Getting a reliable loan for a negative can be a little more complicated than you might think, and generally what makes this whole process boring is that there are many things you may not understand when making your contract.
There are a multitude of loan-related terms that you don’t know about, but you should, whether you’re really looking to apply for a credit to take that dream trip or just to get out of the red and rearrange your financial life .
Terms present in a reliable loan for negatives
So to help you better understand these terms, we’ve made a list of the most complicated terms that often create uncertainty when making a loan!
In order to calculate how much you will pay only on tax, you must do the base calculation and have an aliquot. The tax rate is nothing more than the percentage of the total amount that will have to be paid to the government via taxes.
A debt is made up of two parts: interest and principal. Amortization, in fact, is the principal payment, which generally reduces debt.
This is a fee that is paid each year for access to a certain type of service, such as a credit card, or a loan.
The surety is a type of requirement made by the lender so that he can grant you any kind of loan or finance. The surety is usually given by a person close to the person who wants the loan, and if the debt is no longer paid, the surety will be charged.
- Register of Bottomless Check Issuers
This body functions as a gigantic database with all the information from people who write bad checks, those who don’t have their checking accounts in the money to honor the payment of the check that was passed.
- CDB – Bank Certificate of Deposit
This is a security, like a check, which is issued by banks and generally made available to any client as an investment option. The client will give the bank an amount of money, the bank will issue a certificate of this deposit, and will commit to returning the money to the customer, plus interest, after some time.
- CET – Total Effective Cost
This is information that tells you how much your financing or loan will cost, including not only the interest but all the fees, charges and taxes that are charged to the customer. The great advantage of CET is that it allows you to compare two or more banks, budgeting so you know which one will charge you the least for the service you want.
- Payroll loans
This is a different type of loan where benefits will be directly deducted from your payroll. Thus, the person who has decided to take a payroll loan will receive the amount of your payment already decreased exactly the amount of your installment, until all debt is fully paid.
It is the person or financial agency that grants the credit, lends the money, or sells booklets, for example. The lender is the person or agency to which the debtor is owing money.
Default occurs when someone, a person or a company fails to pay any of their financial obligations by the agreed maturity date. From this date, the debtor will be considered as defaulting.
- IOF – Tax on Credit, Exchange and Insurance or Securities Transactions
This is a federal tax, which is levied on foreign exchange, insurance, credit and securities transactions. Usually appears on your card statement when you make an international purchase.
- Compound interest
This is a way to calculate interest on a debt or an investment. Thus, the amount of interest of a certain period is accumulated, on a given date, in the debit balance or the balance of the investment, and then the interest for the next period is calculated.
- Credit line
These are the total resources that an institution is committed to lending to people or companies that have a similar purpose, such as buying equipment, buying a home, starting a business, and various other purposes.
- Payable margin
This is the amount that can be deducted from the pension, salary, retirement or any other income to pay the installments of a payroll loan. Generally speaking, the margin usually corresponds to thirty percent of your net income, and is intended to prevent people from borrowing that they are unable to repay.
- Default interest
This is the charge that the agency charges the debtor when he pays the debt overdue in order to compensate for the fact that he has only received back the appropriate amount after the agreed date.
Default interest also serves as a form of punishment so that the debtor does not stop paying his debts. Unlike fine, which always has a fixed amount, the default is longer as the days of late payment.
Remember the terms
So, now you are ready to make your loan, understanding everything that happens with the calculations and what the most important acronyms that are used during the negotiation mean.
Making a reliable loan for a bad credit is ideal for getting you out of the red, but you need to be sure of what you are doing before you even start tidying up your finances. Studying a little helps a lot, and we will always help you understand more about the world of lending.