Save money on your loan with simple changes

Fairpulse loan solutions increased daily simple interest, which means interest builds from the day of your last payment to the day of your next payment (read our article on how daily simple interest works).

With daily simple interest loans, it’s a good idea to make payments as frequently as possible. By increasing your payment frequency, and following the other payment tips below, you’ll cut down on the time it takes you to pay back your loan and reduce interest charges on your account.

 

Here are four tips to help you save money and pay back your loan faster.

1. Make bi-weekly payments

money loans

It may not seem like much initially but there’s a big difference between bi-weekly and semi-monthly payments. Bi-weekly payments are made every other week (26 payments a year), whereas semi-monthly payments are made twice a month (24 payments a year). By making 26 payments rather than 24, you can reduce interest fees and pay your loan back faster.

For example, if you borrow $ 10,000 with a 48-month loan term at 34.99% and make bi-weekly payments, you’ll save $ 1,598.23 in interest and reduce your loan term for seven months. However, if you make semi-monthly payments you’ll only save $ 132.58 in interest and reduce your loan term for one month.

Any amount you make over the minimum payment goes directly toward your principal balance. “

 

2. Round up your payments

money loan

Instead of making the minimum payment each time, round your payment up to the nearest $ 10 (or whatever amount you can fit in your budget). Any amount you make over the minimum payment goes directly toward your principal balance, which will help repay your loan faster. The quicker you pay your loan off, the less interest you’ll pay in the long term.

 

3. Avoid missed payments

When you have a loan that accrues daily simple interest, missing or delaying your payments can make it difficult to get back on track. Unpaid interest adds up between payments and if you’re not paying down your loan, the balance of your loan won’t decrease and your interest charges will be higher. If you think you may miss a payment, contact your Lending Specialist as soon as possible (read our article on what to do if you miss your payment).

 

4. Sign up for online account management

online loan

Sign up for online account management for every loan you have with Fairpulse. Online account management allows you to view your balance, edit account details, make payments or schedule payments in advance and set up payment alerts to keep organized. There are no payment delays and your information is kept secure. Read our FAQs about online account management to learn more about how it works.

By following the tips above and making changes to your loan payments, you can save money on interest and cut down the time you take to pay off your loan. Contact your Lending Specialist for personalized advice on how you can save money and pay back your loan faster.

This article is for informational purposes only. For personalized financial advice, you should contact a qualified financial advisor.

Compare interest rates – Important before you take out a loan

Lowering interest rates is the easiest way to bring down your total loan costs and thus get more money over each month. Banks and lenders set the interest rate individually for each loan application. Therefore, in order to get the cheapest loan, it is wise to do what you can to be extra attractive in the eyes of the banks.

7 tips to get really popular with the banks

7 tips to get really popular with the banks

The banks set the interest rate individually for each loan application. To get the cheapest private loan, the bank must be confident that you will be able to pay both interest and amortization on time. Below is a checklist of what the banks are looking for:

1. Pay your invoices on time

If you have payment remarks, it is usually seen as something very negative. You also save money on avoiding unnecessary reminder fees. If you find it difficult to keep track of due dates and OCR numbers, it is both easy and smart to pay as many invoices as possible via direct debit. If any month should be financially scarce, call the person who issued the invoice and explain your situation. In many cases, it is often possible to divide the invoice into partial payments.

2. Terminate credits you do not use

If you have a credit card that you do not use, it affects your ability to get a loan with a really low interest rate. Therefore, cut cards you know with you that you will not use and will never use.

3. A clear plan for your repayments

The bank likes when you are in control of finances and when you have a clear plan to become debt free in the long run. When you repay regularly, the total loan amount is reduced, which leads to lower interest rates and lower costs. When you have the opportunity, it is smart to pay off some extra on your existing loans. The lender’s risk decreases as the customer’s loan-to-value ratio is lowered. It gives you a better opportunity to negotiate for the cheapest loan.

4. Have a co-borrower

Maybe you have a partner or family member with a good credit rating? When you are two people, the risk is significantly reduced for the bank. If the bank considers you to be a risk-averse customer, you will receive a lower interest rate.

5. Collect your loans

If you have many small loans and credits, you pay unnecessarily much money each month in interest and hidden costs such as newspaper fees. And because you get less money over, you also have less opportunity to pay interest and amortization for your new loan, which the banks obviously do not like. Therefore, one of the best ways to save money is to put together all the small loans and credits – it only takes a few days and costs you nothing. Apply directly in the form on our website!

6. Make as few credit reports as possible

Every time you apply for a loan, the bank or lender will take credit information on you. Credit information is stored for 12 months at UC. Having done a few credit reports does not affect the banks, but if you have done many then it is something negative in the eyes of the banks. If you compare the banks’ interest rates with Astro Finance, only one credit report is taken!

