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The number of banks is growing day by day and all the struggles for customers. Credit cards are a very convenient banking product and bankers use various advertising and marketing mechanisms to promote them. As a rule, creditors try to increase the free use of funds, which is called the grace period.

During this time, no interest is being used for using borrowed funds, but is it really? The offers are very attractive and in some cases, the interest-free credit can reach 200 days. What is a catch and is it really good for the average person?

How the grace period is calculated

The interest-free or soft loan mechanism has been used for a long time and works as follows:

1. An interest-free credit card opens at the selected bank or arrives by mail.
2. The settlement period begins – the period for which you buy the card; the bank, in turn, checks the costs and usually provides 30 days. The beginning of this period is often considered the moment of card activation (sometimes it is the starting point of the first card operation).
3. The credit card grace period will also begin. During this period, the debtor is obliged to return to his creditor any funds provided. In order not to pay interest on the loan, it is sufficient to return the entire amount borrowed on time.

The period of interest-free drawing of bank finances is summed from the grace and settlement periods so that the amount is at least 50 days.

When you need to pay interest

In cases where the borrowed funds cannot be fully compensated, the Bank will start to charge interest on the money spent during the billing period. The end of the grace period is the date of the minimum payment, which is between 5 and 10 percent of the total amount of the debt, plus interest on the use of the loan.

At the end of the first equalization period (thirty Todays), the second and the following begin. It will act at the same time as the payment term. This means that if the debt from previous purchases is paid in time, the card can be used for a new one.

Specificity of calculations

Determining the amount of accrued interest directly depends on the length of two periods: payment and settlement. For a simpler explanation and understanding, it is better to resort to a specific example.

Example:

The start of the billing period is considered to be the moment if the credit card is accepted with an interest-free period in the bank or in some cases its activation. If we assume that the card activation date was March 1 and 30,000 dollars were spent per month, then April 1, ie after 30 days, will be the end of the first billing period.

The bank will summarize and find out how much money has been spent over the last month and provide the client with a debt statement. In this case, it will be 30 000 dollars. Information can be provided in several ways:

• SMS alerts;
• Internet banking;
• calls to the call center of the bank.

This will be followed by a payment period. Suppose it’s 20 calendar days. It turns out that it will end on April 21st. Summing up both periods, we get 51 days, which bankers represent as a credit card or interest-free period.

It turned out that a client who is of the need to pay interest on the use of bank money will have to pay all costs by April 21. This does not mean that the entire amount must be returned at the same time, it can be divided into several payments, the main thing is that by April 21, the entire amount should appear on the card (30,000 dollars in this example).

If you need more resources

It is important to note that a credit card in the non-interest period does not prohibit further use of credit facilities at the time of grace. If the credit limit allows, of course, you can continue to purchase with a credit card. If 5,000 dollars are needed in addition to the borrowed funds and are on the card, the client has the right to use them, but in order not to pay interest, it will be necessary to return not 30,000 dollars, but in April everyone borrowed 35,000 dollars.

If you pay off the debt, it doesn’t seem to be possible, it doesn’t matter. Until April 21, the client will need to make a minimum payment amount. In some cases, it ranges from 5% to 10%.

For this example, assume that the minimum payment should be 10% of the amount owed. At the end of the grace period, at least 3,000 dollars must be credited to the credit account. All information is usually contained in statements that banks seek to provide to their customers in writing. They reflect transactions for the billing period, ie until 1 April.

The following calculation deserves special attention. The period will run from 1 April to 1 May. Until April 21, two periods overlap each other. This means that if the debt is not paid in full by 21 April, the minimum payment amount will be calculated taking into account the total debt from 1 May.

Under the option under consideration, the first 30 000 dollars were exhausted, of which 10% was paid as a minimum payment. After April 1 another 5,000 dollars were withdrawn from the card. The credit card debt will thus be 32,000 dollars from 1 May, and the minimum repayment will, therefore, be 3,200 dollars. You will need to deposit by May 21st.

Banking seems to be very attractive offering loans with a long grace period of one hundred days or more. The first billing period for such cards, as in the first case, is 30 days and the client can repay the bank debt without any special interest within the next seventy days.

When applying for a loan or credit, the client will sooner or later get familiar with the concepts of nominal interest rate and APRC. Both values, listed above all in the contracts signed, is very important information for the borrower. Most Poles do not yet realize that the nominal interest rate is not the same as the APRC.

