Partner card, travel health insurance, credit line, bonus programs – additional services with credit cards can be worth a lot in the event of an emergency. Especially high-quality credit card types use it to advertise. But do they really make sense? What you should know about it now.

Additional services should make the difference

Better credit cards are not just limited to cashless payments and the ability to withdraw cash quickly from ATMs worldwide. Well-known companies in particular now offer far more than classic services through exclusive card products. Second card for the spouse, loans in the form of overdrafts, bonus programs and even typical insurance products – the differences in terms of additional benefits can sometimes be very large. What the partially non-sectoral services promise and what needs to be considered.

Which insurance policies are offered

International travel health insurance:

The additional service is worthwhile for you if you are traveling outside of Germany. Because the statutory health insurance does not cover the treatment costs completely or not at all depending on the travel destination. The cash register never pays for return transport.

Travel health insurance protection should apply worldwide and regardless of whether you paid for the trip with a credit card. If you are traveling with family, your relatives should also be insured. Diseases that are known before the trip are generally excluded.

Luggage insurance:
Your luggage is also insured if it is damaged or does not arrive at the holiday destination. As a rule, a maximum insurance sum applies, especially for documents and cash. In addition, there is usually a deductible, around 10 percent of the insured loss.

Cancellation insurance:
If this insurance is included and you have to cancel the trip for an insured reason (e.g. serious illness or loss of job), the insurer will cover the cancellation fees. The protection should apply regardless of the card used and should also apply to fellow travelers.

Fully comprehensive rental car protection
If a rental car is rented on vacation, the credit card also includes comprehensive insurance to protect against damage caused by extreme weather events or personal negligence. This often proves to be cheaper than a degree on site.

Car protection letter:

If you are traveling by car and suffer an accident or breakdown, a rental car, towing service and repatriation are organized and any accommodation costs are covered.

Payment facilitiesk

Credit line:
If the payment card has a credit line, the expenses will not be debited from the corresponding current account within a few days. Rather, this happens once a month. Up to this credit card statement, you are granted a small loan, so to speak, mostly without interest. Credit lines for charge cards are typical. The credit limit determines how high the small monthly loan may be. The credit card limit is usually one to two months’ monthly salary.

Partial payment option:
Some premium, gold or platinum cards now include partial payments, also known as revolving credit. If this is included, you can pay your credit card statement in installments. When paying in installments, debit interest mostly accrues from the time of settlement, which can be comparatively high. The installment payment option cannot always be excluded.

Bonus benefits:

Cashback:
Use your credit card to pay with it, benefit from the cashback program in the form of a repayment at the end of the year, quarter or month. About 0.5 to 2 percent is common. The prerequisite is that a certain minimum sales volume is reached. In some cases, an immediate discount on the purchase price is also possible.

Discounts:
Credit cards can offer attractive discounts for certain activities. Savings potential can be seen by booking a rental car, hotel or a cruise. The prerequisite for this is that the booking is made through a partner company.

Bonus programs:
Every time you use your credit card, you will be credited with points or miles. If you have collected for a correspondingly long time or have spent a certain amount on your credit card, you will receive a bonus. For example, you can save on your next hotel stay.

Partner card:
This is a second card that refers to the same checking account. For example, it can be used by the life partner, spouse or another family member. They are entitled to the same uses as you as the holder of the main card. The partner card is usually billed via the main card. The second card is not always given free of charge. Any fees should also be taken into account when comparing credit cards.

To what extent additional services make sense

This basically depends on your needs. If you travel frequently and if a high level of protection is important to you, travel insurance can definitely be recommended. Illness or traffic accidents on vacation are not uncommon. If these services are integrated in the credit card, you can save yourself the expense of purchasing a separate travel insurance package.

Credit lines allow you more freedom of payment. Think about how high this should be and whether the credit card institution charges interest on it. This can be particularly high for installment payment options if the loan is only repaid in installments.

Bonus benefits and discounts always sound good. However, these should not lead to additional purchases. It is also necessary to check whether a hotel room or rental car is otherwise not even cheaper. Partner cards for use by the partner are often useful. However, pay attention to any fees here as well.

Here you will find a list of all important and popular (additional) credit card services. We provide you with detailed descriptions and give tips on what to look for when choosing an additional service.

• Car rental insurance
• Partner card
• Foreign insurance
• Cancellation insurance
• Limits
• Airport lounge access
• Contactless payment (NFC)
• Cashback
• Installment payment
• Credit (rechargeable)

Low interest rates meant that banks cannot currently charge interest higher than 10% per annum to borrowers.

This was caused by the rule of the Civil Code:

maximum nominal interest – based on it, the bank calculates installments with interest – should not exceed twice the reference rate of the Fine Bank (today 1.50%) plus 7 percentage points

Four years ago, banks could charge up to 25% of interest.

