For those who want to acquire any good, it is essential to research the main lines of credit in the market. This is because the interest rates charged by banks in traditional financing are very high, which ends up hurting the closing of the contract.
But the good news is that there are other credit line options today that can make your desire to achieve what you always dreamed true.
The following are the main lines of credit to help you identify which one is best for you. Read on and check it out!
The overdraft is an extra balance you have in your checking account. When you use all the money in your account and need more to pay for your commitments, you will be left with a negative balance, which means you end up on the overdraft.
Using this feature works automatically whenever the debit on your account is greater than your available balance.
But be very careful, because this is a line of credit that has a very high interest rate compared to others, the banks raise the rate due to the average liquidity ratios of the modality.
Interest and fees such as IOF and charges are calculated per day of use and then charged each month.
Among the various lines of credit, personal credit has become the most common, because one of its main features is that when consumers receive the money, they can enjoy the way they want without being accountable to the institution that provided it. the credit.
To acquire personal credit the consumer must go to any financial institution and request the necessary documentation to acquire the credit however he can not have his name entered in any credit protection body.
In addition to the interest, there will be the IOF tax and the registration opening fee (TAC), these amounts are embedded in the value of the installments. Installment payments can be up to 48 times, but this may vary according to the rules of each institution.
However, the interest rate charged by banks is another point to be aware of, because they do not have a ceiling, banks can apply the rates they want.
Vehicle Financing & Refinancing
Considered one of the best lines of credit, vehicle refinancing and financing is easier to achieve. The required documents for negotiation are ID, CPF and proof of income and residence.
As with any other type of financing, interest rates are charged, but they are lower than those of a regular loan and the fittings fit in your pocket.
What’s more, the ease and speed of getting a loan or refinancing is greatly increased, so you can get your new car as soon as possible.
Average interest rate caps on the financial market
The average interest rate ceilings practiced by the financial market often vary from bank to bank, so it is of utmost importance that you are aware of this date as they will be very helpful in avoiding the payment of abusive interest.
The following is the average interest rate among the major financial agents for each credit line displayed in this article, which are:
- overdraft: between 7.03% and 17.39% per month;
- personal credit: between 5.38% and 15.57% per month;
- vehicle financing: ranges from 1.79% to 2.53% per month;
- Vehicle refinancing: ranges from 2.12% to 3.47% per month.
The main lines of credit greatly facilitate the life of those who want to achieve their financial independence and assist in the acquisition of new assets. You just need to be aware of the fees charged by financial institutions and choose the best line of credit option for you.