Archive 2019

Good tips: How to improve your credit rating

Before a lender grants you a loan, it is only natural that they want to assess whether you are actually able to pay your monthly repayments. This applies not only to the actual loan amount, but also to the interest and fees you are charged as compensation for the credit granted.

To ensure this, they do a so-called credit rating on you. In this regard, they go through many different aspects. Among other things, they review the following when they credit you as a customer:

  • Fortune
  • Income
  • Debt
  • expenses
  • job situation
  • family Situation

Such a credit rating is intended to create a picture of your financial situation. Before you can be granted a loan, you must have a positive credit rating. If you want to take out a loan, it is a good idea to work on improving your credit rating.

How to improve your credit rating

money cash

Your credit rating plays a crucial role in borrowing money. To increase your chances, you should make an effort to improve your credit rating, if it is not already sublime. Fortunately, this is something you can achieve in several ways.

Here are some tips on what you can do yourself if you want to improve your credit rating – and thus increase your chances of getting the loan you want.

Pay your bills on time

If you are not good at paying your bills on time, then you could risk having a negative impact on your credit rating. This is an indicator that there are no best conditions for you to pay off your loan repayments in a timely manner.

Therefore, it is important that you always focus on paying your bills on time. If this does not happen, you will not only receive reminders but may even risk registering in RKI – and it is not exactly something that will benefit your credit rating in a positive direction.

Repay existing debt

money loan

When a lender assesses your creditworthiness, it looks at, among other things, whether you have an existing debt. If so, they will also investigate the size of your existing debt.

If you have previously taken out loans that have not yet been repaid, this will typically be considered as a sign that your repayment ability is not particularly positive. If you want to take out a new loan, it is a good idea to make sure that you pay off your existing debt.

Apply with a partner

You will not be credited with this, but your chances of being approved by the chosen lender will increase if you have a co-applicant when you submit your application. With a co-applicant, you will not guarantee the loan on your own, which increases your chances of getting approved.

However, if this is something you are considering, it is important that your co-applicant understands that he or she will be responsible for repaying your loan should you be unable to repay the loan yourself.

The Jargon Behind a Car Insurance

Ready to buy a new car or take out insurance? We know that the terms that cross your path during your research are not always simply formulated. That is why we guide you through this glossary.

 

Civil liability insurance

Civil liability insurance

This is also called the BA insurance and is absolutely mandatory in our country. This compensates the material damage and physical injuries of victims of an accident. If you do not have this car insurance, you are not allowed on the Belgian roads. If you then cause an accident, your own physical injuries and other costs are not covered.

 

Bonus Malus Ladder

This is perhaps a term that you have heard before, but what does it mean exactly? Well, for car insurance, a reward system is used. This means that insured parties who do not cause any damage will build up claim-free years. Based on how many years you build up, you have to pay less to your insurer. That discount is built up in steps, hence the name ‘bonus-malus ladder’. Per x number of claim-free years, you can go down a step and your premium drops. Although the bonus-malus system in Belgium is no longer mandatory since 2004, many insurers still use it.

 

BOB guarantee

BOB guarantee

Some insurers cover both the damage to other road users and the damage to your own vehicle if you are replaced by a PDO driver. If you have a glass too much, it is therefore a good thing to have someone else – sober, admittedly – drive home with your car. Not all BA insurances have a BOB guarantee.

 

DIV

This abbreviation stands for “Vehicle Registration Service”. This is the government department that manages the number plates and registration certificates. Here you can also find personalized number plates, transit plates, trader and test drive plates – in short, everything that has to do with number plates.

 

Franchise or exemption

car insurance

This is the amount that you have to pay yourself when your insurer pays compensation for an accident. Don’t worry, because this amount is fixed in advance in the insurance contract. This amount can either be fixed and therefore fixed, or in proportion to the total damage costs.

 

Economic total loss

When your car is declared economically total loss, this means that the damage is so great that your repair cost is higher than the value of your car. So more has to be invested to repair your car than it is still worth. Suppose your car is fifteen years old and someone else bumps into it, chances are that your car will be declared economically total loss . If you want to have it repaired, you will have to pay the difference in relation to the value itself.

