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Credit card and consumer credit are two of the most common products in the financial market. This will be your guide to choose which one suits you best.

The question about which product suits you best, a consumer credit or a credit card, forces another question: why do you need money?

The financial market designs products according to the needs of its customers.

Let’s look at the differences between these two:

The credit card is a means of payment , which allows you to pay almost everything you want to buy, charged to your account. As you can see it is very useful to go shopping without carrying cash, to go on a trip, to have dinner or to enter the theater.

The consumer credit is a loan granted by a financial institution, which you can use, for example, in the purchase of a vehicle, in equipment, remodeling, study or medical treatments. The institution records the money in your account and you don’t have to explain what you spend it on. Normally, it is intended to cover a specific need.

The risk issue

Both products have in common the high risk of approval for the bank. In the case of the card, it gives you a limit that you can use 100%. You are free to choose the term for each purchase you make, between one and 48 months. How does the financial institution support this debt? With the promissory note you already signed, of course. But if you have no resources … In the case that you stop paying, you will have to turn to your experience to collect. The same goes for free investment credits. The bank gave you money in your account, they agreed on a term, some installments, and expect your goodwill and financial capacity to pay.

Therefore, both products stand out in the financial market due to their high rates . They are high risk for the financial system. And, at higher risk, higher rate.

For financial institutions it is a good business, as long as the unpaid portfolio remains in good condition. For you? Let’s see:

The matter of fees

Free investment credits will allow you to acquire goods that, otherwise, you could not do at this time. For example, you want to change the vehicle and you need $ 30,000 MX pesos. This credit is approved in hours (as long as you have a good handling of credit cards, public services, mobile accounts, etc.), which is very tempting. Probably, the excitement of doing business is so much that you forget a detail: the cost of borrowed money. The rate can be really high, between 25% and 150% annual cash depending on the lender.

Is it justified to pay up to four times the money in a year? It depends on your need, of course.

It is very common to use these credits to start a business. You buy some computers, the dental office chair, some office furniture, a bakery oven or the supplies to start your nursery. Billing revenues will pay off the debt. It is a good business? If it is the way to start producing, everything indicates that it will be worth it.

When is it not recommended to use the credit card?

• Personal finance experts in the world recommend not using the credit card when you don’t have money. An interesting contradiction. The reason is simple: if your expenses are greater than or equal to the income, you will not be able to assume the value of the interest generated by the credit card.

Watch this:

When you choose to pay 36 installments, that is “normal”, and prefer to pay only the minimum (instead of full payment) you are doing this business: you pay capital (the purchase value) only a small part; Each month, you are paid interest on what you owe. Thus, even without buying anything else, it will be difficult to lower the value of the debt.

Therefore, buying at a single fee is ideal. You defer payment, do not carry cash, earn miles and do not pay interest.

• If you need cash, do not fall into the temptation of consumer credit or withdraw cash with your credit card. You increase the problem, duplicate it, triple it, quadruple it!

Now, if you’re doing accounts and wondering if you take another card or consumer credit because you want to end your debts, there are other solutions. There are other financial products that can help you better.

One of the main concerns of the company that offers its solutions online is to know their own numbers. They say that figures are the language of company, but the Internet is a binary business, their numbers are usually 0 and 1, lastly this is what often determines your own success, what do you want to be zero or 1?.

However , there are a number of metrics that place the balance in a single way or another, never forget in different business that boasts regardless of how good it is or just how much it likes, everything is founded on selling. I share with you 7 metrics so you can measure plus manage your sales to make more correct decisions.

The life value of a client

What value really does each of your customers have? Several will be better or even worse, but do you know which of them provides more economic value for your company?

Suppose your company sells a product in addition to a customer who buys that will product once a month we worth that purchase at € 100 / month, time this customer is purchasing in our business determines the cost of our client’s life. Issue year is buying a year, the formula is simple a year x € 100 and month = € 1200.

This is the associated with the customer, in relation to this worth you have to determine the assets you need to get it and maintain it.

Just how much does it cost to get a consumer?

Technically this metric is called ” Customer Pay for Cost ” and decides how much we spend on the sales actions, be it push, adwords, banners etc .

Take the example kind of company that offers its solutions through adwords with a month-to-month cost of € 500. Using this investment, 70 customers plus 4 sales are acquired, their formula for determining the cost is (investment and sales = customer cost) that is € 500/4 product sales = € 125.

This means that with this instance it tells me that obtaining a customer to buy costs myself € 125 of advertising / advertising investment. In case my profit from sales surpasses € 125 then the advertising campaign has been effective, but if on the other hand I have expense and no advantage then our strategy will be wrong, you have to stop plus think many times there is the important to success.

Conversion rate

This in boxing would certainly indicate the amount of blows which you would have to take to knock straight down your opponent, in soccer the amount of shots of a group to score a goal because within sales it is something comparable.

Imagine that We conducted an email marketing campaign plus sent 1000 to prospective clients, that is, we have 1000 prospective customers. After launching our strategy 10 of them acquire the services (1000 leads and 10 new customers = 10% conversion rate)

” In e-marketing, if an user after an Internet research arrives at a web page plus fills in an information demand form, we call this particular lead. “

If we consider 10% being a low conversion rate, we ought to make changes in the sales procedure.

