Archive for the ‘Credit & Lending’ Category
Differences between credit and loans
Unless you have some financial literacy, probably every one of us have occasionally confused the terms ‘credit’ and ‘loan’. Surely we will have used without distinction to refer to each other, and we’ve said that about “I have to borrow” or “I will ask for a loan” believing that they mean it. The truth is they are very different, and it should be clear a few concepts on credits and loans:
• The loan the bank makes available to the customer a fixed amount and the customer becomes liable to repay that amount plus a commission and interest on the agreed deadline.
• The financial institution credit available to the client in a credit account, the money that is needed to a maximum amount of money. Read the rest of this entry »