Monthly Archives: May 2019

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Beware of Overpriced or Unfair Loan Providers Everything About Finance

Fortunately we have very strict regulations in the Netherlands when it comes to borrowing money. There are also various watchdogs and organizations (such as the CCIM) that regularly screen and monitor banks and lenders. But you still have to pay attention to what kind of provider you work with.

There are still loan providers active that deliberately saddle customers with extra costs that they cannot charge. On this page we try to give you an insight into the matters that you need to pay special attention to before you choose a particular lender. First, always check whether the bank or lender with whom you want to do business has a valid license from the Netherlands Authority for the Financial Markets; the CCIM.

 

Permit from the CCIM

Before you go to work with a provider, check that you have an CCIM license (a valid one!). Because no organization can provide loans without such an CCIM license. In most cases, only a license from the DNB is sufficient. Call the CCIM immediately if you come across a loan provider that does not have the necessary permits! This also prevents other people from getting into trouble.

 

Are you being approached yourself? Then watch out!

The reason why we warn you about telephone sellers of loans is because there are dangers in that. Do not do business with parties like this, because you will almost always be disappointed. The seller indicates that you can borrow easily and quickly through them and also at extremely low interest rates. You can also sometimes borrow more than from other banks and lenders. Also watch out for loan advisors who approach you aggressively and want to visit your home. In short: Look for a reliable party yourself and never get approached! Are you being approached? Then sign up for the CCIM in any case.

 

Mediation costs

Where previously lenders were allowed to charge brokerage services between customers and banks, they are now prohibited by law. Do you come across a mediator who still asks mediation costs? Then report this to the CCIM (Financial Markets Authority). Every broker receives a standard fee from the bank that they mediate.

 

You have to distrust small organizations

Of course, a small credit bureau, bank or unknown broker is not always unsafe to do business with. But have contact with companies of this kind with a healthy distrust. Check whether they have valid permits and try to obtain information about them online. A reliable bank or lender is transparent in everything. They have a physical office and can be reached if you have any questions. Never take out loans with unknown agencies about which you can hardly find any information.

With a ‘fast’ small loan you always pay high insurance costs

High costs with a small loan

 Well known and notorious are the small loans that you can take out for a short period. In the first instance it seems that you only have to pay interest. However, this is not the case, you are required to take out an expensive insurance policy where the costs can rise enormously. I also wrote about this before, it was about ‘minilening what are the costs’. With examples, tips and video you can clearly see why this is such an expensive way of borrowing money. If you are planning to do this, I can recommend that you read this article carefully.

 

Never respond to emails

There has been much to do in recent years. Consumers are approached by e-mail to accept an offer. Every time it appears that there are still people who fall for it. do you get an email from a company or someone you don’t know? Discard this immediately. Pay attention especially that there are also links in these emails where you are invited to click on and open a website. Never do this, even if you know the company and think you can trust it. For example, it may happen that it says ‘Rababo login page’, but this does not mean that when you click on this link you actually go to the Rabobank website. If you go over the link with your mouse (laptop or PC) without clicking on it, you can already see where you will be led.

 

But it is also very sophisticated

Suppose you move your mouse over such a link, then you can see’rabobank.inlogbankzaken.nl ‘. Now comes the trick, this website is not at all from Rabobank, but from loginbankzaken.nl. This has created a subdomain where it looks like you are going to the bank’s website. A real link from the bank would look like this: ‘loginbankzaken.rabobank.nl’. This website is therefore from the bank. But you see how subtle the difference is. The image below shows how you can be fooled.

Providers from abroad

Also a well-known phenomenon that you often encounter on second-hand websites. In poor Dutch, golden mountains are promised and you don’t have to worry about interest and costs. I actually have no idea what happens when you accept such an advertisement. But believe me, it can never be much good. A good example of this is the image below. I quickly came across this advertisement during a search. But you also come across many advertisements that offer credit in Germany, I actually have no idea what that is.

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What Is An Online Credit?

Some banks have a specific type of personal credit that they call credit online. In this article we want to show you what is an online credit and its dangers. Know that you are an important source of financial problems, so be very careful.

Online Credit – What Is It?

An online credit or line of credit is a specific case of personal credit . Also known as revolving loans (or rol-over). In practice, it is a financial product that resembles the debt of a credit card. In few words:

  • Credit Limit – A maximum amount of credit is defined (on credit cards the ceiling is available). Until you reach this level, you can use the money as you want. You can pay part or all of it and use the available money whenever you need it.
  • Amortization of the Loan – You can repay your loan whenever you wish. When you repay the loan you are releasing capital to borrow in the future. Despite this flexibility, you have a minimum amount that you have to pay that is typically set to cover the interest amount (and thus avoid every month increasing the amount owed).

What’s the Difference of an Online Credit and a Credit Card?

The mechanics of online credit operation is very similar to the functioning of credit cards. However, there are some differences that need to be known:

  • Use of Online Credit – To use online credit you must ask the financial institution (by telephone) to transfer the amount to your current account;
  • Convenience of the Card – The credit card is a card … which means that it has a lot more flexibility of use. However, if you want to use cash you will need to use the cash-advance facility that has unpleasant commissions.

What is the danger of these credits?

Both online credit and credit card have a danger. They are very convenient ways to have access to credit, which being an advantage represents a great temptation for consumption. If you are afflicted, you have money available here. It may be very convenient but the convenience pays dearly (and a lot).

As we mentioned earlier, these types of personal credit represent one of the major sources of financial problems in Portugal. It is not by chance that convenience is one of the great marketing weapons of financial institutions. What happens if you can not pay your installments?

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The Virtual Credit Card: How Does it Work?

As we usually say, safety is first and foremost, and it applies to all things in life. With the place occupied by the internet in our daily life, when we know that 6 out of 10 people have already bought on the internet, security has become paramount to keep our data safe and avoid fraud. The emergence of the virtual credit card allows this security, but how does it work?

 

Virtual credit card: what does it consist of?

The virtual credit card makes it possible to pay securely online. As the name implies, you use virtual data for each transaction.

The virtual credit card works exactly like a normal credit card and has the same features:

  • Cryptogram (CVC)
  • name of the card holder
  • Expiration date
  • Card number

The main difference with the traditional credit card is that every time you make a purchase on the internet, the virtual credit card provides you with a credit card number, expiration date and a different cryptogram. The system is very easy to use. Either the bank gives you virtual numbers that you can use during your purchases or you access a software or website that will provide you with different data with each access.

 

Many advantages

The virtual credit card number provided to you replaces the actual number of your physical credit card and is never transmitted to merchants. This increases the level of security during your payment since it is impossible to hack your card number since it is temporary and it is never seized.

Another advantage is that there is no need to move to find your credit card. Everything happens in front of your screen in a secure and fast way. You enjoy the same benefits as a normal credit card while maintaining a high degree of confidentiality.

A major disadvantage is that when you generate the virtual credit card number, it is associated with an amount to pay. It is therefore important to enter for each new virtual number a correct associated amount.

Once this payment system is adopted, your payments on the internet become even more secure. It is impossible to be a victim of fraud. As is often said, “prevention is better than cure” and you are never protected enough. If you want to find the best credit card offering this advantage, do not hesitate to use our comparison platform.