Month: October 2018

The best loans without interest are here

If you are looking for cheap loans, now you can get credits without having to pay even one euro more. Thanks to the great competition of the financing market, discover which entities have offers that will allow you to obtain loans https://paydayloansstore.org/ without interest or commissions and in just 15 minutes.

How did interest-free loans arise?

Due to the growing popularity of new financing methods and the consequent increase in the available supply, many lenders have launched new offers and promotions to differentiate themselves from their competitors and attract new customers. In general, they have decided to lower the price of their loans, but some have also dared to go one step further and offer free credits, that is, free of interest and commissions. If we hire one of these loans without interest, we will only have to return the amount that they lend us, without having to pay costs of any kind.

Currently, both banks and private equity companies and the financial services of some businesses can grant us this kind of loans, although we should always be cautious with the adjective “without interest” since it can lead to deception. This is because the interest does not meet all the costs that a loan may have since we can find commissions, liabilities and other expenses that could increase the price of the loan and that are reflected in the variable TAE (Annual Equivalent Rate).

If we focus on the free minicréditos, yes we can say that they have a price of 0% APR, that is, they will not apply interest on the borrowed capital or force us to pay any commission or hire a linked product. However, it is important that we are aware of the conditions to access these promotions, because, if we do not comply, they could automatically activate the generation of ordinary interests, which will cause us to pay an extra fee.

Types of loans without interest in the current market

Types of loans without interest in the current market

Within the Spanish financial market, several types of interest-free loans are commercialized designed to cover different consumption needs at zero cost. Each of these credits has certain conditions and advantages, so before choosing a product or another, it is convenient to assess which are the ones that best adapt to our economic profile and our personal situation. Next, we show all the types of loans that we can request if we want to obtain financing without having to pay a single euro in interest:

  1. Free mini-credits: these are the best-known free financing products. With these products, we can get between 50 euros and 1,000 euros to return in a maximum of 30 days, although most mini-credits without interest usually do not offer amounts greater than 300 euros. They are requested through the Internet and entered into the client’s account in a matter of minutes. In addition, they do not have additional fees or other costs, so we will know what we will pay for them from the start. By not having commissions of any kind, when they have no interest, they will be completely free.

  2. Personal loans without interest: these loans are granted by financial institutions and also by private equity companies. Normally, in these credits, 0% is about the interest rate, which does not mean that the loan is totally free. It is likely that we have to face the cost of commissions that are included in the APR, which will make the loan is not completely free. Therefore, it is important that we take this value as a reference and not just the TIN and calculate if a loan without interest, but with commissions will be cheaper than a loan with low interest, but without commissions.

  3. Loans with a specific purpose: private lenders and banks present certain types of interest-free loans, as long as we use them for a specific purpose. The most usual is that it involves credits for the financing of taxes or the advancement of a positive result of the declaration of income, payroll advances or loans to study with an interest rate of 0% TIN.

  4. Credits for the consumption of large stores: these are loans offered by companies that are not financial in nature such as Alcampo, Ikea, El Corte Inglés or MediaMarkt. These companies could offer us to pay for the products in installments without having to see the final price of the purchase fattened. Often, instead of offering us the money, they will directly give us the good that we want to buy and for which we will pay monthly payments until the amortization of the financing.

Depending on our need to obtain financing, it will be more appropriate to resort to one type of loan without interest or another. The amount we can ask for, the term and the repayment conditions can make a loan suitable for one client not for another. Therefore, it is important to know all the options that the market presents to us, as well as to analyze our personal economy so that we narrow down the number of loans that best adapt to our current situation.

Another type of interest-free financing: credit cards

Another type of interest-free financing: credit cards

As we have seen, the current market offers various types of interest-free loans, but sometimes they are not completely free but are cheap loans. Therefore, there is another option offered by banks to finance our purchases without interest and this product is the credit card.

Contract Compare

Credit cards offer us the option to postpone the payment of our purchases since the money we pay with them will be extracted from a line of credit and not from our own account. Once a month, the credit line will be renewed, being able to pay all the amount that we used the previous month, an action that does not involve interest or any surcharge. If we prefer to amortize in installments the money we have used from the line of credit, we will have to pay the interest generated during the repayment period, which revolves around 21% APR, according to the Bank of Spain study.

