Do You Know What Credit Score Is?

Do You Know What Credit Score Is?

Do You Know What Credit Score Is?

Credit score is the metric used by lenders, such as lending banks, credit card operators, and even auto finance companies, to make decisions about whether or not to offer credit (such as a credit card or credit card). loan) and what this offer will look like (relative to the interest rate or how it will be paid).

In the following article, we will present in more detail key Credit Score information, including key factors that may affect a positive or negative score.

Why is credit score important?

Why is credit score important?

Credit Score is a decision-making tool that lenders use to help them assess the likelihood that you will repay your loan on time. Credit scores are also called risk scores because they help lenders assess the risk of you not being able to repay debt as agreed.

Having good credit is important because it determines if you qualify for a loan. Depending on the interest rate of the loan, this can mean substantial savings. A good credit score can also mean that you are able to rent the apartment you want or get the internet service you need.

Every time you set a big financial goal, such as becoming an apartment owner or buying a new car, your credit is probably part of this financing framework. Your credit score will help lenders determine whether or not you qualify for a loan and how good the loan terms will be.

Factors Affecting Your Score

Factors Affecting Your Score

The information that affects a credit score varies depending on the scoring model used. However, the main ones include:

  • payment history for loans and credit cards;
  • credit utilization rate;
  • total debt;
  • public records, such as bankruptcy;
  • How many new credit accounts you have recently opened;
  • positive registration;
  • other information not disclosed by Score operators.

How To Improve Your Credit Score

How To Improve Your Credit Score

If you have reviewed your credit information and found that your credit score is not exactly where you thought it would be, you are not alone. Because your credit score uses information extracted from your credit report, your credit activity provides an up-to-date database of how you are responsible for the credit you are currently using.

Having a clean name is the minimum. To get a high score, you also need to have bills in your name and pay them on time (or earlier); update the registration data in the scoring company (Serasa, generally); buy on time; create a positive register, among other attitudes.

If you want to grant simpler, more practical and more secure credit, check out our payroll loan platform! Visit our website and register your company for all the information or contact us now!

7 alternatives to banks for financing SMEs and freelancers

When it comes to obtaining liquidity, loans from the Official Credit Institute (ICO) remain one of the most used options due to their multiple advantages, since repayment terms are high and interest is reduced. In general, ICO credits are requested through banks and collaborating credit institutions, so that the ICO provides the funds and these entities carry out all the processing and study of operations. It will be these banks, therefore, that approve or reject the applications according to the conditions imposed by the Institute.

The ICO lines are modified annually, as well as their conditions and requirements, although the variations are usually minimal between one year and the next. Currently we find the following open lines:

ICO lines opened in 2017

  • ICO Companies and Entrepreneurs 2017 › Financing oriented to freelancers and companies that make productive investments in the national territory and / or need to cover their liquidity needs. They can also request private financing and communities of owners for housing rehabilitation.
  • ICO Guarantee SGR / SAECA 2017 › Financing oriented to freelancers and companies that have the endorsement of a Reciprocal Guarantee Society (SGR) or SAECA that make investments in Spain or outside the national territory and / or want to cover their liquidity needs. The company that requests financing to make an investment outside of Spain must have domicile in Spain or at least 30% of Spanish company capital.
  • ICO Credit Commercial 2017> Funding aimed at freelancers and companies established in Spain who wish to obtain liquidity through the advance of the amount of the invoices from commercial activity within the national territory or to cover previous costs of production and processing of goods subject of sale in Spain.

2. Mutual guarantee societies

2. Mutual guarantee societies

Reciprocal guarantee companies, known by their acronym SGR, are entities that aim to improve financing conditions and facilitate access to credit for their partners, especially SMEs and freelancers. Although they also offer advice on economic issues, their main function is to act as guarantors so that their members can access credit lines and enjoy more advantageous conditions.

