

FinanceScout24 guides you step by step through the application points. The purpose of the loan and your most important wishes are queried to find the right provider- it’s up to you, but I did it. Subsequently, it is examined whether and on what terms a loan without SCHUFA would be possible. Of course, completely non-binding for you.

 

Check premature repayment option

The notice periods for such residual debt insurance are often not identical to the term of the loan. Find out in advance what will happen to the insurance if you want to repay the loan early.

This is important when comparing providers

This is important when comparing providers

If you want to make sure that your credit without SCHUFA is reputable and cheap, you should compare all providers very closely. It is best to write down the following questions before starting a query for the loan without SCHUFA:

  • What is the effective annual interest rate as loan interest?
  • Are there any further charges, for example for placement or processing?
  • What are the rates?
  • How fast is the payout?
  • What are the loan amount and the term minimum and maximum?

Pay attention to all the details

With normal installment loans now rate breaks, free special repayments and the like are standard. In the case of loans without SCHUFA, there are no uniform rules in this regard. When making comparisons, please note which offer contains such clauses and what the loan agreement otherwise governs for consumer rights.

This is how you recognize dubious providers

This is how you recognize dubious providers

In this area, too, the principle is that if something sounds too good to be true, then there is usually a catch. Full-mouthed promises should make you skeptical about a loan without SCHUFA before asking. As a rule of thumb, a loan without SCHUFA is not reputable if one or more of the following apply:

  • No collateral is required.
  • A non-performance advanced fee will be charged (eg, “processing fees” or “reimbursement of expenses”).
  • In addition to the loan, further contracts must be concluded (eg for an insurance or a club membership or a consulting contract, which does not stand for success).
  • Blank transfers or salary transfers are expected.
  • The disclosure of customer data for advertising purposes is not excluded.
  • The receipt of the contract documents is required by cash on delivery. Hereby, the mediators suggest that ultimately only one signature is missing and a payout is likely.
  • Instead of a loan, you will only receive a ” financing offer “.
  • Dubious advertising claims, which are formulated as if the loan payment is only a matter of form or influence of the intermediary in any form.

Possible risks for you as a consumer

 

First of all, the SCHUFA database fulfills a kind of control function. Even if it is not obvious to you at first glance, the continuous data exchange protects you and your existence the most. Because negative characteristics do not arise by chance. You will be entered if you are constantly in arrears with installment payments and the bank terminates the loan. However, banks and other companies must meet clear deadlines. Only then can they pass on information to credit bureaus.

For example, valid court rulings, such as loans or other payment obligations, are usually reported to SCHUFA. Regardless of whether you have settled the claim now or immediately thereafter. Including enforcement orders from the Mahngericht- these will be issued if you do not raise an objection to the previous order for payment. But until that happens, time usually elapses, and this time, in which you can agree with the bank or the creditor. It is therefore advisable to seek the conversation in good time and, for example, apply for debt restructuring.

So what does that mean for you? It is said that you may be able to fulfill your obligations “just now”. And so that in the SCHUFA nothing negative was noted. But nevertheless, you can be over-indebted or live in the constant risk, by only a payment default (employer goes into bankruptcy, customers do not pay, etc.) to accept the termination of the credits. The attempt to replace old liabilities with a new loan (without SCHUFA) does little to change the overall situation. In addition, such loans are often issued with higher interest premiums due to the high administrative burden.

When does the loan without SCHUFA make sense?

When does the loan without SCHUFA make sense?

Not infrequently, there are experiences on the internet about the loan without SCHUFA, which report on the procedure and possible problems. But in fact, it is questionable whether these experiences are genuine or just the opinion of those whose loan request was rejected. Several studies have shown that missing documents and disregard of conditions are the two main exclusion criteria for Swiss credit. But exactly these reasons are inevitable even with “normal” bank loans, even with small loans there are identical conditions to fulfill.