It is known for a long time that most financial institutions

Carefully camouflage actual costs – only to encourage the customer to take advantage of the loan. When taking a loan, we should also be interested in how much we will have to pay for the loan next to the amount requested and the loan period. The loan price is determined by two values ​​- nominal interest rate and real interest rate.

• APRC – the Actual Annual Interest Rate, which expresses the percentage, total cost of credit against the sum borrowed by the customer;
• The second concept is RSO – i.e. the Annual Interest Rate or the nominal interest rate being one of the costs included in the APRC.

Knowing how these two interest rates differ significantly makes it easier to make a loan decision.

Nominal interest rate

Many people who take out a loan or credit wonder how it is that an offer that had virtually no cost – brings a lot of additional fees. People who are looking for financial support should pay attention to the interest rate for a given product.

By sticking to the definition, nominal interest is the value by which the bank (or loan company) calculates the amount of interest. It is worth noting that the nominal interest rate may not exceed four times the applicable Good Finance loan rate of the National Bank of Poland. Sometimes nominal interest is deliberately given as the first before real by banks, thus being a lure for customers.

Of course, the lower the interest rate, the better, because then the cost of credit will be lower for us. However, this does not mean that a low-interest offer will be the most advantageous for us. It may happen that a given installment loan with a tempting, low-interest rate will be more expensive for us because the lender will apply other, higher costs.

APRC and nominal interest rate

Everyone who is interested in taking out a loan or borrowing should know the basic difference between the APRC and the nominal interest rate. Without this, we will not understand how much it will cost us to use the bank’s credit services.

The abbreviation APRC indicates the actual annual interest rate. In short, the APRC is the sum of all loan costs. It also includes nominal interest. Importantly, the APRC is given in percentage terms. If we want to compare the two indicators, then first of all – the APRC is a more capacious indicator. Secondly, it is an indicator containing more and more important information for the client. The APRC includes:

What’s more interesting – not always lower APRC means cheaper credit. When choosing the right loan, you should pay special attention to:

• installments – i.e. the burden resulting from the commitment;
• On the APRC;
• at the total cost of the loan – which every bank will give us in response to our inquiry. In this category, we include Nominal interest rate on the loan, commissions, preparation fee, all administrative costs and possible costs of loan insurance.

The period of low-interest rates lasting despite the accelerating inflation in 2019 changed the perception of credit among average consumers.

The loan turned out to be a cheap supplement to consumer needs. But where are the more and more common problems with paying off liabilities and how can you counteract them so as not to worsen your creditworthiness?

Debt repayment issues

The problem with liabilities is primarily due to the revaluation of creditworthiness. It may happen that you take out a loan, and suddenly you face degradation of position or a change in the standard of the contract. The main problem of borrowers in Poland resulting from most industry reports is cyclical financial problems.

The reason for cyclical financial problems is unexpected expenses in the home budget focused on treatment, urgent renovation. Added to this is the easy availability of credit, even in supermarkets, non-bank institutions operating on the Internet, seasonally in banks.

Legal income at the minimum wage level entitles you to take not only one cash loan, no collateral, no guarantee, without the consent of your spouse, and even without setting up a separate account at a bank branch.

Other reasons for problems with loan repayment are the complete lack of expenditure planning after signing the loan agreement, loss of employment, change of employment relationship, just too low income but giving positive creditworthiness. The structure of liabilities in Poland is most often divided into 1 debt, an average of 2, and a maximum of 8 and more, but these are households in a real spiral of debt.

Many debts at the same time, is it always a problem?

It is best not to allow more than one debt to arise at the same time. However, if you find yourself in a similar situation, apply for consolidation and not necessarily in the bank where you have liabilities, but in the institution as cheap as possible, with credit holidays, without great requirements for securing the contract.

In Poland, a larger loan for repayment over a year is presented as a luxury good. Few people have real creditworthiness to sign a contract with a bank. Alternative sources of debt are non-bank institutions, employers’ families, pawnshops awaiting the transfer of property pledge, usually quite valuable.

Maintaining positive creditworthiness

Problems with debt repayment can be solved by knowledge of restructuring techniques and law, in particular the Consumer Credit Act, which clearly explains the limits in determining non-interest costs. Banks and parabanks no longer impose higher costs for consumers.