 

What if no interest?

The banks had to make up for it somehow. Or maybe commissions? Until March this year, there was no statutory limit as to their amount. Currently, it is already in force, but it is set at a painless level for banks of 25% regardless of the repayment period plus approx. 2.50% for each repayment month (in total eg 55% for loans for a year, 40% for loans for half a year or 27.50% with a monthly offer ).

An additional attempt on banks’ income was joining mandatory insurance loans, but this was hindered by the recommendation of the Polish Financial Supervision Authority: the principle that even if the bank requires the purchase of a policy, the customer can find an offer on the market that will suit him or not agree to the one proposed by the bank. The chart below shows a clear jump in commissions in April 2015.

Today, the average commission for granting a cash loan for 10 thousand dollars per year is around 9-10%, and four years ago it was 2.50-3%.

 

What does this mean for the borrower?

Customers who borrow for a short time pay more. This is indicated by the Annual Annual Interest Rate, which collects the total cost of the loan. For offers for 10 thousand dollars per year the market average APRC has increased over the last four years from approx. 24-25% to over 30%

The longer we want to pay back the loan, the better for us, because the longer we pay interest, which is currently relatively low.

You might think that it doesn’t matter if we pay for the loan in the form of interest or commission. For example, a problem arises when the liability is repaid early. Interest is charged on each installment, so if we repay the loan early, we won’t have to pay it for the “unused” months.

Lenders consider the commission as a one-off cost, they charge it at the time of payment (ie the debt is eg $11,000, but the client gets only $ 10,000), and they are not in a hurry to pay a proportionate part of it if the debt is repaid before time. The Office of Competition and Consumer Protection and the Financial Ombudsman took a critical position in this matter, but banks treat this fact simply as an irrelevant clue .

A cash loan of dollars 10,000 for 1 year, with the average commission market and nominal interest rate, will cost around dollars 1,382 today. In this amount, dollars 907 is a commission, and interest $475. The commission here is nearly 2/3 of the total cost of the loan. Four years ago the commission was less than 1/4 of the total cost of the loan.

The longer we repay the loan, the longer the bank collects interest, which means the share of non-interest costs – including commissions – in the total cost of credit decreases. After all, there is a big change here over the years. In 2012, in the loan model for $10,000 for 3 years, the commission was only less than 1/10 of the total cost of the loan. For comparison, today it is 40 percent.

Bank offers have therefore come close to those of loan companies, where the real cost is not in interest but in other fees.

Banks do not admit that they do not earn interest anymore and try to earn increases elsewhere. They further claim that “the commission is the Bank’s remuneration for activities related to the conclusion of the contract and the withdrawal of funds”, according to a Stick24 Bank statement.

 

Zero is not zero

It is often the case that banks, since they cannot collect high interest rates, simply give them up and place the entire cost of the loan in commission. Seeing the offer at a very low or even zero interest rate, it’s worth looking for hidden costs and asking for a commission.

The issue of money and broadly understood finances affects our daily lives. So much so that it requires proper attention in all activities. The cash loan comparison website makes it easier to make a decision on the financing institution appropriate for the borrower. Advertising of financial products does not show all the conditions, bypassing or carefully masking those that actually affect the rate and amount of repayment.

 

Why use a cash loan comparison website

Celebrities and “ordinary people” who promote the best – in their opinion – cash loans smile at advertising media smiling at us. We receive numerous offers of banking products in which our data have been placed, whether using a ROR account, a deposit or another service. The current choice of loan is not as obvious as it may seem. You should take into account not only its granting or the interest rate on the loan, but also the total APRC, the possibility of suspending repayment, etc. You can find more about reconfiguring the loan repayment rules here. You should also read carefully all regulations that contain information relevant to the borrower.

Cash loan comparator is a tool developed by highly qualified analysts. Every day, all data is analyzed and the results obtained are presented in legible tables. In addition, a cash loan comparison tool saves time and money. There is no need to collect offers from several institutions personally. Just a few minutes in front of the computer monitor to find out which loan is compatible with individual needs and possibilities. Also check what documents you need when choosing a loan.

 

Cash loan comparison service – use an honest offer

To easily repay a loan you need to take into account several factors, such as APRC or other additional costs. Thanks to this, you will be able to adapt it to your capabilities. Therefore, a cash loan comparison tool avoids the stress of making a wrong choice. Specialists responsible for the preparation of analyzes use banking sources, thus the information contained in the tables is reliable. If you want to know more about what to look for when choosing a loan, check out this article.
The correct filling of the form in the comparison tool allows you to present the best options for a given client. It is a solution that allows you to manage your own finances in a reasonable and conscious manner.

Planning for a loan? Contact us now!

The Czech banking market offers various types of loans and mortgages. In addition to classic mortgages are also popular non-purpose mortgages, which are called Americans.

