Credit is a key tool in our finances. Learning to manage it properly will help you achieve your goals and objectives. Before applying for a loan, you should analyse various factors of your financial situation, for example: how many debts do you have, what are your fixed expenses and what assets do you have.
Here are some types of financing that exist in the market:
They are an example of revolving credit, which gives you a line of credit, that is, a total amount on which you are making purchases and payments. The main characteristic of a credit card is the temporality, since it allows you to have money that you do not have at the moment but that you are going to receive in the immediate future. For example, if you make a purchase and you know that you can settle it once you receive your salary. If you use the card with this idea in mind, you can become a customer who pays the entire amount of his debt each month without allowing interest to be earned.
Store or supermarket credit cards are another variant of the credit card, and in some cases, can only be used for purchases at your stores. These cards can work for purchases of durable goods, such as appliances or electronic equipment with promotions or benefits exclusive to that store. In both you can take advantage of promotions to months without interest and other additional benefits; Check and compare which card is the one that best suits your needs. We recommend that before applying for a card, you always review the total annual cost, interest rate, commissions, promotions and other benefits, as well as the other terms and conditions.
Free investment loans
They are specified by being open credit that are not used to a specific purpose. This means that when requesting it you should not explain what you will use it for and you can also fragment it into different objectives.
For example, you could use one part for renovations and another part for a trip. They are offered by banks, financial institutions and there are even companies that are exclusively dedicated to granting them. You can use them to go on a trip, remodel your house or open an investment account. Basically for what you want, since you are usually not asked to state what you will use the money for. As a precaution, make sure it’s a serious company and review the stipulations of your contract before signing. As with credit cards, see, compare, and review the total annual cost, annuity, commissions, as well as all terms and conditions. Also prepare your budget and verify your strength to pay.
Many institutions offer specialized financing, for example, mortgage, educational and automotive, among others. This means that the amount they offer you can only be used for one objective and you must be able to verify that you used it for that purpose.
The advantage of these credits is precisely their specialization, since the amounts and payment plans are designed according to the objective. Review the different alternatives very well before hiring and calculate the percentage of interest that they will charge you.
They are very similar to free investment, only in this case it is essential that you receive payment of your salary through a payroll account at a bank. Thus, the institution can grant you an amount based on the salary you receive each month and will deduct the payment directly from your account.
Loan for durable consumer goods
The utility of this credit is related to the acquisition of goods that have a commercial value and a determined useful life, such as automobiles, computer equipment, household appliances, furniture and equipment. They are granted to complement the shortfall to acquire them, that is, the borrower must contribute a percentage of the total cost and the bank lends the rest. These assets can sometimes used as collateral for the loan.
There are many types of credits, so do not stay with the doubt and ask, investigate and evaluate everything you need before committing.
The online payday loans and credits are products that allow us to finance our purchases or acquisitions. Whether buying a car or more expensive shoes than usual, a loan or credit can help us with this. In itself, a loan is defined as a financial operation in which an entity or person (in this case, lender) grants an amount of money to another person (borrower) in exchange for the full return of this plus interest (that is what is known as the loan price). Normally, the repayment of the loan is carried out through previously established installments.
When we think about getting a loan, probably the first thing that comes to mind is our trusted bank. Bank loans are the most commonly known, however they are not the only option to obtain money. And there are several entities that can grant us different loans and credits, including:
- Savings banks
- Online lenders
- Cooperatives of saving and credit
- Credit card companies
- Platforms that manage loans between individuals
- Just as there is not only one type of entity that can offer us money, the type of loan that we can obtain is not always the same.
Below we detail the different types of loans and credits that exist:
It is one of the best known options in the field of loans. It is defined as a contract by which the financial institution grants an amount of money to the client or borrower, which will normally be destined to finance the specific needs of the client at a given time. This type of loan is characterized by not being very high, but rather small.
As its name suggests, this type of loan is intended to pay a mortgage on real property. Thus, mortgage loans differ from personal loans because there is a “real guarantee”, this real estate, which will become the property of the financial institution that grants the loan if it is not paid.
These types of loans are aimed at financing tuition, especially university (such as a degree or a master’s degree). The costs are usually somewhat more affordable than personal loans, and are increasingly used in many countries.
Consumer loans are usually used to finance durable consumer goods such as: a vehicle (car, motorcycle …), a reform, new appliances … and they are not usually of an excessively high amount. In summary, as we have seen, not only are there personal loans, but we can find a type of loan for each need. Depending on the entity to which we go, we may get one or another type of loan.