Serious loans without SCHUFA? This depends not least on how you approach the matter and what conditions you bring with you. Are you financially sound and do you want to finance it, far away from the SCHUFA? Then this loan can make sense because then the interest rate and term are within reasonable limits. Can you secure your loans with collateral or guarantees? Even then, that’s an alternative. If, however, you are concerned with replacing old or perhaps distressed loans, then you can only advise against it. Although this reduces the number of creditors (banks), it may make the whole thing more expensive and make you even more dependent.

The main advantages and disadvantages

 

Even if a loan without SCHUFA is reputable, it always brings disadvantages and risks along with its advantages. So before you start a query on the loan without SCHUFA, you should consider the following:

advantages disadvantage
Negative features in the SCHUFA remain secret Risk of over-indebtedness
In the case of a loan payment, no entry is made in the SCHUFA Salary/security could be seized if you can not pay the installments
Interest advantages with high household income Often only low credit sums
Fast, partly unbureaucratic and on request anonymous handling Low transit times usual
House bank does not learn of borrowing Often high-interest rates and z. T. Fees (due to higher risk)
Use does not interest lenders Some dubious providers (necessarily compare before!)

As the listing makes clear, there are points that speak for a loan without SCHUFA and points that speak against it. If you already have a high income and still have legacy costs at the SCHUFA (negative characteristics), good offers are not uncommon. Because even finished things are in the SCHUFA three full calendar years after full repayment. And so long they also block your creditworthiness, regardless of your high income.

Even with current financing, such as real estate financing, things can make sense. By paying the loan to a separate bank account with another bank, there is no new situation for your bank.

However, this form of borrowing carries the risk of losing track of one’s own liabilities and other obligations. Although in practice often only low loan amounts are granted, the interest obligations can be a risk. For the usual standards, such as free special repayments are unusual and not provided here. Apart from the fact that the way to the actual payment can be stony.

A serious loan without SCHUFA, ie without previous “processing fees” and other advance payments, is difficult for the layman to identify. The mediators try too hard to play with the feelings and fears of the loan seekers and make empty promises. What do you recognize dubious providers, read here?

What to do if the loan application was rejected?

What to do if the loan application was rejected?

 

Not all loan applications for a loan without SCHUFA actually result in a payout. There are some assumption rates of only 10 to 15 percent. But such numbers should be critically questioned because there are no reasons mentioned (to income and assets). So it’s difficult to pinpoint the true reasons for rejection. In fact, as with classical bank loans, there should be missing or insufficient documents or requirements. Finally, the request leads to no negative impact, so it can be started as often and unprepared.

Accept help and seek alternatives

In many cities, there are municipal debt counseling agencies or associations that are non-profit and are supported by associations. In a personal conversation, all cards are put on the table and alternatives explained. In the foreground is the debt relief, in such a way that a relatively normal life is nevertheless possible. The costs are often low, not infrequently well-versed lawyers work in these teams and give valuable advice.

Can unemployed people receive a loan without SCHUFA?

Can unemployed people receive a loan without SCHUFA?

 

A loan without SCHUFA for the unemployed is usually not possible. Reputable providers require collateral in the form of proof of income, even if they refrain from using the information provided by the information center. Providers who despite all have a loan without SCHUFA for unemployed in the program, usually require extremely high interest and fees as risk compensation. Often they also require an additional guarantor, which is often only recognizable after the query.

An alternative to a loan without Schufa for unemployed can actually be the surety of another person, but also the lending of valuables in the pawn shop or a loan from private. In any case, however, unemployed people should ask themselves, given their situation, whether they really want to expose themselves to an additional financial burden.

Is the loan without SCHUFA suitable for the self-employed?

Is the loan without SCHUFA suitable for the self-employed?

 

Freelancers and self-employed people find it extremely difficult to find a loan already under normal conditions. To get a loan without SCHUFA is possible for the self-employed almost exclusively in the form of a loan from private. Because without a solvent guarantor (better still co-applicants) or without high security to pledge a loan without SCHUFA is almost never approved. Exceptions to this “rule” are made only for doctors and lawyers. Their income is considered almost as secure as income from dependent employment.

