There are many institutions dedicated to offer credits with different financing plans and other institutions that offer loans, both can be used for different purposes. It is important to know the difference between one and other so you can take the best decision according to your needs.

The requirements for both process are generally the same, vary slightly, but mainly requires:

• Have a good credit history: most of institutions consult credit reporting companies about their clients,
• Have income proof: based on the client salary, the institution shall determine the amount, timing and the ability of the client for paying the loan / credit and
• Other documents as: proof of address and official identification.

In the case of the loan, the institution delivers the requested money to the customer, it should be returned within a period established under a contract in which fees and interest will be added to the loan. They are generally used for the purchase of cars, to study, to put a business, among others.

In the case of credits, the institutions do not provide the requested money in one motion; in this case the customer has the option to request a certain amount of credit depending on its needs. To the credit, just as the loan, interests will be added, however, the customer only pays the interest according to the money used, while customer pay back the credit, can make use of this amount again.

Once the credit/loan is given, it is important not to fall behind with payments, non-payment generated extra interest, and consequently, the debt grows to the extent of becoming a debt almost impossible to pay.

Know all the options and choose the best, never try to pay loans or credits that exceed your payment ability or you'll end trapped in a debt impossible to pay.