 

Technical total loss

Economic total loss

Unlike when your car is declared an economic total loss, this is about damage that can no longer be repaired. Here we are talking about extreme cases, such as fire damage or a highly deformed body.

 

Green card

The green card is a document that states that you are insured. When a police check asks for your vehicle documents, you normally bring up a folder containing the green card. This and the test certificate are the most important car documents, so make sure you have them with you in your car at all times.

 

Omnium

Economic total loss

If you take out comprehensive insurance, you are always insured in the event of an accident – even if you caused it yourself. It even covers the material damage to your own car, even if no third party is involved. The coverage is more or less extended depending on the insurance contract.

Damage-Free Years Your Car Insurance From Now on Your Policy

From January 1, 2014 you never have to wonder how many claim-free years you have accumulated. Last summer, the insurance companies affiliated with the Dutch Association of Insurers agreed with each other.

 

Why is that good news?

car loan

The accrued number of claim-free years determines your discount percentage. The more claim-free years, the higher the discount. Do you want to switch to a different insurer? Then it is nice to know in advance exactly how long you have driven without damage. That way you know exactly what your new car insurance premium will be.

 

How was it again?

How was it again?

Many insurers never mentioned this number on your policy schedule. Often on which bonus-malede reason you were. But because bonus/malus ladders can differ per insurer, this led to much confusion among car owners if they wanted to switch once or make a premium comparison. This will change as from 1 January because insurers will now state your claim-free years on the policy schedule or bill.

 

Your benefits with claim-free years on your policy schedule

Your benefits with claim-free years on your policy schedule

From now on you will never again experience the following problems with a possible transfer:

  • You state too many claim-free years, so that you pay a higher car premium after recalculation.
  • You state too few claim-free years, as a result of which you may remain ignorant of a higher premium discount and you refrain from a favorable transfer.

 

Still accurately compare

Still accurately compare

Because you now know how many claim-free years you actually have, you can therefore more accurately compare the premium for your car insurance with the premiums of other companies. You can immediately see exactly how much you save on your car insurance.

Compare car insurance

A difference that among Binto Binto users is around € 200 a year!

 

More transparency

More transparency

Binto Binto has been committed to a more transparent insurance market since 2000. We therefore warmly welcome the decision of the car insurers. You, as a consumer, can only benefit from it. The possible randomness belongs to the past. From now on you can clearly see what your number of pure claim-free years is. Something that you, of course, are entitled to as an insured person.

 

Not everything will be different

Not everything will be different

Every insurer can still choose, for example, to offer a no-claim protector or to use its own bonus-malus ladders. For example, with a no-claim protector you are assured not to fall back in claim-free years if you ever claim damage on your car insurance. But if you switch, then your actual number of claim-free years will certainly be looked at.

You can now find that number on your policy schedule. Unpleasant surprises about your premium discount are a thing of the past.

What to do if the bank requires you to take their home insurance

 

Change your bank if it does not respect the Lagarde law

credit

The Lagarde law allows you to take the insurance of your choice. The attitude of the bank here is abusive. The ideal would be to compete with the loan and to have several offers. Realize a real estate loan simulation with our broker partner in CREDIT: he can find a rate equivalent to your bank and make you a credit proposal within 48 hours.

Enforce the Lagarde Law by imposing your choice of borrower collateral

borrower

In a first time, about the insurance of loan, I advise you to make him an email by making it clear to him that the Law Lagarde allows you to choose your insurance credit and that you wish to profit from this right, so as to have a writing.

The possibility of changing your insurance contract for 1 year

If you subscribe the loan insurance contract proposed by your bank, know that thanks to Hamon law, you now have a period of one year, from the date of signing your credit, to change the contract in subscribing to the insurer of your choice.

Reminder on the Lagarde law

The Lagarde law allows you to subscribe to the insurer of your choice insurance with guarantees equivalent to those of the group contract of the lender. This is called “insurance delegation”. This allows you to benefit from an individual coverage whose guarantees and prices depend directly on your profile and your situation.

Use your right to change loan insurance

loan

The cost of loan insurance can represent up to 25% of the total cost of a home loan. From now on, you have 1 year to replace your group insurance contract with the individual insurance of your choice. You then have the time to properly review your contract and compete between offers to get cheaper and more suitable loan insurance. You can significantly reduce its cost and lighten that of your mortgage.