Reciprocal guarantee companies are made up of an indeterminate number of partners, which can be of two types: participants and protectors. The participating partners are those companies and freelancers who access the services offered by the entity, especially in terms of financing. For this they have to comply with the requirements and conditions imposed by the entity. Being a participating partner allows small entrepreneurs to benefit from credit lines and short-term financing without having to go to the banks.

The protective partners, on the other hand, are those persons, physical or legal, who contribute social capital and to the fund of the company for their use by the participating partners. These partners do not have to be exclusively private, as it is common to find within this section the autonomous communities themselves, provincial councils or chambers of commerce. Likewise, any private company, business association or investor can become a protective partner. Of course, you cannot be both a protective partner and a participating partner.

Any mutual guarantee company must be authorized by the Ministry of Economy and Finance after a previous report prepared by both the government of the autonomous community where it will have its registered office and the Bank of Spain. In addition, these entities are controlled and inspected by the Bank of Spain, as are the rest of credit institutions.

3. Venture capital

3. Venture capital

Venture capital is defined as the financing of projects and companies in the growth phase by venture capital entities. This system is especially useful for start-ups, since these funds are characterized by providing liquidity to companies with prospects for rapid growth and high profitability. Due to its incipient phase, investing in these projects also often carries a high risk.

In general, these private funds not only provide financing, but also get involved in the management of the company to increase profitability and benefits. In many cases these funds are made temporarily with a participation of the company and, once the project begins to bear fruit, they are withdrawn to optimize performance. This withdrawal is usually carried out by selling its stake to the start-up itself, to other investors or, even, to other venture capital entities.

This type of financing is strongly linked to companies in sectors with higher than average growth, especially in the technology sector, new technologies, software, applications, and so on.

 Financing alternatives for SME

4. Participatory loans


Participatory loans are a type of loan for companies and freelancers that have the particularity that the entity that makes the loan also ensures that it participates in the benefits of the company benefiting from the financing. The financed company, in return, will have to repay the loan with a fixed interest.

These loans generally have a long-term maturity (they can be canceled in advance in exchange for an increase of the same amount in the capital of the company) and lower interest rates than those offered by traditional banks. These interests, in addition, can be deducted in the tax base of the Corporation Tax.

Participatory loans can be granted by private companies or by public entities such as the National Innovation Company (ENISA), under the Ministry of Economy, Industry and Competitiveness. In any case, a series of requirements must be met to benefit from these lines, such as being an SME, having sound and audited accounts or presenting a viable project that does not belong to either the financial or real estate sector.

5. Express loans

Companies and freelancers seeking alternative financing can also use express loans, many of which can be managed directly through the internet. These entities do not offer fixed amounts, but instead open lines of credit and deliver a variable amount of money based on income.

To determine the amount of the loans, the financing entity will request a series of documentation to monitor the company’s income, such as the quarterly VAT settlement. You can also request the connection of the bank account of the company. With this data, a computer program calculates the amount of the credit line and gives an answer in just a few minutes.

6. Promissory note discount

This financing system is increasingly popular among SMEs and freelancers, since the company requesting the discount is getting liquidity using the income generated by its own activity. The procedure is simple: a financial entity advances to the company the amount of outstanding notes before payment due in exchange for a percentage and a commission. We are not talking, therefore, about requesting a loan, but about advancing the collection of a right generated by the beneficiary himself.

To deepen this service read our extensive article on the discount of promissory notes.

7. Factoring

Factoring or factoring works very similar to the discount on promissory notes. In this case, the company is not financed by discounting the promissory notes sent by a third party, but by doing the same with the invoices. In this way, a financial entity will advance the payment of the invoices to the SME in exchange for the collection rights and the corresponding commission.

To deepen this service read our extensive article on factoring.

These alternatives to the banks for the financing of SMEs and freelancers offer entrepreneurs different ways to access credit and achieve short-term liquidity without facing the hard and cumbersome procedures that are currently making it difficult to manage traditional banks.

Customers receive new credit cards


B&L replaces customer-unfit cards for non-contact shopping. However, the old one will be usable until the new one is activated. Why SurePass Card Can Be Good?

