MonthOctober 2019

The Bright Save Bank raises interest rates on private loans and is expected to raise them even more

Just before Christmas, the Bright Save Bank raised its policy rate (repo rate). The increase was 0.25 percentage points and means that the policy rate now stands at -0.25%. It is still a historically extremely low interest rate, but the first increase in many years can still have a lot of consequences for borrowers in Sweden. The repo rate is governed by all interest rates in society, including interest rates on private loans, mortgages, interest on savings accounts and more.

Several lenders, both large mortgage companies and smaller niche banks, have already made changes in the pricing of their loans. If you have private loans and / or mortgages you may have already noticed this. We are now at the beginning of a period when the Bright Save Bank will continuously raise its policy rate. The question is what does it have for the direct effect on the loan?


Private loans run at variable interest rates

Private loans run at variable interest rates

What not everyone is aware of is that the interbank loans always run at variable interest rates. This means that the interest rate is not fixed but can be changed continuously. However, there are no major peaks and valleys. It’s not like a very small increase on the part of the Bright Save Bank causes the lenders to add several percentage points to their prices.

An interest rate is always specified for a loan agreement. For a private loan, for example, it may be numbers like 7.25% or 10.95%. This interest rate is the one that was decided when the loan was granted. However, in the terms of the agreement it is always stated that the interest rate can be increased if the borrowing costs for the loan increase. An increase in the repo rate, which in turn affects market interest rates, can give rise to more expensive loans.

All private loans and other loans with floating interest rates become more expensive if the Bright Save Bank raises the interest rate.


When can a lender raise interest rates?

loan interest

Thus, a lender cannot make a change in its rates at any time or in any case. Borrowing costs for the lender are required to increase. If borrowing costs increase, a lender, such as a credit market company active in private loans, has the opportunity to “pass on” this extra cost to customers.

What, then, does borrowing costs mean more accurately? Borrowing costs are all costs that deal with a lender’s deposits. The money that banks and credit market companies lend has in turn been borrowed.

There are two ways to borrow, namely to borrow from other banks and to borrow from depositors (in savings accounts). The majority of lenders combine these two ways. Both types of interest rates that the lender pays are raised if the Bright Save Bank’s repo rate is raised.


Borrowing costs and other costs

Borrowing costs and other costs

Banks and credit market companies also have other costs. In addition, all lenders want to make a profit. A lender must not raise interest rates due to factors such as increased risk, greater administration or a desire for higher profits.

This means that a lender cannot really raise the price of an existing car loan or mortgage in any other case than if the Bright Save Bank has recently decided to raise the policy rate. It provides a kind of predictability for the loan customers.


Interest rate hikes for private loans – example

Interest rate hikes for private loans - example

It is easy to believe that an increase from the Bright Save Bank of, for example, 0.25 percentage points immediately makes all private loans just 0.25 percentage points more expensive. Sure there is a very clear link, but it is not like the interest rates on private loans are slavishly following changes in the policy rate.

What is clear, however, is that the price to borrow always becomes higher after an increase in the repo rate. If it is about, for example, 0.10 or 0.45 percentage points depends entirely on how borrowing costs change.

In January, several credit market companies and banks raised the interest rate on their private loans. Some increased by just one tenth of a percentage point, while others raised the price of existing loans by up to 0.50 percentage points.

Example: You were granted a $ 100,000 loan in August 2018 at an interest rate of 5.85%. Because of the Bright Save Bank’s new repo rate, the lender raised the interest rate by 0.30 percentage points. The new interest rate is thus 6.15% and you are obliged to pay this price until something else is announced.

A lender must notify the borrower of increases in good time before they start to apply.

What then means a few tenths of a percentage point in kronor and the penny? Not really much, provided the loans are not in very large amounts. In the example above, the price of the private loan increases by $ 300 per year if we deduct the interest deduction. For mortgages, the situation can, of course, become much more difficult. A tenth increase means a couple of thousand dollars for every million borrowed.


When is the interest rate raised next time?

When is the interest rate raised next time?

A few days after each so-called monetary policy meeting (when the Bright Save Bank decides on any changes in the policy rate), a monetary policy report is presented. In this, the Bright Save Bank presents the reasons for its decisions together with forecasts for the future.

