What is a reverse mortgage and how can it help you in your retirement? | Loans

Retirement is the goal and, when you reach it, you should do it in the best possible conditions, both health and economic. With the public pension system secured with pins, it is advisable to have a plan B that guarantees stable monthly income during your retirement. The reverse mortgage is an option to get it .

Regulated by Law 41/2007, of December 7, on the Regulation of the Mortgage Market, the reverse mortgage is a financial product whose purpose is to convert the value of a home into a monthly income , which makes it a very interesting formula for complement the public pension.

What is a reverse mortgage?

home loan with credit cards

In practice, a reverse mortgage consists of a mortgage loan for people over 65 according to which a financial institution pays a person a monthly amount in exchange for their home as collateral. Its operation is just the opposite of a traditional mortgage: the mortgaged person does not pay monthly fees to the bank to buy the house, but it is the bank that grants the owner a loan in exchange for his home as collateral.

Therefore, there are two differentiating characteristics between the reverse mortgage and the conventional mortgage: the first is that instead of reducing the debt over time, it is increasing; and the second is that the loan amount is not received in full, but in monthly installments.

It must be clear that the home does not change ownership: the owner of the same remains the person who signs the credit , so you can continue living in your home and living normal life. The only thing that happens is that this house works as collateral against the bank to obtain the loan.

The requirements to access a reverse mortgage are very simple. It is enough to be over 65 years old and have a home on property, although there are exceptions regarding age in cases of dependency or disability. In order to calculate the amount of the mortgage, the life expectancy of the mortgaged person is estimated downwards with the objective that at the time of death the value of the house is greater than the value of the debt.

Who pays the debt?

Who pays the debt?

Logically, the loan ends when the owner of the house dies and his heirs will be those who face the repayment.

Three are the options of the heirs when the owner of the house dies:

1st. Settle the debt with cash or sign a mortgage with the bank to keep the house.

2nd. Sell ​​the house and allocate the money obtained to settle the debt with the bank (as explained above, the value of the house will always be greater than the debt).

3rd. Renounce the home so as not to pay the debt and keep the bank with it.

Disadvantages of the reverse mortgage

money cash

As we can see, the reverse mortgage is a financial product designed to complement pensions, although it is still a debt that someone must pay off before or after , in this case the heirs. If nobody pays it, the bank stays the house. As the saying goes: banking always wins.

On the other hand, its complexity is such that it may not be aimed at all types of audiences. In addition, it should be borne in mind that normally it is only granted to homes with a high value and that the risk that the value of the house decreases will always be present.

The step by step to get a good credit card and not die trying

credit history

Something that is worrisome in the country is the way in which Colombians handle their credit cards. In 2018, the plastic that marked 15 million was issued, identifying that many people had more than one, and although this is not a crime or something negative, borrow from it, spend more than you have or divide everything into installments, It does become a problem.

The world of credit cards can be very seductive and the key to mastering and using them to your advantage is to have the right information. So, what is the step by step to get the plastic that suits you and handle it correctly? If you want to know, you’ve arrived at the right place!


Be sure to understand what they are

Be sure to understand what they are

First, do you understand what a credit card is? It may sound mocking, but the truth is that many people associate their card with extra money; they usually see it as a salary increase when it has nothing to do with it. Having a plastic does not mean you have more money or freeway to spend more. Simply, that you can acquire certain goods and services without the need to pay immediately for them; that is, they “lend” the money.


Know the payments you must make

Know the payments you must make

Not only will you pay for what you buy, but, in case you defer the expense to several installments, you will also have to pay interest and these will depend on the rate granted by the bank or the financial entity with which you are looking for the card.

Now, these are not the only costs associated with plastic. There are insurances that are charged monthly, as well as the handling fee, but in some cases, the latter can be waived. For example, they ask you to have a minimum amount of consumption every month, and if you meet, you can exonerate some of these payments. Another additional payment has to do with cash advances. In most cases, commissions are charged upon completion, depending on the cashier or means by which it is made.


