What is a credit card?

credit card

You’ve probably wondered what is a credit card ? Who supports its use?

A credit card is a credit instrument backed by a financial entity or a bank. If you have one of these cards in your name, you can purchase with it goods and services that you will pay later.

 

How does payment with a credit card work?

How does payment with a credit card work?

To understand what a credit card is and how it works, let’s look at the following example. Imagine you go to a store and buy a phone using a credit card as payment . The bank that granted you the card is the one who cancels the product in cash. And you acquire a debt with that bank for the amount of the purchase plus the interest generated.

In this way, this instrument allows you to make purchases on credit, where all the parties involved benefit. For the seller, the important thing is that the issuing bank guarantees the payment of the good or service. And the bank benefits by charging the interest that the loan granted for the purchase generates. And you win by easily acquiring a product that you pay on credit .

 

What is a credit card franchise?

credit card franchise

Credit cards are issued by major international brands, which offer them in franchise to banks. Therefore, the cards are not named according to the issuing bank, but by their brand or franchise. The main brands of these instruments are:

  • Visa
  • Mastercard
  • American Express
  • Diners Club

 

Where can I pay with a credit card?

Where can I pay with a credit card?

You can cancel with a credit card in stores affiliated with your card’s payment network. Something important that you should know is that the affiliation is made according to the franchise and not according to the bank. That is, if a merchant accepts a Visa credit card as payment, it accepts it independently of the issuing bank.

Mortgage Loan Insurance: Simulation & Online Membership

 

Important information mortgage insurance

Important information mortgage insurance

The bank, or other lender can no longer refuse, or even change the rates of the mortgage proposal if you decide to take out individual mortgage insurance external to the credit institution.

Definition of Real Estate Credit:

Definition of Real Estate Credit:

Loan whose duration, amount, repayment (capital depreciation + interest) is defined in advance at a fixed rate or according to revision clauses specified in the initial contract.

Provide a Mortgage Amortization Loan

The guarantee borrower when subscribing for a loan Amortizable real estate, bank or lender requires insurance to cover the credit in case of risk of death, disability, disability, or loss of employment, we find the solution for your home loan insurance.

Borrow money to buy real estate

On the occasion of a project of purchase, and in order to obtain the best conditions of loan, it is necessary to present a good file which will reassure the banking establishment. Many elements will be studied to study the feasibility of the project: the personal contribution, the stability of the income and the ability to manage its money.

General information loan real estate

General information loan real estate

The general information on the loan to study in detail are: Interest rates: It is an essential element in the cost of borrowing. In order to properly evaluate an offer, it is important to be interested in the ITG because it includes all the costs inherent to the loan. Interest rates can be fixed, variable or capped. Ask the banker different scenarios to choose the best solution for your situation.

The duration of the mortgage

The longer the duration, the higher the cost of financing. Banks are more hesitant about long loans.

Expenses related to the real estate loan

Expenses related to the real estate loan

In order to get your loan, the bank requires mortgage loan insurance that covers the bank or loan if there is a problem (death, disability or disability). Note that you do not have to subscribe to the credit guarantee of your creditor. Thanks to the cogilaw company, you can play the competition and opt for the mortgage insurance of your choice. The fees are always included in the ITG and do not exceed 1.5%.

The cost of the guarantees of your home loan

The cost of the guarantees of your home loan

Your creditor will systematically ask you for a guarantee. There are several: the mortgage (the real estate serves as collateral), the registration as a holder of a denier (same as the mortgage but for the old real estate), and the surety company (system created by banks, in case of concern, these companies take over).