The latest monetary policy report states that the central bank will proceed very cautiously with interest rate hikes. The so-called interest rate path will be slightly rising in the coming years and according to the forecast, the repo rate will reach 1% sometime late in 2021 or early in 2022. However, the uncertainty interval is large, and the interest rate path is far from fixed.

According to the forecast, the Bright Save Bank aims to make a second increase in the second half of 2019. In that case, this probably means zero interest rates at the end of the year.

If inflation were to increase at a faster rate than the Bright Save Bank has anticipated, however, the interest rate path could become a little steeper. The same applies if the economy continues to develop positively. A negative economic development may instead mean that the central bank will postpone the time for the next increase.

Are you going to travel? Borrow money for the travel budget! – Take out Loan

Summer times are holiday times, this is known long ago. It is this time of year that we finally get to enjoy our holiday days and hopefully manage to gather family or friends and relax in the sun. It is also not uncommon to go abroad during holiday times and we all know for sure that this can cost some money.

Borrowing money to travel is common and very effective – of course, provided you have the resources to pay back. And once you have taken out a loan to travel, it is important not to break the budget and have to borrow more money. Therefore, we have gathered some tips that can be useful if you want to keep a close eye on your budget during the trip.

Set up a budget

Set up a budget

Before you start thinking about destinations and dates, it is important to look over your budget, whether you have saved money or plan to take out a loan. One mistake that most people make when setting a budget is to underestimate costs. A good example of this is food.

Food costs are often more expensive than you think – especially when traveling. Try to set up a realistic budget based on your resources and preferably round up rather than down. This way you have a little margin on your budget which may feel unnecessary at first but nice towards the end as it often goes out even more and you do not have to pull over your budget.

Many people easily forget about the economic aspects of their destination before leaving. By investigating the destination in question, you can quickly read up on what is cheap and what is expensive. Then you can avoid any “shocks” to the wallet.

Withdraw cash and exchange money in advance


If you plan to go abroad on holiday, it is always good to have the cash in cash, if you have a really good track of your things. Using your card is completely possible in many parts of the world, but it is all about a security issue. For example, if you shop for food, souvenirs or similar in smaller stores, it may be risky to use your card even if the opportunity exists. As a rule, it is recommended that you only use your card in larger and competent stores abroad. Therefore, withdraw cash / exchange money before leaving.

Review your mobile subscription

When you come home from your trip it is easy to think that all expenses are accounted for and clear. However, it is not uncommon for an unpleasant cell phone bill to come as a literal letter on the mail. It is probably not unknown that the prices for calls and surf are higher when you go abroad – however it is not uncommon to forget this. Depending on where to go and what type of accommodation you choose, WiFi is not always a matter of course and it is easy to rely on 3G networks. Contact your operator in advance and make sure you have information on what prices apply.

Make a list of possible activities and purchases


Another thing you can do to keep track of, as well as plan your expenses, is to review what you want to do and buy. Maybe you and your travel company are real adventurers who like adventures, or it is shopping that is on the schedule. Regardless of which, it may be good to investigate any services and experiences in advance. By doing this, you can plan your budget and find any discounts and reduced prices.

Credit House has joined the Coalition for Friendly Recruitment

Good Finance successfully passed the verification of activities in the area of ​​hiring new employees and thus was admitted to the group of members of the Friendly Recruitment Coalition.

Promoting good practices and applying the highest standards in recruitment are the main goals of the Coalition for Granted Recruitment.

Joining the Coalition

Involves with the implementation by the company of Of the Code of Good Practice in Recruitment, which sets out the directions of conduct in the process of employing employees. The presence in the ranks of the organization confirms that the company approaches employing new employees fairly, with attention to all details and ethical standards.

Therefore, the Coalition logotype is a proof for candidates that the company communicates with potential employees in an appropriate way, is open to contact with the candidate, clearly formulates job offers by placing specific information about the position and expectations, as well as ensures confidentiality and data security of candidates.

The recruitment process

Is extremely important for the company and the employee. At E-Money Credit House, we assume that recruitment does not have to be stressful. Looking for a job is in itself a nervous and often tedious undertaking. That is why we decided that in our company hiring new people will be efficient and comfortable for potential employees.

