If you need financing to buy a car, take a trip, prepare a wedding, a christening or any type of celebration, if you need to pay for your studies, start a new business, invest in materials and machinery for your company, buy a home or pay any type of purchase in a deferred way, with bank loans and credits you will have insurance the form of financing that best suits your circumstances.
Financial institutions offer a wide range of possibilities to get money for any purpose. You have Payday loans of up to 60,000 USD to be repaid in a maximum of 8 years, credit cards with more than 5,000 USD of balance to pay your purchases at any establishment or on the Internet and mortgage loans for larger amounts.
Payday loans are the most used to finance
Its main feature is that all the money is received at the beginning of the contract and it is returned over the agreed time, which is not usually more than 10 years. The amount to receive does not usually exceed 80,000 USD and the guarantee is personal , that is, the applicant responds with his present and future personal property in case he cannot face the return of the money.
Payday loans are the most used to finance most of the large expenses that we usually face during our lives, such as the purchase of a vehicle, the purchase of household appliances and furniture, home renovations, etc. To access them, banks will need to analyze our solvency profile, asking for a series of requirements for their approval, such as not having unpaid debts, having a job stability that gives us regular income and justifying the purpose that will be given to the money.
Credit cards we have at our disposal money
Credit cards are a practical way to use a line of credit provided by the bank. Through the cards we have at our disposal money to make purchases and pay expenses that will not be immediately deducted from our current account, as is the case with debit accounts, but will be paid deferred, either at the beginning of the following month or well in various installments.
Credit cards are widely used for the consumption of goods and services, they can be used to pay in the vast majority of establishments around the world , safely and without the need to carry cash. In addition, they serve to acquire products through the Internet, being able to buy any item from any country from home and receive it comfortably without having to leave our home.
With credit cards, in addition, a series of free services usually come, such as travel assistance insurance and anti-theft insurance, which cover fraudulent uses that can be made with it in the event of loss or theft.
When the amount of money required is very high, greater than 60,000 USD, mortgage loans are the most widely used financing method. They are usually used for the acquisition of a new or second-hand home or a commercial premises to start a business. Mortgages are also used to make significant investments, for example when starting a business or wanting to expand it.
The characteristic of mortgage loans is that a property is used as collateral , which will serve as a guarantee and, in the event that the money cannot be returned, the bank will stay and sell to recover the rest of the outstanding amount. These loans, due to their duration, their amount and, above all, the security of the property guarantee, usually have a much lower interest rate than Payday loans, credit cards and fast loans.
What type of financing to choose
Depending on your needs, the amount of money you require, the maximum amount you are willing to assume, which will make the term lengthen or shorten, if you have good economic stability and the destination you want to give money, you should choose one or another form of financing.
The most flexible and versatile is the credit card, but it also has a high cost when the payment of a purchase is deferred in several installments. Payday loans have more requirements, but they will also allow you to achieve larger amounts of money and longer repayment terms, with much less interest. For higher amounts and longer terms you should already opt for mortgage loans.
In any case, the sooner you repay a debt the better, since you will incur less interest and commissions. If you can avoid getting into debt better, but if necessary, compare and request information from various financial entities in order to get the best conditions.