Credits in all its variety is part of our life. You definitely had or will have deal with loans, mortgages or other credits.
Credit in the general sense – it is money on loan on a clearly defined term under well-defined interest rate. Speaking of credit, often imply its most common form - bank credit, issuing bank's own or borrowed money from the strict nature of the target: to advance payments, purchase of securities, bills, housing, land, car loan, etc.
Depending on the term loan exists the next types of credits:
On call credits are paid on the first request of the creditor.
Short-term credit (up to 1 year)
Medium credit (up to 3 years)
Long credit (more than 3 years).
Any of these loans often require support of documentary assurances that the borrower will pay his debt and has permanent source of income or a mortgage. Such guarantees are the copies of certificates of title, certificates of employment with the bank about the account status, income, etc. Regular customers or borrowers with high purchasing power banks give blank credit not secured by securities or real estate.
The issuance credits distinguish as non-cash loans (bank transfer), cash loans with the help of plastic cards.
An important characteristic of any loan is a scheme of repayment - Standard (differentiated) or Annuity.
In the standard scheme the loan body is repaid by equal parts, with interest on the balance. Initially creditor has maximum of payment but as the amortization of the loan in proportion to decrease.
When annuity payments remain constant for the duration of lending and the share of payments to repay the loan principal in the initial period is minimal, but then gradually increases. An Annuity can postpone repayment of the loan principal amount at a later date.
An Annuity schema is often applied to credits for auto and real estate (mortgage).
To know more about credits, loans, mortgages simply surf the internet. This knowledge can help you to save money or even prevent you from awful decision.