Ever heard of personal credit? And you know how to tell the difference between the loan and the credit? We will answer and get your questions quickly.
Is there a difference between credit and loan?
No, the two words are used for the same purpose. Personal credit or personal loan means exactly the same thing. This is money that you borrow and for which you will pay a certain amount later, according to the agreement entered into with the financial institution.
And this does not happen only when talking about personal credit. A credit card, for example, could be called a loan card, after all, it allows the consumer to use a value that he does not have available to anticipate purchases that he would not be able to pay cash.
Many people run out of loans thinking it is an inadequate solution to solve financial problems but forget that they often end up using these other credits available in the market: credit card, check, check, financing, credit, among others.
The fact is that a credit can be a positive alternative for your financial health, but for this it is necessary that it be used in a conscious way. This means that even if you have pre-approved credit in one place, before you use it you need to understand what your loan is aiming at, how much time you will pay, and what fees are applied.
Make the bill
When taking a loan, whether it is a personal loan or some other type of loan, see what the Total Effective Cost of that operation is and see the actual amount you are paying at the end. See how much more you pay to use this credit and pay it during that time period. Then assess whether that amount makes sense and whether the conditions offered to you are fair in relation to what the financial market offers.
Watch out for pranks
Very careful at that time, because several institutions initially show the consumer only the interest rate of the operation. The most important thing is to always look at the CET, because this yes is the total percentage that will pay for that credit.
When you take out a personal loan are considered your individual data as an individual. At this point, it is common for the company to look at your financial health - some more and some less. The fact is that in this type of operation the institution will not have access to all the data that show the family financial health. Therefore, it is up to the client to look at the scenario as a whole and to make sure that they really are able to afford the credit costs they are taking.
Posted on May 11, 2018 at 01:41 PM