Credit and the Topic with the Payment Moral

After we talked about the rising debt of the German citizens in our last article, we would like to deal with the subject of late payments in this new article or better: How about the payment behavior of the Germans? If one gives the corresponding credit compass 2015 of the SCHUFA a corresponding belief, then it is with the payment moral nationwide pretty good – with the exception of the Berlin region. Why just Berlin and what the numbers look like there, more on that later.


Payment behavior is consistently good


 Payment behavior is consistently good


First and foremost: Compared to public institutions, Germans are aware of their payment obligations and regularly follow them up. So at least the key message of the credit compass 2015 SCHUFA. In 2014, about 97 percent of all loans expiring this year were repaid by the borrowers on time and within the framework of the agreements reached with the lender. However, there are regional differences, with the federal capital of Berlin being significantly wiped out. According to the credit compass, the Berliners are at the bottom of the list with around 13 percent, who were struggling with payment problems last year – be it paying bills or repaying borrowings. The result is that just those 13 percent have landed with a negative note in the SCHUFA.


Loans: fewer applications but higher credit sums


 Loans: fewer applications but higher credit sums


In times of a so-called low interest rate environment, it seems logical that this is also reflected in the number of loan applications, but here, too, the reality is different. The number of loans taken has declined significantly in the last year, with now more than 7.4 million newly concluded loan agreements. This corresponds to a percentage reduction of at least 4 percent compared to the previous year. At the end of 2014, there were a total of 17.5 million active installment loans nationwide, 200,000 fewer than a year earlier. However, the average amount of loans increased, because last year the value was about 8790 euros loan volume per credit agreement. Whether this can now be assessed positively depends on the point of view – certainly positive for the banks, but whether these figures can be used to derive positive consumer behavior?


What loans are taken up for


 What loans are taken up for


According to current numbers of the Society for Consumer Research GFK, the car is still with 46 percent in the first place as a reason for taking a loan. But also the purchase of new technical equipment or new furniture is a reason for many Germans to borrow.

Our conclusion

 Our conclusion


What people ultimately want to take out for a loan: It should be clear that a loan for a defined period of time represents a financial additional burden that has to be borne by the borrower. Only those who have a clear overview of how their financial situation – keyword: budget book – now and in the future looks and can weigh, which financial burdens are still sustainable, protects against the credit trap and the resulting over-indebtedness!

401 (K) Loan versus IRA Withdrawal


Early immersion in a pension account is rarely a plan from investor A. But there may come a time when a person needs hard cash and has no other options. Under certain circumstances, drawing on a 401 (k) or IRA may be the only real choice.

Certainly, the IRS does not make it easy to pay attention to these tax benefits. Even if you qualify for a so-called deprivation deficit, you will receive an additional 10% penalty on every amount that you have taken from a traditional 401 (k) or IRA account before the age of 59½. This is in addition to the normal income tax rate that you normally pay for benefits. This rather strong deterrent effect is intended to prevent Americans from draining their money before the scheduled time.

There is one exception: you can withdraw the tax money that you have invested in a Roth IRA without getting a 10% fine, as long as you are careful to withdraw only the amount that you have put in, not earnings. See How you can use your Roth IRA as an emergency fund for more information.

But even with 401 (k) accounts and traditional IRAs, the tax code offers a few ways around the 10% early distribution fee. Admittedly, the decision to use this money for something other than your pension is one that should not be taken lightly. But if you can bypass the IRS fine, the idea starts to make more sense.

Borrow from your 401 (k)


Borrow from your 401 (k)

For many employees, this is probably Alan Quatermainijk’s easiest way to gain early access to retirement. With some plans you can borrow your 401 (k) for many different reasons.

With a loan of 401 (k) you can include up to $ 50,000 (or half of the balance acquired in your account, if this is less than that). You then repay your account for a maximum of five years (some employers allow a longer repayment period if you borrow to buy a house). Some plans also offer the borrower the option of early repayment of the bill without penalty for advance payment.

