With increasing democratized access to information, it is normal for us to find reliable sources and myths . One of these myths is precisely the conscious use of different types of credit. There are those who say that only the credit card has a reliable interest rate, that loans are dangerous and snowball quickly, or that the only way to save money profitably and securely is through savings at a bank. renowned, with several years of existence.
The truth is that when it comes to finance, it is essential that there is a lot of study in the area to be able to say what is best or not to someone, as this may vary according to the reality of each. This will directly deconstruct these numerous myths as it will disseminate the knowledge needed for this process. For this, we first need to understand first what are the lines of credit and which are the main ones.
What are credit lines and how do they work?
A Line of Credit is the total amount of resources a financial institution (whether a bank or a fintech, such as Rcredi ) can offer through a loan to individuals and businesses. There are a number of other special lines intended for specific audiences.
By borrowing any line of credit , part of the future income is intended for the bank or financial agent who made the loan. In Brazil, the most used credit operations are those with high interest rates . This means that a large part of Brazilians’ income and financial capacity is concentrated in debt, which burdens the country’s economy.
The main credit lines available in Brazil are:
The direct consumer credit is commonly used for the purchase of material goods and some services such as cars, furniture and even pay for courses. Usually, the contract is made in a retail network that has a partnership with a bank or finance company.
Is the famous loan , and is the mode that allows the consumer to purchase any good, whether material or not, in the condition you prefer, without prior justification for request, unlike a property or vehicle financing.
As we mentioned earlier, it is the financing granted by a financial institution for the acquisition of a property, and has specific conditions according to the credit analysis and acquisition objective.
Is that limit that is tied to your bank account, which aims to cover any unforeseen. However, it has one of the highest interest rates on the market and it is not advised to use this limit. Other options like loan are more economically viable.
Consists of credit granted by a financial or educational institution to finance a course, may be higher, technologist or even postgraduate. It is an option that enables the graduation of many people and has payment conditions that suit the needs of your contractor.
Often considered a villain in every financial re-education process, we know that it can actually become an ally. Granted by financial institutions after profile and credit analysis, this tool can greatly facilitate the acquisition of assets in the medium to long term. If used with caution, it can become a great ally in your daily life.
This is the modality that deducts loan installments directly from the applicant’s payroll. Generally, there are special conditions for public servants because of job stability.
With these lines of credit, it is possible to make the purchase of a material asset or a long-planned retirement easier. Interest generated through these financial operations is the way institutions have to guarantee their profit.
How to use credit lines consciously?
Now that you know the major lines of credit available in the market, it is important that you know how to choose which one to choose, and which one fits you best. The conscious use of these credit lines acts directly on the economy of the country; With fewer people in debt, the greater the demand for trade, which in turn will demand more from industry, enabling more jobs and a sustainable economy, raising quality for all. Here are some tips on how to use credit consciously :
It sounds obvious, but making sure you are doing a good deal depends a lot on well-researched with all the options available in the market. Do different simulations, stress all possibilities and hire the one that offers you the most security. This is a time that requires patience to avoid any future inconvenience.
2. Choose the best credit for your pocket
With so many options, it is very easy to end up choosing one that is not so good for your pocket. At this point, it is important to look beyond interest rates; One should also look at the payment terms, what are the benefits of anticipating installments and what is the support given by the institution. In addition, this credit cannot count as a supplement to your income and should be treated as an isolated expense.
3. Seek guidance
Before simply borrowing, we advise you to seek professional advice before taking any action. As we have said, hiring a credit can become both an ally and a villain in your finances. A more expert analysis of the situation can help you decide if this really is the exact time to take on another expense.
A good way for those who already own a property is to take out a secured loan . Not only does this solution have better rates, it also has fast approval and no excessive paperwork. This is the kind of conscious credit that, in addition to helping you in some unforeseen time or even in future planning, helps to foster the economy of the country. Everyone wins.
It is also worth remembering that as this is a process involving financial education , it is important that you read our text on family budget reorganization . We provide a spreadsheet to help you organize your finances!
Take the case of the United States: The total volume of credit available to individuals is 35 times higher than in Brazil. When we look only at the mortgage offer, which has a low interest rate, the difference is striking: for every $ 1 in mortgage available to the Brazilian, there is $ 76 to the American. However, the portion of Brazilians’ income committed to debt repayment is more than twice the share that Americans earmark for the same purpose.
A healthy credit generates a healthier economy
It is not the offer of credit that generates debt, but the hiring of expensive consumer credit, with high interest and short term. Therefore, bet on practical and transparent solutions, such as Rcredi itself , which aims to democratize credit lines and make life easier for those who want to expand their goals. And nothing better than hearing from those who changed their lives with Rcredi, as is the story of Lylia , who realized her dream quickly and practically.
Paying less for contracted credit is just a matter of knowledge, and hopefully from now on, you know how to save and make progress at the same time. Don’t forget: always count on Rcredi for whatever you need. We’ll wait for you next time!