Credit calculator for personal needs – why is it useful?

One of the most important issues to consider when deciding on applying for a loan is the monthly rate estimate. Once you have decided on the amount needed to resolve unforeseen situations, purchase of a building or a car, you need to use a credit calculator to simulate the repayment schedule.

Why use a credit calculator?

Why use a credit calculator?

The decision to apply for a loan is a difficult one. Once you have decided on the type of credit you need (personal loan, mortgage, First Home loan, car loan, etc.) it is necessary to form a first idea about the rates you will pay. This way, you will have more information about the financial risk you will take on. Keep in mind that any credit can affect your monthly budget, which is an additional monthly cost that you will have to incur. you take into account, regardless of its value. Before applying for a loan, ask yourself the following questions:

  • What will be the monthly rate?
  • What is the interest rate?
  • What will be the total amount to be repaid?

The most convenient solution to answer these questions is the loan calculator.

How to use a credit calculator?

How to use a credit calculator?

Credit calculators are provided by most banking institutions and IFNs. These are easy to use, the steps are very intuitive. In most cases, in order to calculate the monthly rate due, it is necessary to select the type of loan you want, the amount needed, and the duration of the loan. In the case of banking institutions, you will have to specify the currency, whether or not you collect the salary or other income from that bank, and additionally you will have to select the type of interest (fixed or variable).

The Benefits of a Credit Computer

The Benefits of a Credit Computer

At present, financial education plays an extremely important role. Since any financial decision can drastically affect your “financial health”, it is extremely important to be informed about how to make a loan, as well as the costs involved. Financial education will help you not to fall into the “debt trap”. By using a credit calculator, you can analyze every detail of the offer and you will be able to select the most suitable one. To choose a good loan, you need to know what a loan represents, what types of loans there are, what the interest rate is, what the DAE represents, as well as other important information.

Besides the efficient control and detailed analysis, by using a credit calculator, you can make a quick calculation of credit rates online, easily and quickly, thus saving your time spent in banks.

What is DAE?

Effective Annual Interest (DAE) – is the present value of all present and future commitments, draws, reimbursements and costs, agreed by the creditor and the consumer for a period of one year. The DAE formula is applicable at the level of an entire year, and when it is used for a short credit period, as is the case with the credit offered by lite lender, a very high value is generated. DAE remains fixed throughout the credit period.

What does monthly interest mean?

Monthly interest – represents the amount paid to the creditor for granting the loan.

What is the total amount to be repaid?

What is the total amount to be repaid?

The total amount to be repaid – reflects the amount borrowed plus interest and possible costs related to the loan. Before applying for a loan, ask yourself: do I need this loan? Can I pay this debt? At lite lender we support responsible lending and we encourage you to request a personal loan in 3 installments only when an unexpected situation arises or when you have found a super offer and you do not have the necessary money. Think long-term before you take a loan and analyze all the problem data.

Mortgage loan rate: stable at the start of the school year.

This is a “rebound” which should not be overinterpreted: the average mortgage rate rose to 1.18% in September 2019 according to the Housing Credit Observatory / CSA. A level that remains very low and is coupled with a slight decline in the average duration (226 months).

1.18% over 18 years and 10 months on average

1.18% over 18 years and 10 months on average

Those who see the glass half empty will find that the average rate has recovered 0.01 point at the start of the school year for a period which has decreased by two months (18 years and 10 months), which can be interpreted as a tightening of the conditions borrowing.

Optimists, those who prefer to look at the glass half full, will say more that property rates remain below inflation for the 16th consecutive month, which is unprecedented since the Liberation as explained by the Housing Credit Observatory / CSA. Recalling that it is the monetary policy of the Good Bank that offers these favorable conditions to borrowers, more than twice lower than those at the end of 2014 for the contraction of a home loan (2.38% at the time) .

The cost of credit from simple to double according to the borrower profile

The cost of credit from simple to double according to the borrower profile

In detail, the mortgage rate remains below 1% over 15 years (0.92%), below 1.10% over 20 years (1.08%) and slightly above 1.30% over 25 years (1.33%). According to the borrower profiles, the gaps are widening: the first group – the one that shows the most guarantees in the eyes of lending institutions – can borrow at 0.68% over 15 years, 0.83% over 20 years and 1, 08% over 25 years.

For the fourth group, which brings together borrowers with more uncertain solvency, it is 1.17% over 15 years, 1.36% over 20 years and 1.58% over 25 years. For a sum of $ 150,000, the loan cost differential is $ 5,760 over 15 years , $ 8,400 over 20 years and $ 10,500 over 25 years, according to a monthly calculation with our free dedicated calculator.

Credit market in full swing

Credit market in full swing

The drop in the average duration of mortgage loans can be seen in the share of borrowings under 20 years, slightly up on the 2nd quarter of 2019 (+2.6 points), while those over 20 to 25 years fell below 30%. (29.5%), and those between 25 and 30 years old under 40% (38.1%).

