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Best bad credit payday loans -Cheap online payday loans for bad credit with us

At the time of requesting a loan, it can be very complicated, if figures in the Financial Credit Institutions (FCI). In fact, it is the main list of defaulters of our country, so it is reviewed by traditional financial institutions, before granting you a loan. And it is that appearing on this list makes it practically impossible to grant a loan, even if it is a small sum. However, there are solutions through the network to get a certain amount of cash quickly, even if you are present in these lists of defaults and defaulters. It is about the loans with FCI, an ideal alternative to face unforeseen expenses, which helps, to a great extent, the family economy of many households.

Worried about bad credit? For cheap online payday loans for bad credit, take a deep breath and relax because we’re ready for you 

We are aware that there are many reasons why anyone can appear on a list of defaulters: electricity bills that have been paid untimely because they have had a delicate economic situation for a period of time; unpaid telephone bills, even if the company has fattened the bills for sometimes inexplicable reasons; etc. Therefore, we understand that these situations can arise in every household and we offer you an economical solution, even though you figure in those lists.

It is fast, comfortable and simple online payday loans for bad credit, without cumbersome paperwork or explanations about your financial problems and from the comfort of your home. click here to visit for free and apply for online payday loans for bad credit.

Requirements when applying for a loan with FCI

When you apply for an online loan through our website, you must meet a few simple requirements to get the requested amount of cash instantly:

  • Adult. You must be between the ages of 18 and 65 to apply for a loan with us.
  • Resident in Spain. Even if you do not have Spanish nationality, it is essential that you reside in Spain.
  • Be in possession of an active checking account. You must have a bank account in your name, so we can enter the amount you have requested.
  • Have sufficient and regular income. Depending on the amount required, the regular source of income can be a payroll, an unemployment benefit, a pension, etc.
  • Active mobile phone You must also have an active mobile device, which can receive calls and text messages, so we can contact you.

Fulfilling these requirements, you only have to choose the conditions of your loan with FCI, whose sum can not exceed € 800 (€ 300, in the case of new customers); and the repayment term, which may last no longer than six weeks. Finally, you only have to fill in your personal data and, once we accept your request, you will receive the sum of money in your bank account in about fifteen minutes.

What is FCI?

Although anyone who wants to borrow online with FCI knows what it is, it is worth defining it. There is a lot of misinformation and many prejudices about this file. FCI is the acronym for the National Association of Financial Credit Establishments, was created in 1957 and is responsible for managing a database where data is collected from people who have fallen behind in defaults. In this file, you can find both people and companies.

Who can register people in FCI?

The first thing you have to be clear is that in order to register someone in these files, you must be a member of it. Virtually all companies have the membership of the entity to enroll customers who do not meet their payments. So, you can be registered by the following types of companies:

  1. Banks: all Spanish banks are part of FCI, in addition to all savings banks. These entities are every day with customers who do not pay their debts, so the registration of people in this file is common for them.
  2. Consumer financial companies: that is, all companies that finance consumer goods such as supermarkets, car finance, household appliances … That is, any company that offers to finance for any product. Therefore, supermarkets such as Carrefour or stores like Mediamarkt are part of this group. There are times when people can not cope with the payment of the bills of what they have bought in installments and one of the strategies that these entities have is the registration of said people in these files.
  3. Insurers: of any kind.
  4. Telecommunications companies: as the providers of telephone lines. There are many people who refuse to pay a phone bill for whatever reason and these companies inscribe them in the FCI file.
  5. Suppliers of supplies: such as electricity, water, and gas. When you leave an invoice of any supply without paying, the most common is that the company enrolls you in these files.
  6. Other companies that can not be classified in any previous category but that may suffer risks of losses in the event that customers incur defaults.

Why are online loans offered with FCI?

There are more and more entities that, like our collaborators, offer loans to people that appear in the FCI files. The previous norm was quite severe with those who were included in this database and as soon as they appeared they were denied any type of loan or credit.

However, this often had no head or foot. Keep in mind that many companies use this mechanism as a way to “punish” those who have not fulfilled their bills without thinking about the consequences of this.

