The right credit card for students.

More and more banks are offering special credit cards for students, which enable payment abroad, online shopping for cashless payments. However, students should not access it blindly. A comparison of the offers is advisable in any case.

So that the desire for financial freedom does not become a cost trap and costs high monthly fees, it is worth comparing prepaid credit cards and cheap classic offers.

Advantages and benefits of credit cards for students

Advantages and benefits of credit cards for students

When ordering online, it is not uncommon for credit card payment to be requested. However, you should note that a long-term disposal over your financial scope does not create any advantages and can pave the way directly into the debt trap. For this reason, many credit cards for students present themselves directly with a connected account and available on a credit basis, or with a limited limit on monthly withdrawals at the machine and also limited bookings for payments on the web.

Students who spend a semester abroad or want to do an internship within the Good lender or globally should under no circumstances dispense with a credit card and, because of the unrestricted acceptance, rely on a classic model with a limited but easily increasing limit.

The prepaid model for students

The prepaid model for students

Prepaid credit cards are issued to prospective students or applicants during their studies without having to check their creditworthiness. The best are models to which a current account or call money is connected and with which interest arouses the desire to save. With regard to credit card acceptance abroad, it is advisable to rely on a well-known and globally operating bank. Online banks are not excluded, which means you can make real savings and concentrate on free or very cheap credit cards.

Regardless of whether it is traditionally a special student credit card or a prepaid segment, it is important that it is a Visa or Mastercard and therefore has the highest possible acceptance. If you choose a classic credit card, you set the realistically realistic limit and make sure that you cannot spend more money than you can earn per month.

Credit card conditions for students

Credit card conditions for students

Nobody wants to spend money unnecessarily and invest a lot of money for the card or the account management, for cash withdrawals at the machine or the payment with the credit card. Models are therefore practical for which you do not have to pay an annual fee and which you can use free of charge at many acceptance points.

In the contractual conditions, you should inform yourself whether you can achieve a temporary and short-term increase in the limit with a classic credit card and apply for it by telephone or online. Uncomplicated processing is important if you need the limit increase, for example in the event of a spontaneous liquidity problem abroad, and cannot take any waiting time.

Compare different offers and gain security with which bank you are best off with your credit card request and also have individual options in terms of use and design of the credit limit during your studies. A clear structure of the costs for withdrawals and bookings, for the use of the card abroad and the individual use should be known to you in advance and should be presented transparently in the contract.

Important special features of credit cards during your studies

Important special features of credit cards during your studies

Your budget is limited, so you have no way of paying large amounts of debt without problems and subsequent financial difficulties. This makes it all the more important to give advice on the limits and a possible temporary increase in the amount available.
Since you need an account for your transfers and incoming money in addition to the credit card, many banks combine the two options and offer a free current account for students, including EC and credit cards. The account management should be free of charge for your monthly transfers and have no limits in the amount of possible incoming payments.
For example, an account with a credit card is of no use if you have to prove a minimum monthly payment or have to pay high fees for your account. Models with individual extras for students are very often chosen because the extras are expressed, for example, in a bonus or interest on the credit and offer some advantages and more scope for the credit card holder.

Refinancing loan – how does it work?

Everything changes in life, just like the financial situation, which can improve or worsen day by day. For this reason, bank analysts had to create convenient tools that can tame these dynamic changes in the life of a particular borrower. One of the solutions is a refinancing loan. Check what it is characterized by and who should decide on it.

Payday loans and loans are subject to different verification rules. Every financial market oriented person knows that it is easier to get a short-term loan than a loan. These types of financing also differ in repayment length. There is therefore no major need to renegotiate the terms of the contract for payday loans, which must be repaid in 15, 30 or 60 days. During this time, there will be rather no spectacular changes in the borrower’s life that could affect the need to restructure or refinance his commitment.

It is completely different with loans for high amounts and for many years. Mortgages bind people practically for the whole life, during which a lot can happen. For example, interest rates may change, which will affect the price of the loan. Another issue is the individual situation of the borrower, who after several years of obtaining the commitment may already be a much more attractive customer for the bank. When someone decides to take a loan at the beginning of their life path, they do not have very high earnings or well-established credit history. This changes, e.g. because of getting a better paid job. Then you can think about changing the loan repayment terms by refinancing.

What is a refinancing loan?

What is a refinancing loan?

Refinancing a loan is simply transferring your liability from one bank to another. The new bank with which the loan agreement is signed repays the client’s receivables in the old bank. Thanks to this solution, the borrower can free himself from cooperation with a financial institution that did not fully meet his expectations. The refinancing loan allows you to change the repayment terms to those that will be much more attractive. In some cases, thanks to refinancing you can save up to several thousand dollars. The reason is trivial. Banks compete with each other, which is why they can offer new clients interesting solutions that effectively break cooperation with the old company. Credit refinancing allows, among other things:

  • shortening or extending the loan period,
  • change in installments,
  • use of decreasing or increasing installments or balloon installment,
  • resignation from additional products, such as for example insurance.

What is the difference between refinancing a loan and restructuring or consolidation?

What is the difference between refinancing a loan and restructuring or consolidation?

Each borrower should operate the financial dictionary efficiently to be able to successfully find himself in all the complexities, and thus save a lot of funds. That is why it is worth remembering that refinancing a loan is something completely different than consolidation or restructuring.

  • Loan consolidation is the concentration of many claims under one liability, such as loans and outstanding credit cards.
  • The loan restructuring involves changing the terms of cooperation with the current bank by renegotiating interest rates or other parameters of the liability being repaid.

Refinancing loans are always taken from another bank. They also apply to similar types of obligations. Therefore, a car loan is refinanced by a car loan and a mortgage – by mortgage.

