You still don’t know what personal credit is? Stay tuned because you’ll learn it now.
Personal credit is money available for personal finance but not the same as a loan.
Credit can be defined as a type of contract in which the customer benefits from a line of credit from a lender or bank and can reapply once the amount initially granted has been paid in full.
Main Characteristics of Personal Credit
This type of credit has as its main characteristic that a certain amount of money is granted with a certain time limit or term for its total payment.
The total amount is not always provided to the customer, but he can use the amount as needed through his credit account or credit card.
They are similar to personal loans in that the client repays part of the amount owed in monthly installments.
The only difference is that the customer can reorder amounts that have already been repaid for repayment of the credit with a view to using them for other purposes.
Functioning of this type of Financial Grant
This type of credit is done as follows:
- the financial institution may make partial deliveries of the amount provided on the credit, once requested by the customer and which will be used for its convenience.
- The interest to be paid corresponds only to the amount drawn down by the client and on the balance not yet drawn down by the client, a minimum commission is charged.
- As soon as the requested money is returned, the client can dispose of more without exceeding the limit of what he can dispose of (total amount of credit granted)
- Unlike loans, credits can be renewed or extended except in the case of consumer credits, renewal is not possible.