The ongoing financial crisis and uncertainty in the investment markets are one reason why more and more people are investing in “concrete gold”. The absolutely low interest rates for building money also cause people to buy property. But a few basic things should be considered right now so that the financing is on a sound long-term basis: The purchase price of the property should be ori...
More than three years ago since we arrived in the Spanish market, and we did it with a product that, historically, had been aimed at companies: the credit line. Thus, we choose to put at your service the first line of credit for individuals, since it is one of the most flexible financing products and, therefore, the one that best adapts without a doubt to all your needs.
However, we are aware that, a priori, it can be a bit difficult to understand well what it is or how to get the most out of it. Therefore, today we want to tell you everything you need to get all the possible performance of your line of credit. Do we start
What is a line of credit?
We like to define the credit line as a kind of economic mattress that you will have at your disposal whenever you need it. Thus, the credit line is a service through which you can have at your disposal a certain amount of money to use it when you need it. Once we have granted you the money, you will always have it available, without paying any commission or interest until you use it.
In this way, when you need or decide to spend part of that money, you can choose the amount you want to use and the time you want to have to return it. Thanks to the credit line, the money you have not used will remain available, and you will only have to pay for what you have used.
For example, if we have a credit line of 5,000 dollars, and we receive an offer to make the trip of our dreams for 2,000 dollars, we do not have to worry about getting the money before the offer expires. We can go to our line of credit, withdraw the necessary money and gradually pay it comfortably and with the peace of mind of continuing to have the rest of the money available in case we need it.
As you can see, it is a very flexible product, which gives you total control of your money and allows you to organize your personal finances as you see fit. Now that we’ve seen exactly what it is, let’s see how we can take advantage of it.
How to make good use of the credit line for individuals?
As you have seen, by having a credit line, we can withdraw amounts of money and gradually return them. Once those amounts have been returned, they will be available again. In addition, the line of credit does not have any type of commission so, as long as we do not withdraw money from it, we will not have to pay anything back or acquire any debt.
If we talk about amounts or return terms, each line of credit is different. Normally, when going to companies, the amount is quite large. In the case of MagiPulse Credit, by betting on introducing the first line of credit for consumers, we decided to initially apply a limit of 3,000 dollars. However, after analyzing your needs and demands, and to give you even greater control, we extend the limit to 5,000 dollars, giving you a margin of up to 36 months to return the money you have spent.
Differences between line of credit for individuals and line of credit for companies
As we mentioned before, the credit line was historically designed as a financing service for companies. However, given its flexibility, in MagiPulse Credit we also focus on individuals, as we believe it is a very useful product. Although our credit line can also serve as a loan for freelancers and entrepreneurs, the credit line for companies usually presents some differences.
The first one, and perhaps the most notable, is that credit lines directed only to companies usually have some commissions that are charged as time goes by. Likewise, they usually have a series of formalization expenses and some even charge money based on the amounts that are not being used.
On the other hand, the maximum amounts are usually greater than those of the line of credit for individuals, since companies normally need larger amounts of liquidity. Likewise, the return periods may be somewhat lower.
Hopefully now you have everything a little clearer, although, if you have any questions, we will answer you gladly!