Category: Credit

What is a good credit card balance?

by Samuel Dunn
Your credit card balance is the amount of fees you owe to your credit card company. It is the accumulated amount that you have borrowed but not yet paid back. Every purchase, balance transfer, and cash advance you make increases your credit card balance. Fees and interest also increase your credit card balance. On the other hand, payments and returns all reduce your credit card balance. Your credit card balance may also be negative if you overpaid your credit card or had a credit credited to your account after you paid your balance in full. It is important to be careful about your credit card balance so that you don't let it get out of control and keep it at a reasonable level (or fully paid).

Why have a good credit card balance matters

Pay your bills on time Maintaining a good credit card balance is important for your credit score and overall financial health. A high credit card balance can hurt your credit score, especially if you use a large percentage of your credit limit. A high credit card balance also affects your credit card balance. The higher your credit card balance, the higher your minimum payment. That means you have to assign to this credit card every month. Carrying a high credit card balance means fewer credits available for procurements. If you carry a high credit card balance, it is important to keep it available with your credit so that your credit card is not denied.

What balance is good for your credit score

What balance is good for your credit score Each of your credit card balances directly affects your credit score. A good credit card balance is less than 30% of your credit limit. For example, if you have a credit card with a $ 100 credit limit, the balance should be less than $ 30. It's best to have a zero balance. Logistically speaking, it is hard to keep your credit card balance at $ 0 if you ever plan to use your card. However, you can be sure that your credit report shows a zero balance by paying off your credit card before your bank statement submission deadline. That is the current credit card issuer typically reporting your credit card details to the credit bureaus. Credit score aside, a good credit card balance is one that you can afford to repay. Since the best way to control credit card debt is to pay off the balance every month, you should never collect more than your monthly disposable income. This is the amount of your income for expenses after taxes and expenses have been paid.

Are Your Credit Hurting Your Credit Score?

Are Your Credit Hurting Your Credit Score? You can determine whether credit card balances can be said by calculating your credit usage to affect your credit score. This number shows the ratio of your credit card balance to your credit limit. Start by making a list of all of your credit cards. Write down the credit limit and the balance of each credit card (this information can be obtained by using your online checking account or the customer service number on the back of your credit card for calls). Then for each credit card, you divide the credit card balance by the credit limit. Multiply by 100 to convert the answer to a certain percentage. Any credit cards with balances over 30% could affect your credit score. Work to reduce these balances for a better credit score.

How to maintain a good credit card balance

Credit Card Holder Your credit card balances can get out of control if you spend thoughtlessly without checking if your credit is getting closer to the credit limit. Create a habit of constantly checking your credit card balance, at least once a week, to make sure that it is no more than 30% of your credit limit. You can easily do this from your smartphone to log your credit card issuers by downloading or logging into your account from your mobile internet browser. As the balance grows larger, you can make a payment to bring balance. Or, if you can't afford to pay off a significant portion of your credit card balance, your credit card stops while until you reduce your balance to a better level.

Payments by credit card are increasing considerably in Belgium

by Samuel Dunn
Borrowing money can be done in various ways, by taking out a credit or, for example, paying with a credit card. The latter is increasing considerably, more and more people are using their credit card. They also do this regularly without the credit facility, it is mainly the convenience of a card compared to cash that turns out to be appealing. However, borrowing money via the credit card is also an interesting option, as it is usually easier than taking out a credit with a bank or other lender.

More payments by credit card

credit card There are more payments per credit card, something that seems to have several reasons. For example, the average monthly amount in 2008 was The developments that Best Bank recently observed show, for example, that we spend more on average with our credit card. $ 139, now it is $ $ 163 to $ 222.179. Furthermore, with the Best Bank Value Card this even increased from Moreover, we now use our credit card around 2.8 times a month, whereas it used to be 1.6 times. The use of the Value Card increased from 4.9 to 5.6x per month. This indicates that there is an increase across the board. This seems to be partly due to the fact that we use our credit card more easily to pay small amounts. After all, the average transaction amount has fallen from $ 83 in 2008 to $ 69 in 2015. In that respect, spending per spending is declining, but the greater number of payments with the credit card means that we are going to pay more with our cards across the board. Remarkably, we do not only use the credit card to borrow money. In addition, there are many people who use the card to pay more easily, without having to take out a credit for it. Compared to 2013, 5% fewer people use the credit facility, they can transfer the costs directly and therefore do not have to borrow money for the purchases they make.

Contactless payment with the credit card

Finally, it is striking that more and more Belgians use contactless payment. This makes it possible to keep the credit card close to the payment terminal. That is enough to pay, it is not necessary to put the pass in the payment device. Depending on the amount, it is necessary to enter a pin code with the credit card.

Financial credit institution insurance and guarantees for both lenders and borrowers

by Samuel Dunn
When opening a line of financing through a loan, it is highly recommended to do so before a notary. In this way it is recorded that the loan has been made with the consent of both parties, offering the necessary security and legal guarantees.  In fact, all banks register their loans before a notary, be they personal loans, mortgages and lines of financing of any kind. Finance institution acts in the same way: offering loans with Financial credit institution insurance and guarantees for both lenders and borrowers.

Financial credit institution insurance loans

Financial credit institution insurance loans Finance institution is regulated by the Ministry of Health and Consumption, complying with all legal and operational requirements to work in the private lending sector. This feature and what we have commented previously (that each and every one of our loans are signed before a notary) offers our clients the guarantee that they are applying for loans with Financial credit institution insurance.

Characteristics of our loans

Characteristics of our loans Finance institution is much smaller than a bank. We have a small team of advisers and experts in the real estate and financial sectors and, therefore, this smaller size gives us greater flexibility compared to a bank. The client can choose the form of repayment of his loan so that the fact of having a debt does not impact his daily finances. Although we make available to the client an advisor who will solve all their doubts throughout the life of the loan, we never recommend that more than 30% of our income be used to pay debts. Our team of finance experts will design a payment plan tailored to your personal situation. Thus, the customer will be able to choose the number of installments, the type of payment, the duration of the loan, the type of repayment and even access a grace period of up to 2 years.

Access requirements to our loans

Access requirements to our loans We make available to the client all those tools that he needs to make the return of his loan as comfortable as possible. However, we also require certain guarantees from you, specifically two.

Have a real estate property

Our loans with Financial credit institution insurance are of the mortgage type, that is, a real estate will act as a guarantee in the event of default, the client must therefore have a real estate in his name and send us a simple note from the Land Registry that proves it. The property can be of any type, although the market value will determine the maximum amount that we can grant for your loan: Approximately between 30 and 40% of the appraised value.

Request a minimum of $ 20,000

This figure is what allows us to defray the fixed expenses derived from the opening of loans with Financial credit institution insurances, at the same time that we offer a competitive interest rate for both lender and borrower.