The educational credit is another specialized financing, which can only be used to pay tuition or university fees. The fundamental advantage of these credits is the special interest rates and the extended payment terms until the end of the degree, with grace periods that can be long as well.
The basic characteristics of this type of credit are the following:
- Term: from medium to long term
- Destination: specific
- Warranty: none
Microcredit
Microcredits are a type of credit that appeared in recent years, thanks to the Internet and the proliferation of companies dedicated to it: These are small 당일대출, granted without collateral and without requirements in most cases, of short duration and, in some cases, with daily amortization. They are quick credits that are granted, sometimes, with negative credit reports.
The basic characteristics of mini-credits are the following:
- Term: very short
- Destination: free
- Warranty: none.
What types of credit are there?
We can classify the different types of credit based on different criteria . In the first place, we can classify them based on origin, from which we would extract bank credit, mortgage credit and credit against public debt issues.
Secondly, depending on the destination to which the credits are directed, we can find ourselves with production or consumption credit. In addition, we can also classify credits based on the term for their repayment, and we would have short- and medium-term credit and long-term credit. Finally, and taking into account the guarantee as a criterion, we can divide them into personal credit or real credit.
Next, we are going to make a slightly more exhaustive analysis of each type of credit. All credits, even if they are of different types, have in common the scheme that we have seen before, with the debtor’s obligation to return the two amounts: money and interest.
- Be older than 21 and younger than 65
- Proof of monthly income and address
- complete an application
- Authorize review of credit history
- Take out auto insurance (some entities may also require life insurance)
- Submit an endorsement
1. Types of credit depending on the origin
Bank credit
Bank credit is normally granted by a credit institution, typically banks, through the execution of a contract.
It is very important to differentiate it from loans . While in the credit, the bank grants you an amount of money and you can dispose of it or not, paying only the corresponding interest of the part that you use, in the loan, you pay interest for the entire amount of money that they lend you, whether or not you use the money.
Mortgage credit
What characterizes the mortgage loan is that the amount of money granted by the entity must be used for the purchase or realization of a house on land that you already have, or the acquisition of land.
Since it is a purchase of a good with a considerable value, the bank requires a guarantee that ensures the payment of the money they have lent you. That guarantee is just the land or property that you have acquired with the credit. Normally, entities lend 80% of the value of the mortgaged property.