For years, we have been applying a policy of recruitment transparency and security, which we have decided to emphasize by joining the Coalition for Friendly Recruitment, because in our opinion the use of good practices in the employment process is a manifestation of corporate social responsibility.

At the same time

It positively affects the perception of the company by potential employees, and also helps in the process of acquiring the best employees – explains Paweł Skurski, HR Director, Good Finance

Good Finance is gradually expanding its team. The company currently employs over 600 employees and associates. The company has already been appreciated many times for its personnel policy, which is confirmed by numerous awards, including 1st place in the 7th edition of the Best Employer 2012 Research (BNP) prepared by AON Hewitt.

Solve your financial problems with personal loans.

Start the year on the right foot.

Start the year on the right foot.

That was one of the main purposes of 2016 for the vast majority of Spaniards, who waited, until a few days ago, the arrival of the new year with enthusiasm, with great desire, with dreams to fulfill and with many goals to achieve.

Everyone wants to start the year with joy. Start it, with enthusiasm. Start it, with personal loans ! And as it has already begun, let’s get the batteries!

Yes Yes. Because let’s not forget that one of the most important problems that Spaniards suffer is none other than the one that affects their economy. There are still large numbers of unemployed citizens.

There are still thousands of families in extreme financial situations. There are still many who have not been able to meet some last-minute expense. But, for all of them, we offer solutions in Binaryloan.

Yes, our team starts the year strongly. We want your 2016 to start well, that you go into it with optimistic thoughts and that you look to the near future thinking about how well you will be doing this year.

We want to help you achieve almost any challenge that you propose and that has to do with your pocket. We want to provide you with the amount of money you need, at the time you need it, so you can carry out that purpose you had set for yourself.

Mini-credits for business

Mini-credits for business

If you plan to start a business in 2016, you know that in Binaryloan we not only have mini-credits. We also have personal loans and you can apply for up to twelve thousand USD. We will give you all kinds of facilities: we do not care about the amount of personal loans that you have pending, we do not need you to put your home as collateral (which is a great advantage!) And, in addition, we give you up to five years of term so that Give it back to us.

And if you didn’t think about it, but the bug is biting you, you can also contact us and ask us about the solutions you need. Only then can we offer you different financial solutions.

Loan for working abroad

Loans are denominated loans

Loans are denominated loans

For over twelve years, the Swissed has almost doubled in relation to the bank. Every Borrower who takes a loan in a foreign currency should be aware of the great risk associated with this financial product. Unfortunately, many borrowers are not aware that this risk is very high. Very often loans in francs were taken by people who could not afford a USD loan .

Importantly, the Swissed loan is a bank loan that is only related to the Swissed currency. This currency was only intended to refer to a more preferential reference rate, which was Nibore at that time.

The franc loans are divided into two groups, the first of which is an indexed loan, in which the loan agreement includes the loan amount expressed in USD. Each installment is repaid at the rate of the Swissed . The second group of loans are denominated loans, which are much rarer in Poland than indexed loans. This loan differs from an indexed loan in that it is expressed in the Swissed currency from the beginning. However, the amount paid and repaid to the borrower in USD. It is not disputed today that both of these loans have a number of legal flaws.

What possibilities do franchise holders have?

What possibilities do franchise holders have?

More and more franchisees are deciding to take legal action regarding a loan taken out in Swissed . These matters are increasing in quantities all over Poland. Borrowers who decide on such a solution can count on the annulment of the loan agreement, the conversion of the contract or the return of unduly collected returns and commissions.

The most important thing you can gain is certainly freeing yourself from the loan obligation and the risk of a rise in the price of a foreign currency.

It is therefore worth getting the courage to go to a financial expert and later to a lawyer specializing in this field. We advise you not to be discouraged by the bank’s position, as it will always be against contract cancellation. First we will be obliged to submit a complaint. The answer to this complaint will usually always be negative. Banks effectively discourage many borrowers from continuing. In our opinion, it is worth considering seriously the decision to go to court.

As can be seen from the example of thousands of franchisees , in many situations a foreign currency loan is kind of like playing on the stock exchange. Probably every borrower, if he was aware of this risk would not opt ​​for such a loan. Each decision regarding taking a loan for people working abroad is worth analyzing with a credit expert.