In addition, today it is easy to find free cards in the market, so we can get one that does not include fees for issuance or maintenance so that we can have a payment method that costs us practically no money. However, to enjoy some advantages offered by credit cards, it is necessary to finance a purchase in monthly installments. This is usually a requirement imposed by the banks that market these credit cards. The interest-free financing to which a card gives us access can be useful especially for purchases that do not go too high budget because this way it will be easier to recover the money used and meet the corresponding payment.

Watch out! Not all loans at 0% TIN are free

In general, all minicréditos without interests that are commercialized are totally free, since these products rarely include other additional expenses. Therefore, if we hire one of these loans at 0%, we will only have to return the money that the company has given us, without having to pay a single cent more. On the other hand, some of the interest-free loans that banks offer are not really free, since despite having a 0% TIN, within their “small print” they include commissions and other costs.

Thus, before proceeding with the request for an interest-free loan it is advisable to make sure that we fulfill the necessary conditions to access the promotion. In addition, it is important that, like the TIN, the APR is also zero, which will mean a real free loan. Next, we can see the main aspects that make a credit without interest have a cost for the client:

  1. Attention to the commissions! That the TIN of a credit (the interest charged to us) is 0% does not indicate that it is going to be a free loan. Financial institutions, especially banks, can include commissions that convert our interest-free loans into an expensive financial product. These commissions can be negotiated to be reduced or eliminated, even some entities will allow us to finance them with the rest of the capital loaned.

  2. Beware of not fulfilling the conditions! Some interest-free lenders will ask us to meet certain requirements to get that financing. This is the case of many mini-credit companies, which only eliminate interest if we are new customers of the company. If we do not comply with these conditions, we will be charged the usual fees of the financial institution, which in the case of mini loans, are around 1.1% daily.

Even though the loan is at or% TAE, it is important to remember that we will have to meet the requirements that the lender puts us to take advantage of this promotion. Otherwise, we may have to assume the normal payment of interest and credit fees. For example, if we have to return the capital in a different period than usual to take advantage of the offer and we overcome it, we will have lost the right to enjoy a loan without interest and we will have to pay the usual ones.

What happens if I do not return an interest-free loan?

Before hiring any financing product, whether it is a loan without interest or a conventional loan, it is absolutely essential that we make sure that we can return all the money without problems and within the established period. In the specific case of interest-free loans, even if these products are totally free, if we do not pay the installments on time, we will also be charged commissions, penalties, and interest for late payment. Depending on the type of credit without interest that we hire, the penalties for non-payment will be one or the other, although the vast majority of loans coincide in the following protocol:

  • Interest delays: once we exceed the agreed term, the lender will begin to apply interest for delay automatically. These interests may exceed up to 2% the ordinary credit, according to Law 16/2011 of June 24, consumer credit contracts.

  • Commission for claiming debtor positions: this commission will charge us for the fact of having to contact us to let us know that we have a debt to them. It is usually a fixed amount (not a percentage) that ranges between 20 and 40 euros, depending on the lender we go to.

  • Enroll our data in a register of defaulters: if we continue without paying for more than a month, the entity to which we owe the money can tell us their intention to sign up for a delinquency database. If we appear in lists like ASNEF or RAI, our options of obtaining financing in the future will be greatly limited.

  • Claim the payment of the debt by judicial means: the last resource that the companies will carry out is to initiate a legal demand. It is always possible to avoid this consequence if we start a negotiation to reach an agreement in a friendly way. Thus, we will avoid the possible penalties imposed by the judge, as well as the expenses involved in the trials regarding lawyers and time invested.

In some cases, however, some companies will give us an option that will allow us not to incur the non-payment of their interest-free loans: extend the return period. In this way, we will have a few more days to pay off the debt and we will not have to face the cost of penalties for delay. However, we will have to pay a small surcharge, although its cost will be much lower than the interest and the delay fees.

Forms to get loans without interest

In order to apply for the financing we are looking for, simply fill out an online application form. This form, in addition to detailing the amount and term of the loan that we want to hire, will also help the lender to analyze our profile and decide whether or not to approve our request. In general, the forms will ask for the same information in order to carry out their analyzes:

  • Gives personal too: full name, identity card number, date of birth…

  • Contact information : telephone, address, email …

  • Labor situation: type of work, type of contract, seniority in the company, sector …

  • Economic situation: monthly income and expenses that we have.

