How much credit can I get? – without credit.
Large purchases are hardly made without loans. Nowadays it has also become much easier to get financing than before. But before you make your way to a lender, you should calculate your own monthly resilience. The total amount of the loan is then calculated from the sum.
Basically, determining the budget is very simple – you just have to compare the income with the expenditure, and the result is the amount that is available for financing each month. It is important that you take the income as pure net income, while ignoring the special payments such as vacation pay or bonuses.
You should be more generous when it comes to spending. For example, there is a monthly insurance payment of $ 27, but the sum insured has been increasing continuously for years, so it is advisable to round up and set the sum to $ 30 instead of taking the lower one. The purpose of this is not to overestimate yourself and to be able to pay the repayment amounts later, despite increasing burdens.
Borrowing often also incurs additional costs. Depending on what a loan is taken out for, commissions, fees, taxes and additional costs may apply. So, for example, when buying a house, the fees will amount to between 5 and 10 percent of the purchase price. If a property is bought unfurnished or in need of renovation, a considerable sum will be added.
What to do if there is no credit
If you want to buy a new car, but do not get the loan amount you want, you shouldn’t despair. First, you can take a close look at the various payments and consider which of them you could cancel – old insurance, subscriptions, etc. Second, you can agree with a lender on a loan with a longer period of time – this will reduce the monthly charges.
If you get a loan cancellation from a bank advisor, you don’t have to give up immediately. Since lenders do not have the same terms, you may have the chance to get a loan from another bank branch – or from online banks.
To get help
If you are not sure or you do not want to deal with it yourself, you are free to get help. It could be both a budget or loan calculator on the Internet, as well as a bank advisor or an independent financial planner.
Conclusion: How much credit you can afford depends on the income and expenditure ratio. You can see how much money you can freely dispose of. It is best not to use all the money for loan installments. After all, there are sometimes irregular or unexpected costs, such as vacation trips or various repairs.