In terms of activity in the mortgage market, production rebounded in September according to the Housing Credit Observatory / CSA, thanks in particular to purchases in the former. The number of loans granted increased by 8.1% between June and September 2019 compared to the same period a year earlier (+ 7.6% in terms of production amount).

Apply for Used Car Loans Without Downpayment? Here are the Facts

 

Owning a motor vehicle is now a necessity. In order to facilitate businesses and professions in the middle, many people are increasingly in need of personal vehicles. Especially if it turns out that your home and office are far away and make you never want to have your own vehicle. That’s why more and more people are interested in used car loans without the DP (Down Payment) alias.

Used Car Credit Without DP As An Alternative

Used Car Credit Without DP As An Alternative

That’s right, there are a lot of leases available today. In fact, DP alias down payment is a major factor in motor vehicle credit. Typically, the number of DP that must be paid to the leasing of 20 percent of total price of the car to be bought by consumers. For example, if the DP is 20 percent, then the remaining 80 percent will be the total loan amount.

For example, the showroom at the Kemayoran Car Market is currently implementing a no-frills car loan mechanism for its potential buyers. That said, don’t be surprised if you can suddenly be offered a car loan without a DP . Alternatively, you may be offered a credit without a survey beforehand.

In other words, you only have to pay for the first installment and even get a private car right away. However, not all second car credits without this DP are beneficial. There are a few things to keep in mind in this mechanism. Anything? Check out the following description.

1. Generally speaking, Tenor Car Credit Scond Without DP Only 4 Years

1. Generally speaking, Tenor Car Credit Scond Without DP Only 4 Years

Generally, the howroom that offers programs of this kind only carries a  of up to four years. This means that for four years you will be charged a huge monthly installment.

Other options other than four years are 36 months (three years). Assuming the used car you are looking for is one year old and you are interested in getting it out long term, it is not easy to find.

2. Heavier installment

2. Heavier installment

When offered a used car loan with no down payment but short term, it is possible that the installment will be greater than the one under Payment. That way, you need to do a review on online sell-sites.

Without DP , the auto loan amount you apply is 100 percent of the car price. This will make the monthly installments you pay a lot less than lending a car with a DP .

When the installment exceeds 30 percent of your income per month, it’s not likely that your financial situation will fall into disrepair. While basic necessities of food, clothing and board cannot be sacrificed simply because they have installments.

In addition, as time goes on, these personal vehicles that are tertiary (complementary) need to be depressed. That’s why the DP sometimes becomes quite important. In fact, the larger the DP you pay, the smaller your loan amount. That way, your monthly installments will be less.

3. As The Car Needs To Be Built, The Expense Becomes Greater

3. As The Car Needs To Be Built, The Expense Becomes Greater

The thing to remember here is that you’re buying a used car instead of a new car, a new fresh out of the dealer agent brand holder (APM). That way, you’ll want to know the history of the car. Be careful to remember the seller also does not want to lose. You might end up with a nice, sleek exterior.

But who knows when the car was once used to break through the flood. Or it could be that the car in question had been in a serious collision but has been rebuilt, so that the defect is completely invisible.

Be careful when buying. It could be that there is damage to the legs for example, which prevents you from having to pay for the repair plus the purchase of new space.

4. If The Car Sold Again In The Short Term, You Will Be Losing It

4. If The Car Sold Again In The Short Term, You Will Be Losing It

When you decide on a used car loan without a DP and it doesn’t fit the car, there is rarely the next option to choose from. With second-hand car loan credit, it’s unimaginable to drop your car’s price.

Issues like this are common to not only creditors but also those who are used to car loans. Keep in mind that only the first-hand car is already appreciated, so the second-hand car will automatically fall in price.

Second Car Credit Tips Without DP

Second Car Credit Tips Without DP

After considering all four of the above, you may want to reconsider what decision you will make. If you are already convinced and do not change your mind, here are some things you need to do to avoid financial losses in the future. Here’s the description:

1. Choose the Most Common Young Car

1. Choose the Most Common Young Car

Generally, the showroom only operates this program to sell less expensive cars. That’s why you have to find out what car accident is. Contact your mechanic when needed. You can also rely on certain sites to check the condition of your car.

If you want to be more secure, simplify your intentions by not buying more specific brand or type cars. Instead, pick the most common car with low maintenance, spare parts everywhere, fuel efficient and versatile.

It is also advisable to choose a car that is of a young age, not yet very old. Because if it’s been over five years, most of these cars will need more money. Instead of choosing a car that is not marketable but the treatment is expensive, it is best to choose a car that will obviously make it easier for you.

2. Find the Recommended Showroom

2. Find the Recommended Showroom

To date, many used car loans without DPs have been found on online buying sites. Even finding it is not difficult and easy enough. But that doesn’t mean you are being careless and selective. It is highly recommended that you always choose the one you really trust.

For example, even though the showroom says that the car is healthy without any problems in the description, no one can guarantee it is completely healthy. This is the discussion of DP / Down Payment. You can take advantage of this facility after considering the profit clearly and carefully.