  • Offer: some companies will allow us to obtain discounts thanks to a promotional code or other promotions to obtain interest-free loans, although it will not always be necessary to carry out an action to reach it since they will be activated automatically.

Loans without interest may, on occasion, require us to enter a promotional code to access your offer. In addition, they may ask us to adjust to a series of conditions to obtain the elimination of interest, such as hiring a linked product such as insurance or a credit card. However, the most common is that we get this discount automatically when applying for funding, but it is important to be aware of the requirements of these credits so as not to surprise us at the time of reimbursement.

Requirements to request free credits

The requirements that must be met to be able to contract an interest-free loan are practically the same as those that would be required if we wanted to access a conventional loan. These conditions will be more or less strict depending on the criteria of the entity to which we go and the amount of money we need to finance our project, although usually we will not have problems to obtain interest-free loans if we meet these points:

  • Being a Spanish resident: we must live in national territory permanently and have a document such as the DNI or the NIE to access a free credit.

  • Have regular income: logically, we have to show that we have a source of income that allows us to pay the installments without problems. It can be either a payroll or a pension or what we perceive as self-employed and, in the case of interest-free mini-credits, up to an unemployment benefit.

  • Be of legal age: although many lenders will ask us to overcome the 21 or 25 years depending on the risk policy they have. Likewise, many entities establish a maximum age to request their services, which is usually around 75 years of age by the deadline date.

  • Not appear in a file of defaulters: banks and most private companies do not grant financing to those registered in defaults files such as ASNEF or RAI. However, there are a few companies that grant loans with ASNEF.

If we meet all the requirements demanded by the lender, in principle we would not have to find problems to obtain the loan without interest. It is likely that if we request a greater amount of capital, we are required to have more conditions to obtain the product we want. This is explained by the risk assumed by the company, which is greater if it lends more capital because it risks not being reimbursed.

Documents to request interest-free loans

When we need financing, with or without interest, we will be asked to provide a minimum documentation so that the lender can verify that we are who we say we are, as well as the truthfulness of all the personal and economic data we have given during the completion of the online form. Although the required documentation may vary depending on the entity that we go to, the amount we request and the purpose for which we ask for it, these are the main roles that they will ask us for:

  • Identity document: we must present the DNI or the NIE in force to verify that we are of legal age and permanently resident in Spain.

  • Proof of income: this document will serve to let the entity know our usual income and expenses. Sometimes they can ask for the last two or three payrolls, for example.

  • Bank statement: in which the account number and the owner must appear. This document will allow the lender to perform an analysis of our savings capacity and verify that we are the holders of the account in which the loan will be made.

Generally, the documents that we have just seen will be enough to prove to the entity that we are solvent to repay the loan, although if we resort to our bank it is probable that they already have the necessary information to determine if we have solvency, so it will not be necessarily present these papers. However, if we want interest-free loans for a specific project, they may ask us for proforma invoices or any type of project budget.

Do the credits have free tricks or are they really free?

The credits that are announced as free or without commissions are products that generate many doubts about whether they are really free of costs and, as is logical, many consumers do not completely trust these offers. Therefore, it is essential that we know all the conditions of the loan so as not to take us any surprises. In the following video, the CEO of HelpMyCash.com, Laurent Amar, answers two of the most common questions about these credits: can we trust free loans? What do we have to watch when we hire them?

In addition, to get personal loans without interest we will have to comply with the general requirements of the promotion that allows us to obtain this free financing. If we do not comply with these conditions (use the money for the given purpose, return it within an agreed period or be new clients), we will be out of the offer and we will have to pay the ordinary interest on the loan.

When will the money come from the interest-free loans?

When will the money come from the interest-free loans?

Many interest-free loans are really quick loans that are hired to solve economic unforeseen events in minutes, so the objective of those who ask for these products is to have the money in the account as soon as possible. However, there are some cases in which the transfer of credit can be delayed. To avoid these situations, before processing the application, we recommend downloading the free guide, “When will the money from your mini-credit arrive?”, Prepared by the experts of HelpMyCash.com, with which we will be able to know how long it will take to receive the loan proceeds, what the speed of concession depends on and to whom we must go to get approval immediately.

BETTER THE PERSONAL LOAN OR THE SALE OF THE FIFTH?

 

  • Need urgent liquidity for your sudden need?
  • Are you looking for the best solution that can guarantee you quick times in obtaining it?
  • Better to request a fifth transfer or a personal loan?