For example, there may be someone who for breaking a payment of a mobile invoice for whatever reason appears in this database. However, the most normal thing before was not to ask what debt is the one that has contracted or under what conditions.

It is not the same for a person who owes an invoice of 50 euros to a telephone company and who has not paid for any problem, either with the company or due to specific economic problems, who has asked for a loan of thousands of euros and has not he has returned it.

On the other hand, these lists have also been added to people who have been victims of abuse by some companies. For example, with everything that has happened with mortgages in Spain and the abusive clauses that have been included in the contracts. It does not hurt to understand that there are people registered in these lists that do not deserve to be because the default has been no more than a form of revolt against the abuse of a company.

In short, not all “defaulters” are unreliable. On the contrary, there are many people who use this mechanism of not paying as a strategy to protest abuses and bad practices of companies. Certainly, each situation is different and that someone has not paid X company for X reason does not mean that they can no longer opt for a financing tool such as an online loan.

In fact, this is something that more and more financing entities are thinking about and that is why products are offered for those who are registered in these files.

Lastly, it should be noted that as a connecting entity between loan claimants and financial entities, our maxim is to help people who need liquidity for any reason. And for that, everyone must be given an opportunity, regardless of the circumstances in which they have been involved and for which they have incurred non-payment.

Characteristics of loans with FCI offered by our clients

One of the characteristics that most worries those who want to request a loan being registered in this file is if the interest applied will be higher. The most logical thing to do is to think that yes, given that people who have already incurred a default would have a greater risk of not returning the money.

However, this is not our philosophy. The loans offered by the companies that collaborate with us for those who appear in the FCI files do not have a higher interest. The same percentages apply to those who appear in these files and to those who do not.

So, this is not a question that should worry you at all. The only reason to have a category as such is so that if you have had problems to appear in these listings, know that for us this will not be a problem.

Another important factor is that you can request the money even if you do not have a payroll. People who do not appear in these files have the possibility of requesting a loan without having a fixed payroll and those who also appear. They will have the same conditions and will be able to access this type of products, although the ideal is always to have a fixed source of income: a payroll, a pension, an unemployment benefit, etc.

Finally, we must also point out that there is a single case in which our collaborators do not grant financing services to people who appear in FCI. If you appear in these files due to having a financial debt for another loan or for a charge of the credit card, it will be difficult for us to find an entity willing to offer you financing.

However, everything will depend on the amount that this debt entails since some lenders take into account the amount and not the origin of the debt. In any case, you can contact us so we can inform you about your possibilities.

Why use an online loan if you appear in an FCI file?

If you appear in this list, you will know what it is like to receive negative responses to your requests for financing in practically any company or bank. This is because the financiers ask for your data to check them and the notification that you appear in FCI automatically skips them.

And this is where almost no company is willing to give you financing. For this reason, it is often best to go to the digital environment for several reasons that we will discuss below.

The answer will be yes

This is the main reason why online loans are the best choice if you need money for any purchase or to solve any problem. Normally, all the financing companies that work on the Internet have a series of specific products for the extras in these lists.

Therefore, if you receive a refusal when financing, for example, a washing machine or any other household appliance, you can request an online loan to pay at the store and then return the money to the finance company.

Less paperwork

If you really find a bank or an establishment that allows you to apply for funding, the paperwork you will have to complete will be extensive and tedious. In addition to justifying that you have a fixed payroll, you will be asked for an endorsement and even extracts from the bank to make sure you are up to date with all your payments.

In short, asking for a loan will become an arduous task full of obstacles and impediments. All so that, in many cases, they deny your request.

For this reason, if you want to avoid all the bureaucracy, it is best to turn to the digital environment as it is usually much simpler and more comfortable.


Speed ​​is another important factor to value online loans. This speed is based on two parameters. The first one is that you will not be asked for as much paperwork as in other financial entities. Therefore, you will not have to wait to gather it and deliver it.

In addition to this, the communications are always digital, so the sending of documents will be much faster and more comfortable since it does not require your travel. But also, the study of your case and the concession or denial will be faster than in other entities.

All companies offer a response between 24 and 48 hours after submitting your application. So, you can know if you have money or not much earlier.

The return is short term

The prompt return is one of the benefits that has made many people with FCI turn to these products. Why? Very easy. It is easier to plan in the short term than in the long term.

