Monthly Archive: March 2020

Better Credit Cards in Comparison | Information on the credit card provider

The Better bank is one of the strongest pillars in the German financial sector. Approx. 50 million customers have bank accounts with a branch or branch – more than every second German citizen. No wonder that the savings banks are also a frequent point of contact when it comes to credit cards.

The savings banks were primarily created in the second half of the 19th century. The distinguishing features of the financial institutions are their public law status and their close local roots. Most savings banks are still active at the level of city and rural districts. There they offer their customers the entire range of banking services – with a special focus on private and medium-sized corporate customers.

With still a good 10,000 branches, the savings banks have the densest branch network in Germany in addition to the Car bank and nice credit bank and are therefore present across the board, with increasing emphasis on online banking.

Although almost all savings banks belong to the same financial group, they are legally and to a large extent independent institutions in terms of business policy. This also applies to the offer of credit cards, in particular for pricing. The organization can only provide general guidelines here, the specific design of the offer is decided on site.

With this in mind, we can only give you a general overview of the savings banks’ credit cards at this point.

On offer: Mastercard and Visa

On offer: Mastercard and Visa

Most savings banks offer their customers either Mastercards and Visa credit cards. Keeping a current account with the respective savings bank is a normal requirement for using the card. Some institutes limit their offer to a card company, predominantly the MasterCard is preferred. Mastercard is the card system that is somewhat more widespread worldwide with around 35 million acceptance points, Visa has around 24 million acceptances. When using ATMs, both card systems are almost equivalent. In Germany, Visa acceptance is slightly greater than that of Mastercard.

The Better bank credit cards usually cost an annual fee. This also applies to the basic and standard versions. Each institute determines the amount itself, in part the fee is linked to the respective account management model and/or the amount of card sales. Often there is the possibility to choose an individual motif – for an extra fee.

In the case of card disposals, a foreign transaction fee for foreign currencies is often calculated depending on sales. Euro disposals are mostly free of charge. Cash withdrawals from ATMs usually cost fees, with a distinction being made between Germany and abroad. A percentage of the withdrawal amount and a minimum fee (plus external fees, if applicable) are usual. Due to the cost structures, card fees tend to be higher than with direct and online banks, but it depends on the specific comparison.

Credit cards for private customers

Credit cards for private customers

There is a framework for the credit card offer, which has been adopted by many savings banks – some with modifications and their own names. It looks like this:

Basic and standard credit card:

The basic card is the prepaid version of the Better bankn credit card and only works on a credit basis. The card is also issued to minors – for example in connection with stays abroad. The standard card, on the other hand, is a “real” credit card with availability and monthly billing. It is only made available if certain creditworthiness criteria are met. In this basic configuration, the basic card and standard card are primarily geared towards cash withdrawals and cashless payments.

The Better bank silver convenience package can be provided in addition to the basic card or the standard card. It includes a number of additional services that offer advantages, especially when shopping online. The savings banks offer their customers a value-added portal through which many consumer goods, travel, events and vouchers can be purchased at discounted conditions when paying by card. The added-value portal contains regional and national offers. The comfort package also includes special Internet buyer protection with secure delivery protection and legal initial advice in the event of disputes in connection with online purchases.

The Gold comfort package is aimed primarily at users who use their credit card more frequently when traveling. It is also available as a supplement to the basic card and standard card. In addition to the equipment of the silver package, the Better bank offers a travel insurance package and a travel booking service in the gold version. The scope of these additional services depends on the type of credit card (Mastercard or Visa card) and the specific “filling” by the individual Better bank, as different cooperation partners are used here in some cases.

Many savings banks also offer other credit card variants or supplementary packages. For example, there is more often – for both the Mastercard and the Visa card – a platinum version that includes even more services (including concierge service, other advantages and benefits when traveling, additional insurance protection).

Credit cards for business customers

Credit cards for business customers

The Better bank BusinessCard is the solution for business customers. This is also a MasterCard or a Visa card with different equipment options (standard, gold, platinum). The additional services are staggered and structured in a similar way as in private customer business. Upon request, the cards are available with an individual company logo. A prepaid version (basic card) is also available for business customers.

Apply for Better bank credit cards

Apply for Better bank credit cards

Customers with an existing connection to a savings bank can usually apply for their credit card online. On the other hand, new customers can usually only arrange advice online. To apply, a visit to a branch on site in connection with the legitimation and an account opening is required.

 

Take out a long-term payday loan

The payday loan is a particularly flexible financing solution which makes it possible to finance projects with ease. But is it possible to take advantage of this flexibility and simplicity for projects requiring long-term funding?