Refinancing mortgage

Refinancing mortgage

Mortgage refinancing is by far the most popular form of this type of financial solution. There are also cash loan and loan refinancing offers on the market. However, it is the mortgage loan that reduces the cost of your monthly obligations. Taking a mortgage for 30-40 years, a lot can happen in life – hence the need to refresh the terms of repayment over time. In the context of refinancing, it is worth knowing the factors that affect the price of a loan. Those are:

  • APRC – Actual annual interest rate.
  • WIBOR – current interest rate. It is on its basis that banks grant loans.
  • Bank’s margin.

Therefore, before deciding to change the terms of repayment of a loan in another bank, it is worth taking a closer look at these three elements that dictate the amount of repayment costs. The most important issue to check is the bank’s margin. Lowering it allows for better credit terms. The client does not have any influence on the APRC and WIBOR – therefore, negotiations on margins are an effective way to reduce the commitment installments. A long analysis of individual bank offers will allow reliable selection and a new, attractive repayment schedule.

People who do not have too much time should remember that transferring a loan from one bank to another involves many formalities. You should complete a new application and wait for the new bank to check your credit history, earnings level or re-appraise the property by working with a good appraiser.

What are the costs of a refinancing loan?

What are the costs of a refinancing loan?

A refinancing loan is often a very convenient solution. However, it should be remembered that it involves certain costs. Usually these are:

  • fee for changing the mortgage in the land and mortgage register,
  • the cost of faster repayment of the entire liability to the old bank,
  • commission fees to be paid at the new bank that has agreed to cooperate in the form of loan refinancing,
  • the cost of securing a new liability, which most often takes the form of insurance.

Only a closer look at all fees and subtracting them from the price of the refinancing loan will let you know its real cost. Some banks hedge against refinancing by including a section on the contract for a high fee for faster loan repayment. Also, a new bank may inflate the price of insurance or add to the service, e.g. a credit card with a high interest rate. Hence, initially a very attractive offer may turn out to be an expensive and not very favorable solution on closer examination. It makes little sense to decide on a refinancing loan when you go to zero or save very little. The amount of formalities to complete can also effectively discourage the client.

It is worth getting interested in refinancing when the loan was taken in times of high interest rates.

Where can I get a refinancing loan?

Where can I get a refinancing loan?

Most large banks that operate in our country offer refinancing loans. 

The offer of the above banks includes such facilities as credit holidays or the opportunity to receive additional funds. Refinancing a loan is a very responsible decision. Therefore, before taking any steps, it is best to familiarize yourself with several bank offers and to conduct a long conversation with a consultant at the branch of a given financial company.

What to do if a refinancing loan is not possible for some reason?

What to do if a refinancing loan is not possible for some reason?

If you are not satisfied with the service offered by the bank with which you currently cooperate, decide on a bold step, which is refinancing. Often, however, for reasons such as the average lending situation or unsatisfactory earnings, institutions refuse to grant a refinancing loan. In such a case, further cooperation with the current bank remains, with which it is worth starting talks regarding the restructuring of your liability. Credit restructuring is a solution for those who for some reason cannot afford refinancing.

A refinancing loan is an option for you if you like to observe the market situation and always want to choose the best, but also the cheapest offer. Transferring your loan to another bank is often the only way to lower your monthly installments and finally breathe a sigh of relief, enjoying a slightly thicker wallet.

Calculate Equity for Credit

Again: equity through credit?

Again: equity through credit?

However, the approval of the Astro’s financing requires a little more than just figure acrobatics. Keyword equity.

Basic mathematical knowledge is always helpful – especially when it comes to whether rents are sufficient to finance the construction of a house. Keyword equity. To calculate the amount of the annual rental costs, you only have to use the monthly cold rental periods 12.

In a first step, this amount must be divided by the interest at which the loan is granted. As a rule, an initial repayment rate of 1 to 2 percentage points is set. Most credit institutions usually set two percentage points for the minimum annual repayment.

The interest rate of two percentage points is currently granted by financial institutions for a period of fifteen years, in which borrowers can bring in comparatively little equity. In this case, the future owner would only have to raise $ 150,000 in own funds plus incidental acquisition costs. The calculation of the affordable purchase price of a property, based on rental expenses, is now as follows:

But be careful – there can be high additional costs behind the relatively harmless by-product of the incidental acquisition costs – and they are often misjudged. Let us assume that a rent-tired person finds a suitable property in Vienna. The acquisition costs of the real estate amount to $ 300,000; the incidental acquisition costs (similar to most federal states) would look as follows:

Loan with all costs as equity

Loan with all costs as equity

If the property is brokered by a real estate agent, sales tax can be raised from three percentage points of the sales price. If the house bank only grants the loan if the seeker has provided $ 15,000 plus all costs as equity, the savings of our prospective buyers would have to be at least $ 39,750 – which would probably have meant the end of some dream successes.

The possible lack of understanding for potential debtors is understandable: are the regular (high) rental costs not sufficient over many years to underpin your own financial potential? A house bank should thus be able to provide construction finance at least up to the amount of the rent.

A purchase shifts the risk potential that it would not have enough time for the repayment. In the worst case, the termination of the loan contract would result in the withdrawal of the house and would leave the previous owner with a stack of residual credit.

As the debtor’s risk of default increases, the discussions on financing take a back seat. A very individual listing of current income and expenses always makes sense. If it turns out that the liquid funds are not even sufficient to cover the ancillary acquisition costs, you can assume that you are working with reservations from the house bank. Another way to increase the lack of own funds can also be to levy property tax on the parents’ house.

At many banks, this is valued as equity. If you assign the policy to the house bank, in practice they count as much as the equity.