It can be used for anything, not just for housing, as is the case with a classic loan. In addition, the reason is not established and there is no need to submit documents and invoices to the bank. Among the banks that offer American mortgage is also Good Finance.

What is American Mortgage?

An American mortgage is a loan that is secured by a mortgage on real estate. The advantage is non-purpose, so you can use the money for anything and also the interest tends to be lower than conventional loans.

American Mortgage – Universal

American mortgage Universal from Good Finance is a non-purpose loan, which is characterized by a number of positive features. When applying, no one will ask you about the purpose for which you need the money.

Mortgage management and administration is free of charge, and you can get a more advantageous interest rate and better conditions than conventional consumer loans. The money is ready to be drawn very quickly already at the stage when the lien is lodged.

How much can you ask Good Finance?

The amount of the loan is influenced primarily by the value of the mortgaged property. The higher this value, the higher the financial scope of the mortgage. American mortgage from Good Finance is provided in the range of USD 300,000 to 5,000,000 with a maturity of up to 20 years.

Of course, the length of the selected maturity affects the resulting interest, but it will still be lower than for other loans. In case you decide to pay off your mortgage before it was agreed, you do not have to worry about any sanctions.

How to get an American Mortgage?

Mortgage processing is not difficult. Just visit the bank branch and arrange a meeting with the banker. He will suggest more solutions and you can then decide which one suits you best. Mortgage processing takes a maximum of 3 days. Up to 4 persons living in no more than two households can apply for a mortgage.

Conditions for processing a mortgage:

• Minimum age of the applicant – 18 years
• valid identity documents
• Receipt confirmation
• statement of actual expenditure
• statement of the husband or wife of the owner of the property

Mortgages

• Mortgage calculator
• Mortgage without a register
• Non-bank mortgage
• Mortgage refinancing
• Comparison of mortgages
• How to proceed with the mortgage
• Building savings

A working capital loan is used to raise funds for the day-to-day operations of an enterprise. We can run it on a current account or on a separate credit account.

 

Working capital loan – what is it?

Everyone who conducts business is aware of the fact that their own business is associated with continuous expenses and investments. Both require financial outlays. It can be difficult to find these especially at the beginning of the company’s existence. One of the helpful tools that will allow you to maintain financial liquidity and stay on the market is a working capital loan.

This is a loan from which we finance company expenses, granted to business entities. We can apply for it when we need funds for the purchase of equipment and goods or when we have to pay invoices (but only current ones, not those whose payment deadline is long past).

This type of loan can be attached to our account or run on a separate credit account. In the latter case, it may be necessary to specify the purpose of the funds that we will receive when taking the loan. Thus, we will not be able to freely dispose of them.

 

Types of working capital loan

Working capital loan is particularly popular among small and medium enterprises. Usually, such companies have the biggest problem with maintaining liquidity. Often their functioning would not be possible without “spinners” (so-called revolving loan).

We have two variants of working capital loan to choose from. We are talking about a current account loan and a loan account loan. The first standard is granted for 12 months, although you can find offers with a longer loan period. This type of loan can be activated on the current account, which often requires the creation of a separate account. In practice, this means that the borrower on the company account is granted a certain debt limit that he may have. Therefore, if we need funds to cover urgent expenses (provided that they are related to the business of the enterprise), we can finance them from this limit.

 

Loan with a renewable limit

What is the revolving nature of this loan? To put it simply, the bank grants the company funds in a specific amount that we can use at a convenient time. They may be on your current or credit account.

The revolving revolving loan, due to low costs, only slightly burden the company’s budget. Despite this, the revolving limit will have to be repaid someday, which is why this type of loan should not serve one-time purposes. It will be better suited to repetitive payments, eg employee remuneration.

Obviously, we have these funds only up to the limit granted. Each payment reduces our debt balance, and the limit is increased by the amount we have already deposited. The biggest advantage of this form of credit is that we do not have to always indicate the purpose for which we need cash.

The downside of working capital loan is the need to renew it as a whole. As we have already mentioned, revolving revolving loans are usually granted for 12 months. If after this period we want to use the loan, the bank will again check our creditworthiness and estimate the creditworthiness. Only after verifying the condition of the enterprise will it decide to extend funding for a further period of 12 months.

 

Credit account loan

The situation is different for a loan on a credit account. Then the entrepreneur before presenting the loan must present a detailed business plan in which it will take into account what it will allocate the allocated funds. If he gets them, he is obliged to stick to the provisions contained in the contract. What does this mean in practice? The fact that if a loan was granted to us for the purchase of new equipment, then we must spend it on it. If we fail to comply with the contract, the bank will not only call us to immediately surrender funds, but will also impose a fine on us. The repayment date of this form of loan is predetermined – we make it either once or in installments set in advance.