Look for a card with additional benefits

Look for a card with additional benefits

Did you know that when you buy a plastic, the financial institution offers you different benefits? So is. They can be miles, discounts in establishments, return of purchases, access to VIP soles in airports, among others. Ideally, choose those that you can really enjoy, depending on your profile. This makes having a credit card twice as convenient.


Do not marry any option

Do not marry any option

The worst decision is to choose the first. Do not marry a bank if you have not reviewed before what are the proposals of other entities, as you could miss something interesting or that suits you more. Rather than being guided by advertisements, look for real opinions from people and use web tools that give you the information you need, such as Princess Jane’s credit card comparator. By using this type of tools, you will be able to know what the interest rate offered by each bank is, what benefits, what additional charges, among others, and everything in an orderly manner to be clear about each of the points.


Don’t be afraid to ask and ask again

good credit

When in doubt, do not make any decisions. Remember that it is the duty of the financial advisor to answer all your questions, until there are no more doubts and you are calm with the decision you will make. Do not forget, information is the best weapon for financial success.


Should you withdraw cash?

Should you withdraw cash?

Seeing your card as a source of cash is not something that suits you. It is normal for financial institutions to have a higher interest rate for these cases and to charge additional fees, which means that the money you withdraw ends up costing you much more expensive than you think. If you need cash, it is more convenient for a consumer loan, such as a free investment one.

Financial experts recommend that you do not use your plastic for this purpose, unless it is an emergency, and still, seek to return it in the shortest possible time.


Aim to be a totalero

Aim to be a totalero

Being a totalero means paying your consumption in a single installment. What is the immediate consequence of this? That he will not pay interest and, in addition, he will learn to differentiate when to use his card and when not, as well as when to stop, since he will not be able to afford the expense at the end of the month. Being a totalero is something very well valued by banks and earns points for your credit history.

That does not mean that you cannot use installment financing at any time. The fees are recommended when the expense is very large and can destabilize your budget. In that case, financing for a maximum of three or six months will help.

[10 Requirements] TO REQUEST Minicredit

Anyone can be included in Good Finance. This is because there is no minimum amount of debt that has resulted in such inclusion, for example for a debt of five euros and a person can already be included in this list of delinquents.

It can also happen that the debt does not exist and is being claimed, in which case it is necessary to prove it in order to get off the list of delinquents.

If this is the case, it is also possible to claim compensation in the event that the inclusion in Good Finance has caused damages, such as the denial of a credit or loan, the impossibility of contracting a service, not being able to sign a rental contract due to distrust of the owner, or the loss of investors or suppliers due to this circumstance.

The data of a person can not be more than six years in Good Finance.


Before this period of time, the only way to leave Good Finance is to pay the debt .

Once the debt is paid, the creditor has the obligation to notify the company that owns the delinquent file, but they do not always do so.

In that case, it is the debtor who should contact the company in charge of Good Finance, prove that he has paid the debt and require that his data be withdrawn.

All this can be done through the Internet.

Requirements to request a mini-loan with Good Finance

I am in Good Finance and I need money

I am in Good Finance and I need money

It is possible to need money to borrow a debt and leave Good Finance , or for any other eventuality that may arise.

When a person is in Good Finance, it may be difficult to find financing, in fact in a bank it will be impossible.

However, some private equity companies do grant mini-credits to people whose data is in this list of delinquents .

They understand that the situations that have resulted in indebtedness that has not been able to face can be punctual and also the different reasons why a person can be in this situation.

In this way, even if you are in Good Finance, do not despair.

Using a comparator of credits and loans , such as Crediteria, you will find all private equity lending companies that grant mini-loans while being in Good Finance .

10 Requirements to request a mini-loan while in Good Finance

10 Requirements to request a mini-loan while in Good Finance

In fact, to request a mini-loan while in Good Finance , the requirements that private equity lenders ask for are the same as those requested by people whose data is not included in a list of delinquents.