Quick credit repair and debt consolidation are an opportunity to get out of financial problems unscathed by creditworthiness. This is most important if you plan to use the potential of cash loans in the future.

The non-bank loan market is characterized by, among others, high vigilance in responding to the needs of potential applicants. One of them is undoubtedly the possibility of obtaining a loan 24 hours a day and preferably 7 days a week. Such needs are probably dictated by the changing lifestyle of the society as well as the chronic lack of time. So where do you look for loans available around the clock and what costs should be prepared for them?

24h loans – the most important aspects

One of the basic features of 24h loans is the maximally simplified application procedure. Due to the nature of this type of obligations, the only way to use them is through a device with Internet access and a valid ID card. It is important, however, not to understand the value of “24h” completely literally. When deciding to submit an application, there are several additional aspects to consider.

Application procedure and payment

Loan companies that grant 24h loans have a direct impact on the time of receipt and verification of applications. It should also be remembered that in the case of customer service outside of office hours, loan decisions are made as a result of an automated process. All this really affects the possibility of obtaining a positive examination of the application at any time during the day and every day of the week. 

Unfortunately, the speed at which funds are credited to the borrower’s account no longer depends on the lending institution. Particular attention should be paid to the list of banks where the lender has their accounts when choosing a 24h loan offer. If the applicant’s personal account is in a banking institution that is not on the lender’s list, it may take up to several days for the funds to be booked. It all depends on the hours of incoming sessions in the bank and whether the loan was taken on the weekend or on a business day.

It is worth choosing lenders who have bank accounts in the same banking institution, because you can then count on booking funds as part of a real-time internal transfer. In addition, if the loan was granted on a weekend after 20, it will be possible to withdraw money only within the same bank.

There is no doubt that many companies offer loans. There is also no secret that loans are really popular.
After all, the popularity of loans can be considered in two ways. First of all, the point of view of companies – companies obviously have nothing to complain about. When it comes to customers, applying for a loan is nothing but liquidity.

In the text we will focus on a loan without a job – what can you say about such a loan? Does such a loan exist at all? If you don’t know the answer to these questions, take it easy and keep reading.

Can you get a loan without a job?

Theoretically, a loan without a job should not exist. After all, lending to the unemployed is nothing but asking for problems (which probably doesn’t need to be explained). It is also worth mentioning that the problem of repayment is a problem for the borrower but also for the lender.
It is possible that not everyone will agree with this presentation of the case, but in truth, there is nothing to discuss.

Let’s focus only on what the loan is without a job. Let’s start with whether a loan without a job exists at all. Simply put – a loan without a job is possible, but you must meet certain conditions.
It is very important that the lack of employment does not have to mean the lack of money in the account. You certainly know what family benefits, alimony, scholarships and benefits are.

Also, do not forget that some work without a contract. Of course, this is illegal work, but it is a topic for another text.

Loan for the unemployed – on what basis?

All that has been said is undoubtedly important, but it is not only important to remember that. One should also remember that loan requests are subject to detailed verification. As mentioned before (only in a different context), the repayment problem is not good news for the lender.

Are you wondering what else to say? The answer to this question is very difficult because there is always some company policy. In other words – if you are interested in a loan, there is nothing else but to know all the details very carefully.

Reading the contract may seem obvious, but appearances can sometimes be deceiving. Anyway, just pay attention to what happens to people – very often it is so that people are in a hurry somewhere (and acting in a hurry is asking for problems).

How to choose the right offer?

Do you have a problem with choosing the right offer? This situation can result in receiving many advices and, most importantly, not every piece of advice is useful. What’s more, some tips may just be wrong.
However, sooner or later you have to decide on something. Simply put – it seems that the best solution is a price comparison engine. A good comparison tool is fast and, most importantly, satisfying help.

When it comes to finding such a comparison, there is absolutely nothing to worry about (which confirms that the comparison websites are popular).

They were all in the situation urgently needed money for all needs, but the amount requested was not available. Someone turned to the bank to apply for a loan and sent applications to Microfinance Organizations (MFIs) for a microphone through Across Lender.

The second method is best suited for those people who want to get money as soon as possible without paperwork.

What is Across Lender?

Across Lender is a Russian invoice system through which money transfers are made. It is an international network with service points in Russia and virtually 170 countries. Across Lender gained user confidence. Its services are used by several millions of people around the world every day.