It is worth noting that you usually pay back a little more than you have withdrawn from the account. This “interest” works eigeAllan Quatermainijk in favor of the borrower. Because the money is deposited into your account, you are actually making up part of the interest or capital gain that the money would have accrued if you had not withdrawn it from the fund.

Here’s the kicker: your employer may not offer these loans. Your chances of getting one are better if you work for a large company, many of which now include 401 (k) loans as part of their retirement packages.

Even if your company offers you this option, experts say you should only consider this if you need the money for a real financial emergency. A risk to borrow from yourself is that if you are terminated or leave your job, you may have to repay the loan within 60 days. Otherwise, the funds are considered an early withdrawal and lead to a fine of 10%.

“Many people think that by borrowing money, they simply repay the money with interest to themselves. No taxes and no fines. That’s not right,” said Michael Mezheritskiy, president of Milestone Asset Management Group in Avon, Conn. “When you borrow from your 401 (k), you make repayments with profit after tax, but as soon as the repayments are returned to your 401 (k), they will be tax exempt again.When you retire and use that money for income purposes, re-taxed. Hence it is double taxation. “

Make special editions of your traditional IRA


Make special editions of your traditional IRA


Although traditional IRA accounts do not allow loans, they come with certain benefits that even a 401 (k) does not offer. The government offers punitive IRA distributions, for example for those who want to continue their education or buy their first home.

The exemption from tuition fees applies to people who use pension money to pay tuition fees at a college approved by the IRS, as well as for books and supplies. If you have enough credits, you can use the money for board and lodging without penalty. You can even use the distribution to pay education costs for your spouse, child or grandchild without having to worry about the extra 10% hit. See Pay for a university course with pension funds .

With the tax code you can also use $ 10,000 in IRA funds to pay for a first home. If your spouse also has an individual retirement account, this means that you have access to a deposit and closing costs up to $ 20,000.

However, remember that unlike a 401 (k) loan, there is no requirement to back up your account. That means that you need extra discipline to supplement your nest egg. If you think you can’t do it, think about it for a long time before you get money out of your IRA.

Annuitizing Your IRA

One of the lesser known ways of accessing a traditional IRA is by setting “substantially equal periodic payments” or SEPPs. When you establish a SEPP, you take one or more recordings per year for a period of five years or until you reach the age of 59-½, depending on which of the two is the longest.

With the tax code you can use three different calculation methods to determine the amount of your payments, so it doesn’t hurt to consult a financial adviser about your options.

With SEPPs you can prevent the early cancellation penalty of 10%, but you are still responsible for paying your normal income tax rate for the benefits.

The bottom line

You should probably not withdraw Allan Quatermainijk’s money from a retirement account early, unless you have exhausted all other options, such as borrowing from a bank or family member. But if you absolutely must, it is always better to find a way that avoids a large fine from the government.

“Although we prefer a different saving strategy for special purposes, such as education or a down payment or remodeling in a home, the 401 (k) -plaAllan Quaterma loan can sometimes be a lifesaver, sometimes in an emergency”, says Charlotte A. Dougherty, CFP®, founder of Dougherty & Associates in Cincinnati, Ohio.

The 401 (k) loan obligation to repay your account can be a useful product to ensure that you supplement your money, but it is also a risk if you lose your job. And, of course, if you have both types of pension funds, examine where you have the most available money or which vehicle has the lower return on your money.


Credit Score: Learn How to Raise It

We talked in the text on how to increase the credit card limit that one of the pretexts for the bank to establish this limit are the scores of the credit score . But, after all, what would a credit score be?

Specifically being the Boa Vista SCPC Score and Serasa Consumer , it is directly linked to the CPF . This form of punctuation was created for the risk analysis of a consumer.

So he calculates the likelihood that someone will honor their commitments for a year. The calculation generates a value, which will be, in this case, your score. It will then be reviewed by credit protection agencies to see whether or not it serves the release of credit for you.

The numbers range from zero to one thousand points.

  • 300 points = high default risk
  • Between 300 and 700 = mean risk
  • > 700 = good score

However, these agencies do not disclose how they arrive at scoring. There are own databases, with automatic analysis through statistical models.

And since having a good score is positive for your relationship with the bank, let’s teach you how to increase that credit score.

