Business and Housing

Posts Tagged ‘credit’

Wondering about what type of card to choose? Many are those who hesitate between a credit card or debit card. If you’re one of them, these keys will help you decide between one and the other:

1.-The main feature of credit cards versus debit cards is that with the first account with a spending limit that allows you to pay or withdraw money, yet even if you account has no funds. All expenses incurred will be postponed until next month.

2.-The debit cards are more comfortable when taking money from the account through an ATM. Although, we must keep in mind that if withdrew money at an ATM not belonging to our bank may charge a fee, which varies depending on the entity with which we work.

3.-If you do a major expense in a business, with your credit card you can request a split of payments into your account, yes, keep in mind that the financing of a certain amount in monthly payments carries a small interest on the balance.

4.-For youth and students the best options are debit cards, banks usually ask for a requirement to hire a credit card or debit payroll certain stable monthly income.

5.-increasing number of institutions offering credit or debit cards for free, those that still is not, is usually more common that the commission is higher for credit cards.

Fast loans, also known as easy credit, are small loans in amounts ranging from 500 euros to 6000 euros. They are characterized by the speed with which they are granted as well as their high annual interest rate. In turn, these loans have a repayment period that often can be extended to 60 months. Very attractive feature for the consumer of that class of loans. But what are the advantages and disadvantages of fast loans?

Advantages

- Easy to arrange. Most fast-credit financing have very few requirements. In this sense, only ask for a copy of ID, account number, the latest payroll and sometimes ask for the clearance of any receipt.
- Fast Processing. Another feature of these loans is the speed with which the customer sees the amount requested in your account. Traditionally, the amount is deposited into the customer’s account within 24 to 48 hours of signing the contract.
- Periods of high depreciation. This means that the client has a lot of time to repay the amount, which significantly reduces the rate to be paid monthly.
- No need to explain. A financial, unlike banks, do not care what you are going to spend the amount requested. So that input is not defined, for example, in consumer credit.

Disadvantages

- High interest rates. Interest rates fast loans are exorbitantly high. Most fast loans have annual interest rates ranging from 20 to 25% APR. However, most cases do not inform the client of the high annual fee and only inform you of the monthly rate, significantly lower.
- Long periods of amortization. While in principle it seems appropriate to high depreciation period, the fact is that the longer the repayment period the higher the price the customer ends up paying to the lender.
- May require hiring an associated product. Some financial require the acquisition of an associated product for the loan faster. That product can range from hiring a car insurance to credit card contract with a monthly minimum.

It is clear that fast loans have a solution at a time when the shortage of liquidity which is characteristic of most financial institutions, but these claims are often very expensive. For this reason, from the consumer association, advised to carefully weigh the situation before contracting a loan of this nature.