Average selling ticket

Some methods allow you to increase the value of the particular sale. For example , companies provide mobiles and provide insurance meant for low price. This considerably boosts the sale thanks to the security it offers. In other words, we increase the typical sales by offering something added to it.

The response rate

As we are virtually basing our Internet business metrics, the response rates such as of emails are generally 1%. This presents us using a scenario in which to obtain ten responses to our emails we are going to need to make at least one thousand shipments with a good offer, using the addition that of the ten replies received, not all of these will end up for sale “ a lot more difficult”.

Business lead Rate to close product sales

If your Online business is based on providing professional solutions or the sales cycles are usually long term, the lead price to close sales provides us an idea of ​​the amount of audience we will have to sell.

Take a look at put a strategy if we invariably is an Internet company that offers solutions to SMEs such as development websites and create 10 leads and generate five conferences and produce a client. To obtain a thousand customers we would have to reach 10, 000 individuals.

Contacts available for purchase

How many connections does your strategy need? The overall rule is:

Two percent of product sales are made on the first get in touch with
Three % of sales are made within the second contact
Five percent of product sales are made in the third get in touch with
10 percent associated with sales are made in the 4th contact
eighty percent of sales are created in the fifth contact

It is commonly approved that on average you need among four and seven connections to sell.

Fundamentally these seven Metrics could be applied to everything in general in order to something in particular I hope they will help you. <

Just as high phone bills do not protect you from sticking your phone’s call trigger, just as it is not a really effective weapon against Internet bank abuse, you should not turn on your computer or laptop because of your fears. Although financial abuses have recently taken to the Internet, people are still the weakest link in the chain. As with physical abuse. However, now we’ll show you the most important rules that you no longer have to fear.

Virus and Spyware Protection

Maybe we don’t have to clue why this is most important. E-mail programs and browser programs can send files to our computer at any time that we run into without our knowledge, and, for example, send our most typed passwords or codes to thieves.

Choose a secure internet bank.

If possible, choose a bank based on the security of your Internet bank! Since we manage most of our money here, be the safest! Entering with a token or SMS is now essential, and lack of it can in itself trigger a bank switch.

Set appropriate limits!

An effective way to protect our money is to set a security limit on both your Internet Banking and your credit card that will not remove a lot of money from our account even if you access our Internet Banking or your credit card, without hindering our everyday transactions. If so, set a higher limit for that occasion only and then re-use it after use.

Use an internet card or prepaid credit card on the internet!

Nowadays, several banks offer internet card solutions, which mean that criminals can take only one money set aside for internet use, but certainly not our entire account balance. If your bank doesn’t have an internet card, you can buy a rechargeable credit card to spend on a fully separated balance on the net and, if you have reset it, refill it.

Request SMS notification!

This in itself is not a safeguard against abuse, but it will inform you at the first opportunity that something bad is happening in the background of your account. In that case, be the first to call your bank and then the police. Also, your phone will alert you when money is in your account.

Don’t enter your credit card number anywhere on the Internet!

Always enter your credit card number carefully! Make sure you are on the web page you believe in (the browser will highlight the domain of the web address) and that your certificate from the address bar is authentic and valid! Since banks and cardholders generally do not do this, an invalid or expired, God forbid certificate is definitely a fraud.

Never give out your credit card details!

This in itself qualifies as serious negligence under bank card contracts. Because your card information can be misused, you should always keep it carefully and only enter it on the right website when you pay and don’t lose your card when you accept it personally.

If you do not trust anyone, remove the CVC2 / CVV2 code from the card. For example, scrape it off! For online shopping, a data thief with a 3-digit CVC2 (MasterCard) or CVV2 (Visa) code on the back of the card is essential for a data thief to misuse your card number on the Internet for losing your card, monitoring your camera or leaving your desk at work in your wallet. If you scratch the CVC2 / CVV2 code on the card, they will not be able to pay for it online even if you leave it. And you learn the code or write it in a safe place!

If possible, do not give credit card registration orders to your credit card! Since the memorable PPO scandal, when they were paying a massive $ 2,400 on every credit card they registered, it is not advisable to register your credit card in a system where bank card registration is required, meaning that you may be debited later without your knowledge. Whenever possible, pay by starting the payment process.

Take advantage of the 3D service! In the future, many European banks are likely to introduce the so-called “security check” due to security regulations. You cannot purchase a 3D service that requires you to enter an SMS code in the online credit card purchase process. 

Mortgage-related insurance is one of the issues that generate the most problems when contracting a mortgage loan, before, in and after signing before a notary.

In the Good Finance mortgage simulator the subject has been discussed this week.

And the damage insurance obligation is imposed by the financial institutions’ own need to use these loans and mortgage loans as coverage of mortgage bonds issued by them. It is difficult to explain, but in a nutshell we will say that damage insurance is mandatory for the convenience of the financial institution itself (apart from being useful to us as well).

