Currently, many of the people who are looking for financing do not know exactly what features they should look for in the process, how which option will cost them less for their pockets, or which offers greater comfort. This is where loans and credits come into play. 

However, not everyone knows where the difference between a loan and a credit lies. That is why, from Fintonic, we show you the characteristics and differences between both options.

How do credit cards work?

Credit cards provide smaller amounts of money, that is, a certain amount of cash is available, up to a maximum limit. This maximum does not need to be spent, but it can be used if so decided. During a set time -which usually lasts approximately one month-, this money can be partially or totally available.

The use of credit cards is usually associated with the accumulation of operationsOnce this one-month cycle ends, a fee will be charged reflecting transactions to date. If these amounts are not paid at the time, the bank may charge a series of interests such as the equivalent annual rate, popularly known as APR.

How do personal loans work?

Personal loans cover a specific need in the applicant, for example, they are usually requested to make certain purchases (consumption), reforms in the home, to reunify debtsOnce the amount has been established, a maximum term is agreed for its return, this fee being totally flexible for the applicant, which brings great convenience when paying the borrowed money.

 Loans are usually larger amounts of money that are fully provided at the time of contracting the service. For example, Fintonic currently obtains loans for our users of up to €30,000. Unlike credit cards that are smaller amounts that can be disposed of during the month, or time established with the entity.

 In loans, the term is always the same, while in credit cards this amount will vary depending on the transactions carried out during the estimated time. As an example, the loans that you can get through your Fintonic app have a term of up to 72 months.

In addition, in the loans, the total interests are pre-established and therefore are invariable from the contractual act.

Once you know all this information, if after this you are still looking for financing, don’t worry, because from Fintonic you can get advice and your personal loan through the app or directly through our new website.

Do you have any advice, curiosity, or question that we have not discussed? What are you waiting for? You can help many users who read your comment on our blog