When should I redeem my loans?
The shortest answer to your question could be NOW! That’s why it’s worth exploring our options more closely. Here are some important points that you shouldn’t miss if you don’t want to waste your time.
Who can get a loan?
The very first filter we have to jump in to avoid being negative on the KHR / BAR list is either active or passive, as this is an excuse for banks!
An active, salary-type income is required, lucky if this amount reaches at least the net minimum wage, but typically the gates open when we have a minimum net income of $ 100,000. It may be employee or business income.
Employees have 3 months of employment and no probation or notice. We can work even abroad, expect at least 3 months of employment from our current workplace and bank account.
For entrepreneurs, a closed business year is the minimum requirement in most cases.
In the case of pensioners, the old-age pension. Beneficiaries of disability benefits are already in a difficult situation, because it does not matter whether they are finalized or may be reviewed, and when they are. For them, the age limit is also an important factor, at maturity the loan can be no more than 70-72 years (selected by your bank).
If they are of age, young people are not in an easy position, although, according to the announcements, they are 18, but they are rarely eligible for credit approval, high income and a secure job.
In terms of income, the situation is complicated if we have an existing loan because we cannot pay our full payment on the loan. As a general rule, we can charge 50% of it. There are exceptions here, too, where the bank only goes up to 40%, but there are others where they go up to 60% at $ 400,000, which the law allows.
We tend to forget about our overdraft or credit card, especially if your credit line is not utilized, but this can also be the case with your credit application. For example, if you have a credit card, banks will charge you 5% of your total credit line as a loan repayment (for a $ 300,000 credit card, that’s $ 15,000).
It’s important that if we already have credit, how we pay it. Do we have backlogs, have we applied for / received payment relief, have our loans been converted into debt management or terminated.
Is it worth replacing my credit for 2 years if I took it for 5 years?
YES! Until 2.5 years ago, interest rates were 5-10% higher than today. This means that in early 2016 the APR for personal loans ranged from 15.52% to 21.66%. (Calculated on a loan of 700 thousand ft, with a maturity of 5 years, with an income of 120 thousand HUF) . Today it is available at 10.98%.
And in full repayment, the difference between the best offer of 2016 and today is nearly 90,000 forints! By way of comparison, we are talking about a total loan of 700 thousand forints, which is almost 13% of the amount taken out !
Don’t hesitate! Use our calculator to find out what kind of loan you are eligible for and get rid of your bad loans!