The intuitive concept of credit has become commonplace today, especially for the great popularity of installment purchases provided by credit cards. However, few consumers know what it is about credit beyond this vision a priori based on daily use. Credit is a promise Few realize, no clutch, that credit is a promise to pay, even if it is obtained with a credit card. And forget that the very definition of this concept in its most common version involves precisely the promise to pay which means changing the current wealth for future wealth. Learn more at this site: Professor Rita McGrath. But the idea of wealth or property in the future is appealing to any person or company that needs funding to carry out some economic activity, and then it is necessary to exercise caution and be aware of potential risks before ordering, or using the card credit.
Unfortunately, sometimes it is too easy to borrow and is usually much harder to pay, times a lack of self-motivation, but sometimes as a result of external circumstances that the debtor himself can not control. Knowing the different types of credit available and the rules governing letters of credit facilitates the analysis of each situation. Types of loans The most common types are the bank loan, the loan banking, public lending, private loan, and those loans according to the destination will be the money, such as those for production or housing, and all of them can be obtained by personal or real, short or long term. Get more background information with materials from REBNY. All these forms of credit are both options to ask for money and make a purchase or cash compensation in installments to buy a product that could not be mad to pay cash, but both situations mean the future promise of payment. When applying for credit, can be managed with banking or credit institutions or private lenders, depending on the requirements for the applicant, and what the annual interest rate proposed by each of these types of institutions. Global Appropriations Moreover, in these days when more than ever it has become popular international trade is vital to know the trade and credit regulations in each country, the exchange rate and currency flow, and all these aspects are available through credit cards that represent millions and millions of daily transactions worldwide. These payment instruments governed by international standards facilitate the payment by an issuing bank at the request of a customer or payer, you must make a payment to a beneficiary upon receipt of goods or documents within a specified period. Whatever type of loan chosen, remember that credit is a promise of payment reliable and meet its regulations to save borrowers more than a headache.