Money credits arrived to facilitate and is not going to ruin to your life, making the excess of indebtedness. It is important to understand how credit works in a a general form for better preparation when obtaining credit or simply to know what is behind your credits.
All of the credits or loans have a roll of components, healthy they: purpose of the loan, guarantee, total, term, refund, rate of interest, costs and confidence.
Purposes of the loan
All credits have a purpose, the banks do not lend money without knowing what you are going to do with it.
Guarantee
For a bank lend you money, you need a guarantee that the brank is going to receive it back, in spite of being used for mortgages or guarantees, the business of the banks is money, and not houses or cars, and a bank wants money not your car or apartment.
The guarantees can be real or personal. The real guarantees imply property transactions or the confiscations of financial titles. The personal guarantees are the not palpable guarantees, as example we have: guarantee, bail and consignation of earnings.
Amount
The definite bank maximum totals for loans adapt to be the purpose of them selfs.
Deadline
The term of refund of the loan stays defined in the beginning of the contract, being this also definite because of the kind of purpose of the loan.establishing the periodicity of the even.
Reimburse
The refund of the loan will be the amortization of the capital in debt.
Interest rates
To the capital in debt is applied a rate of compound interest. The formation of the rate of interest is generally made throughout the index-linking to the rates of reference added of a spread.
Costs
Loan inherent costs exist. Costs of evaluation, costs of dossier, costs of processing, dependable, etc.
Confidence
A very important factor, to his relation with the bank here will be quoted, the alone bank lends money to who trusted that in the future is going to pay the installments of the credit attributed.
These they are the main elements of the banking credit, by that already knows a good relation with the banks is fundamental for them will give him what do you need. Knowing this is easy obtain a banking credit.