- January 1, 2016
- Posted by: Jack Hudson
- Category: Credit
In the modern world the use of credit is integrated into everyday life. But use it wisely is vital to establish a strong credit history and maintain good financial health. Once you decide to use credit, you need to understand what type of credit you need (if for a single payment for purchases in installments or revolving credit). Finally, it is important to understand the amount that may be appropriate for your particular situation.
The credit is related to headaches, pressures and loss of heritage. However, nothing is further from the truth. Credit means that a person or lender is relying on you, even though you have made a thorough study and requested guarantees; confident that you will fulfill the obligation acquired. This allows you to access capital that you need at that time, whether to start a business or buy a good. Credit is a key tool for the development of a country.
It is very important that both sides, both the lender and the recipient of the loan, do your homework so that everything goes well, that is, who pays must ensure that the borrower is in a position to repay the loan with interest proposed; and the borrower must assume its obligation and analyze well the amount to be compromised. In this way healthy relationships are created and given the fair value of the credit.
The value of credit in our lives, no doubt is essential to achieve our life goals. That is, we all want to form a home, be professional and successful entrepreneurs, educate our children and keep our health in excellent condition as long as possible. However, to achieve all or most of our goals we require money. And there are two options: save the right amount for our dreams, or achieve through a loan that allows us to do it in a shorter time, and often more conveniently, as in the case of buying a house, car and education of our children, depending on the stage of life where we are.
Here the importance and usefulness of the credit in our lives, for this reason we must learn that well used, is a tool for generating wealth, it helps us achieve our goals, and not only to fill some gaps. Understand what our limits and conditions for access to credit is essential for a headache is not back, but something useful and permanent.
Types of credit
Funding can be useful in many stages of life. The main thing is to understand that the loan is part of a healthy financial system and if you learn to manage it, you can get closer to your goals. Before applying for a loan, you must analyze various factors in your financial situation, for example: how many debts you have, what your fixed expenses and how active accounts.
Here are some types of financing that exist in the market:
Credit cards: They are useful for short-term acquisitions. The main advantage of a credit card is temporary, as it allows you to have money you do not have the time but you will receive in the near future. For example if you make a purchase at half fortnight, knowing that you can liquidate once you receive your salary. If you use the card with this idea in mind, you can become a paying your total debt each month without allowing customer interest arises.
Departmental cards are another variation of the credit card, with the difference being offered by stores or shops and can only be used for purchases at their stores. These cards can run you to buy durable goods, such as appliances or electronic equipment with promotions or unique benefits of that store. In both you can take months without interest promotions and other benefits; consultation and compares what is the card that best fits your needs. We recommend that before applying for a card, if you check the Total Annual Cost, annuity, commissions, promotions and benefits as well as all terms and conditions.
Personal loans: They are characterized by appropriations that are not anchored to a specific purpose. This means that the request should not explain how it will be used and can also break it into different objectives. For example, you could use a part for remodeling and another for a trip. They are offered by banks, financial institutions and there are even companies dedicated exclusively to grant them. You can use them to go on a trip, remodel your house or open an investment account. Basically, for what you want because it is not regularly asked to declare what you will use the money. As a precaution, make sure it’s a reputable company and check the terms of your contract before signing. As with credit cards consultation, compares and reviews the total annual cost, annuity, commissions and all terms and conditions. It also develops your budget and checks your ability to pay.
Specific credits: Many institutions offer specialized financing, for example, mortgage, education and automotive, among others. This means that the amount you offer may be used only in an objective and must be able to verify that detonate to that end. The advantage of these loans is its specialization, as the amounts and payment plans are designed according to the target. Check different alternatives well before hiring and calculates the percentage of interest that you will collect.
Payroll loans: They are very similar to personal, but in this case it is essential that you receive payment of your salary through a payroll account in a bank. Thus the institution can grant you an amount based on the salary that you receive each month and deduct the payment directly from your account.