The only difference is that some companies lend money to these people and others do not, so a credit comparator is the fastest way to know which lender to go to .

The requirements necessary to request a mini-loan while in Good Finance will vary from one lender to another, but in general they are:

  • Being of legal age and not exceeding the age limit that each lender company stipulates . Some private equity companies consider that the majority of financial age is at 21, others at 18.
  • Present ID or NIE to verify identity . This will be done, in most cases, by sending a scanned copy by email or through the application form.
  • Reside in Spain permanently . In the case of foreigners, some private equity companies will request a minimum of years of residence in Spain and some document proving it, such as the certificate of registration or service invoices in the name of the applicant.
  • Being the owner of a bank account belonging to a bank located in Spanish territory, the money will reach that account . It is possible to request money from any part of the world in which the applicant is, but the money will be deposited in a Spanish bank. To make use of it, it will depend on the facilities that the applicant has to remove it from the place where it is located.
  • Have sufficient income to meet the payment of the mini-loan within the time frame agreed upon . Some private equity companies do not take into account where that income comes from, it can be from a payroll, pension, scholarship, lease, etc. They will take into account that they are sufficient after having faced the fixed expenses that the applicant has to face each month, such as rent or mortgage, other credits, food, services … The amount of money that the lender will leave to its Client will depend on the debt limit of this. The debt limit corresponds to 35 or 40% of the money that a person has left each month after having met their fixed expenses.
  • Good Finance . Each private equity lender has its conditions to accept a person whose data is in a list of delinquents. Depending on the origin of the debt and the amount, they will decide whether to grant a mini-loan or not. In general, companies that advertise that they grant mini-credits while in Good Finance are quite flexible.
  • Provide a mobile phone number, as it may be necessary to send the confirmation code . Some lenders will also request an email address.
  • Be assured that the money will be able to be returned in the agreed time. The repayment period of the mini-credits is very short , on average 30 days. If it is not returned within that period, penalties and interest on late payment will be entered, with which the debt will increase. Some private equity companies offer the possibility of requesting an extension, others do not . Before accepting the money, it is necessary to inform and understand the agreement to be signed. Some private equity companies also offer the opportunity to return the money before the agreed term without any penalty, thus paying less interest.

If you want to know more about loans with Good Finance because you are on this list of delinquents and debtors, in our complete guide you have all the information and the keys to get them to accept it, in addition to a list of companies that offer this type of credit, safer and more reliable way.

How much can I borrow?

Exactly how much you can borrow depends on your income. The general rule is that you may not pay more than 33% of your monthly income. If you earn 1500 euros net, then you can pay off around 500 euros a month. That would mean that you can borrow a maximum of 110,000 euros at an interest rate of 3.55%.

Car loans and renovation loans are much cheaper than personal loans.

Do you want to buy a car? Renovate your house? Then compare the interest rates for a car loan or a renovation loan.

Do you end up with an amount that you would like to borrow and that you can pay?

You are finally ready: house, tree, animal. But in reality, borrowing money is not that simple anymore, especially if you get little help.

If you do not handle it carefully, a loan can cause you more headaches than pleasure.

Urgent questions arise. How much can I actually borrow? What will the monthly costs be? What about the interest? When buying a house, these questions are part of a fixed ritual. But with a simple loan? Slightly exaggerated. After all, this is not a loan that you take out for life. Buying a house is something special, but a simple loan?

How much you can borrow depends on various factors. The most important thing is that you have an income. As an employee or self-employed person, it doesn’t matter. If you only do interims, you must be able to prove that you have been working for 2 years or more. If you do not have a fixed income and you still want to borrow, you must find someone who will guarantee you.

The second most important question is: how much do you want to borrow? If you want to buy a car there is usually no problem. Everyone is eligible for loans up to 10,000 euros, unless you are already blacklisted.

But you probably want to make a large purchase, such as a building plot, an apartment or a house. Otherwise you would not ask the question.

