Through a credit, a person makes a certain amount of money available to him during a predetermined period. You pay this amount through monthly fees each month or for a specific date.
When do we talk about credit?
A credit is a certain sum of money made available by a person, a company or a bank for a specific date. This sum is then paid for dues or for a specific date. In the private sector, credit is used to finance goods and services. In the industrial sector, it serves to finance investments.
To get a credit, you must be of legal age and a salary. You must also have sufficient solvency, also called “honorability”. This solvency is calculated by the amount of the salary after deducting certain costs and other credit obligations. The data from the credit information center are also necessary for the analysis of solvency. This information will enable us to demonstrate whether, and by what amount, other credits exist and whether they are paid correctly.
Types of credit
There are several types of credit, which differ mainly by their function. It is important to distinguish:
- Consumer credit: also called private loan, used to finance the purchase of private goods and services, such as furniture or vehicles. For these types of credits, it is not necessary to communicate the reason for the request. The repayment of the credit is usually made for monthly monthly purposes.
- Hypotecanary credit: loan for specific purposes, which can be used for the construction or purchase of a house, the rental of a property, etc. … but also for renovation purposes. The use of money must be justified (invoices, purchases, ..).
Why take a credit?
When you take out a loan, you also make a medium or long term financial commitment. Make sure that your home budget does not change during the credit. In certain situations, it is judicious to apply for credit installments, especially if you anticipate an important purchase that you cannot finance on your own.
The least expensive solution is to have your neighbors or friends lend you. However, it is not recommended to make a credit of confirmation in the following two cases:
If you know that your budget will deteriorate during the credit period, for example having a child or going to retirement.