Touchless payment


Starting today, B&L will begin replacing SureCard that is not eligible for touchless payment. Those who receive a new card can only use the old one until they activate the new one. If they never do, the old card will be good until the original expiration date.

This will not make B&L a card that has no contactless payment option. Three years ago, there was virtually no contactless payment card, nowadays it is close to 14 percent and growing rapidly. At most banks, expired or lost cards are just being replaced and the number of acceptance points is increasing.

What are SurePass and payWave and what is it good for?


SurePass is MaterCard and payWave is a contactless payment solution for Visa. There is no need to touch the POS terminal, where shopkeepers insert or pull traditional cards. But best of all, you don’t just have to touch, you don’t even have to hand out a card.

Electronic payment is a lot more secure than buying cash, but if it is a problem, it usually happens when you have your credit card in someone else’s hands. We often hear that these transactions may even be “intercepted”, but in practice there is no such abuse. In this way, they cannot obtain card details.

Banking Tip: Never write your PIN anywhere, but especially not next to the card.

How to pay


Simply keep the card in the immediate vicinity of the appropriate POS terminal and the payment will be made. In Hungary, the terminal does not ask for a PIN up to the limit of HUF 5,000, but we have to enter it for a larger amount. But even so, payment can be much faster than before.

8 Home Business Ideas – Business Loans

How does it feel to be your own boss? For many people, it’s like a dream come true. If you are one of them, then you may want to think about starting a home business and reap the benefits of being an entrepreneur. Read our guide to 8 home business ideas and find out how to start a home business.


1. Work from home

freelance work

One of the easiest options is to work from home. Teleworking is becoming more common. In fact, many employers support this as they are also more flexible. In the EU, the number of people working from home is constantly increasing – 13.7% are in the Netherlands, followed by Luxembourg and Finland by about 12%, according to statistics from the European Commission.

Make sure your colleagues understand what this means in practice and how often it is possible. If you already have a laptop for work, you can get started right away.

Working from home, however, should not interfere with home life. It is best to have a separate room with a desk to use for work. Other people are even more flexible, such as working in cafes or on the balcony. Just remember that you still have a full day’s work, and convenience is important for many hours in front of your computer.


2. Working freelance

Freelance work is a good next step towards independence from the workplace. There are also many practical considerations ranging from customer acquisition to invoicing and income taxes. On the other hand, you will have more control over the projects you are working on and how much to work on.

In this case, the pay is not as stable as if you were working from 9am to 5pm. This means that in the long run, you will be able to work less and earn as much as if you worked full time. Forbes explains that freelance work is actually preferred. 84% of full-time freelancers believe that work allows them to live the way they want (compared to 63% of full-time workers).


3. Turn your passion into a business

2. Working freelance

Do you have a skill or hobby that you would like to do full-time? In the digital age we live in, many people go back to the basics – and in fact, this is a great opportunity. Do you enjoy yarn crafts? Your passion is furniture restoration? Maybe you can turn your passion into a secure income.

One way to test the viability of your business idea is to try to sell your products on websites that serve creative appetites. It’s a good idea to build an online presence and take advantage of social media. Website creation and activity on channels like Instagram are good ways to get your brand on track. The key is reaching people who may be interested in your products, ensuring that you can deliver them, as well as winning new customers and maintaining the interest of existing ones.

In addition to online sales, local markets and fairs often allow people to rent and sell their belongings. You can sell unique items or even offer custom-made items. Whatever you decide, make sure you are able to deliver efficiently and at the same time have plenty of time to handle customer service.


4. Try selling used items

If you are not making products with your own hands but you are an expert in the selection or collection of second-hand items, then this is your chance. Many people prefer to use second-hand items even for their daily needs.

Whatever you decide to sell, make sure you check out Ebay and your local online sales sites. If you specialize in certain types of items, such as vintage designer clothing – there are companies that sell worldwide that will allow you to sell for a fee or buy items from you.