How does the payday loan work in terms of duration?

How does the personal loan work in terms of duration?

Personal consumer credit, the payday loan allows a maximum borrowing amount of 75,000 dollars with a repayment duration staggered between 3 months and 7 years. Generally, a payday loan makes it possible to finance projects, whether it be goods (a vehicle, a television, etc.) or services (a trip, accommodation costs for student children, etc.).

Obviously, the longer the repayment period, the higher the cost of credit. This is so due to the risk taking suffered by the credit agency. It is therefore recommended to choose as far as possible a relatively short repayment period if one wants to avoid a high cost of credit.

Choose the optimal duration of the payday loan

Choose the optimal duration of the personal loan

Obviously, the borrower does not decide for himself the duration of the repayment. This decision is made in consultation with the lender, who will have the final say on the matter. Concretely, the repayment period will depend on various elements such as the repayment and debt capacity, or the will of the establishment. It should be noted that in exceptional cases such as the financing of work in the house, the lending establishment may, under certain conditions, extend the repayment period up to 120 months.

However, in general, lending institutions offer repayment conditions determined according to the desired project. For example, the repayment period will generally be less than 48 months for the financing of a used vehicle, and may reach 72 months for the financing of a new vehicle. This same duration is often recommended for the purchase of furniture or computer devices or household appliances.

The need to be well informed before committing to a payday loan

The need to be well informed before committing to a personal loan

Be that as it may, the use of a payday loan implies being able to ensure repayment within the time limits stipulated in the contract. The right balance needs to be struck between current and future debt levels.

It will be understood, a rapid repayment period has the advantage of reducing the cost of credit, but involves a significant financial effort in the short term. Conversely, a long-term repayment reduces the monthly amount of monthly payments, but has a high financial cost.

Cash loan and loan insurance for any purpose

Is cash loan insurance profitable? It is definitely worth considering using such a service and thoroughly familiarize yourself with all the conditions offered by insurance.

Are you interested in taking a retaliation loan, but you still do not have enough information about the debt to be able to decide on a specific bank offer? If you take a few minutes, we will try to introduce you in this article to the issue of cash loan insurance, thanks to which you will find out whether it is worth using such options and what is associated with them.

Remember that you have the biggest influence on which credit offers you use and getting additional messages can only have a positive impact on what contract you will sign.

Is cash loan insurance necessary?

Is cash loan insurance necessary?

Unlike a mortgage or car loan, a borrower seeking cash for any purpose is not required to ensure his debt. This is great facilitation, as well as savings, which will certainly attract many recipients. However, if you want to use insurance to make sure that financial support in a crisis situation awaits you, you have the full right to do so, as well as quite a lot of possibilities.

Banks are happy to offer random loan insurance to anyone interested. The institutions cooperate with insurance companies, thanks to which all formalities can be dealt with at once by signing a standard contract at a bank branch. This is huge facilitation, thanks to which the offer, despite additional benefits, does not become burdened with more formalities. Therefore, the borrower can easily take advantage of the offer without worrying about the fact that his choice will lead to the extension of the credit decision.

Is insurance expensive?

Is insurance expensive?

Are you interested in cash loan insurance, but is the additional cost holding you back? Don’t you want to pay more for your commitment than you have to? It is obvious that when looking for financial help, you do not want to sign a contract, which over time may turn out to be unattractive and involve high installments.

However, in the case of additional insurance, despite the additional fee, you can often count on benefits that will help you keep your total liability low. Increasingly, banks decide to offer their clients preferential conditions in the case of insurance decisions.

Is cash loan insurance profitable? It is definitely worth considering using such a service and thoroughly familiarize yourself with all the conditions offered by insurance, perhaps it is a service that in your case will prove to be very attractive and will allow you to secure your debt repayment, even in very unexpected situations, independent of you.

Mortgage security

Mortgage security

The cash loan does not require any collateral, yet many people ask about the possibility of securing the loan with the help of a mortgage. It is worth remembering that this practice is possible, but a much more favorable offer, in this case, is a mortgage loan, which guarantees a high maximum amount of debt and much more flexible financial conditions. In such a case, the bank bears practically no financial risk and can offer its clients very low-interest rate debt.

Co-borrower or resident

Co-borrower or resident

Before applying for a standard cash loan or loan, many customers are considering signing a contract with a co-borrower or someone who will be able to raise the loan. For debt for any purpose, none of these options are required.

However, there are cases when taking out a loan with a co-borrower may prove to be a very good solution. A cash loan for an unemployed person is almost impossible to obtain, but the only option is to sign a contract with a co-borrower who has creditworthiness and will be able to repay the debt. In such a situation, the bank may reduce the risk incurred and decide to issue credit consent.

