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Productive loans: simply achieve more

There are many reasons to sign a loan contract. But it doesn’t always make sense to go into debt for something.

There are many things in life that cannot even be paid for. This is what young families, for example, are experiencing, who are currently setting up their first apartment together: up to now, the two partners have always gone separately with their dirty laundry to the nearby laundromat. For three family members, however, this is expensive and time-consuming. The simplest solution is to buy a washing machine, but the couple has to take out a loan. That is a sensible solution. Because when the loan is paid off, the family has a material value that will hopefully last a long time. It also saves expensive laundrette costs. And it can make good use of the time that the laundry is in the machine for other things.

If you replace the family with a company and the washing machine with an expensive system in a production line, you come to the same conclusion: resources are used more sensibly through the new acquisition. Ultimately, the loan helps to save or make a higher profit. Experts call such a loan “productive”.

Real estate loans can also be productive

Other examples of productive loans are, for example, loans to finance a degree. Statistically, academics are less likely to be unemployed and earn well. Such a loan is an investment in the future. A real estate loan can also be productive – if the purchase price of the house is reasonable, the location is right and the value of the house is continuously maintained.

If you tried to save the entire amount for a course of study or a house, you would probably have to start early and save for a long time. Before taking out a loan, however, it must be ensured that you can service the loan regularly and that it is adapted to your life situation. In the worst case, a loan that you cannot repay will drive you into personal bankruptcy.

Set realistic goals

For example, a loan is not productive if someone who urgently needs a car to drive to work every day chooses one that is unreasonably expensive. Or when the family takes out a loan to go on vacation, or when the company owner opts for a system whose capacities he can never use. If you need a loan, contact your Moneysparks Finance advisor. Together with you, he calculates which loan amount is feasible for you.

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Top rating, top credit terms

As an entrepreneur, you are often faced with investments that you cannot make without a loan. The terms of your loan depend heavily on your rating. Read here how this value is created and how you can influence it.

Whoever grows usually has to invest. We are happy to support you with your plans with a loan. As with any funding, we need to determine what the risk is that you will not be able to repay the money. We evaluate your project and take a look at your books. Other factors are also included in your assessment on a scale from 1 to 18. The scale works similarly to the Bundesliga table: 1 is Champions League and 16, 17, 18 are relegated – i.e. a credit default. This means that a low rating stands for a low risk and is rewarded with advantageous credit terms.

By the way, we are committed to the rating. This enables us to prove to the banking supervisory authority that we are not taking more credit risks than is permitted.

A variety of criteria

We want our rating to be transparent and understandable for you. We therefore explain to you what has a positive effect on your classification:

1) We analyze your balance sheet. The key ratios include, for example, the equity ratio. So ensure the best possible ratio of economic equity to total assets. You can achieve this by, among other things, forming retained earnings or settling outstanding receivables.

2) Strive for systematic and ongoing controlling. By means of a meaningful cost calculation, you can see whether your investment is profitable.

3) You should not use short-term loans to finance capital goods that you want to use in the long term.

4) When it comes to an upcoming investment: Explain your project to us with the most detailed planning possible. It is particularly important to us that the numbers are plausible and that the project is highly likely to pay off.

5) With good liquidity planning, you ensure that you generally adhere to your credit line. For example, you do not exceed the maximum amount of your overdraft facility.

What else pays off

  • We keep talking regularly and openly.
  • You convince us of your product policy.
  • You prove to us your strong position in the competition.
  • You have an emergency plan in case you fail unexpectedly.
  • Your company succession is regulated.

Would you like to invest and do you need capital? Or do you have general questions about your rating? Then make an appointment with your customer advisor.

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Credit Card Holder Code: What it is, where it is and what it is used for

What is the credit card holder code

The credit card holder code is a data whose insertion is sometimes required when making an online purchase using this payment instrument.

It is in fact a specific code aimed at increasing the security level of transactions and which identifies precisely both the credit card and its holder.

However, sometimes the request for this code can put the user in difficulty because he does not know what it is or where to find the data in question. Precisely for this reason sometimes we end up confusing the credit card holder code with the security code or with the card number.