 

Credit terms

A working capital loan may be renewable or non-renewable, and the conditions for granting it may vary. We can receive it in both Polish and foreign currency. The loan amount is always agreed with the bank and depends on the company’s financial situation. The current condition of the company (eg whether or not it is in arrears with payments) as well as the prognosis for the future are taken into account. It is also important how much activity exists on the market. Whether a loan is granted to us is also affected by whether we have some form of security (eg real estate). Sometimes, especially if you apply for a large loan, it may be required. With the revolving loan, banks willingly reach for various forms of guarantee, eg de minimis aid.Remember that if we do not have any form of security, we have less chance of obtaining a loan.

The disadvantage of a revolving working capital loan is the considerable risk of non-renewal. This can happen especially when our expenses are greater than revenues. Approximately one month before the end of the contract, the bank will examine our financial situation and on this basis will decide to extend (or not) the limit. Usually, a borrower’s application is required to extend the limit. If we do not deposit it, we must reckon with the necessity of immediate repayment of the allocated funds. And this is especially if we operate in one of the seasonal industries, it may turn out to be a big problem.

 

Conditions for extending the limit

In addition to submitting the application, timely repayment of interest and reasonable use of funds that we have at our disposal, remember to maintain adequate turnover on your bank account. Importantly, these must be profits related to the normal functioning of the company (they do not include such one-off inflows as eg subsidies, tax refunds or funds from other loans and borrowings). Monitoring of funds that affect our account takes place throughout the loan period at regular intervals. Usually the amount of the limit granted is one time the company’s monthly turnover, although this is not the rule. There are much lower as well as much higher amounts.

 

How much it costs?

The cost of the working capital loan consists of the interest rate and the margin agreed with the bank. The amount of the margin is related to the situation of the borrower. The more risky it is to grant a person credit to a bank, the more expensive it will be. If we apply for such an injection of cash, pay attention to the amount of fixed and one-time charges. Let’s also check how much we will pay for taking the loan.

With revolving revolving credit, the costs are much lower. The interest rate is usually low and we pay interest not on the whole loan, but only on the amount used. The limit granted is a type of financial reserve that we will be able to reach when we need it. That is why, contrary to appearances, it is best to apply for a revolving credit facility with a revolving limit when … we manage without it. If we do not use it, we will not pay interest, and such a “financial cushion” in a gate situation can be very helpful.

The interest rate is not the only cost of the loan. When applying for it, we must take into account the entry costs, ie the commission for granting the loan. This is paid every year, with the renewable limit extended.

 

Working capital loan – summary

A working capital loan is a useful financial instrument. If we use it wisely, it can be an opportunity to develop the company, strengthen its market position and increase revenues. In over-the-gate situations, it will help us to go out into financial straight line and deal with temporary difficulties.

You cannot acquire your property on the basis of your own funds. Therefore, you plan to borrow the capital from a bank.

Before filing your file, take note of its credit acceptance process and the criteria that this bank will study in detail in order to put the odds in your favor.

How does your repayment capacity influence the acceptance of credit?

The first element that a bank will consider is your repayment capacity. This repayment capacity is based on three main criteria:

• Your personal contribution. Essential to the acceptance of credit, this element will allow you, depending on its amount, to negotiate the rate and the fees.
• The level of your resources. This level is calculated on the basis of your last 3 payslips and your latest tax advice notices, it allows the banker to calculate and consider the (fundamental) rule of 30% of your borrowing charge.
• Your disposable income. By subtracting your monthly income, your taxes and the monthly payment envisaged for the loan, the banker determines the “remainder to live”. Note that the composition of your home influences this point.

PLEASE NOTE: holding a housing savings account or plan that does not influence the establishment in its decision-making.

How does the banker calculate your debt ratio?

Collecting these elements allows your financial advisor to make the ratio of expenses to resources, to determine the debt ratio. Among the charges taken into account include in particular all outstanding credits. Among the resources, your housing assistance also comes into the calculation of the famous rate.

At this time, the bank also takes a few minutes to study the movements of your bank account. So, your banker will not fail to check if your account has experienced overdrafts!

Likewise, the establishment will check if you are not registered on the national payment incident file!

What collateral can your bank require?

In the process of accepting credit, your banker may, in negotiations, require to:

• Apply for borrower insurance.
• Condition its agreement to the mortgage of the property to be financed.
• Impose a lien guarantee authorizing, for reimbursement, the seizure of your property by legal means.
• Hire a third party to become your surety – preferably financial organizations specializing in suretyship to an individual, such as Good Credit.

If this process is adopted by all the lending institutions, some may add their own wishes.

Fortunately, a broker specializing in real estate credit is required to know the specifics of each of its partners – particularly in terms of its acceptance criteria.

In order to present a file that meets the expectations of the bank, do not hesitate to rely on the expertise of a broker, whose multiple assets will weigh heavily in your favor.