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Where Can I Get Credit?/¿Donde Puedo Obtener Crédito?¹

Nayda I. Torres and Mary N. Harrison²

Where Can I Get Credit?

Credit is available from many sources. For this reason it is important to compare the different sources. The following are some of the sources of credit:

• Banks -- They loan cash. You sign a legal contract when you borrow money. Some loans are made where you must have a guarantee beyond the promise to repay (such as a car). Other loans -- usually for smaller amounts of money -- are made for which only your promise to repay is required.

• Bank Cards -- They are usually issued by banks and may be used to buy items, services or receive cash advances.

• Credit Unions -- You must be a member of the credit union in order to get a loan or a credit card. The interest rate they charge is usually the lowest.

• Rent to Own -- These stores let you use (rent) their furniture or appliances for a fee. With an agreement your rental fee becomes a weekly or monthly payment on the items. At the end of the contract you own the rented items. Prices are high.

• Finance Companies -- a source of credit for people who are high risk in terms of their credit rating. They usually charge higher interest rates than banks, savings and loans associations and credit unions.

• Pawnbrokers -- To get cash, you must leave an item of value at the pawnshop and you usually receive half of its resale value. If you do not pay by the date agreed upon, the item you left will be sold. Pawnshops charge high interest rates.

• Installment Plans -- Used to buy things that cost a lot such as a washing machine or a range. You make a down payment and then pay the balance plus interest on a weekly or monthly basis. If you fail to make a payment the store can repossess the item.

• Charge Accounts -- You buy the merchandise and the store sends you a bill. If you do not pay the bill in full, an interest charge is added to the next bill.

• Illegal Lenders -- Some lenders operate outside the law. They may charge higher interest rates than pawnshops. These lenders often take advantage of people.

¿Donde Puedo Obtener Crédito?

Uno puede obtener crédito a través de muchas fuentes. Por esta razón es importante que compare las diferentes fuentes de crédito. Las siguientes son fuentes de crédito:

• Bancos -- Ellos prestan dinero en efectivo. Usted firma un contrato legal cuando toma el dinero prestado. Hay algunos préstamos que se hacen donde usted tiene que tener una garantía ademas de la promesa de pagar (automóvil). Otros prestamos -- por lo general la cantidad es baja -- son hechos y lo único que requieren es su promesa de que va ha pagarlo.

• Tarjetas de Crédito de los Bancos -- Por lo general la obtiene a través de un banco y la puede usar para obtener artículos, servicios u obtener avances de dinero en efectivo.

• Uniones de Crédito -- Usted tiene que ser un miembro para poder obtener préstamos y tarjetas de crédito. Por lo general el cargo de interés que ellos cobran es el más bajo en el mercado.

• Alquilar para Comprar -- Algunas tiendas permiten que se alquilen muebles o electrodomésticos. Por medio de un contrato, el alquiler se vuelve el pago mensual para la compra del mueble o aparato. Al fin del periodo de alquiler, el aparato es suyo. En este sistema de compra, el costo del mueble o aparato es alto.

• Compañías Financieras -- Una fuente de crédito para personas que no son buenos riesgos en términos de su clasificación de crédito. Por lo general, el interés que ellos cobran es más alto que cobran los bancos, las asociciones de ahorros y préstamos y las uniones de crédito.

• Casa de Empeño -- Para obtener dinero en efectivo usted tiene que degar en la casa de empeño un artículo de valor. Por lo general usted recibirá la mitad del valor que artículo, si usted no lo reclama en la fecha acordada. El nivel de interés que los prestamistas cobran es bien alto.

• Pago o Plazos -- Se usa para comprar artículos que cuestan mucho dinero, tal como una máquina de lavar ropa o una estufa. Usted hace un pronto pago y paga el balance más el interés en pagos semanales o mensuales. Si usted no hace los pagos, la tenda puede reposeer el artículo.

• Cuenta de Cargar -- Usted compra la mercancía y la tenda le envía la factura. Si usted no paga la cantidad total de la cuenta, le añadirán cargo de interés en su proxima factura.

• Prestamista Ilegal/Usurero -- Algunos prestamistas funcionan sin seguir las leyes. Ellos por lo general cobran intereses más alto que la casa de empeño. Estos prestamistas por lo general se aprovechan de la gente.

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Footnotes

1. This document is FCS 7146, one of a series of the Department of Family, Youth and Community Sciences, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida. First published: January 1994. Revised: December 2005. Please visit the EDIS Web site at http://edis.ifas.ufl.edu

2. Nayda I. Torres, Professor, Family and Consumer Economics, and Mary N. Harrison, Professor, Consumer Education, Department of Family, Youth and Community Sciences, Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, 32611.

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The Institute of Food and Agricultural Sciences (IFAS) is an Equal Opportunity Institution authorized to provide research, educational information and other services only to individuals and institutions that function with non-discrimination with respect to race, creed, color, religion, age, disability, sex, sexual orientation, marital status, national origin, political opinions or affiliations. For more information on obtaining other extension publications, contact your county Cooperative Extension service.

U.S. Department of Agriculture, Cooperative Extension Service, University of Florida, IFAS, Florida A. & M. University Cooperative Extension Program, and Boards of County Commissioners Cooperating. Larry Arrington, Dean.

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Copyright Information

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