Remember, when starting any business, you will need start-up capital. In this case, you will need to expect some start-up costs such as building a web store, digital advertising and managing your business expenses.


5. Become a fitness instructor at home or outdoors

fitness instructor at home or outdoors

This category can also be associated with a person’s passions. If you are a fitness expert who would like to pass on your knowledge to others or a certified personal trainer, this job is a good opportunity for you.

Maybe you have the space in your home to create a gym or studio? Or are you happy to travel to meet clients? Either way, there is a great demand for fitness experts to help people get fit, improve their fitness, or even just become healthier overall.

There are many sub-categories for fitness professionals, including yoga instructors, dance instructors, or even wellness coordinators who work as consultants. Other related activities are nutritionist or physiotherapist who require degrees or formal training.


6. Appears as a stylist or hairdresser

Weddings, dances and birthday parties – people always want to look good. If you have talent and experience in makeup or hairstyles, why not make it a business? Especially if you want to travel to your clients, this is a very good idea for a home based business.

Social media is a good way to promote your talents and show your happy customers. Instagram is a great place to show makeup and hairstyles. Just remember that you must always be allowed to post photos of people publicly. Don’t hesitate to promote your work online and let people see what they can get when they use your professional services.


7.The concept of bed and breakfast

air bnb

The concept of a bed and breakfast is not really new and has been around for hundreds of years. Opening homes for travelers has always been in demand and has advantages over hotels. For homeowners, this means they can work from home because their home becomes a business. For the traveler, this often means a cozier and cheaper stay compared to the sterile atmosphere of the hotel.


8.Use your writing skills

Every day you read the text that interests you – blogs, practice guides, advertisements and articles. Businesses may not have the time or resources to fulfill all their writing needs, so project work is available worldwide.

On the one hand, it is a very thriving business and there is a great demand for written content. On the other hand, it also means that the market is competitive. What distinguishes you as a writer? You are self-taught and have a great portfolio? Or do you have a language or communication degree that you want to earn from? Show your work to all potential clients so they can see why they should choose you as their writer.

There are also markets for professionals such as technical writers, UX writers and more. Based on your education, professional experience, and personal interests – find the right audience for your work and establish yourself as a great writer in the field that suits you best.

Whatever you decide to do, creating a business plan and getting the right supplies is key. If you need help with start-up capital, see more about short-term loans and financing options that you can take on the path to success.

Imprisonment When will Debts Become a Prison?

Debt imprisonment today is more of a parable and, under the European Convention on Human Rights, debts cannot even be sentenced to imprisonment. Even in Finland, unpaid debts may have been incarcerated, but in 1897 debt imprisonment was removed from the penal system, which replaced the imprisonment law.

Finland, too, could have been imprisoned for its debts: before 1897


Crime debts, on the other hand, are a separate matter: in 1901, the Criminal Aggregation Act (Chapter 7, Section 8) was amended so that several convictions could be combined with your imprisonment. Even today, unpaid fines can be sentenced to imprisonment, except in the case of a fine or a fine.

Illustratively, however, the concept of debt security is still used for loans or loans that have become generally problematic, usually due to either Irresponsible borrowing, lending or a sudden drop in solvency.

When will Debts Become a Prison?

Debt becomes problematic when its repayment and cost increase to such an extent that income is no longer surplus to compulsory expenditure and debt. Then there is no extra money that you can use as you wish: all income goes to compulsory expenses, which limits your life. In the worst case, debt cannot be repaid enough and debt can even increase.

How can we get rid of debt custody?

If it is clear that income is simply not enough to pay off debts, enforcement and debt settlement may be the only means of dealing with it.

The payment default entry will certainly come from these arrangements, but the entry will not last forever. Credit information is also restored even after the collection and debt settlement. The subscription will usually remain for 2 years, or until the debt is paid.

How is debt avoidance avoided?

One might think that debt imprisonment is the easiest to avoid when you do not take out debt in the first place. However, the fact is that some purchases have to be borrowed because the funds are not yet sufficient. However, borrowing always requires solvency. You should know that the loan can be repaid.

