Category: Credit

A practical guide for using credit cards

by Louise Clayton
Each card has a so-called interest-free period, we also often call the grace period from English. Depending on the bank and card, it lasts from 51 to about 60 days, but unfortunately, this does not mean that the customer always has so many days to settle the debt on the credit card without accruing interest. In the case of credit cards, we have a monthly billing period. Let's assume that the billing day falls on the 30th of each month. The first day of the month begins the grace period, lasting for example 55 days. On October 1, the bank will count all transactions made in September.

Pay off all this liability without accruing interest by the bank

money The customer will have until October 25 to pay off all this liability without accruing interest by the bank. Then the 55 days expire, i.e. the settlement period for the September transaction. In other words - it does not matter if the customer paid by credit card for a computer 2 thousand. USD, e.g. on September 4 or September 26, and he must transfer the entire amount back to the card's account by October 25, if he does not want to pay interest. So it is worth spending with a credit card at the beginning of the billing period, rather than at the end (i.e. in our case, e.g. October 2, not September 26) - then you get almost a month to repay.

Will the bank remind you when we have a deadline?

cash You must remember about paying off your credit card debt. It happens that Poles "spoiled" by the fact that, among others, debit on the personal account is automatically covered from the receipt of the invoice, similar thinking applies to credit cards. This is a mistake. A credit card is completely different; you often have to remember about the end of the interest-free period and transfer funds to her account to repay the debt. Every day of delay can be expensive.

What happens after exceeding the interest-free period?

The end of the interest-free period is not the final date for the repayment of credit card debt. But after the grace period, interest is charged on the debt, which on average in banks is about 20 percent. per year. Every month, depending on the bank, you should pay back at least 5 percent. debt. Otherwise, the bank may charge the customer with reminders reminding them of outstanding debt. The cost of such a letter notification is around USD 20.

When does the bank skip the interest-free period?

Sometimes Poles withdraw money from an ATM by credit card. They think that the formula is the same as for a personal account card - that it costs them nothing. Nothing could be more wrong. First of all - banks charge large commissions for cash transactions with a credit card. Secondly, such interest-free transactions do not cover such transactions. Interest is charged on the credit card account from day one. If this is not necessary, you should usually not also make transfers from a credit card. It is theoretically possible, in practice you should expect at least a few USD commission for such an operation. What's more, unfortunately, some banks and such a money transfer treat it as a cash operation. Reasonable use of a credit card can be really profitable, but if you do not remain moderate and start using the card unreasonably, then you may be disappointed - debt in a credit card can really cost us a lot ...

4 Credit On SME Loans You Need To Know!

by Louise Clayton

UKM or commonly known as Small and Medium Enterprises in Indonesia has been proven to be able to absorb workers who need jobs, UKM also helped Indonesia during the crisis experienced a few years ago. Now we can also see various types of capital that are devoted to helping small and medium businesses. The form of capital also varies from investment, working capital or SME loan loans.

For the latter, there are many types of SME loan loans, some of which are based on utility, some are based on collateral. We will discuss further each of the SME loan loans themselves. But before discussing this matter, we first know the classification that has been regulated by Law number 20 of 2008 concerning micro, small and medium enterprises. Of the three, each is also distinguished according to their respective income each year.


Definition of Micro, Small and Medium Enterprises

small loan
  • Micro Business, it has been regulated based on Law No. 20 of 2008, namely microbusinesses which have a maximum net worth of USD 50 million or a maximum income of USD 300 million each year.
  • Small Business, also has been regulated in Law No. 20 of 2008, namely a business that has a net worth of $ 50 to $ 500 million or a business that has a sales value of $ 300 million to $ 2.5 billion.
  • Medium Enterprises, Law No. 20 of 2008 states that a medium-sized business is a business that has a net worth of USD 500 million to USD 10 billion or also a business that has a sales value of USD 2.5 billion to USD 5 billion.

