Does a payday loan hurt your credit?

Loans with property as collateral

icon shareShareHow to overcome the “Debt Abyss”? What to do with debts and avoid over-indebtedness?  Here are some tips contained in the Explanatory Guide to Over-indebtedness, in which you can find out what happens once you incur in arrears or do not pay your debts, as well as the rights you have in those situations.October 08, 2019Commemoration of the Insolvency and Reinstatement Law.

When your income is not enough to cover debts and basic consumption expenses (food, rent or dividend, clothing, health, transportation, electricity, water, gas, telephone, internet, among others).

But be careful, although it is an option that allows you to make a lower payment than the installment, you must consider that you only pay a part of it, therefore, the rest of the installment will continue to generate interest until the day of the effective payment of the debt. Therefore, if you pay the minimum, you are in debt to the maximum.

The recommendation is always to pay the total amount billed on the credit card or to pay a higher percentage than the minimum payment, in order to reduce the principal of the debt, so that it does not become an eternal debt for the consumer.

The maximum amount authorized by the institution to exercise a credit is called a “guarantee”.

The guarantees on loans are usually joint and several, which means that the guarantor assumes the same obligations as the loan holder in the event of default. In fact, being joint and several in a guarantee means that we cannot require the bank to claim from the holder of the debt before claiming from us.

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In case of non-payment of the holder of the loan, if the guarantor cannot pay either, he/she will also be included in the list of defaulters (RAI, ASNEF), and if the non-payment is prolonged over time, the guarantor may be seized.

The guarantor can be partial; that is to say, the bank can accept to guarantee, for example, what exceeds 80% of the appraised value. Let’s take an example: my brother buys a 100,000 € apartment and he is granted a mortgage of the same amount in exchange for a partial guarantee from me. In this case, this guarantee is for €20,000 (i.e. 20% of the €100,000); as soon as the holder of the loan owes less than 80%, the guarantor will disappear.

I was scammed on a loan

When you apply for a new credit card, the lender requests a copy of Your Credit History – that is, your credit profile – from TuCrédito. This causes an “inquiry” to be recorded on Your Credit Report. The lender uses Your Credit Report and scores along with other information such as income and credit to determine what rates to offer you.

How to work with the system-Good credit management and maintaining a good credit history can result in better rates on major purchases. We recommend that you check Your Credit Report frequently, at least every three months before making major purchases, to protect yourself from harmful inaccuracies and identity theft. The Your Alerts service allows you to stay informed and have online access to Your Credit Report. Routine reviews as well as paying your bills on time, keeping your credit card balances below 35% of your limits and correcting any negative inaccuracies will help you maintain a healthy credit profile.

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Money loan on vehicle

Your personal budget, confirming that you have sufficient capacity to pay the monthly payment of your mortgage, remember that it will be a long-term commitment. It is recommended that you can have approximately 30% or 40% of your monthly payment at your disposal.

INFONAVIT is a government agency whose function is to support the housing and retirement needs of its affiliates (salaried employees of companies that pay their contributions to the Institute). Each two-month period, the employer pays INFONAVIT

The applicant’s housing subaccount is used as unemployment insurance. Subsequent contributions made by the employer will be used to make prepayments, thus enabling the applicant to pay off his loan sooner.

This is the Total Annual Cost of financing expressed in annual percentage terms which, for information and comparison purposes, incorporates all the costs and expenses inherent to the loans. By law, all banks

must publish the CAT of their mortgage loans; these can also be consulted on the websites of Banco de México (www.banxico.org.mx) and the National Commission for the Protection and Defense of Users (Comisión Nacional para la Protección y Defensa de los Usuarios).

Does a payday loan hurt your credit?
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