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Is a loan the same as a loan?

Normally, users tend to use loans and credits as synonyms. But the reality is that they are two different financial products. If you want to know the differences between a loan and a credit, read on:

 

Loan vs credit: differences

Loan vs credit: differences

When we need extra money, we can turn to different financial products to get us out of that trouble. It is at that moment that we usually hear about loans and credits. But they are not exactly the same. Let’s know the differences.

Starting with the loan, we are facing a financial operation in which an entity or lender gives the borrower a fixed amount of money at the beginning of an operation. The condition is that the borrower returns that amount of money along with the associated interest within a certain term.

Payment of the loan repayment is usually made through monthly installments but also quarterly or semiannually, among others, over the agreed term.

As for the amount to request, it depends on the financial entity. For example, in Fintonic we offer up to 50,000 dollars, with conditions that vary according to the client’s FinScore. That is, the better the financial health, the better the conditions of said loan.

You also have the possibility of having all the money at once in your account in a matter of 24 or 48 hours, so that you have it when you need it.

 

Credit is the amount of money that an entity makes available to a user

money loans

The main difference is that the customer is not given the full amount at the beginning of the coup, but can use it as needed through a credit card or bank account.

The client may dispose of the money as requested, and will only pay interest for the money he uses; not for everything. Although in this case, a small commission is usually charged for the unused balance.

At the time the money is returned, more can be available, but always within the established limit, since the terms can be renewed or extended. Unlike loans.

Another difference is that interest on loans is also usually higher. For the convenience of having money at your disposal to use or not whenever you need it.

So, as you can see, these are the main differences between loans and credits. Because although it may seem the same, you see that they have little to do.

 

Credits are more common by companies

How do you imagine, given the characteristics of each one, credit is more used by companies. It is what is most commonly known as a line of credit, money that they always have at their disposal to use or not whenever they need it and not stay in red numbers.

 

Loans, the order of the day between individuals and companies

Loans are usually requested to finance the acquisition of a good or a service. That is, the purchase of a car, a reform of a house, the payment of some studies, a trip, etc. These are some of the reasons that lead users to apply for a loan. Therefore, both individuals and companies can use them as long as they need them and comply with the requirements.

Therefore, now that you know the differences, we hope you know when to apply for a loan or credit as you need. You can also ask us and we will gladly help you. We speak?

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What do entities take into account to grant a loan

When applying for a loan, it is normal to have doubts about what entities take into account to grant a loan. So if you ask yourself this question, do not continue with the doubt because we reveal what you need to know.

 

Loan: what do entities take into account to give it?

Loan: what do entities take into account to give it?

There are several factors that are key and that financial institutions look to give or not give a loan to their customers. The main ones are the following:

 

Job stability

Having a stable job gives you many ballots for the bank to grant you the loan. And it is that in the eyes of an entity, it is not the same to have an indefinite contract than a work contract. So, in general, officials usually have it much easier than freelancers to get financing.

 

Solvency

money loans

Solvency is another of the main parameters to consider. It refers to the financial capacity to cope with the payment of debts. To find out, banks usually analyze your salary, bank movements, etc. If you have savings and money to live a long time at your current pace, you may receive the personal loan what you want to apply for.

 

Saving

Third, there is the capacity to save. It is an important criterion that is a little linked to the previous one, but it is essential to know whether or not to give a loan to a client. In many cases, the entities analyze the patrimony of the client or if there are properties free of cartoons to use as collateral.

 

Purpose of the loan

Saving

Although this factor is not as important as others, it is also important, since the bank needs to know what you are going to use that money for. It is not the same to ask for money to refinance a debt than for some studies.

 

Indebtedness

Financial institutions also take into account the level of indebtedness of a person. Therefore, before granting a loan, they analyze the debts that are pending: mortgages, card financing, other loans, etc. The less products you have contracted, the more ballots you will have.

 

What else is needed to know if I get a loan?

What else is needed to know if I get a loan?

Once you are clear about all this, it is important that you get down to work to apply for your loan. That is why many financial institutions will ask you for paperwork such as the following:

  • Last payroll and income statement : this allows them to know if you have a stable salary and / or what you earn annually.
  • CIRBE data : banks usually consult the data of the Central of Information of Risks of the MoneySparks Bank to know if you have more debts.
  • Property deeds: if you have any property, they could ask for the deeds as an additional guarantee.

 

With Astro Finance everything is easier!

With Fintonic everything is easier!

With Astro Finance you will not have to submit paperwork for us to give you a credit. You will simply have to register and connect your bank accounts so that we can calculate your credit score; and from it we will know what your financial capacity is to offer you an amount of money and under what conditions.

You can request between 750 and 50,000 dollars for whatever you want : studies, renovations of a house, carry out a project, pay the dentist, buy furniture, etc. What you want. And to be returned in a term and in installments that fully adapt to your current needs.