Neither you nor anyone knows what will happen to him from here to a year or a few months. Therefore, when you ask for a loan and have to return it to the next month or two months, your finances will be under control.

You will not have to spend several months or even years paying a small fee, but you will be able to pay it in a short time and get rid of the debt. Also, if you wish, you can make the payment when you have the money without the added cost, something that other financial and banks do not allow.

You have no minimum to request

The imposition of a minimum amount does not occur in the digital financial environment either. In most loans, you can request from 50 to 1,000 euros without any other tax than your needs. This is a very common problem that you can face if you are registered with FCI.

Having to ask for a larger amount than you need will only make you have to pay back more money when this was not necessary. The only consequence is the generation of a greater debt and an added concern for you.

Therefore, the vast majority of financial companies that operate on the Internet offer versatility and adaptation to the needs of their clients.

More privacy

When making the arrangements from the privacy of your home, no one indiscreet will have to find out that you are asking for a loan. It is well known that in the branches people are fixed in the efforts of others and often there is a very limited privacy.

Well, this will not happen to you when you ask for a loan on the Internet because you will not have to leave the house.

More security

Even if you think your data is less secure on the Internet, nothing is further from the truth. Data files are much better protected on the Internet than in physical entities or bank branches.

So, in case there is any problem or any scam occurs, all this information will be much more accessible and secure.

Do not give up

Do not give up

In short, if for any reason you appear in the lists of FCI, do not resign yourself to not ask for loans. On the Internet, you can find the financial services you need. Practically all the companies we work with offer products to people who appear in FCI and do not put major complications to those who request them.

Therefore, do not think about it anymore and turn to us if you are looking for online loans with FCI. Surely you will not regret it.

To have a personal loan, to close your personal loan


Close a personal loan at the end of the term

Close a personal loan at the end of the term

The first reason for closing a personal loan is the expiration of this loan. In fact, this type of loan, like most others, closes automatically as soon as the client has reached the end of the contract and repays all the deadlines specified in his opening contract.

In order to continue to have a reserve amount of money, you have to take out a new personal loan from the same bank or another one of your choice.

Early repayment to close a personal loan

Early repayment to close a personal loan

If you wish to close your personal loan, you can make one or more early repayments. These are governed by Article L311-29 of the Consumer Code, which authorizes this type of transaction without any compensation in return.

When you want to make an early repayment, it is essential to contact your lender and define with the latter the terms of the transaction.

Closing a personal loan thanks to the right of withdrawal

Closing a personal loan thanks to the right of withdrawal

When contracting a personal loan, there are several mandatory steps. As a first step, the lender must inform the applicant of the different credit terms, check his creditworthiness and then offer him a loan offer. Once this contract is signed, there is a right of withdrawal for the customer who can, if he wishes, cancel his request for a loan.

Since July 1, 2010, Law No. 2010-737, has passed the withdrawal period of seven to fourteen business days, once the loan offer signed by the applicant. If he wishes to make use of it, he must send to the lending agency a registered letter with acknowledgment of receipt. Note that the applicant does not need to indicate a reason for this cancellation during the withdrawal period.

This transaction will close the personal loan immediately and cancel the financial transactions.

No personal loan close before maturity

personal loan

Apart from the early repayment or use of the right of withdrawal in time, it is absolutely impossible for a client to close his personal loan before the deadline fixed by the loan agreement.

Indeed, once permanently committed, the latter must honor all monthly payments requested in time if he does not want to be subject to late penalties. However, it is possible to arrange the loan in case of concern, especially thanks to the insurance taken out during the commitment.

How to get a bank loan: Get a payday loan from your bank

Whether it’s a payday loan to buy a car, consolidate a debt, finance a business or improve your home, applying for a payday loan from a bank can be a way to build up your credit and pay what you need.

To get a payday loan from a bank, you usually need to be an existing customer with good credit, says Camie Yueo, personal finance expert at Credibuxx, an online loan market.

Note that banks are subject to more regulations than online lenders, which allows them to “meet the highest lending standards,” says Priyanka Prakash, loan and credit expert at Fundera. “Online lenders are much more flexible, they give less importance to credit and more importance to your ability to repay a loan, which means that income is important.”