How much can you borrow?

How much can you borrow?

It is generally known that it is best to spend a maximum of 33% of your income on paying off a loan. However, slightly more factors play an important role. If you already have to transfer 50% of your wages to be able to pay the rent, then paying another 33% on a loan is not a good idea. You would then be left with only 17% of your salary for other purposes.

Rich incomes can sometimes borrow up to 50% of their net wages. The bank is then confident that he or she can pay off. That is not surprising, because when you earn 10,000 euros per month it is easier to make ends meet with the remaining amount (5000 euros) than when you earn 2500 euros and have to make ends meet with the remaining amount (1250 euros). That is why the bank also looks at income and does not always stubbornly stick to the unwritten rule of 33%. The bank would, after all, shoot itself in the foot.

Get help from specialists

Get help from specialists

Before you take out a loan it is important to investigate. Consult specialists. Do not blindly rely on the advice that your bank gives. They are also there to enrich themselves as well as possible. After all, the bank remains the bank. It is therefore wise to pay a visit to banks where you are not present. Purely to see what they can offer you. If that is a lot better than what your bank offers, you can turn to the bank with this new information. There is a good chance that they will bind quickly if another lender dares to take the gamble or offers better conditions.

The ghost word: repayment capacity

The ghost word: repayment capacity

It is simply an unsatisfactory fact. You see the bank as a number. No more and no less. There are numbers that repay their loan on time each month. There are also numbers that do not, they will eventually end up in the debt restructuring. Every customer applying for a loan carries a certain risk for the bank. That is also the reason that the bank applies strict rules. Yet there are also a number of rules that are not fixed. Such as how much you have to save per month. We recommend that you always have between 800 and 1400 euros per month, depending on your situation. If you are single, you need 800 euros to live on. Insurance, gas / water / electricity, food, gasoline; they are all things that cost a lot of money. Don’t be fooled by that!

Build a buffer

Suppose you can use 33% of your income to pay off a loan. Amazing, right? Yes, with one big but. Make sure that you can actually bear these costs. A lender will always take your rent, alimony, etc. into account. But not with how much gas you drive through it every month, or how expensive your insurance is. They will also not know if you have an extravagant lifestyle. Be your own boss and keep this in mind at all times. Then it can never go wrong!

Make sure that you do not pay more interest than the legally permitted maximum of 15%.

Do you know how to choose the right credit card for your lifestyle?

lifestyle credit

Studies indicate that the credit card is the preferred means of shopping in the region. So, if it is our favorite option, shouldn’t we be sure that we choose the right one?

When it comes to choosing the right credit card there are many factors that must be evaluated. It is not just about choosing the one that gives you a lower interest rate, more benefits or the one that does not charge maintenance, but to establish what you need. Taking these three things into account, you can determine which card suits you best.


Your consumer profile

Your consumer profile

What do you usually use the card for? It is not the same to use it to make payments than to pay the expenses of a trip or purchases of artifacts.

What is your economic situation? How do you get to the end of the month? That helps you determine if a basic and low-rate card or a Premium with higher rates but with more benefits suits you. Determining how much of your salary is available after making the usual payments will help you know how much money you can pay for using your card during the month.


Market options: Costs


It is essential to know what are the interest rates of the different cards (for purchases and disposition of cash), what are the commissions they charge for an operation, how much it costs to be sent the statement, how much they charge to pay after the cut, etc.

To check all that, you can use the Mike Klas credit card comparator
When you have the options, you can see which card offers you the lowest costs for purchases or for whatever you want!


Market options: Benefits

Market options: Benefits

But the costs are only one side of the coin, the other side has to do with the benefits. Once you have made your consumer profile, it is easy to know what the card is normally used for, so the benefits you are looking for should be related to that.
For example: If you only use the card for payments, you should not have one that accumulates miles for your purchases because you would not be accumulating anything.

