How to determine convenient loan installments?

Everyone probably knows that this is a very important issue. Which loan you choose, your financial terms and repayment period will affect your future over the next few years – and maybe even more (it all depends on the type of loan). So what should you do to determine installments that are easy to pay ? Here are some aspects that you need to consider in this topic.

How to choose the right installment?

How to choose the right installment?

It is very important, above all, to decide on a good, proven bank. It is therefore necessary to analyze the available offers in terms of financial conditions. Particular attention should be paid to the rrso parameter, i.e. the actual annual interest rate. It does not hurt to decide on loan insurance – installments will be slightly higher, but if you lose your job, illness, etc. Your interests will simply be more protected.

The choice regarding the loan period is also important. You definitely need to consider your financial options. It is very important that you do not under any circumstances decide to pay too high installments . Of course, then the loan period will be smaller. This will cause that your bank will receive less of your money and you will end up paying off your obligations incurred in the future sooner.

Short loan period

Short loan period

This is a good script … But what does a somewhat more brutal reality look like? It is worth knowing that the short loan period means relatively large installments to be repaid each month. All you need is sudden, unexpected expenses and a problem begins. Therefore, it is better to set up installments that are easy to repay and which will not burden your monthly budget so drastically. You always have to leave a certain emergency gate. In other words, you must have money for the so-called “rainy day” …

A longer loan period

A longer loan period

It is impossible not to mention that long loan periods significantly reduce the household budget. Of course, this has its drawbacks. People who repay a loan for several or several dozen years are still under pressure. They know that they will have to be in touch with a specific bank for a long time … Therefore, you need to think carefully about which option in your particular case will be better. There are, therefore, various aspects to consider. Not only financial, but also psychological.

Which companies offer a special credit report in Mexico?

How to check if I am in a credit bureau? It is important that you understand the usefulness of that information and how you can improve your credit history if necessary.

The Credit Bureau is a financial institution that is responsible for storing, managing and delivering all the information related to your credit behavior (once you have contracted any financial product or service: telephone service, credit card, personal loan, mortgage or automotive credit).

It is also called by Banxico and the National Securities Commission (CNVB) as a Credit Information Society (SIC). Then, beyond knowing: How to check if I am in a credit bureau? It is important that you understand the usefulness of that information and how you can improve your credit history if necessary.

What would you prefer?

What would you prefer?

The Credit Bureau has named this history as a Special Credit Report, you have the right to request it (free of charge) once a year. The report shows a list of payments (punctual and with delays) of all your credit products and services. Due to ignorance, many people think that being on a credit bureau is a negative thing, however, in the case of fulfilling your payments on time, the history represents an endorsement of your good credit behavior.

In that sense, it is important to maintain a credit administration that allows you to have a good track record. This greatly improves the chances of getting new loans with better conditions (extend the credit limit, reduce the interest rate and the total annual cost).

Steps to follow to request the free special credit report

Steps to follow to request the free special credit report

To request the credit report it is necessary to have at hand the information of all your credits (account statement cards, mortgage and/or automotive credit number). Next, the most used means to do it are described:

Online: go to the Credit Bureau page (section “Consumer Products” – “Special Credit Report”). It allows you in 4 simple steps to make the corresponding request: 1. Authorize the consultation of your history according to the current law, 2. Enter your personal information, 3. Credit information and 4. Confirmation.

You can also choose to request your credit score (it costs $ 58), it is the summary of your credit behavior related to a number. The score ranges from 400 to 850 points and is related to your personal information (occupation, income level, employment history, marital status, age, including the payment of monthly commitments such as income, tuition, services, etc.). To the extent that you have a stable income, make your payments on time (avoiding minimum payments) you can increase the score.

Which companies offer a special credit report in Mexico?

bank

Just as Credit Bureau allows you to know your credit history, the SIC Circle of Credit (Credit Information Society) also offers a special credit report for free. You can also request it for free online once every 12 months, as well as the “Qualify” service for $ 50. It is a score (score from 300 to 850) that summarizes your credit history information. Good Finance uses an analysis model that calculates the possibility of default in the next 24 months.

If I pay on time, are my negative records removed in the bureau?

The information shown in the special credit report includes a payment history section. This history shows the timeliness of your payments in the last 24 months, showing that you are catching up on the commitments. Regarding the registration of loans with debts, they have a period of elimination established by the Law to Regulate Credit Information Companies and based on the amount due:

If the amount equals 25 USD ($ 113), the registration is deleted after one year, for 500 USD ($ 2,260) after two years and for 1000 USD ($ 4,520) after 4 years. Although the registration may take some time, financial institutions verify the credit bureau to analyze your recent credit behavior.

How to avoid credit card fraud?

As more and more consumers stick to their credit cards to pay for everyday expenses, fraudsters are wasting no time and are finding ways to exploit failures and carelessness in using this convenient means of payment.

Do you feel safe with your credit card? Wouldn’t you rather check out the tips we posted here to prevent scams? Just keep reading.

New technologies, new forms of fraud

New technologies, new forms of fraud

The famous card cloning is a thing of the past. Replacing magnetic stripe with chips (which already reaches 95% of active cards in the country) and the use of passwords to unlock transactions made that traditional form of fraud unfeasible.

