Advantages and Functions that Credit cards gives us.

  • January 15, 2020

Credit cards give us a series of advantages and functions such as the fractional payment of our purchases made with these cards. It is an increasingly common function in banks, whose use has been enhanced during sales or Christmas purchases. That is why many families resort to this condition of their credit cards on these dates as a result of Christmas shopping, the arrival of Santa Claus or the long-awaited Black Friday.

The deferral of charges through credit cards do not usually exceed 6 months nor do they admit very high financing.

On the other hand, there is the option to pay our expenses in full with our card, an action that does not imply any type of cost or commission. That is the safest way of payment and in this way you avoid possible commissions or interests on the part of the banking entities.

Advantages and disadvantages of fractional payment

Advantages and disadvantages of fractional payment

The most common with this type of transaction are financing ranging between 600 and 1,200 dollars in a period of three to six months . This function of our credit cards does not usually allow us to spend more than $ 3,000, for example in the case of requesting a travel card.

Commonly, one of the great advantages is to be able to defer our payments by allowing us greater economic peace of mind to meet our future expenses; Always at a low interest. It also allows us to face other expenses at that time, postponing our purchases for a future short-term payment.

On the other hand, one of the biggest risks of this type of financing tools is to fall into the routine of getting used to borrowing with deferred payments. These are expenses that we will always have to face, always being in continuous debt. And even more on dates like these where expenses soar and it is easy to fall into the habit and a negative loop of purchases and expenses.

Examples of installment payments

cash

Good Finance offers a number of advantages with its smart cards as a series of different forms of payment. You can either pay on the day, at the end of the month, make a payment in installments, pay at the moment or finance your purchase up to 18 months without commissions.

On the other hand, another example is the well-known Bankintercard with which you can postpone your purchases and be able to manage your economy in a quieter way.

Loan: offer financial services through information technologies

  • January 2, 2020

Good Finance companies (Good Finance is a combination of the words finance and technology) offer financial services through information technologies more efficiently and at a lower cost.

In Latin America, the leading countries in the creation of these Good Finance companies are Brazil, Mexico, Colombia, Argentina, and Chile, in that order respectively, according to the number of ventures they contribute.

These ventures are still in the early stages

These ventures are still in the early stages

The Inter-American Good Credit Bank identified around 703 enterprises and the countries mentioned occupy 90% of Good Finance operations in Latin America. Many of these companies were established between 2014 and 2016 and this demonstrates the value that these entrepreneurs give them.

However, the study by the Inter-American Good Credit Bank mentions that these ventures are still in the early stages and that they need to strengthen their business models before they are truly sustainable.

According to the report “one in four Good Finance operate as alternative financing platforms, offering loans, collaborative financing (crowdfunding) or financing through the intermediation of invoices. Another quarter operates as payment companies, and the remaining segments include business and personal finance management, asset management, insurance, and digital banks. “

For this study, 393 Good Finance entrepreneurs from 18 countries in Latin America were consulted and something that was found was that a large number of these think that the objective of their companies is to reach those segments of the population that do not cover traditional financial organizations such as They can be some individuals or SMEs.

This new offer of financial services has been well received in different parts of the world such as Germany, Spain, the United Kingdom, among others. There are several factors that differentiate these alternative financing organizations. Each has its own conditions, but among some of these differences is the speed with which money is delivered, the fact that no guarantee is needed, that everything is done online, that loans are made in small amounts of money, and that traditional financial organizations are not necessary.

A sector of the population that is very interested

A sector of the population that is very interested

It has been seen as these companies develop their activities, that a sector of the population that is very interested in this type of services is that of the millennials or born between 1981-2000. This generation lived closely the era of the information and have very good management of technology, precisely because they grew up with it.

Although many of them are very well prepared academically, not all of them still have the financial stability that traditional banking organizations require.

It is important to clarify that although the rules for accessing the loan are more flexible than with the banks, the rules regarding the breach of the agreements they have reached are not so.

In other words, it is important to plan and be assured that there is the ability to cover periodic fees in a timely manner. Any breach of the agreements will result in higher interest, therefore, a more expensive loan.