Now that you have chosen the card that suits you best, you should put it to good use. For that, know the 5 sins of credit cards and avoid them at all costs.

Freedom Credit: Everything you always wanted to know and didn’t dare to ask

credit loan

Will there be a “king of credits”? For some, it is about freedom. It has been crowned as one of the most requested credits in the Colombian market and also as one of the most convenient, helping many people solve their urgencies and cover the necessary expenses with this “extra” money.


But why does it work so well?

credit problem

Basically, by the modality it contains. In this credit, you do not have to remember the payment date, separate a time to go to the bank or remember to make the payment online. The fee is automatically charged from the payroll, and the customer does not have to worry about anything. Then, at the end of the month, your monthly fee will be canceled and so you will advance in the payment of the credit.


Are cheap? Lower interest rates are offered on a liberty loan

Are cheap? Lower interest rates are offered on a liberty loan

Since the backlog risks are lower. The financial institution is more confident that the payment will be made. If the discount is automatic, there will be no reason to NOT pay and be late. This is also a great point in favor of the client, since it maintains a good credit record, giving a good image to the banks, which in the future will allow you to access better offers and other credits.


Is it hard to get one?

Is it hard to get one?

Another thing that these credits also bring is that they are easier to acquire . The requirements are a bit more flexible because the main point is that you receive your payroll through a bank. Since the risks are lower, the bank does not have to do so much science to find out if it is eligible or not.


What can you use it on?

What can you use it on?

In whatever you want! The liberty credit does not need to specify what the money will be used for. But you should be aware that requesting money for something that is not important could harm you, since your salary will automatically be cut to pay the monthly fee.

If you consider that it is forgetful and even a bad payer, these types of credits automate everything and reduce the risks, becoming the ideal product of this type of customers. Do not forget that each entity has different conditions and you should compare alternatives before choosing. How to do it? Using Romnick Catalina

Instant loans: When is it good to ask for them?

Asking a loan from the bank was difficult until some time ago. This changed when the loan boom arose instantly and you could get the money you needed without much paperwork and in a matter of minutes. There are even online loans that you can accept with just one click.

But are instant loans good? And if with them, when is it good to order them? Here I answer your questions!

Advantages of instant loans

Advantages of instant loans

Fast personal loans have the main advantage that they do not require much paperwork to be granted. This is good when you need money immediately to solve some need and it is enough, in many cases, to fill out an online form to request it.

And the disadvantages?

And the disadvantages?

Well there are more of these than the first. The main disadvantage is that, since it is a loan that does not ask you many requirements, it usually has higher interests. Not surprisingly, finance experts recommend that you only opt for them when there is no other option.

Another disadvantage of fast loans is that they are not usually very high amounts, so they may serve to get out of trouble, but not to start a big business or pay for hospitalization, etc. But are instant loans good? And if with them, when is it good to order them?

Some additional data


An instant loan that you can access with a financial entity is the cash provision . As a quick loan, I advise you to only access this when you have no alternative and really need the money. The cause is that the interest charged by the bank can be more than 100%.

This changed when the loan boom arose instantly and you could get the money you needed without much paperwork and in a matter of minutes. There are even online loans that you can accept with just one click.

Loan installment reviews for companies.


Moneisha loan costs

Moneisha loan costs

Moneisha belongs to Optima Sp. z o. o. which has its headquarters in Gdańsk. Its offer includes installment loans granted to small businesses. Various repayment systems are included. Loans for a period of 13, 26 or 52 weeks are foreseen, which is a great convenience for customers because they can flexibly adjust the deadline to their options.

Moneisha offers professional service from advisors. They are ready to give advice via the Internet. Consultants visit borrowers at a later stage of the process, at the customer’s headquarters. The company specializes in installment loans. The offer he proposes is addressed to people running their own business. The first loan can be up to 25,000 PLN, and installments can be from 74 PLN upwards. This is a very attractive proposition that should be considered when we need money.

