Have you always wondered who is taking those consumer loans? Well now it is clear, as we were working with Kopla, a customer understanding agency, on the attitude of Finns towards consumer credit.

There are many types of consumer loans and you can easily compare their features in our free loan comparison:

You can apply for a loan up to $ 50,000 in our comparisons. These loans are offered, for example, by Good Finance.

The study showed that consumer credit would most likely be sought:

• Male (77.4% would take consumer credit)
• 40-50 years old (94.1% would take consumer credit)
• Family-friendly (79.1% would take a consumer credit)
• Senior Clerk (84.2% would take consumer credit)
• Person earning more than € 40,000 a year in gross income (82.8% would take consumer credit)

Men are more willing to take consumer credit – Women are more cautious

In general, men were more positive about the use of consumer credit than women, especially for buying a new car. About a third of female respondents could not imagine taking consumer credit for any purpose.

Over a third of both men and women considered consumer credit an appropriate form of financing for renovation or decoration.

Over a third of both men and women considered consumer credit a suitable form of financing for renovation or decoration.

Families borrow for repairs or car rentals, for a lonely holiday

About half of those with a family would take consumer credit for renovation or decoration, or for the purchase of a car (39.5%). Remodeling was also the most popular way of using consumer credit for people living with a spouse / partner (29.6%). Individuals, on the other hand, prefer to finance their holiday with consumer credit (34.2%) slightly more than renovation or a car.

High income earners are more positive about consumer credit use

positive about consumer credit use” />

Income also influenced the attitude towards consumer credit. Up to 82.2% of those earning less than € 40,000 a year could take out consumer credit, while 42.1% of those earning less than € 20,000 could not imagine taking a consumer loan.

Of the average income earners of € 30- $ 40,000 a year, 40% could not even imagine taking a consumer loan, although almost half saw a consumer loan as a good way to finance a renovation.

There are differences between professional groups in the use of consumer credit.

Senior employees were the most favored with consumer credit, especially for renovation loans (63.2%) or car loans (52.6%), compared to lower salaries and employees, on average only one-third had taken or would take consumer credit.

About a third of students would take consumer credit for a larger purchase. However, more than 40% of students would not take consumer credit for any purpose.

Getting a loan or credit card is almost always conditional on sound credit history. What is credit history and how do you know if it is correct? In this guide, we’ll tell you how credit information works, how credit information can be lost, and what can be affected by a default.

What is Credit Information?

Credit information is used to assist the risks of a lender granting a loan to the applicant as well as how solid the client’s finances are. By reviewing your credit history, the lender seeks to manage credit risks to avoid credit losses and to anticipate potential problems.

Our loan comparison shows how likely a loan application is to be approved:

For example, when applying for a loan or credit card, the lender will look at the applicant’s creditworthiness. Creditworthiness refers to a person’s ability to repay his debt. It is influenced by eg annual revenue and any default payment entries.

Usually, a credit entry will result in your loan application being automatically rejected. However, there are service providers that also lend to the creditless under certain conditions. One such is Good Finance company. You can get a loan from Good Finance even if you have a credit note. However, in this case, the subscription must not be new and must be paid in full.

How can I avoid credit information entry?

For many, there will certainly be times when there is no money to pay all the bills. In such cases, it is advisable for the consumer to contact the lender and arrange a payment with a new schedule in order to avoid credit information entry. Late payment of an invoice or passage of a parking defect payment, for example, does not in itself give rise to a credit note.

The creditor may file a default credit entry in the Credit Register provided that the invoice is at least 60 days past due date and no new payment agreement has been concluded between the creditor and the debtor to pay the invoice. The creditor must have sent a written request for payment to the debtor at least 21 days prior to the disclosure of the defect entry.

Can I get an unnoticed credit note?

In some cases, however, a creditor may report a person’s default to Good Finance in the event of non-payment of a consumer credit or installment contract. In this case, however, the consumer credit agreement shall include a statement that the credit record holder has the right to disclose the defaults.

The timely payment of consumer credit agreements such as credit card invoice or instant credit agreement is of paramount importance, as failure to pay these bills can result in credit information entry without notice to the customer. When concluding a consumer credit agreement, it is important to take this opportunity into consideration and it is advisable for the consumer to read the agreement very carefully in order to be familiar with all aspects of the contract. In particular, rates on quick loans may be small print on contracts, so it is advisable to read the credit agreement carefully.

Even if the consumer does not have a credit reference, companies may have their own internal default payment records that can be entered without their knowledge. For example, they can register a week’s late payment and use this information with a company in the same group, for example, when approving a new loan application.

How do I check my credit history?

You can check your credit information free of charge using the statutory review right once a year. Credit information is verified by sending a free form written request or a printed and completed form by fax or post to the Finnish Customer Information. The request must be accompanied by your home address, personal identification number, signature and name, and a copy of the Customer Information Notification Letter or a copy of the personalized identity document bearing the signature.

A deposit is a form of investment because for borrowing, lending funds to the bank, he offers his clients interest accrued during the period specified in the contract. This means that money earns, brings profit, and not just is in the account. The owner of this money only needs to not spend it, not to cancel the account for some time.

The interest accrued on the deposit depends on the interest rate. It is the duration of the deposit and the interest rate decides how high the earnings will be and how profitable such an investment will be. At the same time, it should be remembered that the higher the amounts, the higher the bank offers interest rates, and therefore the higher the interest. But how do you calculate them on an annual basis?

 

Real interest rate

In the case of real interest, the bank presents us with annual profits. They take into account all factors that affect the interest rate on the deposit and the conditions that the interest rate may change. In the calculations, they therefore take into account the frequency of capitalization of interest and taxation thereof. The interest and profits presented on our deposit are called profits and determine only the amount that later goes to us and is already reduced by tax and other mandatory costs. So these are real profits.

 

Nominal interest rate

Banks advertising their deposits most often present interest rates per year. This means that the percentage from which we will calculate the profits received by the year is given.

For nominal interest, taxes are not taken into account, especially Belka tax, which includes 19% of profits. The frequency of capitalizing interest on the deposit is also not taken into account. The customer does not get accurate information about the actual profits that he will receive on the deposit.

For example – on a deposit of 10 thousand zlotys at an interest rate of 5% after a year, the customer has information about profits obtained 500 zlotys. However, he must deduct the tax and the frequency of adding interest. After deducting this cost, he is only getting the real sum of interest he earned after a year.

This should be taken into account, because the seemingly more attractive offer may turn out to be much less favorable if the interest rate is nominal and not real.