Check the credit score

 Check the credit score

Before following any tips, the first thing to do is check how much your credit score is. With this information, you will know how much you need to increase. As we mentioned above, if it is below 700, it needs to be improved.

However, care should be taken to consult the CPF. Also because the number of excessive consultations can hurt your score. One recommendation is to do this once a month.

Clean your name

 Clean your name

Having your name clean in SPC and Serasa is key to being able to think about improving your credit score. So, in addition to consulting your score, also take a look at any pending issues with your name already negotiate as soon as possible.

Read more: Understand how to clear your name

Open the positive register


It can assist with lending by banks. It serves to improve the accuracy of Serasa’s score , because the information on your payments will be recorded in the score.

In short, the longer you stay without negativity on SCPC or Serasa, it is best for your credit score.

Organize your accounts


 Organize your accounts

To have a payment history associated with your CPF, place the basic accounts in your name . Also, have more than one financial institution and maintain a good relationship in all.

This helps in track record and positively influences your credit score. But you do not have to just have the bills to spend, just use them.


Leave your bills up to date

 Leave your bills up to date

By the above tip, this is kind of obvious, but always good to reinforce. In fact, putting the accounts in automatic debit is even better.

This ensures that both bills and bills and invoices are paid on time. Therefore, you will also be creating a good payer history, in parallel. This serves as a benefit to increasing your credit score on all your accounts.

Another thing to do is buy it on time. It is important to have some credit in your name and purchases on time, at least once in a while. If you prefer cash payment, use a credit or debit card to help you resume your score.




Apply for your credit now and get a response in 15 minutes maximum.

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Do you need money to be able to go on a trip this weekend? Is not enough for monthly payments? Do you need to apply for a credit now to get out of some emergencies? You do not have to worry, seeking help in a financial institution is more common than you think, especially at a time when the facilities of online platforms have greatly reduced both the time of application, as the requirements to obtain the money you need


How to apply for a credit now?


How to apply for a credit now?

To apply for your credit already , just go to , there you select the amount you wish to request, the term to which you want to cancel your credit (maximum 30 days), review the administrative charges you will pay, and complete the form register. Within 15 minutes you will receive a response and in less than one business day you will have the money paid to your account.


You no longer have to worry about the obstacles that appear when requesting a loan for what you need ; Lineru works 100% online providing loans quickly, easily, without documents and for values ​​ranging from $ 150,000 to $ 900,000 pesos.


Requirements to acquire your loan already

To apply for your credit, you should only consider the following requirements:


Be a Colombian resident.

Be of legal age (+18).

Have an email and cell phone number.

A bank account to which the disbursement will be made in the event your credit quota is approved.

With Lineru you will have access to a credit quota that you can use whenever you need it, without worrying about complicated procedures. We invite you to request your credit quota now ; In our page you can also find out about the great advantages and all the benefits offered by Lineru, as the best online credit quota platform in Colombia.




In an instant request your loan or credit online fast and easy with Lineru.

When you need a loan of money instantly in Colombia, with Lineru you find the best option, with a 100% online service to acquire the loan you need

With the growth of new technologies and the acceleration of daily life, it is normal that you do not want to move a finger for the things you need, for example, requesting a loan or credit before a traditional financial institution. Whether in a bank or a specialized credit institution, these are not always suitable entities for the application of credit instantly , a system where the key is the speed both in the process, and in your response.


What are loans instantly?

The loans are instantly credit lines that are characterized by handling application times and very short disbursements, up to 2 business days; adapting to the needs of users. These are presented as an alternative to the traditional banking system, where it is necessary to approach the office or comply with various procedures and documents.


With the large number of documents that traditional credit institutions request for financial evaluation and the large number of procedures that you must manage, the application can be very delayed and you are not always sure of its approval. All this makes your procedure uncomfortable and more when you require the deposit of your credit instantly and without complications. But this problem has changed with digital platforms.


With the current growth of the internet, which is present in more than half of Colombian households, it is not uncommon to find multiple solutions for the application process of any credit or loan with the possibility to do it from the comfort of your home .