In reality they are equally important and useful data to ensure the security of the transaction, however their purpose is different. The first is the three-digit code printed on the back of the credit card and which must be entered in the appropriate field every time a purchase is made via the web; the second is the code of the payment instrument itself.

The card number and the security code are always requested during the online transaction, while only some e-commerce sites also require the credit card holder.

Where to find the credit card holder code

Where to find the credit card holder code

Typically the credit card holder code is provided by the bank that issued the credit card on paper document in a sealed envelope, just like the PIN. In fact, it is written in the letter accompanying the delivery of this payment instrument.

As a result, it can be picked up at the branch or sent to the owner’s home, always with a credit card. In some cases, the holder of the payment instrument can independently generate the code online. It is a solution that allows to raise the safety standards and the protection of communications between the credit institution and the customer.

This method is made available by the banks that allow the activation of the credit card online. Consequently, the holder code is a creation at one’s pleasure and the fact that this data is edited personally by the holder makes it more easily memorable.

In this case, once the credit card is sent to the user’s home, the holder of the payment instrument must go to the bank’s official website, access the Reserved Area with his / her credentials and carry out the procedure for card activation.

During this phase you are asked to edit the owner code, following the instructions that appear on the screen and in any case respecting the security requirements of the system.

What is the credit card holder code for?

The credit card is one of the most popular and appreciated payment methods when making a purchase on the various e-shops or on an e-commerce platform.

This applies both to transactions involving products of different nature and to those involving services. In most cases, the user is only asked for their credit card number and security code, however some sites adopt higher security standards.

In fact, online scams are quite frequent and represent a significant problem for users, as well as the theft of personal data and those concerning the means of payment used for online economic transactions. Precisely for this reason, you can also request to enter the credit card holder code.

This is a measure that can strengthen the level of data protection. In this way it becomes possible to safeguard them in an optimal and complete way and not expose the used payment instrument to any risks, for example thefts and scams.

In fact, the security of online transactions is a topic that attracts increasing attention and whose implications are particularly significant since internet purchases are increasing exponentially.

What to keep in mind

What to keep in mind

When talking about the credit card holder code, keep in mind that it is a personal code that must remain in the possession of the holder of this payment method only.

Another aspect to consider is the fact that this data is not required by the banking institution to authorize transactions of various kinds or to access its own Reserved Area.

Secondly, it should be emphasized that if you enter an incorrect credit card holder code three times in a row when you want to make an online purchase, the security system automatically blocks the payment instrument. This is a device designed to ensure greater levels of protection against possible card theft.

To make the credit card operational again, contact the Customer Service department of the credit institution that issued it. To bypass the problem, the user must therefore go to the branch office of a bank branch and provide the operator with their data to obtain the release of a new code.

This procedure must also be carried out in the event that the owner code has been edited personally when, during the online credit card activation procedure. Just to prevent these problems from occurring, it is essential to keep the original documentation.

We recommend that you store it in a safe place, perhaps highlighting the relevant data to find all the information you need quickly and easily. Furthermore, it is preferable to also make a copy of the letter sent by the bank in order to be protected even if the original is lost.

The fact that the credit card is blocked after three consecutive incorrect attempts to enter the holder code is the reason why this data should not be confused with the other security codes. In reality, the holder code is found exclusively on the paper document sent by the bank, while the others are printed on the card.

Credit Card Holder Code: updates 2019

Credit Card Holder Code: updates 2019

According to some rumors, in 2019 the number of e-commerce sites and platforms and e-shops that will require the insertion of the customer code to authorize the purchase of products and services will increase.

In fact, transactions that take place via the web and that affect credit cards are continuously increasing because they guarantee greater speed and because e-commerce sites tend to give customers a wider variety of choices regarding the items. and the services available.

At the same time, the problem of the theft of personal data and payment instruments, as well as online scams, needs increasingly updated answers that are able to counter this phenomenon.

The decision of some websites to increase the security levels of web transactions appears to be in line with the highest degree of attention placed by national and European Union authorities on the protection and processing of personal data. The aim is to guarantee greater security, both for users and for the e-shop itself.