7 Avoid expensive trips and holidays

Today it is very common to borrow money for a trip. From an economics perspective, however, it is not so wise. On the one hand it is often expensive to travel, but also having to pay extra in the form of interest makes it all a less good idea. You could get more value for money by taking a cheap caravan loan. The value of the caravan consists after the purchase, and that a whole that several summers can be spent in the same caravan – fun and economical!

8. Use Astro Finance to compare banks’ loan terms and interest rates

With Astro Finance you can easily and easily compare interest rate offers at 30 different banks and lenders. It only takes one credit report and is completely free of charge. This way you maximize your chances of getting the cheapest possible private loan!

Compare interest rates with Astro Finance

Compare interest rates with Astro Finance

All banks specialize in different types of customers. It is therefore not possible to say in advance which bank will give you the lowest interest rate. Thus, it is important to compare different loan offers to find which bank suits you best!

If you as a private individual go to several different banks to compare the terms, they each take credit information on you. This affects your credit rating and can impair your ability to get a really low interest rate. If you choose to compare with Astro Finance, only one credit report is made. The service is completely free of charge and you do not commit to anything when you make a comparison. Instead, Astro Finance gets paid directly by the bank or lender when we help them get a new satisfied customer.

 How do you get a low-income mortgage loan?

 

Many people cannot afford buying a house or flat for cash, which is why they decide to take out a mortgage. The problem, however, is that too low income may prevent you from obtaining this method of financing. Mortgage installments are usually quite high after all, so the bank may consider that with low incomes their timely repayment may not be possible. So how do you get a low-income mortgage?

Improve your credit standing

Improve your credit standing

Low incomes may prove to be much less problematic and significant if we are able to demonstrate to the bank that despite them we are a credible and reliable customer.

To this end, we must increase our credit standing. How do you get a low-income mortgage by raising your credit rating? There are several ways to do this.

Build a positive credit history

Credit history is an important part of creditworthiness, and often it is not paid much attention. In many cases, young people who do not have much experience with banking products decide on mortgage loans. This means that their credit history is either very short or completely empty. Therefore, it is worth starting work on building a positive credit history as soon as possible, because it is not something that can be done quickly.

The easiest and safest way is to build a positive credit history by taking short and cheap loans or buying items (such as electronics) for so-called “0% installments”. It is crucial to pay these liabilities back on time. After some time, thanks to such activities, our credit history will be full of positive entries, and we will appear to the bank as a diligent and trustworthy customer.

However, if we cannot afford regular repayment of even such small debts, it is better not to go in this direction. Collecting an unnecessarily negative credit history will only further reduce your chances of getting your dream loan.

Reduce your commitments

It is known that reducing the amount of your liabilities is not so simple. Contrary to appearances, it can be carried out even with a very tight budget.

First of all, it is worth closing any unused or rarely used credit cards and revolving loans. Even if we don’t use them, they still have a negative impact on our credit standing.

Debt consolidation can be the second step, thus combining several different liabilities into one. Although it extends the loan repayment period, at the same time increasing its cost, but at the same time the monthly installment decreases, and this is mainly important for the bank. A lower installment means less burden on our monthly budget, and therefore more space for a new loan installment.

Additionally secure the loan

Additionally secure the loan

The mortgage is, as the name implies, secured by a mortgage. This alone often gives you the opportunity to receive it even with low income. However, it may happen that, despite everything, the mortgage itself is too weak a security for the bank. How to get a mortgage at low income? By reducing the risk of lending to a person on low incomes, they additionally secure it. The most popular credit collateral methods include:

  • guarantee
  • purchase of credit insurance.

Surety means that an additional person joins the loan and undertakes to pay it back if the borrower cannot do it on time. The guarantor does not have to be a co-owner of the property for the purchase or construction of which the loan was taken.

Becoming a guarantor is a very big responsibility and may have unpleasant consequences, but on the other hand, it significantly increases the chances of the bank’s approval of your loan application. Therefore, this role is usually played by relatives (family members, friends), although formally nothing prevents a guarantor from becoming a completely stranger to the borrower. It is only important that it has sufficient creditworthiness.

The purchase of credit insurance is mandatory if we are not able to accumulate 20% of the own contribution to the mortgage. In this case, we can take a loan with only 10% of the own contribution, provided that you purchase insurance. However, even if we don’t have to do it, it can sometimes be profitable. Some banks, in return for purchasing optional loan insurance, lower their margin or commission and look at lower creditworthiness more favorably.

It’s good to know how to get a low-income mortgage. Contrary to appearances, this is not impossible at all