MonthJuly 2019

Loan for home renovation

Owners of own real estate

Owners of own real estate

Are well aware that from time to time some renovation or repair should be carried out at home. Sometimes it’s about cosmetic treatments like painting, but sometimes we have to do a total “demolition”. Every renovation, regardless of the scope, requires some expenses from us. If we are prepared for such an expense – no problem, we can use the collected financial resources and carry out the renovation. But what if the bank account is empty and the renovation needs to be done? Of course, the easiest way is to go to the bank and borrow money for renovation.

In banks, we do not see a loan that is offered only for the renovation of real estate. We must therefore take advantage of the offer that will allow us to borrow money, which we will later use for our purpose. And here we have several options. Their choice should depend on the amount we need, as well as on the “speed” with which we need cash.

If our renovation comes down only to refreshing walls or other minor repairs, we can use eg the limit on the invoice. It is a loan for which you do not need many formalities, and the money we will have at our disposal often after one visit to the bank (or even without leaving home using online banking). Usually banks will not require us to get income certificates, because they can check everything by browsing our account. It is not a road loan, so it may be perfect for us.

In the case of a slightly larger renovation,

In the case of a slightly larger renovation,

We should apply for a cash loan. Its biggest advantage will be that the bank will not interfere with what we spend money, the process associated with obtaining it is not too complicated, and the repayment can be spread even for several years. Banks are increasingly moving away from such collateral loans, so we do not have to look for a surety. However, we must realize that it is a relatively expensive loan, so the costs associated with it can significantly increase the cost of renovation.

If a lot of work and expenses await us in our property, we can look for money for refurbishment by applying for a mortgage loan. Also in this case, the banks will not interfere with what we spend the money borrowed, but we must prepare for a bit more formalities. First of all, such a loan for renovation is secured by a mortgage. So we have to prepare a quote for it to let the bank know what the value of the collateral is. In addition, the establishment of a mortgage is also a certain cost, and all formalities last a dozen or so days. In addition, throughout the loan period, we must have an insurance policy and make an assignment to the lender. Because large amounts are involved here, we must document our income well, and the bank will surely “scanned” our credit history. However, in return we will receive one of the cheapest loans on the market, with the possibility of spreading the repayment even for a dozen or so years. Thanks to this, our monthly installment will not be too burdensome for our home budget.

Loans or loans for renovation can help us do many jobs.

Loans or loans for renovation can help us do many jobs.

So if we are wondering if we need to renovate our house or apartment, do not hesitate to take advantage of the banks’ offers to enjoy the renovated kitchen, living room or bathroom.

How to Pay Your Credit Card Debt?

debt free

The bank gave you a credit card and the first thing you do is go out to spend. You take advantage of giving yourself some tastes and you reach the limit. It is there when you encounter the dilemma. Now how do I pay the debt on the credit card ? Pay attention to the advice in this article.

 

How does a credit card work?

credit cards

A credit card is an instrument granted by the bank with a specific money available, previously studied by the entity, which you can use and then you must pay with interest within a certain period.

Most Mexicans use the credit card as a means of payment for common expenses. For example: to pay another card or as an extension of the salary. This behavior can generate an accumulation of debts, which later become a headache.

Why is this way of proceeding with the credit card negative? Because under no circumstances the credit card is an additional income. So, if you use it excessively, you will end up with many debts and serious financial problems .

 

What happens if you go over your credit limit?

credit limit?

It is very easy that sometimes we go hand in hand when we use the credit card and exceed the limit set by the bank. The consequences of a scenario like this will depend on the policies of each financial entity.

Generally, in case the client exceeds the credit limit, the bank could suspend the instrument, block the expenses of the last purchases, agree on an extension or agree on a depreciation of the exceeded amount.

Therefore, it is important that you read the conditions of use of the financial product very well, and at least be aware of the implications.

Either way, if you exceeded the limit and do not know what to do to pay your credit card , the important thing is that you act fast. Check with the bank about the possibility of extending the limit or paying off the excess at the end of the month.

 

What happens if you don’t pay your credit card on time?

What happens if you don

Didn’t you manage to cover the credit card debt on time? You should know that paying for CT with delays has negative consequences for you.

On the one hand, you must assume the collection of interest for late payment. Banks usually give customers a small grace period to pay the monthly fee. However, with what they do not make concessions, it is with interest rates .

On the other hand, there is the fact that the delays with the payments of your credit cards add bad reputation to your credit history . This aspect would be super negative, for example, in case you want or need to apply for a new loan.

When a cardholder is frequently behind in credit card payments, he is immediately reported to the Credit Bureau as a delinquent customer. When this happens, banks refuse to grant you new financial instruments.

 

Tips to avoid credit card debt

Avoid financing your purchases for more than 30 days with the credit card. If you still want to do it, first find out the Annual Equivalent Rate (APR) that they offer you and compare it with the other options available (personal credit and other types of loans).

What is the APR for? This index will help you to know the true cost of the credit or loan, compare the different financial products and choose the most convenient for you.

If you are already in debt, find out how much is the interest rate you are paying and look for a loan where you pay less interest. For example, using the Bankers family service to pay off credit card debt is a good option.

conclusion

Tips to avoid credit card debt

The idea of ​​having a credit card is not bad, even the fact of using it to pay your expenses does not have to represent something negative, on the contrary.

This valuable financial instrument , not only serves to finance your purchases, it is also an excellent means to show banks that you are a fulfilled customer and that it is worth granting you other loans.

The important thing with these instruments is that you know in depth the conditions of use, interest rates and other costs. With these aspects clear, CT scans should not represent a headache.

You do not have to stop using your credit card if you use it wisely and make the best decisions when making your consumption.

In case you have a pending debt and do not have a defined plan to pay your credit card, you can consider the Bankers family service. We offer you the option to defer the balance of your TC so you can settle it as it suits you.

Bankers family absorbs your credit card debts and allows you to maintain a good credit history by not being late with payments.

In addition, with Bankers family you will have the best-personalized attention from professionals who will clear your doubts and help you choose a plan adapted to your financial profile. This way you can finance yourself in the most comfortable and efficient way.