Types of Personal Loans

Personal loans can be classified into two groups based on their time that it takes to get the money and guarantees required by the entity to ensure recovery of the loan. You can also distinguish different types of loans taking into account the interest rate applied to them that can be fixed, variable and mixed. CONSUMER CREDIT PERSONAL LOAN or Capital Budget: $ 3,000 Amortization period: 1 year APR *: Between 7'06% and 10'04% Monthly: Between 260 and 264 euros Total interest payable: Between 116 and 172 euros eurosCapital financed: € 12,000 Amortization period: 5 years APR: Between 7'06% and 10'04% Monthly: between 238 euros and 252 euros Total interest payable: Between 2277 and 3312 euros * APR: Annual Percentage Rate. Includes all costs to be paid on the loan (nominal interest, study and openness, life insurance, etc.).. Please note: Some banks offer a single type of credit, regardless of the use that will give the amount requested, and have no credits for education, car purchase or reforms.

The interest rate applied in each case will therefore depend on the person seeking the loan and banking history. CAR LOAN OR CREDIT Capital Budget: € 12,000 Amortization period: 5 years APR: between 8'06 and 9'84% Monthly: between 244 euros and 254 euros Total interest payable: Between 2620 and 3241 euros euros to take into account : Find out, in addition to the bank or savings bank, the dealership where you go to purchase the vehicle. Sometimes linked to financial companies that offer their clients loans with an interest rate more advantageous than some banks. One of the advantages of paying the car by financial dealer is that if you later want to apply for a new personal credit in the bank, it will be easier to grant us, not having opened another credit file. A tip: Always take the time to compare and negotiate with both the dealer and the lender with the bank, do not settle ever with the first offer you make. STUDIES CREDIT Capital Budget: $ 3,000 Amortization period: 1 year APR: Between 5'11 and 6'69%% Monthly: Between 257 and 260 euros Total interest payable: Between 84 and 110 euros

Please note: Credits for studies (aimed at young people, to finance the tuition fees for university courses, masters, doctorates, language courses ...) may have a waiting period of up to two years. That is, if you borrow money with a lack of two years, will begin to pay the requested amount (called principal) until after that time, although they have no interest grace period and returned from the moment of signing the contract. Sometimes the research center itself is responsible for negotiating with various financial institutions more favorable conditions for their students, they may be more interesting than a single student get if you go on your own. However, the student is not obliged to accept the financial center of studies offered. For other credit options to pay little money to be profitable in the short term, financial institutions apply their rather high interest personal loans. Therefore, it should carefully weigh the desirability of seeking a personal loan, as there are less onerous options to fund extra costs and we also avoid the paperwork inherent in a credit application. The cards allow purchases and defer the payment (if we choose the form of deferred payment) or cash available.

In the latter case, the monthly interest is between 2% and 4%, depending on whether the cash is obtained in the own network or another. However, beware, because the interests are duplicated to the default, so that by deferring the payment may exceed the annual rate of 26%. And it is well to remember that credit cards are more interesting to defer payments for cash provisions. Department stores, supermarkets, travel agencies and other establishments often offer their customers the ability to defer payment of their purchases, in many cases without interest, to start paying later. They also allow installment purchases payable, usually without interest if payment is made in three or fewer installments. But when you exceed the three monthly payments, the APR exceeds certain establishments, in some cases by far the banks and thrifts. As to how to make the deferral or financing may be ordered through purchasing cards of each establishment, increasingly common, or as a payment using any credit card bank attached to that establishment.

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