If you are thinking of applying for a loan, it is a good idea to master the basics of this financial product that will help you build a good credit history and achieve ambitious financial goals , such as having your own home, a vehicle, etc. Let us begin!
- Amortization:It is the total or partial payment of the principal of the loan that is made gradually over a period of time.
- Amortization table:It is an informative document that details the number of installments, monthly installments (calculated according to the chosen amortization system ), payment deadline, the capital plus the interest generated and the insurance contracted during the term of the credit.
- SPC PORTAL
- Borrowing capacity:It is the availability of net money (income minus expenses) that you have each month to take on debts, including credit cards, without compromising your financial stability.
- Term:It is the time you have to pay off the debt completely.
- Interest rate:It is the percentage or amount of money that you pay to use the borrowed money , in a certain period of time.
- Guarantor:It is a person who agrees jointly and severally to pay the debt of another person, in the event that the latter cannot comply with his obligation.
- Interest for late payment:These extra amounts are generated when the debtor defaults on the monthly payment of the debt acquired with the bank.
- Novate:It is when you terminate a credit operation and want to replace it with a new operation.
- Renew:When you have canceled at least 50% of your current credit or a higher percentage, it is possible to request a new credit from the financial institution that terminates the current operation, it is also known as re-refunding.
- Refinance:It is when the financial institution is requested to analyze making changes to the agreed conditions of the cancellation of your credit installments, without there being changes in other conditions such as the term.
- Restructure:when a change in the structure of a current debt is requested , in which changes can occur not only in the form of payment of installments but also in the committed term.
- Credit bureau:It is an inventory of all the activities related to indebtedness and payments of people or companies. The credit history generates data that is individual and shows the record and periodicity in which people have paid their loans during the last 3 years.
- Credit score:refers to the rating you have obtained in the Credit Data Registry (RDC). It is based on statistical methods that predict the probability that you will pay your debts on time . This score determines how good you are paying and has a range from 1 to 1,000. The higher the score you get, the greater the chances that a financial institution will grant you a loan.
After being clear about each concept, it is important that, when you decide to take a loan, you take into account not having other debts that may affect your personal finances or reduce the amount that the financial institution can grant you. SPC PORTAL
Tags:
loan