Nevertheless, there are banks that offer loans despite a negative Schufa entry. Here, the information of the helpdesk is only of secondary importance – first and foremost the overall economic situation counts. This form of loan is often a cheap loan for the self-employed, as interest rates are relatively low. So if you want to lend yourself money as a freelancer, tradesman, etc., you are not looking for a “loan without Schufa for the self-employed” but for a loan in spite of Schufa.

Which data does the SCHUFA store exactly?

The SCHUFA stores only those data that are undisputed and come from companies that have a “legitimate interest” under the Federal Data Protection Act (BDSG). The following data is stored: personal data (name, date of birth, address), information on the term of loans and any defaults if necessary special repayments for a loan, contract periods etc. of a mobile phone, leasing or installment payment agreements as well as information about reminded claims. Read more about it here.

Are there any ways to improve its SCHUFA value?

The data stored with the credit bureaus form an important basis for assessing creditworthiness. In order for a normal installment loan to come into question for you and you get the best possible loan interest rates, you can do a lot: 7 tips to improve your credit rating.

Collapse of the lira is dangerous to the global economy

Turkey The collapse of the lira is dangerous for the global economy

Image result for lira currencyThe weakness of the Turkish currency has serious consequences – not only for the people of Turkey. The crisis can also spread to other countries. The SZ answers the most important questions about it.

Markus Zydra writes as a finance correspondent in Frankfurt and reports mainly on the European Central Bank. He previously worked as an economics editor at the Financial Times Deutschland and FAZ. In the 1990s he was a Scandinavian correspondent for the Süddeutsche Zeitung in Stockholm.

US President Donald Trump’s announcement to double tariffs on steel and aluminum from Turkey has created panic on the currency markets – accelerating the crash of the Turkish lira. The currency lost massive value against the US dollar, peaking at more than 23 percent on Friday afternoon. This was the strongest daily loss since 2001. Trump’s announcement came as a complete surprise after the Turkish currency lost 13 percent that morning.

The weakening of the Turkish currency has serious consequences. Important import goods, such as medicines, are becoming more expensive. At the same time, the cost of loans in foreign currency, which many Turks have raised, is rising. The whole country relies heavily on money from abroad. Investors are demanding higher interest rates on their loans, defaults are looming, and there is a risk that the crisis will spread to other emerging markets as well. The SZ answers the most important questions about the financial crisis in Turkey.

What does the currency decline mean for the citizens of Turkey?

Foreign tourists can no longer afford many Turks, buying foreign currency has become too expensive. But even in their own country, prices are rising because of inflation. Especially food and energy, the things of daily use, become more expensive. That’s true for everyone. Many vent their anger with jokes. An up-to-date cartoon shows a greengrocer asking his customer if he should “pack as a gift” the kilo of potatoes she’s just purchased.

How Turkey crashed into crisis

How Turkey crashed into crisis

The Turkish currency is on the decline, foreign investors are withdrawing their money and at the same time inflation is high. And then there’s a tweet from Donald Trump. more …

Does the IMF have to intervene now or can Turkey solve the crisis itself?

The IMF could help out with loans. However, conditions are always attached to such a rescue program. The Turkish government should implement economic reforms that the IMF requires. It is doubtful if Turkey will join. On the other hand, currency crises often develop a dangerous dynamic. Turkish citizens could exchange their lira savings in euros or dollars and transfer them abroad. This capital flight would weaken the country’s banking sector. In addition, Turkey relies on foreign loans, which provide the financial markets in these crisis situations only against extremely high interest rates. At some point, the time could come when Turkey can no longer pay for it.

How bad is the case compared to other emerging market crises?