Interested to see what an online lender could offer? Consider these options from our partners:

Or, you can use a payday loan market like Credibuxx to charge rates to several lenders at once.

How to obtain a bank loan

1. Check your credit score

1. Check your credit score

If you start the loan process for the first time, start by getting your credit score.

You can check it for free at any time on sites like CreditMarne, Credit Oild and Creditomo. You do not need a perfect credit score of 850 to get a loan, but lenders see your credit score as an indication of your reliability as a buyer and adjust their bids accordingly – the more your score is high, the better.

2. If something goes wrong, take out your credit report

2. If something goes wrong, take out your credit report

Your credit score is a three-digit shortcut for the information in your credit report, which tracks all of your credit activity. According to the Federal Trade Commission, you are entitled to one free copy of your credit report every 12 months from each of the country’s three credit reporting companies: Experxa, Qualifix and Transcok.

Note that there are many ways to pay for your credit report, but is the best place to get your report for free. Be prepared to provide your name, address, social security number and date of birth to verify your identity.

2. Know that loans can really improve your credit rating

2. Know that loans can really improve your credit rating

If you are looking to take out a loan to consolidate credit card debt or pay down your debt faster, it can help you in different ways.

“Taking a payday loan to pay off high-interest credit card debt can improve your credit score by reducing your credit utilization rate,” says Yueo. “That’s how close you are to reaching your credit card limits – try not to use more than 30% of your limit on any card.”

In addition, if you have never taken out an installment loan, such as a car loan, you can increase your credit score by adding a payday loan to your credit composition. “That’s because your credit combination represents 10% of your credit score,” she says.

3. Understand that there are types of payday loans

3. Understand that there are types of personal loans

There are two types of payday loans: secured and unsecured.

Unsecured loans are loans that are not covered by a guarantee, such as personal property or a home. A bank determines if the loan is granted based on your financial history and credit score.

If you do not qualify for an unsecured loan, lenders also offer secured options, which can be used in exchange for assets or accounts held at the bank, or something more tangible, such as a home or a car. Mortgages, home equity loans and auto loans are considered secured loans because you offer collateral.

Remember, if you take out a secured loan using your home, car, or other property as collateral, you run the risk of losing everything you got if you became unable to repay your loan.

Most lenders offering unsecured loans, including banks and credit unions, will also offer secured loans.

4. Make sure your bank offers payday loans

4. Make sure your bank offers personal loans

As Camie Yueo of Credibuxx said above, to get a payday loan from a bank, you usually have to be an existing customer with good credit. Some banks do not offer payday loans, so you will want to know what your bank offers.

If your bank does not offer loans – or even if they do – you may want to get quotes from lenders online, subject to less regulation and being able to base their bids less on your current credit and more on your repayment ability. Online lenders can be an alternative to bank loans or a comparison basis.

After checking the rates offered by the lenders online, check if your bank will offer you a better offer.

5. Put your documents in order

5. Put your documents in order

One of the most difficult aspects of obtaining a bank loan is the number of documents required as part of the process.

“Getting a bank loan can take weeks or even months, the main reason is that you have to submit a lot of documents,” says Prakash de Fundera.

The nature of the paperwork will vary depending on the type of loan you are requesting, but in general, you can expect to need:

  • pay stubs / proof of income
  • the last two years of tax returns
  • 401 (k) Accounts and Other Financial Accounts
  • ID photo
  • rent / mortgage history
  • proof of collateral, if you are looking for a secured loan

It is a good idea to put some order into these basics before applying for the loan, in order to speed up the process.

6. Try to be pre-approved

6. Try to be pre-approved

While this is not a strong guarantee, pre-approval applies when a lender makes an informal offer on a loan, pending full approval.

In this case, the pre-approval will indicate to the borrower the amount of the loan, the terms and the repayment schedule likely to be eligible in advance. In addition, prior approval recognizes that the borrower has met the general eligibility criteria of the bank.

The process typically involves applying for and evaluating credit history, and while this is a helpful decision, it does not guarantee that the bank will extend these exact terms at the time of granting a loan.