Characteristics of mandatory damage insurance

• The amount of the insurance to be contracted corresponds to the value for the purposes of the insurance that appears in the appraisal (the ground and the contents are not included).

• The minimum covered risks of damage insurance are: risk of fire (and explosion) and natural elements (storm, natural elements other than the storm, nuclear energy and subsidence of land, hail damage and frost).

Why do they tell us that life insurance is mandatory?

Sometimes we will have heard that mandatory mortgage insurance is home and life insurance (or payment protection, appraisal or car insurance, among others).
What actually happens is that the bank “invites us” to contract a series of related products if we want to be granted the mortgage with the conditions offered. The legality of this type of action is not clear, since it seems that it is to use a position of force to place insurance , rather than to market them.

The practice that if it is legal and does not present interpretative doubts is to discount the interest rate based on the additional products that we contract with the financial entity. The deed stipulates a series of discounts on the differential applied depending on the products or group of products we hire.

For example, a mortgage at Euribor + 0.95 can stay at Euribor + 0.50 if you take out home insurance, the payroll and 3 receipts are domiciled. These bonuses are recorded in the mortgage loan deed.

Will the interest go up if I stop paying the insurance?

It depends on the type of mortgage contracted:

• If the insurance and other related products were a requirement to grant us a mortgage but do not subsidize the interest rate (they do not appear in the deed), we can actually remove them all (except the damage) once the deed is signed or a year.

• If the interest rate is discounted , for each product we stop hiring we will raise the interest rate in the next revision of the fee. Therefore, if you stop hiring an agreed insurance, the interest rate will increase. you have to make numbers to see which suits you best.

The next time a director tells you that he has made you take out insurance because it is mandatory, look at it with a circumspect face and ask: mandatory why ?

Having a car is an element of luxury and as such the expenses that it entails annually can be a problem in our domestic economy at any given time. And is that when there are some unforeseen or higher expenses than we expected, the car insurance receipt is one of the elements that can be left unpaid, which can be a problem even at judicial level if it is not paid.

But what exactly can happen if it is not paid? Driving without car insurance is dangerous since in case of any accident the vehicle is not insured and, as the law indicates, it is mandatory to have third party insurance to cover physical and material damages that we can do to other people.

On the other hand, although we are not involved in any accident, before the authorities we can receive a fine of up to 3,000 euros for going without car insurance up to date. However, there may still be a worse case in which if we have any mishap without being insured, we must cover all damages with our own liquidity which can amount to very high figures that are difficult or sometimes impossible to face. Therefore, car insurance should be considered an essential element if we have a vehicle available.

What if we cannot pay for car insurance?

The first recommendation is undoubtedly not to use the car and not put it under any circumstances for the aforementioned consequences.

Another aspect that we must take into account is that the coverage of the car insurance does not disappear just at the exact moment that it stops paying, since the Organization of Consumers and Users (OCU) establishes that before the non-payment of the insurance of the vehicle, the The insurance company has the obligation to cover the insured for at least one more month , so this period of time can help us to recover financially, find a more accessible fee or request a quick credit and make the payment. However, it is also established that there is a period of 5 more months to pay and recover the insurance that was contracted.

One of the most frequent ways in these cases is usually to request the payment of insurance in installments so that the amount to be disbursed is smaller and there is more comfort and flexibility to be able to comply with the insurer, although you have to keep in mind that whenever you go to this option, higher interests are applied since the insurance annulment premium is not considered as a whole indivisible.

Taking into account all these considerations

It is important to bear in mind the payment of car insurance among our main expenses since the consequences that it entails are more serious than the non-payment of other possible receipts.

In the last option and as we always tell you to solve any situation of economic urgency , there are fast credits, that is, the financial products that have revolutionized the current economic landscape thanks to their help to thousands of families and entrepreneurs who have needed all these years a way of financing as an alternative to traditional banking entities.

And it is that the mini- loans are loans of amounts that do not exceed 1,000 euros but that are obtained in just a few minutes, without the need for travel or having to present a lot of documentation, moreover , many companies admit customers on delinquent lists such as ASNEF or it is enough for them to present some justifiable income such as a pension or unemployment benefit. Its application process is very practical, convenient and easy as it is done through its official website by filling out a form with very basic data such as the amount of money needed, the return period and some personal and bank information. The response by these entities does not usually exceed 24 hours, as well as their concession if yes, which takes a maximum of up to 72 hours.

When planning our domestic economy

The payment of car insurance as we mentioned above should be a priority and given the impossibility of dealing with your payment, there are alternatives such as requesting your installment payment in more comfortable installments or going to fast loans to get the full amount in just a few hours and thus be able to pay the amount as soon as possible.

In Valencio Putki we want to make this work easier for you, so we have one of the best platforms for any user to choose the quick loan that suits you thanks to our comparator made with the latest technology that segments financial products according to the needs of each user in just one click. It also has the comparison of other products such as credit cards or bank accounts because, in Spain, although there is no entrenched culture on the teaching of how to organize our domestic economy it is important to have some basic notions and aids such as the one We offer on the website and in the blog.