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Car credit, which documents are kept?

You have taken out a credit for your car and you end up with a lot of paperwork following this transaction. These documents are extremely important and we will have to keep them, even after having fully repaid the credit!

So what are the documents to keep during and after the credit? Why do we have to keep them? And for how long after the end of repayment? We explain everything in this little complete guide.

What are the documents inherent to a car loan?

When you buy a car loan, the financing organization, whether it’s an independent credit organization or your bank, provides you with a sometimes impressive amount of documents that all matter: loan agreement, amortization schedule, general conditions , special conditions, insurance …

To this, it is advisable to add the account statements of your bank on which appear the monthly payments of the credit, and / or the stubs of checks in case of payment by check …

All these documents must be perfectly well preserved throughout the duration of the credit, and even after the last repayment of it.

– The loan contract : this is a generic agreement for which the lender (organization or bank) agrees to lend a certain amount of money to the borrower at a given date and under given conditions. The signatures of both parties on the contract are essential.

– Amortization table : this is a double entry financial table, drawn up by the lender, showing the number of monthly payments corresponding to the duration of the credit, the dates of these monthly payments, the amortized capital, the interest (monthly and cumulative), insurance and capital remaining due month after month. This table allows the borrower to know where he is as his repayment progresses.

– The general conditions of the loan : this contractual document specifies the clauses of the transaction (management methods, guarantees, duration of the commitment, conditions of remittance of funds, failures of reimbursement, etc.).

– The particular conditions of the loan : this contractual document specifies the specific rules of the transaction (type of credit, rate, duration, identity of the subscriber and the beneficiary, scope of the guarantees, premiums, etc.).

– Loan insurance : they are optional but highly recommended because they cover the risks related to death or disability that may occur during the term of the loan.

– Statements of account : these are the ones on which appear the monthly payments of the credit which it is important to preserve (Even if, today, it is quite easy to obtain duplicates near his bank!).

– Check stubs : these are the ones concerning the payment of the monthly installments of the credit which must be preserved, as well as the statements on which appear these checks.

Why keep all these documents?

All these documents are very important and should be kept for the duration of the credit . In fact, in case of problems (change of situation, non-payment of monthly payments, repurchase of credit, claims, …), they are valuable proof of repayment if they are claimed.

Reminder letters should also be retained in the case of non-payment of a monthly payment.

All these documents can be requested at any time by your credit organization, your bank, your lawyer (in case of dispute), or by the court …

They are official proof of any claim, redemption of credits, or any other change of situation that occurred during the course of the loan.

How long do these documents need to be kept?

The law requires keeping them for the duration of the loan, but also at least 2 years after the repayment of the last monthly payment . Indeed, if problems occur towards the end of the credit, it is necessary to be able to prove the refunds made, even months after the deadline.

For example, if your credit car lasts 5 years, it is strongly advised to keep all the documents inherent to this loan for 7 years minimum.

To conclude, keeping all the documents relating to a car loan may seem to be a constraint, but this is important because, if you are worried, you will always have at hand all the evidence necessary for the progress of the proceedings, whatever they may be. , and it will save you a lot of trouble!

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Auto Credit: Know Before You Go

Like a home loan, a car loan represents a non-negligible financial burden for several years. So, before contracting this loan type, it is better to analyze the situation and the different opportunities (help, laws, financing) available to you.

The regulation of car loans

The regulation of car loans

The legal protection of the borrower, in the case of a car loan, is guaranteed by the Scrivener Law which governs the legislation of all consumer loans. The borrower thus has different rights including:

  • the obligation to inform all aspects of the contract
  • a reflection period of 15 days
  • a withdrawal period of 14 days after signature
  • the limitation of the loan amount to 75 000 USD

Possible financing and aid for a car loan

To help you finance your purchase, several organizations can intervene, especially for jobseekers and people with modest incomes.

Among these organizations, CAF offers a zero-interest loan (preventive loan) and a micro-loan (loan of honor). Although these two credits are not exclusively reserved for the purchase of a vehicle, they can still participate.