7. Know the terms

7. Know the terms

payday loans are installment loans, which consist of borrowing a fixed amount of money and repaying it with interest in monthly installments over the life of the loan.

The loan terms are in months and can range from 12 to 96 months. When you meet the loan conditions, this loan is considered closed. If you need more money, you must reapply for a loan.

8. Make a plan to pay it back

8. Make a plan to pay it back

Once you have secured your loan, make sure you have a plan to repay it. How much will you have per month? Do you plan to pay the minimum required or make additional payments and pay it back faster? When is the payment due?

Consider setting up automatic payments from your checking account once your payment check is cleared, or calendar reminders to make sure you never miss a due date.

“Your payment history represents 35% of your credit score,” says Yueo of Credibuxx. “If you continue to make payments on time and reduce your total debt, your credit will improve,” and the next time you want to borrow money, it will be easier.

Business Loans Alert

Credit crunch again: Gandalf said in the January update of the bank credit survey, which estimates loans to businesses slightly down in the first quarter (while in the last quarter of 2018 demand continued to rise). In the fourth quarter of 2018, Via Nazionale explains, the criteria for offering loans to both businesses and households registered a slight tightening.

But beyond the synchronic datum, it is the long series of declines that worries, Malfoy first of all, that in a speak of “market failure” of credit. “Concerns, in particular – he writes – that with regard to the size of the company the trend, which has become unavoidable, of the very scarce bank credit to companies with up to 5 employees who receive only 10.7% despite being the former almost 91 % of the entire universe.


A reversal, of course, is required

business loan

Credit is a key driver for growth and we need to encourage recovery, so it is essential to eliminate the limits to micro, small and medium-sized enterprises.

The system solution for NPLs at the national level needs to be established, avoiding case-by-case solutions that depress profitability, while also lacking a careful view in relation to customer interests.

The spread of fragile revenues and high costs of banking activities has also contributed to delaying digital support for the change of processes.


Banks stopped watching

Bank loan

The banks, of course, have stopped watching, also because of the spread of Unitechno that offers SMEs attractive alternatives in terms of financing.

And, in this regard, the Financial Observatory cites some initiatives: “Bingbell focuses on Bingbell Start Lab to support new businesses, ABC Bank proposes ABC Abroad promote internationalization, while TVC Bank has developed welfare projects and supporting the realities of the third sector, and this is also the strategy of Summerfell, which begins in 2019, proposing itself as ‘Bank for SMEs’, not so much with credit disbursements but with alternative supports that are developed along four lines: internationalization, capitalization, innovation, and development “.

It is clear to all players in the field how much the credit crunch is still present, how much it affects the development of the economy and how much it is necessary to find a solution that allows reversing the route.

In the meantime there is F2F lending that acts in favor of SMEs and that it constantly increases market shares, placing itself as a true alternative channel and in line with the expectations of companies currently neglected by traditional credit.

Mortgage, real estate loan


A project to acquire a principal, secondary or rental home?

rental home

Our specialists will assist you at all stages of the financing of your real estate project, your purchase of credits and your mortgage. In a single appointment without engagement with our agency, you will compare the credit offer of all banks of Essonne and get the best rate for your financing.

When to turn to your real estate broker?

real estate broker

You can use our financing services at any time:

  • Before your project: To begin to familiarize yourself with real estate loans and know your borrowing capacity. Our specialists will calculate your financing envelope with the mortgage rates usually found for your borrower profile and its region. At the end of the appointment, you will have determined the maximum purchase price of your property according to the conditions of repayment chosen (rate, amount of the monthly payment, duration of the loan, …)
  • When you have just signed your promise of sale or your reservation contract: Once one of these documents has been signed, the deadlines are very short to find your financing. Applying to your real estate broker saves you time thanks to its knowledge of financing and offers from local banks. It ensures you the best rate for your loan, advises you the best guarantees and insurance to reduce the cost of your loan. Without commitment, submit your mortgage application, you will be contacted as soon as possible by a unique and personalized specialist.
  • To compare your real estate loan proposal to Viry-Châtillon: you give your banker a blind trust and ask him to finance your project. Why not have the objective eye of a specialist in real estate loans on the Essonne? In one appointment without commitment, you will get the advice of our experts.

