Are installment payments a good idea?

Are installment payments a good idea?

What is a credit term

A credit card is one of the most common ways to start a credit history and therefore access greater financial benefits, as long as it is handled responsibly and with all possible information at hand.

A credit card is not an extension of your income, as you will have to pay back the money consumed. For a good use of this product, it is best that the amount used does not exceed 25% of your monthly income. If you want to have more clarity about your payment capacity, deduct your fixed expenses and savings from your income.

-The Annual Percentage Rate of Charge is an indicator of the total cost of all types of credit, so it is possible to compare the cost between credits, even if they are of different terms and products. This concept includes the amount of the credit, interest, IGV, commissions and any other charge that the client must pay.

-Membership: This is the annual amount paid for having a credit card and being able to access the benefits it offers. Each bank and type of card has its own conditions for evaluating a membership exemption.

Advantages of paying cash

Categories:Loans by Equipo Bancompara |on November 1, 2021You have a loan and want to pay it off as soon as possible? We give you all the tips you can follow to do so. Learn when to anticipate payments, when to advance them, and how to take advantage of your credit by understanding your amortization table.

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Yes, but it will depend on each contract, since not all of them are stipulated in the same way, so you must be careful, since some penalize you for paying early. Before making an early payment, read up so that you do not pay more for what you owe. But, in all cases this penalty is not given, so paying capital brings more benefits than consequences.

Paying capital is convenient as long as your bank does not penalize you and you have the money as an extra and not as an income that can leave you waiting for the next fortnight. If you pay your loan before the stipulated time, it is a benefit for you and for the bank, because you will fulfill your obligations as a debtor, you will have a good history and besides the bank will lend you a larger amount with a lower interest rate, so now your interest will be less: so it has its benefits to pay without the bank asking you to do so.

Difference between cash and credit

So the answer to whether this form of payment is a good idea is YES. Of course, as long as you have a good management of your credit card and buy what you can pay monthly, otherwise it will become a problem rather than a help.

We are all concerned about having physical and mental wellbeing, and credit cards can be an ally to take care of you in this aspect. Some of them give you the opportunity to put your purchases in hospitals, pharmacies, beauty and more at 3 or 6 months interest free. In this benefit there is usually a minimum purchase, just check what it is and take advantage of it.

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If you are a lover of travel, technology, fashion, food, concerts or expenses that can generally be high, it is convenient to pay them in months without interest or exclusive offers such as 2×1 in presales. Generally banks have very attractive temporary offers, keep an eye on their communications and use them to your advantage.

If I pay a loan early, I get interest deducted by Bancolombia.

When you decide to invest, one of the first questions to ask yourself is whether you want to make a short-term or a long-term investment. Although the purpose of both types of investment is the same, short term investments are not the same as long term investments.

At various times, an investor may feel frustrated by the performance of his investments. This happens when, for example, growth is expected and is not obtained, or it is thought that the value of the investment will not fluctuate much, but it does. However, some of this frustration could be alleviated by being more familiar with the nature of investment vehicles. Specifically, it is important to keep in mind the difference between long-term and short-term investments.

As an investor, you will likely need a combination of long-term and short-term vehicles. By knowing the differences between these two categories, you should have a good idea of what to expect from your investments, and this knowledge can help you make the right decisions for you.

Are installment payments a good idea?
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