Where can I apply for a loan in a moment?

Taking advantage of new technologies on the internet, Lineru wants to offer you the convenience of requesting a credit quota instantly , without paperwork and 100% online. Lineru is the first online loan platform in Colombia, offering a safe, convenient and fast service from which you can access amounts ranging from $ 150,000 to $ 900,000 pesos, and with a maximum payment term of up to 30 days.


To apply for your credit quota instantly you only need:


Be of legal age (+18).

Be a resident of Colombia.

Count on a cell phone number

An email.

A savings or current bank account in your name in which the deposit of the money can be made.


How to apply for money loans instantly?

How to apply for money loans instantly?


If you meet the above requirements, you just have to go to our homepage ; there you will find our credit calculator, choose the amount and term of your credit, click on “ASK YOUR CREDIT”, complete the registration and the application form and in 15 minutes maximum we will give you a response. If approved, you must sign our virtual contract and within a period of one business day we will make the disbursement to your bank account.


Lineru is a product of the company Zinobe SAS legally constituted in Colombia and controlled by the SIC (Superintendence of Industry and Commerce), this in order to grant the highest confidence and security to our users in the completion of their financial procedures.


Lineru offers the best alternatives when looking for quota of credits instantly, so we invite you to enter and know the online platform that is changing the way Colombians request money.

Instant payday loan without proof of income

If you need to be particularly quick when lending, then you should apply for a so-called “instant payday loan”.

Instant payday loans are predestined to cover a time-critical need for money, which would not allow the processing time of a conventional payday loan. Numerous credit intermediaries advertise on the Internet with the award of instant or express payday loans.

Since this type of payday loan has to be very fast, instant payday loans with a view to the application process work differently from conventional payday loans.

The credit intermediaries and the affiliated lenders reduce the credit check to a minimum and in some cases do not even require the submission of proof of income. But how can that work? Are such credit promises still serious?


The instant payday loan at a glance

There can be many reasons why a short-term need for money arises. If, for example, the car, which is absolutely necessary for the journey to work, suffers an engine failure overnight, there is an urgent need for money to repair it.

In this situation, if there are neither financial reserves nor a disposition framework granted to the house bank – then a payday loan must be forthcoming. An instant payday loan with instant decision (hence the name) has been increasingly offered by online credit intermediaries for several years.

The industry has recognized that there was a kind of market niche in the area of ​​short-term cash requirements, after all, traditional branch banks usually require up to a week’s processing time to apply for and pay out a small payday loan.

In the case of an instant payday loan, payday loan seekers only have to fill out an online form with all personal and credit-related data on the internet and their request will be checked and processed.

The application process is very manageable, so that in some cases no examination is carried out and no submission of proof of income is required. Of course, customers only receive credit balances up to a certain limit, for example in the amount of 5,000 euros. In addition, the payday loan conditions are much higher than with a conventional online payday loan. In many cases, however, the instant payday loan offers without proof of income for payday loan seekers are very interesting, especially if you are financially, for example, due to unemployment, already in a difficult situation.


Why the proof of income is indispensable for the credit decision?

Since guaranteeing a proper repayment for the lender is the alpha and omega of lending, the question naturally arises as to how instant payday loans without proof of income should work at all?

For decades, it has been common practice in the German banking sector for a comprehensive credit assessment to be carried out before the payday loan is granted.

Here, above all, the borrower’s ability to provide debt capital plays a decisive role. An easy repayment must be measured in terms of monthly income and expenditure, and these are credited to a lender of course only in the form of proof of income attests.

By looking at the proof of income, the lender knows that the amount of the payday loan and the amount of the monthly installment are in line with the monthly income.

This is ultimately not only important for the bank’s collateral, but also protects the borrower. Although it is now known that small payday loans are sometimes awarded to the unemployed or students, but it is usually mandatory that there is a solvent co-applicant or a direct guarantor.

Without proof of income or substitute collateral (for example, the cession of assets from a life insurance), it is incomprehensible why a bank should agree to lending.

Online offers, which go in the direction of “instant payday loan without proof of income”, are of course auspicious, but always have a doubtful seriousness.