Your credit redemption


Our financial advisors also accompany you for your debt buybacks.

  • Real Estate Loan Buyout: Our credit renegotiation specialists conduct your financial study without commitment and offer you the best solution to take advantage of lower rates.
  • Redemption of credits: Our specialists analyze the structure of your credits and your repayments to propose you to group them in one monthly payment. Submit your inquiry without obligation.

Borrowing Money For Renovation: 5 Step-by-step Plan

Here you learn in a few steps how you can borrow the best money for a renovation.

After all, have you been living in your own house for some time and does the bathroom need to be renewed, or do you need more space in your house with your family? Rebuilding your house is always a good investment to increase the sales value.

If you have insufficient savings to finance the renovation, you can borrow money for this. You can take out an extra 2nd mortgage for your renovation, or you can take out a personal loan.

Below you will find a handy step-by-step plan with which you can calculate the costs of a renovation and how you can best finance it.

  1. Budget : calculate the total costs of renovating your house
  2. Duration : determine the duration that best suits your renovation
  3. Type of financing : read the article below and choose the type of financing
  4. Quotations : request quotes from lenders for a refurbishment loan
  5. Lender : choose the lender with the most favorable interest and conditions

1. Make a budget

Renovation of your home starts with a budget . You can see which part of the renovation you need to finance, or what you can pay for yourself from your savings. If you want to borrow money to renovate, making a full cost overview is your guideline.

Usually the help of a professional or contractor is needed to realize a renovation and you request a quote from him. Look not only at the purchase of the materials, but also at the cost of the labor of a professional. You may need to purchase or hire additional equipment.

A permit must usually be applied for. It is also important to check carefully whether your insurance needs to be adjusted. If all costs have been calculated, add between 5% and 10% for unforeseen expenses.

Beyond the price, more things must be clearly defined in the quotation, such as:

  • Is the quotation free of obligation and free of charge?
  • What is the validity of the quotation and is it long enough for your situation?
  • Can additional costs be added? Are these well defined?
  • Do you get sufficient insight into the use of materials?
  • Is the contractor affiliated with a sector organization?
  • What kind of guarantee does the contractor give?

Usually the most important reason to start renovating is to increase your living pleasure. But if you can increase the number of square meters of your home through a renovation, you are also investing in a lasting increase in the value of your home.

And perhaps even more important is the cosmetic increase in value . If you continue to live in your converted house, you will enjoy your new bathroom or dormer window every day. Taking out a personal loan for a renovation of your house will certainly pay for itself in a rising market.

What does an average renovation cost?

What does an average renovation cost?

Home Owners Association has set out a guideline for costs:

2. Determine the duration

If you are going to take out a credit for a renovation, look carefully at the duration that you can take into account. After a few years you will have the financial room to renovate again.

In the current market situation, borrowing extra money for a renovation is a good investment. Rising house prices make borrowing for a renovation interesting . Most of the costs incurred will be earned back with the possible sale of your house.

Of course, renovations of, for example, the bathroom or kitchen are trend-sensitive and taste is very personal. Kitchens and bathrooms are also subject to wear. The lifetime is longer when placing an extension or a dormer window.

What options are there to borrow cheap money for a renovation?

You can finance a renovation or pay for it yourself . If you have savings, you can use this and you need less financing for the renovation of your own home. But you also need your savings account as a buffer.

The car needs a big turn, the washing machine can break or you may also want to make a trip. If you prefer to keep an amount of your own money for this, you can also borrow money for a renovation .

Borrowing money costs money , that’s no different. The cheapest way is to borrow money from your family for a renovation. Maybe you can borrow money from your parents. But luckily there are other ways to borrow extra money for a renovation. You can take out a loan or increase your mortgage for the renovation.

The video below from RTLZ gives a good overview of the financial options and benefits of renovating your home:

Can I finance the renovation with the purchase of a new house?

If you want to co-finance the renovation in your mortgage, you can borrow a maximum of 100% of the value of your home in 2018 . To determine whether you can co-finance the costs of the renovation, the market value of your house after the renovation is looked into.

