What are credits?

Credits apply to financial transactions where one party gives money to another, provided that they are returned, usually with interest, at a specific time in the future. The terms of the loan determine what this interest rate, how long the borrower has to extinguish it, and sometimes impose additional conditions in respect of the funds, including how funds are used. By the way, if you need to issue the credit on the passport, then information about it can be found in the article: .

Purpose loan

Credits can be issued for any purpose. Sometimes people borrow funds to invest in something (or themselves), for example, a loan to start a business buy a house or go to school. Other loans can cover personal expenses that occur in life, such as medical expenses, new car or even a vacation. However, just because you can borrow for any purpose, it does not mean that it is a good idea.

Interest rate

the Interest rate can be either fixed, which means that it remains constant for the term of the loan or variable, meaning it can change over time. Interest rates are usually lower if you have a good credit rating, and if your loan is secured by valuable collateral, such as home, since the lender has lower risk of losing money that it provides to you.

If you have now a difficult time to obtain credit on their own, cosigner can help you to get approval or to get a lower interest rate. However, cosiner responsible for all that the primary borrower doesn't pay, so if he asks to invite a friend for family member, you can protest with caution if you are not profitable to pay the entire loan.

repayment Schedule

the lending Terms include the repayment schedule that tells you when and how much you should pay. Some loans have monthly payments for a certain number of years, until you repay the debt. Others, known as air loans can allow you to make small payments, for example, just to pay the interest, and then require a lump sum payment at maturity.

If you want to get rid of debts, some loans allow you to pay them ahead of schedule without any problems. However others impose a penalty for prepayment of the loan, which may reduce or eliminate any interest you could save by paying early. Consult with your lender before making additional payments.

Tracking your loans

If you take the money in the loan, each payment on time helps to avoid extra interest payments and costly penalties. In addition, timely payments will increase your credit rating, which can help you to lower interest rates in the future. Think about how to use the software to stay on top of your credit payments so you can quickly get rid of debt.

Translated by "Yandex.Translate": translate.yandex.ru.