Before embarking on a request, stop and think carefully about what financing is best suited to your needs and that can guarantee you the right economic conditions, with a sustainable installment and the amount you actually need, without having to meet too many deadlines long- Green-Touch webpage.

How long does it take to get a personal loan?

It is often mistakenly convinced that applying for a personal loan is the most immediate solution to one’s liquidity needs with respect to the transfer of the fifth ; It is true that after having received the necessary documentation, most of the financial take about 48 hours to communicate the outcome (positive or negative to the client), followed by the signing of the contract and the crediting of the requested amount.

On balance and at best, the customer obtains the money requested on loan in about 7/10 days, but when there are problems during the investigation phase (request for a guarantor, in-depth checks, etc.) this timing inevitably lengthens.

For example, those who already have other loans in progress, for example, may find it more difficult to have a positive response to their loan request in a short time, because the bank needs more guarantees, precisely because of its economic exposure.

Assignment of the fifth: request process and advantages

The sale of the fifth is a type of loan often not taken into due consideration because we are led to believe that the process to be followed is much longer than the Personal Loan and complicated before being able to have the liquidity that is needed. It’s not absolutely true!

Before “demolishing” this mistaken belief, we briefly explain what it is, to whom it is addressed and what are the actual benefits.

The transfer of the fifth is a form of credit dedicated to employees (public, state, private) and to pensioners Inps and former Inpdap; has a maximum duration of 120 months, allows for the payment of high amounts and the monthly payment, which can not exceed one fifth of the net monthly salary, is held directly in the paycheck/pension, to be then paid to the creditor body directly by the employer work.

It is a form of financing that can be requested even in the presence of outstanding loans or other loans in progress, reports in the database and protests.

With this premise, let us pause briefly to understand how to request and obtain a transfer of the fifth.

Assignment of the fifth: necessary documents, investigation, resolution, notification and crediting of the sums requested

To access the assignment of the fifth, it is necessary to provide:

  • The personal documents (identity card and health card)
  • Income documents (paycheck / pension slip)
  • Salary certificate or Ministerial Annex (Requested directly to the Agency by a delegation of the client and indicating the maximum installment that can be used for financing)

Once the documentation has been delivered to the Company / Financial Agency to which it is addressed, the desired financial plan is formulated and agreed, followed by the request for a resolution of the request, and subsequent signature of the loan contract.

At this point, who needs urgent liquidity, can request an advance on the amount previously defined and receive it in a few days, by crediting on their current account or by cashier’s check.

The last step that the Agency in financial activity will have to make, is to notify the contract of assignment of the fifth to its Administration of belonging to which the approval act is attached. At this point, the employer will countersign and return to the Funding Institute.

Upon receipt of this document, the loan is disbursed (or the balance if an advance has already been granted).

This procedure, compared to the personal loan, actually leads to believe that the times are much longer, but in reality, it is a wrong concept if you rely on an organized agency with a fast and efficient back office in carrying out the processing processes of the practice of Cession of the Fifth.

An office dedicated to the well-structured and expert investigation processes the requests more rapidly reducing the delivery times to provide a highly efficient service, especially in cases of extreme urgency.

Assignment of the fifth: how to obtain it quickly

Now the advent of the Internet and certified e-mail together with the centralized conventions with the public administrations and pension institutions (INPS), have brought a real revolution in the management of a practice of assignment of the fifth. This recent evolution, allows today, an immediate and precise exchange of documentation between the applicant and the chosen financial intermediary, so as to simplify and reduce the delivery times of the sums requested.

Just think of certified mail, an online transmission system that has the same legal value as a registered A / R, used today to transmit the contract of sale to the administration of belonging (employer), practically in real time to receive it in close proximity, signed with the same means.

But besides the aspect linked to the “technological evolution” on which the speed of the management of the assignment of the fifth is based , it is fundamental to rely on an organized and structured Agency in Financial Activity that communicates directly with the Financing Institute through procedures slender, fast and autonomous, without having to manage too many intermediate steps and get the resolution and the provision of the sums requested in a short time :

  • Approval in 24 hours
  • Delivery in 10/15 days (except in cases where the timing due to the release of the approval by the applicant’s administrations dilates the timing).

The applicant has only to present to the Financial Agency the personal and income documents, to await the resolution of his loan with a very short timescale, benefiting from attention, assistance, and availability throughout its duration.