To buy a flat on credit you will need a lot of cash

Against this background, the Polish requirement of 20%, of which half can be replaced by insurance, does not seem so restrictive. However, this does not change the fact that for many people it is too much.

As a rule, the own contribution is 60,000. USD when buying a flat worth 300 thousand USD. Added to this are transaction costs, equipment expenses, and renovation and finishing work, and the amount of cash you need can easily get close to a substantial amount of 100,000. USD.

To buy a flat on credit you will need a lot of cash

To buy a flat on credit you will need a lot of cash

Of course, not all of this amount needs to be spent immediately (e.g. equipment), some can be negotiated (e.g. notary fee or commission), and above all, some banks will retain the possibility of granting mortgage loans to people with 10% of interest even in 2017. own contribution.

The missing contribution needs to be replaced by insurance, which means an additional cost, but for many borrowers, this will be the only solution that will allow them to live in their own “four corners”.

Without a housing contribution, the apartments would be more expensive even by 20-40%

Without a housing contribution, the apartments would be more expensive even by 20-40%

This is also the biggest minus the introduction of requirements for own contribution – especially for young people it hinders the purchase of their own “M” and condemns to rent and deposit the amount needed to buy. The problem is, even more, pressing in the face of the fact that it will become increasingly difficult to get budget subsidies when buying an apartment (from the “Apartment for young people” program).

For the sake of order, it should also be added that the growing requirements for own contribution also have their advantages – for example, reduced risk and stabilization of the real estate market. The most important advantage, however, seems to be the fact that if banks did not require their own contribution, most likely housing prices in Poland would rise significantly. This is a particularly lively concern surrounded by the low cost of credit on the Vistula River.

Research from the International Monetary Fund from 2011 shows that the increase in the required own contribution by 10 points. percent. limited the rise in property prices by 10 points percent.

It is true that the Korean market was analyzed, but if these results were directly translated into native conditions, one could risk the statement that without the requirements set by banks, housing in Poland could be as much as 20-40% more expensive than it is now (a few years ago not only 100% debt, but even over 120% of the property value).

There may be a paradox here, in which high requirements for own contribution make it difficult for young people to buy their own “M”, but the lack of such requirements would have a similar effect because the flats would simply be too expensive for these young people.

20% own contribution is not much?


It is also worth paying attention to the data collected by Good Finance, which shows that the requirements imposed on banks by the Polish Financial Supervision Authority are not excessively restrictive compared to those in other parts of the world. Data collected by Good Finance from 36 countries show that in most of the banks allow debt to persons who have at least 20% of their own contribution (LtV at the level of max. 80%). This is the case in the 28 countries surveyed, which is roughly three out of four considered.

On the other hand, you can also find countries where the requirements for own contribution are much more restrictive than on the Vistula. At least 30% Own contribution is required by Austrian, Spanish or Slovenian banks. It is even more difficult to get into debt in the United Arab Emirates or Hungary.

In the said Arab country, the requirements for own contribution vary depending on the buyer’s country of origin, type of property and its value, but they can be as high as 50% of the price of the property (development premises under construction).

Hungarians who would like to borrow in a foreign currency will also face high requirements. If a resident of Budapest tries to borrow in Swiss franc or yen he must have as much as 65% of the price of the apartment in cash.

How free credit scores really work?


It’s easy to get a free credit report – federal law says we all see credit reports once a year at no cost (here’s how to see your reports). However, it is much harder to get credit card bonuses.

Credit scores are numbers that lenders use to evaluate you as a borrower. These numbers are generated by computers that go through your credit report, and they often differentiate between approval and rejection.

So do you have to pay to find out what your result is?

You will quickly find that companies that advertise free results will intend to charge you sooner or later.

But there are several ways to get really free results (though sometimes you get what you pay for). Let’s dig into our options below.

Types of credit scores

Types of credit scores

You may be surprised to learn that you have numerous vouchers – not just one. For starters, each credit bureau generates a credit score, and each scoring model creates its own score (and has many points). Before you take it too seriously, find out what the result is.

The most important result now is the score – these are the ones commonly used for the most important loans (such as mortgages, car loans and credit cards). Other results may become increasingly popular, but results are the most valuable results.

Each result can help you understand whether you have “good” or “bad” credit – if your score is high, then it goes well – and what factors may hurt your score. However, the specific number you get may not be helpful if you are not looking at the true result.

Free credit ratings from lenders

Free credit ratings from lenders

Next time, borrow, ask for a free one.