But the fraudsters did not give up and today they no longer have to have their card in hand to make purchases and hang the bill on their bill. Just capture the data from the card. Where? On the Internet.

With the expansion of e-commerce, what is not lacking in the internet is credit card data being entered, trafficked and stored. In possession of a card’s data, the fraudster first makes a low-value purchase just to test its validity and limit. The cardholder may not even notice this slight movement. After the first purchase is completed, the fraudster will have another limit available for immediate use.

How to defend against this type of fraud?

How to defend against this type of fraud?

One (not so innovative) step taken by credit card companies is to verify that each purchase in progress is within the respective card’s historical purchase pattern. If not, the cardholder contacts the cardholder to confirm that they are making the purchase themselves.

Another widely used measure is to send a message via MMS to the cardholder after each transaction performed. It’s a way for him to be notified (almost) in real time if someone is shopping on your behalf.

Some measures are being tested to require the consumer to validate the purchase, which could be via biometrics, face reading or token. While the level of credit card security does not reach this high level, some basic recommendations for protection are still valid.

15 Basic Recommendations That Remain Valid to Avoid Credit Card Fraud

15 Basic Recommendations That Remain Valid to Avoid Credit Card Fraud

  1. Do not pass your card details to others, even if they are close to you;
  2. Do not use the card on unfamiliar websites;
  3. If you notice unusual movements on your card, ie purchases you do not recognize, contact the cardholder as soon as possible;
  4. Stay tuned for emails requesting personal data; This is not the communication channel used by card managers when they really need to talk to you;
  5. Avoid keeping passwords on paper or even on your computer; prefer to memorize them (but be careful not to forget or confuse the codes);
  6. Do not use your card’s data storage facilities offered by certain websites or software;
  7. Use highly secure payment intermediation services like PayPal;
  8. Enter your credit card details only at the time of payment; There is no reason to provide them outside this context;
  9. When you shop online, use your access device, be it a personal computer, a tablet, a notebook, or a smartphone. no filling in confidential data on third party machines;
  10. keep your internet access devices protected; install only trusted software, keep antivirus and other defense mechaniMMS active;
  11. Use the services of card companies that send notifications via MMS or email for transactions made;
  12. do not post images of your credit card on the internet;
  13. consider adopting a virtual credit card; your real card data is preserved;
  14. If your card is lost or stolen, contact your institution immediately. Making a newsletter can be interesting;
  15. always check the amounts posted on the invoice.

Commercial establishments are also victims of fraud

Commercial establishments are also victims of fraud

Here are some ways we consumers can prevent ourselves from avoiding credit card fraud. But if you are a shopkeeper or service provider and accept credit card payments, you know that there are also frauds and fraudsters across the counter.

Among the many forms of fraud against merchants that accept credit card payments, one of the most common is the exchange of little machines.

In a moment of distraction, the fraudster simply exchanges his credit card processing machine for another, which will record all sales in favor of an account that is not his own.

To avoid these and other scams, the best solution is to keep tight control of credit card sales in order to detect any abnormality as soon as possible.

Avoiding credit card fraud is better

Avoiding credit card fraud is better

Taking steps to prevent credit card fraud is better than giving up the facilities a credit card can offer.

Taking steps to prevent credit card fraud is also better than bearing the headaches and possible post-fraud losses.

It is quite true that preventive measures do not completely eliminate the possibility of fraud, but still do not cost to adopt them, they are basically habits to acquire. Good habits, by the way.

Is rollover loans beneficial to the customer?

Rolling loans involves extending the repayment deadline. Most often, this option is used by debtors who were unable to pay the payday payday loan in time. To avoid problems with creditors, borrowers decide to pay extra to the commitment in exchange for the possibility of settling debts later. Rolling out loans can be very dangerous and lead to a large debt if you do not exercise proper caution.

Rolling loans restricted by law

Rolling loans restricted by law

Only a few years ago, loan companies were covering the costs of commission for rolling out loans. This changed in 2016 with the introduction of an amendment to the Anti-Laundering Act. From that moment, the cost of extending the repayment date may not be greater than 25% of the total amount of the liability. At the same time, loan companies may not charge customers additional fees that would be higher than the amount of the cash loan granted in the full financing period.

Is it worth to opt for such a solution?

Is it worth to opt for such a solution?

Before deciding whether to roll out a loan, it is worth thinking about whether this is the only solution. Let’s remember that 25% of the loan amount is still a lot. In addition, if we are not sure whether our financial situation will improve in the near future, we risk considerable debts. Perhaps a more beneficial option would be borrowing money from loved ones? If you have several sources of debt, you should go to the bank and ask about the possibility of taking a consolidation loan.

Generally, renewing or rolling over a payday loan means you pay a fee to delay paying back the loan. This fee does not reduce the amount you owe. 

Refinancing and rolling out loans

Refinancing and rolling out loans

Non-bank companies sometimes offer their clients refinancing loans. This involves making another commitment at another loan company to repay the debt. This is a very dangerous phenomenon that bypasses the limitations of the Anti-Launch Act. Another company may charge all non-interest costs without taking into account the client’s open obligations. It is worth remembering that some loan companies work together for this purpose. Usually refinancing will therefore be much more expensive than rolling over a loan.