If you were thinking of asking for a loan to buy a car , a house or investing in a new project, in this article I will talk about short, medium and long term loans . Which one will suit you best?
What is credit?
The loan is a loan made by the bank or some financial institution, which you must repay at a certain time and with the interest and fees stipulated in the contract.
Short term credits
It all depends on the time it takes to get your resources to pay off the debt. Will it be days, months or years? From that you decide if it is short, medium and long term.
If your goal is to be able to buy something low cost or pay for a service, this type of credit suits you, since you can access your money quickly and with minimal interest. Also, if you need liquidity or have a very close goal that you must pay, you can use it.
Sometimes they have a high CAT, but they can be used to take advantage of offers and promotions, for example, you can use it when you need to buy a cell phone, a computer or a camera .
Medium term credits
If you require a better financing scheme, among the short, medium and long term credits, this is the one you should choose. They are indicated when youra goal is to make a big trip, pay a debt, or buy a new vehicle.
Long term credits
Although loans may generate a high return, they have a risk component, which is why they are recommended for long-term loans. These are the ones that seek to grow your assets and serve you perfectly to pay for college, acquire a property or start a new business.
Even some of them are considered investment debts .
Short, medium and long term credits Which one is best for you?
Faced with an urgent economic need, you have to think coldly that it is what is convenient for you to ask for the loan and how long do you really think you can pay it.
The short-term ones do not require paperwork but their amount is not large, the long-term ones are allowed to pay more comfortably, although it has a more extensive protocol and their interests are high.
The medium-term ones give you a balance between the two, although you can’t neglect your finances. Have you decided which one you want to apply for?