Each time you apply for a loan, your lender most likely receives a score as part of the lending process. Ask your lender to tell you what your result is – they may not know you are curious, and they are generally happy to share that information with you.

In addition to traditional lenders, peer loans and other online lending often provide a free credit score (or some indication of where your score is) if you sign up for your services.

If lenders, based on your credit score, decide not to approve your loan (or choose to offer less favorable terms), they must provide the credit score they used.

It’s easy to get a free credit score when you apply for a loan, but you may want to get a glass more often. Some banks provide free credit scores with monthly updates if you use your credit card. For example, users can see a chart showing how their score has changed over time. Your credit card company regularly checks your credit anyway (to see if they fall during difficult times or if they need to increase their credit limit), so it’s easy to provide this service.

Promotional free credit scores

Promotional free credit scores

The internet is a full site that promises free vouchers.

You usually sign up for a trial offer, see your results, and then have to pay a subscription (after a month or more). However, you can unsubscribe and skip payments.

While this method may occasionally give you a free credit score, you have to jump through a lot of hoops to do all the trial offers (and you must remember to cancel your subscription to avoid payment). In addition, you submit sensitive personal information to various websites so that your risk of identity theft is increased. Finally, your name and contact information end up in many marketing databases, and you have to pay a price (in the form of a marketing attack) for the coming years.

New guidelines for sms loans in Google ads


Google’s rules for advertising sms loans will change on July 13, 2016. No, this does not mean that Google will filter sms / fast loans from search results such as Expressen trying to make us believe, at least when you read Express’s headline “Fast loans are stopped “. The evening paper has taken its information from a second-hand source, Breakit, where you get a more accurate and informative headline “Google stops ads from sms loan companies”. Because that’s exactly what Google’s new guidelines mean, that they won’t allow ads from high-end companies under certain conditions.

Google has its own advertising system called Adwords that companies, individuals and organizations can buy into when they want to advertise a product. These ads appear, among other things, when using their search engine. The ads usually show up above and below the search results and show relevant advertisers when someone uses keywords associated with the advertiser’s products.

What do we think about this?

What do we think about this?

Now, as of July 13, Google will not allow advertising from credit companies that offer sms loans that have a payback period of 60 days or less. According to Google’s first-hand source (yes, we always look at the first-hand source if possible) it is due to the following: “This change is designed to protect our users from deceptive or harmful financial products” which in Swedish means that Google has made this change to protect its users against misleading and harmful financial products. Also, in the US, credit companies that offer fast loans with an effective interest rate above 36% will not be able to advertise in Adwords.

So what do we think at Good Finance about the new requirements for the Swedish credit companies, that the shortest repayment period must be at least 61 days in order to be visible with Adwords? It’s really nothing we care about, why should we have it? After all, it is Google who decides which ads they consider to be okay and which ones they consider not okay.

If they do not want to receive advertisements from fast-loan companies that have a shorter repayment period than 61 days then they have every right to do so.

There are some ad networks that think it’s okay to receive ads that have so-called adult toys and adult movies, while other networks don’t think it’s okay. It is not something we cannot or do not want to put in. It is something that the advertising company itself must decide, even when it comes to sms loans.

How will this affect the industry?


Here, we should speculate a bit on how we think Google’s new guidelines for its advertisers will affect the sms industry.

First, Google’s advertising rules will not affect search results. Credit companies that already appear on Google’s search engine will continue to do so, but those previously only seen in the AdWords ads above or below the results will no longer be visible if they do not meet Google’s new guidelines.

Secondly, those credit companies that offer sms loans with a maturity of 60 days or less (and have not advertised outside of Adwords) will have problems if they are far down in the search results.

They will no longer be visible and will have significantly fewer customers


But of course, this will not be accepted. They will probably make any or all of the following changes:

  1. They start collaborating with other advertising networks that make them appear on various websites on the web.
  2. They can start advertising on radio and TV with it being quite expensive. They can also contact large, well-visited and relevant websites and ask if they (without intermediaries) can place their ads on these websites and the like.
  3. They can put more energy into making a good, informative and user-friendly website that is appreciated by visitors and Google.
  4. They can arrange to ship maturities of 60 days or less and continue to advertise with Google as usual. Unfortunately, there are many customers who think that sms loans with over two months’ maturity are too expensive. At best, it might mean that these credit companies lower their lending rates for sms loans, let’s hope so, even if it is extremely doubtful.