For many, lending is something completely different from credit – only this difference does not exist in practice. Just two words to talk about the same tool: the way you take money from someone (bank, your parents, etc). Nevertheless, according to a study by a financial institution, the terms “credit” and “loan” are subjective, as many Brazilians change their perception depending on the individual’s social and financial situation.
What changes in practice is that many associate achievements (credit) and difficulties (loan). But the reality is simpler: In either case, you took someone’s money and you’re going to have to pay interest for it. Concluding this part, both can be classified as credit, because all the money that is lent to you, goes through the operation made in credit form.
Many people shy away from lending that this is an inappropriate solution to solve financial issues, but they forget that they often end up using these other credits available on the market: credit card, check, overdraft, financing, credit, among others.
When it comes to credit or loan, there is a need to think about:
From credit cards to real estate financing, payroll loans and even personal loans, the principle is the same – but interest rates vary widely. In all cases, it is essential to have a simulation of installment payments and, based on the results, a financial planning.
When you take out a personal loan your individual data is considered as an individual. At this time, it is common for a company to look at its financial health – some more and some a little less. The fact is that in this type of operation the institution will not have access to all data that shows the family financial health. Therefore, it is up to the customer to look at the whole picture and make sure that they really can afford the credit they are taking.