The government has also relied on SMEs to continue to make positive contributions and help the national economy. Now we will discuss the types of SME loan loans.


Credit Based on Use

cash loans
  • Working capital credit

A working capital credit is a loan that can be used as initial capital in a business. Usually these loans have a term of one year and can be extended. Some banks also have many products that can develop this SME business.

  • Investment Credit

This one credit is an SME loan which is more investment-like where it is used when the debtor wants to use the loan to develop his existing business. This investment credit is given to those who have a business for at least more than 1 year. Because, in this investment credit, business actors have a maximum term of up to 5 years and the funds proposed are also quite flexible.


Credit Based Guarantee

Filling your overdraft with a credit: the wrong plan
  • Credit With Guarantee

This one credit is a credit that has a condition of having collateral or collateral in the form of assets such as houses, land, vehicles and others. This loan has a fairly low interest payment compared to the others, also has a longer term and a greater nominal. But besides that, the drawbacks in this credit are that the disbursement process takes a long time, because usually the bank conducts surveys and so forth. What is rather difficult on this credit is the guarantee to get the loan.

In this case banks usually need a guarantee of course to ensure that a Borrower can pay off in accordance with the agreement along with the guarantees that he has guaranteed.

  • Unsecured Loans

Loans without collateral or as you are familiar with the name of this KTA has credit without using collateral meaning that when you apply for a loan you do not need to use collateral. However, don't think that they cannot confiscate your assets even if you don't pledge them. The bank can still do the legal process if you are coming not to repay your loan.

This loan can be used if you have a problem with funds, but it is advisable to apply for a KTA if you do not need capital that is not so large because usually the interest from this KTA is quite high. It's just that in the process of disbursement only a short time. In addition to the relatively high interest rates, the other shortfall is the short term of the nominal loan size.

How to build a creditworthiness? 5 steps to improve

by Louise Clayton
Creditworthiness is extremely important for anyone who intends to apply for a loan. Even if today we think that we do not need loans and we do not want to finance any purchases with them, sometimes there are situations that can change this state of affairs. With credit we can finance not only pleasures in the form of a holiday trip or gifts for loved ones. Often, extra money is also useful for unexpected expenses, renovations, the need for medical treatment or when buying a property. There are so many purposes for which we can use borrowed money that it is worth taking care of your creditworthiness so that in the future - if you need a loan - you won't have any problems with it. How to build your credit rating? All you need to do is follow a few tips to be credible in the eyes of credit institutions.

It is worth having a commitment to prove your ability to pay it back.

It is worth having a commitment to prove your ability to pay it back. Very often, loan applicants are surprised that they receive a negative response from the bank, while they have never taken any loan before. However, the bank argues accordingly: the customer may have the ability, but you can not check whether he is paying. Even the purchase of small equipment in installments, having a credit card or regular repayment of the smallest cash loan can help a lot in assessing creditworthiness. It is worth remembering to shape your positive credit history.

Only what is documented is what counts.

Some loan applicants are surprised by the negative decision because of too low income. When calculating creditworthiness, income from the last few months is usually taken into account. Remember, however, that it must be fully documented income. The bank cannot consider remuneration paid without confirmation or income obtained in the shadow economy. If we want salary bonuses or allowances to be taken into account, they must also be documented and affect the bank account.

Timeliness is the key.

Timeliness is the key. Even in the case of very high income and permanent employment, creditworthiness may cross the shoulder of timely repayment of previously held credit obligations. The Credit Information Bureau, to which banks send inquiries regarding our timeliness, stores information on our loans up to five years from their full repayment. If we apply for a new loan at that time, and we adjusted the previous one in an unreliable manner, the bank may refuse to grant us any amount for fear that we will do the same. Therefore, your existing obligations should be settled in a timely manner and in accordance with the contract.

Co-borrowers can help.

Building creditworthiness is very important, but if we need credit quickly and our income is not enough - people who join us with such credit can help us. Their creditworthiness will help ours, but it must be remembered that they also take responsibility for the timely repayment of the contracted obligation. Most often, co-borrowers appear when taking out mortgages. They are spouses, parents and other family members.