The crisis in Turkey has just begun. With a few economic policies that restore confidence in the financial markets, they may be quickly halted. The bitter end of currency crises can be state failures, as in Argentina. It could then come to lengthy debt rescheduling negotiations with creditors. It is not excluded that many banks make losses in the end. The longer it lasts, the Turkish crisis could spread to other emerging economies. On Friday, the Russian ruble and the South African rand also depreciated. According to stockbrokers, the turbulence in Turkey was the trigger for this. The reason is chain reactions triggered by investors. When a newly industrialized country weakens, they also stop financing other emerging economies.

What does the financial crisis mean for German savers with accounts with Turkish banks?

Some German savers have invested their money in accounts of Turkish banks because there are higher interest rates there. These Turkish banks are based in the EU, but often outside Germany. “The risk for these savers lies not in Turkey or in the lira, but in the deposit guarantee system in Europe,” says Niels Nauhauser, financial expert of the consumer center Baden-Württemberg. Basically, the rule is that every saver in the EU is covered by 100,000 euros.

But Nauhauser warns: “We know that in a financial crisis or a major bank failure, the reserves of the Deposit Guarantee Fund are not enough to do that.” In the end, it would also depend on the political will and the financial strength of the state, whether savers would be compensated. “Whether the politicians use domestic tax money in case of doubt also for the compensation of foreign savers, is uncertain,” says Nauhauser. He gives the following advice: “We believe that savers in Germany have the greatest security when depositing their deposits with a bank affiliated to the domestic deposit guarantee scheme.”

How does the crisis in Turkey affect German and European banks?

The banking supervision of the European Central Bank has been examining for weeks the financial statements of institutions that have lent to the Turkish state, Turkish companies and companies. The Spanish banking sector has invested $ 82 billion in Turkey, according to data from the Bank for International Settlements (BIS). The French banking sector is sitting on $ 35 billion in claims and German banks have lent $ 17 billion to Turkey. There is currently no threat of a systemic threat to the European banking sector, but individual credit institutions could be in trouble in the event of a default by Turkey.

Man at the top: The promise of recovery and prosperity once brought Recep Tayyip Erdoğan to power as prime minister in Turkey; the success of his policy assured him re-elections. Meanwhile, Erdoğan is president – and a heavy burden for his country.

 

The shares of Commerzbank and Deutscher Bank were carried along on Friday by concerns about Turkey. The courses dropped significantly. However, institutions are less affected than those in Spain, France or Italy. According to its interim report, Commerzbank has EUR 2.5 billion in credit or trade risk with its Turkish involvement. According to reports, however, it is above all short-term and largely secured trading business, which is why one does not worry too much about the bank. At Deutsche Bank, Turkey is not even listed under country risks in the annual report. According to banking circles, the risk is very manageable.

What consequences does the German economy have to fear?

In the first five months of the year, German exports to Turkey increased by nearly one-fifth compared to the previous year. However, a weak lira will make these exports more expensive in Turkey. In June they have already fallen by six percent. The dwindling purchasing power in Turkey is “bitter” for the German economy, according to the foreign trade association BGA. After all, Turkey is a major market for German exporters. Conversely, Germany is the most important export market for Turkey, and here too exports have recently risen. Turkish products become cheaper with a weaker lira. However, the country’s trade deficit with Germany is likely to continue to grow – and the confidence of German companies is dwindling. “The companies are unsettled by the resulting loss of confidence in the last two years,” says Volker Treier, foreign trade chief at the German Chamber of Industry and Commerce (DIHK).

“The key is that trust is restored.” According to DIHK figures, 6500 German companies are engaged in Turkey, they have around 120,000 employees. Only recently, the federal government had lifted the cap on the Hermes guarantees – after Ankara had lifted the state of emergency. The loans for the Turkish business are in demand: only in the US did the federal government take on more export cover in the first half of the year. However, many German companies in Turkey are feeling the crash of the lira in a completely different way: prepayments for their production, which they receive from the euro area, are now becoming more expensive – and with it the products. Meanwhile, the companies were waiting, says DIHK man Treier. “They are not withdrawing from the country yet.”