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The economy, whether on the domestic scale or with large money transactions, works on the basis of loans and credits, since not enough liquid is always available to face an operation. Whether to buy a refrigerator or to sell a stock of products between one company and another, credits end up being necessary in our lives. That is why it never hurts to know what types of bank credits exist, we explain this in this article.
Steps to follow:
1.Consumption credits. They are used to finance purchases that we cannot cope with and therefore more than loans, they could be considered loans. They are offered by both the banking and financial entities of commercial companies or the establishments themselves, as is the case with the large stores that finance purchases in several months, often without charging interest.
2.Credit line. The bank puts at our disposal a maximum amount of money, which we can use or not. Interest in favor of the bank begins to accrue from the moment we have that amount available, and are usually somewhat higher than in a common loan.
3.Credit card. Their interest rate is very high compared to other credits, but in return they offer us a lot of flexibility, in addition to the convenience of being able to make payments automatically with the card, without having to request a credit from the bank office every time. The credit limit, between approximately 3,000 and 6,000 Dollars per month, is usually more than enough to cover the specific needs that may arise at any given time. In addition, when it comes to repaying the debt, they offer many possibilities: full repayment, in equal installments, depending on the percentage of debt remaining, among others.
4.Commercial credits they are the deferrals in the payment that the companies grant to the clients in the frame of a commercial transaction of purchase or sale of goods or services. This group includes promissory notes, bills, payments or installments, etc.
- It should not be confused between the terms credit and loan, which are often used interchangeably.
- A credit is made available to the customer, with a maximum set in advance.
- In a loan the total amount is paid once, which is subsequently returned, with interest.