Through the payment system, transfers are made immediately. It is advantageous to receive them, as the service points work in many Russian banks.

To make a financial transaction, you must have a passport with you, know the transfer number, amount, currency, and sender information.

Benefits of getting loans through Across Lenders

Microfinance organizations offer, as a type, different ways of obtaining loans. Among them, you can see the payment system Across Lender.

This is convenient for those who cannot use other methods of raising money. Microfinance organizations generally offer credit transfers to electronic wallets, bank cards, but not all users have them.

Some other benefits are noted by people in receiving money this way:

1. Through the Across Lender system, online loans are issued with minimum requirements. Only a passport is required. No references and other documents, guarantors and promises are needed.
2. This method of obtaining a loan eliminates the search for office microfinance and the need to meet the company manager. Money is issued at points of the payment system. There can be several dozen in one city. To locate a nearby Across Lender point, we recommend using the official system website.
3. Money in system points is issued very quickly. The operator verifies the number that the client calls, the data transmitted by the microfinance organization with the actual passport data of the person, and if it matches, only a few papers are signed. Then the expert transfers the amount of the loan.

Credit registration through Across Lender

Across Lender does not directly deal with issuing loans. The payment system is a connection between people who transfer money to each other, as well as between debtors and microfinance organizations.

Therefore, you must apply for a loan to first choose the appropriate options for yourself from the list of all MFIs offering transfers of approved amounts in this way.

To get credit through the Across Lender System, it is recommended that you send applications to several microfinance organizations because not all companies make positive decisions. The essence of this phase is as follows:

1. A questionnaire is filled in on the official website of each selected microfinance organization. Users provide passport details, financial situation information, credit information previously received.
2. After submitting the application, the loan remains to await the decision. In modern microfinance organizations, questionnaires are processed automatically. Application decisions are sent to users in minutes.
3. With a positive decision by the microfinance organization, the transmission number via the Across Lender System comes immediately. You can get a loan now.

List of organizations providing microfinance

Not all microfinance organizations have the ability to receive money through Across Lender. Some offer bank loans only. For those who do not know which MFIs transfer money through Across Lender, you can find a list of several well-known companies:

Each of the aforementioned organizations attracts the Customer’s terms and conditions of the Across Lender system loan without rejection and checks.

In fact, sometimes things happen differently – microfinance organizations refuse for unknown reasons. Negative decisions are caused by various factors (presence of very bad credit history, false data in the questionnaire, etc.). The exact reasons are never given to customers.

There are many loan companies in the country that offer loans without verification. These types of loans are ideal for people who have trouble getting a loan from a bank. Popular loans without checking the debtor bases are ideal for people who have a negative credit history. However, anyway, this loan is perfect for people who have unforeseen expenses related to material things. The most surprising cases that can happen to everyone include a car crash, breakdown of household appliances, or simply the need to settle overdue bills. Very often, we spend money on health visits, eg visits to the dentist.

Each of the above-mentioned situations entails larger or smaller expenses for which we are not always prepared. In this case, loans without verification will be the best alternative.

Do companies verify regular customers?

Loans without base verification have been very popular for years. A loan without verification is possible for most companies offering short-term loans online and in several companies with long-term installment loans.

Verifying the identity of a potential customer is often an inseparable element in the online lending process. The most common methods include verification by bank transfer, telephone conversation, using the Instantor application and via courier. Verification is primarily intended to ensure security. Verification primarily protects against submission by impersonating another person and using, for example, stolen ID cards.

Many non-bank companies also require the applicant to provide the data necessary to conclude a loan agreement. In some cases, the company may also ask for a scan or photo of proof.

Pay back on time and get more loans

Usually, loan companies check the applicants for a loan in the debtor’s registers to assess credit risk, ie the risk that the borrower will not pay the loan. As a rule, the more accurate the verification, the better the terms of the loans offered.

Living on credit is standard for many people. Almost half of people pay back a loan or a loan. A loan taken wisely, ie tailored to your financial capabilities in terms of the amount borrowed and the number and amount of installments.

Everyone who takes out a loan must be vigilant – repayment on time allows to avoid numerous problems, which are contractual penalties and default interest. When repaying a loan on time, we have a chance for another loan from a non-bank company.