The value of your house is determined by an appraiser. He makes a valuation report. Co-financing a renovation when purchasing your home is therefore always financially interesting.

Can you also borrow money for a renovation of your old house?

Can you also borrow money for a renovation of your old house?

If you want to renovate your house there are a number of possibilities to finance this. For example, you can take out a 2nd mortgage . Pay close attention to the value between the height of this renovation mortgage and the value of your house.

The more you borrow, the higher the risk is for the Albert Campion. As a result, you will soon pay a higher interest rate. With an additional mortgage for a renovation, you also have to stay at the Albert Campion that has already provided your mortgage.

Use surplus value

The rising house prices are especially interesting if you have owned your owner-occupied property for some time. If you want to renovate your house, you can also finance the renovation with the surplus value of your house . Because the value of your home has increased over the years, you can use this surplus value to borrow extra money from your mortgage.

3. Select the type of financing

If you want to take out a loan for the renovation of your home, you can also take out a personal loan . Certainly if the amount is relatively low in relation to the value of your home and the duration of your renovation loan is short, you will have a financial benefit.

If you want to request a loan for the renovation of your house, you do so as an investment for the longer term. You can adjust the duration of the personal loan to the duration of use. The interest rate with a personal loan is higher than the mortgage interest rate.

Yet it is often cheaper to take out a personal loan. When raising the mortgage, additional costs are often incurred because advice and handling fees have to be paid to the mortgage lender when adjusting a mortgage.

In addition, notary and appraisal costs are added. This can amount to a few thousand euros. With a personal loan you do not have those costs, that makes it a cheap loan for a renovation.

Example calculation of additional costs for a 2nd mortgage:

Please note, if you have a mortgage and you are registered as negative creditworthy by existing debts, it is difficult to qualify for a second mortgage or loan at all.

4. Request quotes

If you take out a personal renovation loan after requesting quotes, you do not have the above costs. Unlike a physical Albert Campion, when you take out a personal loan online, you are usually not charged any consultancy fees . However, other costs may be charged.

Therefore, look carefully at the amount that you must repay in total. The Annual Cost Percentage (APR) is a clear indication. All this information can be found in the quotes that you have requested. Request at least 3 quotes. 6 is even better. That way you can compare even better.

5. Choose lender

lender and money

Now choose the financier with the lowest interest rate (APR) and any other costs from all your received quotes. Also note in the small print any penalties for early repayment . If you have a financial windfall in the near future, you can use this to repay the loan early.

Two experiences of consumers who have preceded you:

Karin de Groot (44): Our bathroom was still good in itself, but I was so annoyed by the dirty joints between the tiles. Together with the installer, we have opted for large dark tiles, giving our renovated bathroom a truly luxurious appearance. In two years our personal loan will be repaid, and I would like to have the kitchen renovated.

Henk-Jan Lakeman (33): With our assembled family we needed more bedrooms. I have therefore chosen to renovate the attic and have a dormer window installed across the width of the house. I arranged the financing with a renovation loan. I know exactly what I have to pay per month and when the loan will be repaid.

Is borrowing money for a renovation deductible?

Is borrowing money for a renovation deductible?

The interest that you pay with a personal loan for a renovation can be deducted from your income under certain conditions. It is important that you can prove that you have used the loan for the renovation. Therefore, keep all bills and receipts that were made before the renovation.

Information about deducting interest paid and costs for a loan or mortgage can be found here on the website of the tax authorities.

Rebuilding a house costs money, but always delivers.

Quite a lot is involved in a renovation. The right preparation and a good choice for financing are important, but delivering enjoyment in a beautifully renovated house is also worth a lot. That is as certain as a house!




Credit can generate mixed feelings

On the one hand, it allows us to invest in the home or face unexpected events. On the other hand it can generate stress, especially if the interest rate is high and we can not cope with the payments, which could result in collections calls and reports to the credit bureau. Before getting into debt it is convenient to understand the loan conditions and choose the correct credit. The most common credits are for the acquisition of goods such as cars or houses and credit cards.

The credit card is a type of revolving credit , since the available amount is used, paid and used again. When granting a credit card the bank operates in good faith, based on the behavior of the client and the management of their existing accounts, or requesting information from the credit bureau. The bank provides a line of credit with a pre-authorized amount called the credit limit with which you can buy or pay for goods and services at the discretion of the cardholder.