However, if your ability to pay falls and you find that you are unable to repay your debt as agreed, your creditor should be contacted as soon as possible to agree on a payment plan.

It is also important to have a buffer in your own economy for that famous bad day, which can be achieved by saving, for example. Saving is best achieved when the monthly savings amount is realistic and does not limit your life too much. A good help for success is to list savings as a mandatory expense in your monthly budget.

Everything You Need to Know About Home Savings

The Home Savings is a simple, transparent and perfectly regulated construction. Everyone gets the ‘same’ entry: a 30 percent government contribution to their deposited money, up to a maximum of 72,000 forints per year. But yields are different for each construction – why?

We do not win with the long version

There is no continuity: the difference in yield between different contracts depends on the maturity. But it is worth stepping back and specifying: what is the return on savings?

Yield is the increase in capital received as a result of investments; they are given in percentage form to make it clear. The gross version is the income before taxes and expenses, the net return – which is the case here – is what goes into our pockets.

For Good Finance, if you enter into a short-term contract, that is, 4 years, you will earn quite a substantial return. However, if the maturity is long, our investment will no longer be competitive. The secret to this is simple: our investment, that is, the money in it – which we cannot touch but the bank does – is increasing, while the annual state subsidy remains unchanged, up to a maximum of HUF 72,000.

Compared to a $ 240,000 item, the result is a whopping $ 72,000 (in Year 1), but compared to $ 2,400,000, it’s only a 3 percent increase (in Year 10).

That is, in Good Finance we have more than 2 million forints, and that’s just what we gain in the last year if we make a 10-year plan – which means the profit for the last year is very, very modest.

Support is limited, no upward trend

Support is limited, no upward trend

The reason for all of this is that there is no increase in government credit with more savings in it. So, in fact, we are best served by running several short, 4-year constructions one after the other.

In spite of the many constraints

It is worth considering the other aspects well. For Good Finance, the opening fee is a very big expense, and you should look at the offers to get the best deal on the contract. Let’s also keep in mind that due to quicker disbursements, we will be able to get more money from more financial institutions as of July 2017.

Why so many people want to take out a home loan right now?

We can see a huge leap in the April home loan placement. Families received nearly 80 percent more from banks in 2014 than a year ago. We wondered why there might be more interest in home loans now than a year ago.


The first thing we can remember is that loans have never been as cheap as they are now

The first thing we can remember is that loans have never been as cheap as they are now

But we also have to add that this is just a seemingly inexpensive process, as it is primarily benchmark yields that have fallen due to central bank interest rate cuts and not bank surcharges.

Still, the fact that several banks have come up with new products could have helped a lot with the housing loan boom. Konsume, for example, focuses specifically on loan redemption and greatly facilitates a cheaper loan, so it does not require a credit assessment and proof of debt. With OPT’s new discount system, you can achieve competitive interest rates by transferring higher income to the bank and providing adequate self-care.

Also, those who are afraid of rising interest rates and want to avoid having to pay off installments in the long term will find suitable credit. OniCredit’s fixed-term loan of up to 10 years may be the solution.


We can also look for house prices

We can also look for house prices

As there was an 8 per cent drop in house prices in 2013, if only the eastern part of the country and forced sales went down. Conversely, homes in more frequented areas are losing value less, and real inflation is becoming more immobile due to low inflation.

While new homes are barely built, well-distributed and well-endowed homes are increasingly scarce. So many people have come to realize this and start moving in before it’s too late.

Even if they have been expecting a semi-social loan or interest-free loan as a public servant, after the election, more and more people believe that they will be gone, or that they may become more expensive by the time they are realized.

If you would like to know more about home loans

If you would like to know more about home loans

Even investors can come to the conclusion that it is worth taking a step now, as rentals are rising, making returns even more secure. At current interest rates, it is worth even investing in a loan. According to home brokerage data, a panel of 10 million dollars can yield a profit of well over 7 percent if bought in the right place.