Before you commit to a? personnel credit or a? revolving credit, several questions should be asked to avoid potential pitfalls, sources of disappointment. Here are some tips to follow.
Choosing a credit based on its use
If you wish to make purchases with a planned expenditure known in advance, it is best to choose a Personal Loan. This type of ready provides a better reimbursement rate between 6% to 9% per year, less than the exorbitant credits renewable up to the bar easily 15% per year. However, the revolving credit is useful for an unexpected expense. Note, however, that this reserve of money available to you is to pay the least possible delay otherwise it may worsen your financial problems.
Revolving credit, personal loan: operating mode
The rate applied during a Personal Loan is more readable compared to that of revolving credit. For the latter, every time you touch the reserve, you must repay the amount in question over the rate of the day ready. It is the same for the repayment period is fixed rate personal and elastic enough to revolving credit. Faced with this uncertainty about the duration, the better for the borrower to minimize its cash reserve, suspend or terminate the credit. In this case, the rest of the amount borrowed must be repaid in the manner of a ready classic.
Personal loan and revolving credit, cost and insurance
Only the APR or annual percentage rate can provide information on the actual cost of your credit. This rate includes the amount borrowed, the interest rates and associated costs. Incidentally, this information is mandatory regardless of the type of contract ready. Theinsurance of ready the death, disability or unemployment should not be mandatory for the borrower. Despite this, organizations credit often include in the conditions for granting a ready, Ask about this before you commit.
Personal loan and revolving credit, how to give credit?
According to current legislation, the subscriber may revoke its decision on a Personal Loan or revolving credit within seven days after signing his first contract. To do this, no justification is required, however, requires that no money is charged to the borrower. This period of withdrawal was extended following the reform of consumer credit and increases to 14 days. Moreover, the prepayment of the entire credit or just part of it is also possible at no extra charge.
Source: http://www.financepersonals.com/personal-loan-or-revolving-credit-tips/
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