What are the credit terms?

Article by: Amparo Delacruz Segundo | Last update: April 10, 2022
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Mortgage loans can be granted for a minimum of 5 years (60 months) and a maximum of 30 years (360 months). The shorter the term, the higher the value of the installments, which requires a greater payment capacity, however, less interest is paid since a greater capital contribution is made in each payment.

What does 6 months of grace mean?

It is a period at the beginning of the credit service that is generated when the payment of the first installment is moved later in time, generating the respective interests of that period.

What is more convenient to pay in capital or time?

Therefore, it is convenient for you to pay capital as soon as possible: you reduce your debt and also save on interest.

What is installment payment?

The installment sale is a form of sale commonly used for durable goods and in which the payment of the price is not made at the time of acquiring the good or service, but is deferred over time through a series of payments called «deadlines», «fees», «payments» or «letters».

What happens if I pay a credit before time?

If you pay in advance for a loan or credit, it is a saving, because you will pay less interest. Some banks charge you a penalty for paying in advance, but this does not apply in all cases. Before paying in advance, find out the conditions of the contract.

19 related questions found

How to pay a debt before time?

Requirements to make an advance payment

Be up to date, you must not have any pending monthly payment. The payment must be equal to or greater than your monthly payment. Early payments do not generate a penalty. Payments that are after the corresponding date are penalized, are collection expenses.

What is a prepayment penalty?

A prepayment fee, penalty, or penalty is exactly that: an amount banks charge you if you pay off your debt ahead of schedule. If your loan agreement has a prepayment penalty clause, you will not be able to make any early or additional payments without being charged for it.

What to buy with deferment?



What is cash payment?

1. Payment that is made at the same time or immediately after the physical transfer of the good or the enjoyment of the service.

What is better to reduce quota or time?

By reducing the term, the number of credit installments to be paid is reduced and, in addition, greater profitability is ensured by paying less interest than if the installment were reduced. As a drawback, the monthly payment is not reduced and the same amount continues to be paid for the duration of the mortgage.

What is better to reduce quota or term?

The savings are greater if the term is shortened

The reason is simple: if the term is shortened, the interest will be generated for less time, so the total that will have to be paid for this concept will decrease more than if the installment is lowered and the same amortization period is maintained.

What happens when you pay capital?

Capital installments reduce the time of the debt and ordinary interest, although the value of the monthly installments is maintained. They can be made at any time while the loan is active, and are not subject to a minimum amount or a payment deadline.

What is the time of grace?

A grace period is the period between the end of an account period and the date you are due to make your payment. During this period you will not be charged interest as long as you pay your balance in full by the payment date.

What does 3 months grace mean?

The grace months are only temporary suspensions of payments, which do not have a penalty or actions derived from non-payments, such as collection costs or extra commissions, but they are not free, that is, they do not give you the payment, even you will have to do it later.

What are the 3 months of grace?

The grace months allow the payment of the first installment to be deferred for the term agreed upon by the parties. However, paying the first installment a couple of months later has a cost for the client. The grace months seek to support the payment actions planned by a debtor.

What is spot example?

Cash payment, therefore, differs from installment payment. Suppose someone decides to buy a television whose price is $2,000. If the buyer takes that amount out of his pocket and gives the bills to the seller, he will have paid for the television in cash.

How to increase term credit?

To improve your “three C’s” and increase your chances of obtaining a loan, here are some recommendations:

Pay your debts. Cover the total balance on your credit cards each month. … Keep your “old” bills … Make your payments on time.

How can I buy if I don’t have a credit card?

7 options to buy online without a bank card (debit and…

Buy on social networks. Payment on delivery in self-service stores. Electronic wallets. Amazon Rechargeable: Debit card. Gift card. Buy online and pay at OXXO. Amazon. Free market. Linio. Pay to online store account.

What is advance charge?

A cash advance is a withdrawal of cash from your credit card account. Basically, you are borrowing against your credit card to keep money in your pocket.

How to finish paying the mortgage faster?


Advance payments to capital during the first stages of the credit. Let’s imagine that you pay a monthly payment of $100, of which $10 goes to capital and $90 to interest payments. … Invest your bonus. … Set a savings goal. … Consider refinancing your mortgage loan. …Use the 1/12 technique.

What is grace period and dead period?

The grace period or dead period is the period of time during which the obligation assumed is not fulfilled, but interest is accrued. Consequently, as in the grace period the debtor does not pay interest or capital, the interest that is caused is capitalized.

What is the grace period in Bolivia?

The grace period is a period of time, six (6) months, during which you do not have to pay interest or credit capital. This period applies as long as the credit rescheduling proceeds with the refinancing. This regulation was assumed to mitigate the effects of the COVID-19 pandemic.

How is a capital payment made?

How to pay capital?

– Make the deposit for the amount you want to pay capital (the deposit is made in the same way as the payment of your installments) – Once the money is reflected in your account statement (one or two business days after your deposit ), request your Capital Payment:

What is the principal payment?

A payment or credit to capital, is the option of advancing part of the money owed in an additional or extraordinary way, to the payment of the monthly payment agreed in the credit contract.

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