Loan for free professions

 

 

Loan for free professions can be offered on much more favorable terms than a classic cash loan. Freelancers are “exemplary consumers” for banks.

All financial institutions, in particular banks of each client are treated individually. Representatives of specific industries and professions can sometimes count on special treatment and access to more attractive financial products. One example is a loan for liberal professions, ie cash loan for doctors. Who exactly is entitled to apply for such a loan? Are loans dedicated to free professions really very profitable? We will try to answer this question in today’s article.

Loan for freelancers – who exactly can get it?

Loan for freelancers - who exactly can get it?

It is worth knowing that in law there is no exact definition of a “liberal profession”. However, this concept is often used in everyday life and in professional contacts. Freelancers are those who can boast of high qualifications and are self-employed, ie self-employed.

There are also those who equate free professions with professions of public trust. In this sense, all professions that have professional self-government in accordance with law are free profession. The common denominator of all professions of public trust is of great importance for the public interest of the country.

Which professions can be included in the group of free professions? Here are the most popular freelancers:

  • Legal Counsel,

  • judge,

  • lawyer,

  • notary,

  • vet,

  • tax advisor,

  • bailiff,

  • doctor,

  • probation officer,

  • nurse,

  • midwife,

  • the auditor,

  • architect,

  • laboratory diagnostician,

  • Civil Engineer,

  • programmer,

  • IT specialist,

  • farmer.

What are the benefits of applying for a liberal profession loan?

What are the benefits of applying for a liberal profession loan?

The rules for applying for a loan for professional professions are usually very similar in all banks and institutions except for us. Here are the most important benefits of applying for a liberal profession loan:

  • possibility of negotiating loan terms,

  • larger loan amount and longer repayment period,

  • severely reduced number of mandatory formalities – no need to provide security or look for guarantors,

  • reduced or zero commission,

  • reduced margin and interest rate on the loan,

  • discounts on other products, for example a smaller fee for keeping an  account or an offer for attractive car leasing.

Most borrowers pay most attention to the final cost when making a financial commitment. The vast majority of banks propose loans with reduced commission and interest rates to professionals. It is also permissible to conduct additional negotiations, thanks to which it is possible to further reduce the cost of taking a loan. APRC for loans to professional services is usually from 9 to a maximum of 15 percent.

Loan for professional services – requirements for a natural person

Loan for professional services - requirements for a natural person

If a natural person who does not run his own business is applying for a liberal profession loan, he must meet a number of requirements. They are as follows:

  • presenting income statement – the statement will be sufficient when we have been using the services of a given bank for some time and has insight into our income. If this is your first time using a bank, you’ll need to provide a bank statement,

  • account statement – this requirement applies to new bank customers who have so far kept an  account at another institution,

  • income certificate – such income and employment certificate is filled in by the employer,

  • documents confirming professional qualifications and other qualifications – diplomas and licenses that will confirm that we have permission to practice a specific profession.

Persons employed under an employment contract, mandate contract or other employment relationship must have a minimum employment period of 3 months in the enterprise concerned. If it is shorter, the bank may refuse to grant us a loan for liberal professions.

Loan for liberal professions – requirements for companies

If we decide to choose a loan for a free profession for a company, then the most important requirement set by the bank is a sufficiently long time of doing business. Depending on the institution, profession and loan amount, the minimum period of running a business can be from 6 to 24 months.

In the case of applying for a loan for liberal professions while running our own business, we must also provide a set of documents. It is about:

  • income statement – such a statement will be sufficient only if the person applying for the loan already had a account in the given bank,

  • account statement – it must be presented by all persons who have previously had an account with another institution. Most banks require this statement to include data from the last six months;

  • certificates and attestations confirming qualifications to practice a given profession,

  • all relevant financial documents related to running a business – among the important documents are primarily PIT36 or PIT36L together with confirmation of submission to the tax office and a list of all costs and revenues.

Loan for liberal professions – is it profitable to take it?

Many freelancers are wondering if it pays to use dedicated loans. “Loan loan uneven” – it all depends on what are the requirements set by a particular institution . We encourage you to compare the offers from different banks first before taking any loan for professional services. For example, it may turn out that one of the banks will offer financing to us on much more favorable terms.

If a natural person who does not run his own business is applying for a loan for professional services, then the number of formalities awaiting him is practically the same as when applying for a classic cash loan. It will not be possible to obtain funds via the internet without leaving your home. We will not avoid visiting a bank branch – both when we apply as a natural person and when we have a business activity.