The credit limit can be used in its entirety or only a part and the money is paid after the cut of the month and a few days before the payment deadline . There is the option either to pay the total amount if we do not want to generate interest, or if we can not pay the total to pay an amount equal to or greater than the minimum indicated in the statement , and pay the corresponding interest

Credit cards offer direct debit , very useful for programming recurring payments

Credit cards offer direct debit , very useful for programming recurring payments

The client pre-authorizes the bank to withdraw resources each month on specific dates to pay, by electronic transfers, services such as telephone or water. It is important to ensure that there are always enough funds to cover the payments, otherwise extra overdraft fees may be generated.

In a personal loan the bank or financial institution makes available to the client a sum of money with the obligation to return the principal and also pay agreed interest. The client uses the amount loaned freely, without having to use it for the consumption of a specific good or subject. A personal loan can even be used for the payment of other debts, especially credit card, which is recommended when the loan has a lower interest rate than the card. If it is in your plans to take a trip, start a small business, buy appliances, finance studies or make home repairs, but you do not have enough money, personal credit is an alternative to complete what you need.

Mortgage and auto loans are pledge credits , because a guarantee is taken to grant them. The mortgage or housing credit , includes the acquisition of a real estate, that is, a land, house or apartment, but can also be for the expansion or improvement of a property. The banks grant up to 90% of the total cost of the property and the rest is provided by the client. The mortgage is paid every month for 10 or 20 years, depending on the ability of the borrower to pay. The bank takes the property or another of the same or greater value as collateral, to recover its investment if the client can not pay.

With auto credit one can buy a car through a loan from the bank or from an automotive agency

With auto credit one can buy a car through a loan from the bank or from an automotive agency

The customer gives a down payment that usually goes from 20 to 35% of the total value of the car and the bank or the agency finances the rest. During the life of these loans, which range from twelve to 72 months, the debtor is obliged to pay a fee that covers part of the cost of the car plus another corresponding to interest. The purchased car is the credit guarantee.

Surely you have a cell phone that you received when you bought a plan. The telecommunications companies and self-service stores offer their clients a credit for the acquisition of durable consumer goods or ABC credit , so that people can buy appliances, computers or mobile devices that are paid monthly for 12 and up to 24 months

What factors to take into account to choose the best credit:

The interest rate is an annual or monthly percentage that is paid on the capital, this can be fixed (it is an absolute number that does not vary), variable (if adjusted according to a market rate such as the TIIE), or mixed (fixed for the first few years, and becomes variable after a predefined period).

Commissions are amounts that banks charge for services related to loans

Before hiring, ask what are the fees for opening the loan, for annuity, or for other services such as card replacement.

The total annual cost (CAT) is an indicator of the total cost of financing with which it is possible to compare the financial cost between loans and includes the initial interest rate, commissions, insurance premiums and guarantees. Ask what the CAT of your loan is and compare it using one of the various tools available on the internet

Find out more about the extra costs of the credit you request, and those that would be generated in case of falling into a delay such as default interest, collection costs and management in late payments. Do you plan to make payments in advance? Ask if there are any conditions that limit advance payments, because in fixed-term credits can apply penalties. Whenever possible, try to avoid loans that charge high fees for early cancellation.

Also consider the repayment term (the time to return the borrowed money). A rule of thumb is that the duration of the loan should not be greater than the life of the thing you are paying. You do not want to continue paying for something you’ve already enjoyed a while ago. It is not advisable to ask for long loans to finance holidays, parties, or weddings. And do not ask for an auto loan for a period longer than the useful life of the vehicle.

mortgage loan interests

The amount of the loan, the term the interest rate and the commissions determine the monthly payment to pay. The longer term, the lower the monthly fee, but the higher the total cost because you will continue to pay interest for a longer time.

Read the credit contract very well and clarify all your doubts BEFORE SIGNING and signing only when you feel sure of acquiring the responsibility involved in accepting a loan.

If you want to study more about concepts related to credit that must be taken into account when hiring a loan, check this link to the official page of the Bank of Mexico