Pôle emploi, likewise, helps young drivers under the age of 26 who have just found a job that requires a means of transport. This is also the case for young drivers who have taken out a student loan to pay for their first vehicle.

Finally, different associations exist as:

  • the friend, to help unemployed RSA to acquire a vehicle
  • the cars of the heart
  • the association lend me a car

In any case, it is important to have a global idea of ​​the offers available on the market; benefits offered by dealers and financial organizations depending on your situation. Only then will you be able to make the best choice.

What do you need to know before you start?

  • Recognize a serious body, to whom to turn
  • Different types of financing
  • How much do I need to borrow? (what can I include in financing, car prices, miscellaneous expenses …)
  • The different helps to finance a car
  • Borrowing capacity, do the math
  • Minimum conditions for obtaining a car loan
  • Purchase of your car, cash payment or credit?
  • Is there a personal contribution to finance a car on credit?
  • Insurance for a car loan, principle and utility?
  • Auto loan when you have financial difficulties
  • The different personal situations possible when you apply for a car loan
  • Can auto credit vary according to the type of car?
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Auto loan refused, what to do?

You applied for a car loan from a bank or credit institution and it was refused. More boring still, the organism in question refuses to give you an explanation.

Faced with the failure of a negotiation, there are however several remedies to rebound and find a favorable outcome to your request.

Understand the reasons for refusal

The first thing to know is that the lender is not obliged to provide you with the reason for refusing your car loan. Credit does not escape the principle of freedom of contract and your bank is quite free to choose with whom it agrees to sign or not a loan agreement.

Do not be too insistent if your advisor refuses to communicate the reasons for your application being returned. There is only one case where the lending organization is obliged to specify the refusal of a credit application, it is when the customer is itself banked Bank of France (otherwise called FICP file) . Apart from this specific case, try for yourself to identify the negatives of your file, objectively.

The different grounds for refusal

The FICP file.

Centralized by the Banque de France and accessible to all lenders, this file lists the information of bad payers and all banking incidents of a customer over a period of five years.

Overdraft authorization exceeded, non-payment of a monthly credit, as many banking incidents that can block the obtaining of a car loan. If you are registered FICP, do not hesitate to go to a branch of the Bank of France to know the organization that has you.

Filing may be requested and accepted under certain specific conditions (change of situation, proven litigation with the bank). Beware, the FICP file prohibits any lender to issue a favorable response to a credit application: if you are registered, do not try to try your luck in another agency, the response to your credit application will be systematically negative.

An unbalanced budget.

Other cause of a car loan refusal, your financial situation is considered insufficient. When setting up an auto credit agreement, the lender analyzes the client’s debt ratio, ie the ratio between the fixed monthly expenses and the borrower’s salary.

If the fixed expenses exceed the salary by 30%, there is a good chance that your credit report will be rejected. On the other hand, each organization has its own conditions of granting a credit; do not hesitate to try your luck in another organization in case of refusal.

A risk profile.

When analyzing your credit application file, the bank or lender evaluates the client’s profile as a score. It can be different criteria, such as age, profession, type of contract, level of education, personal situation …

In other words, you are more likely to have a favorable answer if you have been on a permanent contract for fifteen years in the same newly hired company. Here again, the scoring practiced by the lenders does not obey any fixed rules. In case of refusal of your credit application, play the competition and try your luck elsewhere.

What to do in case of refusal?

Except for the case of FICP file, each bank has its own criteria for validating a credit file. If you think your application deserves further consideration, ask for a new evaluation highlighting the positive arguments in your case.

For example, a profit-sharing bonus and a substantial participation at the end of the year, a thirteenth month or if you switch to a permanent contract in the near future can be as many interesting elements to tip the scales on your side.

If possible, you can also increase your personal contribution with a live-in caregiver, or open a savings account to show your ability to save money.

If your file is still refused, try your luck in another organization. Scoring and criteria for awarding a credit vary from one organization to another. On the other hand, avoid organizations that accept credit conditions in a short time: their rates are often well above average and will put you in a debt situation that is difficult to manage.