What type of loan should I apply for?
We currently live with a high number of concepts and definitions related to credits and financial products. What is the difference between the different types of market credits? Which one best suits my conditions? What do lenders refer to when they grant loans? What is a lender? We want to help you get familiar with the terminology used in the loan market and we explain some of the most used concepts during the loan application process:
It is a product that allows you to receive a high amount of money and has ample repayment terms, which implies a lower interest rate. The guarantee is the house that is acquired, so it can be lost in case of default.
They are loans with a personal guarantee, normally destined to the purchase of goods and services of consumption (car, PC, furniture, vacations, studies…). You respond with all your present and future assets, so they require you to justify your income or assets. There is no particular commitment to any property (for example, housing), so the processing is faster than mortgages, but in return, they have a higher interest rate.
Quick credits They are a type of personal loan characterized by its speed, reduction of procedures and procedures, flexibility and confidentiality. They are different from mortgages, and those destined to acquire vehicles or other goods and services. Absence of commission of opening or study. Sometimes they require to sign insurance for non-payment in certain cases (eg, death). Cost higher than usual in personal loans, to compensate for risk and flexibility.
Mini credits They are a type of fast loans of the small amount that private financial institutions grant for unforeseen expenses or for people with lack of immediate liquidity. The repayment terms are much shorter than in personal loans and usually, vary between 5 and 30 days. They are characterized by the reduction of procedures and the speed in their concession.
(National Association of Financial Establishments). It is a delinquent file that is updated thanks to the information provided by its partners (financial institutions, for example). Being part of the list complicates access to credit, although there are lenders and lenders that assume such risk.
Penalty for non-payment. If you incur in default and do not meet the repayment terms of the credit or loan, a penalty for default will be applied. In addition, there are other types of applicable consequences such as including your data in asset and credit solvency files.
Lenders or lenders
They are private individuals or companies whose purpose is to grant credits and loans to third parties, charging for it an interest (the fees and conditions vary according to the lender).
Renewal Policy This means that there is the possibility of extending the loan repayment term. Each lender has a different policy stipulated and, therefore, the associated costs and interests vary.