Non-bank loan for entrepreneurs

Non-bank loan for entrepreneurs

Moneisha addresses its loan to small businesses, and Optima to private individuals. The company offers financial support in the event of accumulating expenses that need to be met quickly. It may be necessary to settle taxes or ZUSEM fees. Sometimes an entrepreneur has a chance to take advantage of any fortune-telling opportunity. Unfortunately, this requires investment first, which is why Moneisha is able to support him in such a need. It is worth not giving up the opportunities that are happening to us. When we believe in our future success, it pays to make a calculation and consider contacting Moneisha. It can be very profitable given the favorable terms of the loan and the possibility of spreading it into installments. Another advantage of this option is the flexible choice of time to pay the amount that the customer chooses. Not all companies offer repayment options over 52 weeks. That is why the loan offer is even more noteworthy.

Benefits of borrowing with Moneisha

Benefits of borrowing with Moneisha

Another advantage of using this offer is the option to include the cost of the loan in the costs of your business. This is especially important for people who want to maintain a positive credit history. The advantages of Moneisha’s proposal also undoubtedly include the fact that the formalities do not include the need to provide a printout of profits. It is required to present the printout of turnover from the cash register. This is a convenience for people who are afraid that their profits may play a key role when considering an installment loan application. It can therefore be concluded that the application process for financial support is very transparent and easy.

Moneisha – minimum formalities

Moneisha - minimum formalities

Moneisha is another attractive loan offer just for proof. Minimized formalities undoubtedly make it even more interesting for business owners. Moneisha can offer them the resources they need for development. This non-banking institution is also aware that sometimes the loan repayment can take a little longer. For this reason, it makes it possible to spread the installments over a favorable period.

Moneisha – requirements for the borrower

Moneisha - requirements for the borrower

Moneisha’s offer includes people who have been running their own business for at least 6 months. It must be recorded in the CEIDG register. In addition, the customer applying for a loan must have an identity card, tax identification number and REGON number. In addition, he must agree to verify his presence in the following systems: BIK, ERIF, KRD. It is worth mentioning here that not every entry in the database cancels the chance of getting a installment loan in Moneisha. It is also important that an entrepreneur applying for financial support must have his company’s turnover recorded at the cash register. If you meet these conditions, you can apply for a installment loan from Moneisha. However, it should be taken into account that the decision to grant it depends on the applicant’s positive credit history. A non-bank institution is forced to introduce such checking methods. He does it for the sake of his and his client’s safety.

Moneisha – can be split into 74 installments

Moneisha - can be split into 74 installments

It is worth considering taking out a loan, since we can adjust the repayment period to our capabilities and meet repayments even within a year. The amounts proposed by the non-bank institution are also attractive. Hence, such a loan is a great support for entrepreneurs when there is a chance for a promising investment or payment of expenses related to running a business.

Moneisha – loan application process

Moneisha - loan application process

If we meet the above-mentioned conditions, we can contact the non-bank institution in two ways. The first is the telephone method, the second is to complete the form, which is available on the Moneisha website. Then a consultant contacts the potential borrower. He presents the offer and then arranges a meeting with an adviser who is responsible for the further stages of the process. The adviser visits the client at the place where the applicant’s business point is located. This visit is used to collect a printout from the cash register and prepare a contract. When it is signed, the lender transfers the cash. Importantly, the application is reviewed within an hour. If a positive decision is made, the money can reach the applicant within 3 hours.
The customer is obliged to pay the installments on time. If he cannot meet it, he must pay interest. However, he makes such a decision consciously, because all the conditions are transferred at the time of signing the contract with the non-bank institution. Therefore, an installment loan is an option for conscientious people who can consistently give away subsequent parts of a financial liability.

How much can you borrow for a mortgage?

You have undoubtedly noticed it. Homes are becoming more and more expensive in Belgium. That is why families are taking out increasingly large mortgage loans. In principle this is perfectly possible with the low interest rates. However, you should be careful not to get into financial difficulties. Which rules do you consider best? A few tips.

