What Is The Difference Between Credit And Loan?

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Much has been said about credits and loans, and although they almost always refer to both as synonyms, the truth is that these are two products with different characteristics.

Are you interested in learning more about the differences between loans and online loans? Keep reading the article prepared by our finance experts at BFI Homes Mexico.

 

What is a credit?

What is a credit?

A credit is a sum of money that an entity (can be a bank or a financial institution) makes available to a customer. This money is not delivered to the client in a single exhibition, but this money can be available as needed, but without exceeding the established limit. The customer can make his credit valid through an account or credit card. In the end, the interest is calculated on the amount that the client has arranged, not on the limit of the line of credit.

 

What is a loan?

What is a loan?

Unlike loans, loans are delivered in full at the beginning of the operation. The financial institution offers a certain amount of money to a client, who agrees to return the money along with the interest generated by the loan. In general, the payment of the loan is settled by fixed and periodic installments previously established. The loans work during a certain period, time in which the total sum of the money (loan and interests) must be returned to the financial institution.

 

Credits and online loans: what is better for me?

Credits and online loans

It depends a lot on your circumstances: the speed with which you need the money, the amount you need, as well as the possibilities you have to face your commitments. Analyze your personal situation, evaluate the main differences between loans and quick loans, and make the best decision:

  • When you receive a loan, you are given the money in full, while in the loan you can have a sum at a time.
  • Once the expiration date of the credit line arrives, it can be renewed several times; instead, most loans must be settled in the time previously established.

Are you thinking of asking for personal loans without credit, but are you worried about the payment terms? With BFI Homes Mexico you can request an additional amount to your loan or move the payment date, without problems!

  • Interest rates on loans are usually higher than those on loans.
  • The credits can lead to greater indebtedness if they are not used properly.

Identify well what your needs are and investigate your options so you can choose the one that suits you best. Remember that BFI Homes offers you online loans with terms of 7 to 30 days, with the possibility of restructuring your loan to go through the payment date. Contact us in BFI Homes hotline number for one of our advisors to give you more information about our personal loans without credit.

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