Reaction during troubles.

Reaction during troubles. If we already have any credit products and financial problems have arisen that prevent them from being repaid - do not wait until it is too late. It is worth immediately reporting to the bank to renegotiate loan terms, ask for lower installments or new repayment terms. Thanks to this, we will avoid unwanted entries in the debtors' registers and any wasted creditworthiness. The timeliness of paying your debts is important for the next few years, so it's not worth waiting for banks to claim their debts. Thanks to the quick response and spreading the commitment into more convenient installments, we can wait out the difficult financial situation, while ensuring that the credit history is still positive.

Credit insurance, installment insurance – do I need that?

by Louise Clayton
The Good Finance insurance pays the monthly installments for your Good Finance to the good Finance bank if one of the defined claims occurs. For most insurance companies, these are involuntary unemployment and inability to work due to illness or accident. If you are completely unemployed (you are no longer working), the insurance company will pay you back in boots. In our opinion, insurance is recommended if your household budget is dependent on a single income, or if your budget would come under severe pressure due to the loss of income from boat users. The insurance covers important, relevant claims and gives you financial security. Please note, however, that only cases of damage on the foot are insured in boat owners (= policyholder) and not the claims of all family members. This means that if Mr. Meier has signed the Good Finance and the installment insurance, then only Mr. Meier is covered by the insurance, even if Ms. Meier's income was included in the application and in the budget review. If Ms. Meier should lose her job, the insurance company will not pay.

The devil is in the details! - The General Insurance Conditions

The devil is in the details! - The General Insurance Conditions With exclusions and deadlines, insurance providers keep their own costs low without reducing the attractiveness of the insurance at first glance. As a consumer, it is, therefore, worthwhile to take a close look at the General Insurance Conditions (AVB), in particular with "Exclusion", " No claim ... ", "Waiting period" or " Limitation of benefits". "Exclusions": With most puss in boat insurance, "existing ailments" are excluded. Read this part carefully, because we all have a little sore throat, which we like to forget in everyday life. The insurance experts will certainly not do this when it comes to providing the service for your claim. “Extreme sports” are often also excluded. Since very few of us are skydivers or deep-sea divers, these exclusions should only be in the way of a few of us. But what about motorcycling or snowboarding? Some providers also exclude them. “Deadlines” usually mean that the insurance company only pays the first installment to the Good Financebank after the deadline has expired (e.g. 30 days). This means that in the event of a claim, you have to wait a month for the insurance to start providing the service.

The grace period is significantly more insidious

bank Then the “grace period” mentioned above. During the waiting period (e.g. the first 60 days of the installment insurance), a claim is completely excluded from the insurance. Example: Mr. Müller received a kiss in Boots on July 1 and also opted for the installment protection insurance. On August 15, 46 days after the start of insurance, he receives notice of termination from his employer. Because this claim occurred within the 60-day waiting period for unemployment, Mr. Müller does not receive any benefits from the installment insurance for this claim, even after the waiting period has expired. “ Limitation of benefits” at DenPuss in boat insurance usually means the duration of the benefit in the event of a claim. Specifically, this means, for example, that in the event of involuntary unemployment, the puss is paid in boat installments for a maximum of 12 months (e.g. at Genworth). If you still haven't found a job after 12 months, the insurance benefits will still end and you will have to pay for the installments from month 13 onwards.

The maximum benefit paid by the insurance company

The maximum benefit paid by the insurance company (ie the maximum number of monthly installments in the event of unemployment and incapacity for work, or the maximum repayment amount in the event of complete unemployment) is often limited to the term of the insurance. For example, Genworth limits the number of monthly payments to 36 over the term of the contract. Important: Read the general insurance conditions carefully, because only you know which exclusions are relevant in your personal case. And in order to be able to compare the insurance benefits with the price, you need to understand the most important pillars of benefits.