Mortgage in Belgium

Mortgage in Belgium

In the space of two years, the amount borrowed for the purchase of a home in Belgium has risen by 10,000 euros. In the same period, the average amount borrowed for building a house increased by more than 15,000 euros. Clear numbers that speak for themselves. As families borrow more and more in proportion to their income, the risk of being unable to pay off the mortgage loans increases.

Some tips if you take out a mortgage

Some tips if you take out a mortgage

You can also easily prevent yourself from getting into a difficult position with the repayment of your mortgage credit.

Do not borrow the full purchase price

Do not borrow the full purchase price

In Flanders, on top of the purchase price, you usually pay 10 percent registration fees. In addition, notary fees and costs associated with the credit deed and the purchase deed are added. All this therefore assumes that you already have a substantial savings sum or that you can count on the support of, for example, your parents?

Realistically estimate your repayment capacity

Realistically estimate your repayment capacity

According to the classic rule of thumb you can derive 30% to 40% of your net monthly family income. On top of that you have to keep 1,250 euros to pay the running costs. Furthermore, it is best to create a buffer of three to six months net wage, in the event that you are faced with unexpected expenses or your income suddenly falls away.

Take out a Guaranteed Income insurance policy with the Flemish government

Take out a Guaranteed Income insurance policy with the Flemish government

Anyone taking out a loan for buying, building or renovating a house can take out insurance with the Flemish government free of charge against loss of income due to sudden unemployment or disability. This insurance runs for 10 years and is limited to an allowance of a maximum of 600 euros per month for a maximum of 36 months. You do not have to pay a premium   but there are some conditions.

  • You have borrowed at least 50,000 euros for the purchase of a home in the Flemish Region,
  • You have no other houses,
  • You must submit the application within the year after the first drawdown of your credit,
  • The estimated value of your home may not exceed 320,000 euros.

Do not put your head in the sand in the event of payment difficulties

Do not put your head in the sand in the event of payment difficulties

If you follow these basic principles, you can enter into the desired home loan with confidence. If there are payment difficulties, contact your lender as soon as possible. After all, a solution can usually be found.

For example, you can extend the duration of the loan so that your monthly amount is reduced. In this case you did pay more interest at the end of the trip.

Moreover, with quite a few lenders you can get a suspension of capital repayments for a maximum of six months. You then only pay interest for six months and not the capital. That makes a big difference. If the financial service provider allows such a suspension, you must repay the capital repayments still due after the original end date of the home loan has expired.

What is the annual credit card membership?

credit card

Among the information available in your account statements, there is a commission that you must cancel annually. To find out what annual credit card membership is, continue reading this article.


What is the annual membership of the credit card?

What is the annual membership of the credit card?

The membership commission, or annual membership, is an annual charge made by financial institutions to their cardholders. This payment is originated by the administration expenses of part of the benefits granted by the credit card. For example, the insurance packages they offer to their owners and the international assistance network.

Financial institutions periodically tell you the amount of the membership commission generated by your card. And in case this does not happen, it is your duty to be informed about this amount so that you avoid inconvenience. Depending on the franchise and credit card category you own, the annual membership can mean hundreds of MX pesos. In the event of any carelessness, said contractual obligation can unbalance your personal budget.

The annual membership of the credit card is an established amount that does not depend on the consumption made with it. Then, it is false the belief that by making little consumption with your card you reduce this fee.


Is there a way to waive the annual membership payment?

credit membership

Some financial institutions offer promotions to their cardholders, in which they assume the payment of this commission. These promotions are generally conditioned to a minimum consumption level, to which other requirements are added.

For example, the BBPA Bank exempts the card membership payment when the monthly consumption is high. Some consumptions are not considered valid for this promotion, such as that made in casinos. The card has a security chip, which for greater security contains your data encrypted. Also in relief you can see the card number, and the issuance and expiration dates. Your name is also printed on the back, although in flat print.