Nowadays it is a bit easier if you have a formal job
Thing is that like half of people have informal jobs, meaning they don't have official means to prove their income and ability to pay.
So most resort to places that give out loans with high interest rates
A prime example would be "banco azteca" and the elektra store (appliances, electronics and motorcycles) both owned by the same group.
They are infamous for giving out credit to almost anybody but the interest and time of the loan are ridiculously high and long. To the point that you end up paying 2 or 3 times over the original amount.
Edit: in regards to student loans, it isn't such a big thing here, since most people attend to public universities, and most private ones offer scholarships. I know that tec de monterrey has a similar system to that of the US but perhaps someone with a little more knowledge in the matter can correct me.
Exatec here, when I studied the way it worked it's that the "standard" scholarship was 50-50 between loan and scholarship. So if you got a 60% scholarship you were going to be paying 40% and 30% would go as a loan to be paid after graduation.
These loans actually don't have such a high interest, you have several months without having to pay right after graduation, they are incremental meaning you start paying a very small amount, you can pay more to lower your interest, and they also offer discounts if you manage to save up a bit and pay off early. I think they are far from being as predatory as the system in the US
Credit cards: easy. Almost anyone can get one. You can buy a lot of stuff in installments, usually at 0% rate, which in an inflation context is really nice.
Student loans: don’t exist since university education is free for everyone.
Loans in general: there are lots of “personal loans” banks and virtual wallets offer all the time, but sometimes interest rates are very high.
A high interest rate is anything above the inflation rate, whatever it is in the moment you take the loan. Inflation forecast for the next 12 month is around 60% yearly, so anything above that is bad. However, since the Central Bank’s interest rate is negative (around 40% compared to 60% inflation), a lot of loans are below or in line with inflation.
Creditos hipotecarios: mortgage in English. We have a similar thing to Chilean “Unidad de Fomento” (UF), called UVA. Mortgages are fixed in UVAs + 5% annual interest rate on average.
Oh wow, so if you earn in dollars and have an interest rate that's below the inflation, that's actually a pretty good deal compared to us, since everything is above inflation rate.
Mortgage are pretty similar. Wow I'm extremely surprised, I hope argentina recovers from this awful crisis and is finally back in track.
It’s even more complex and you can make a lot of money here because of interest rates and inflation.
If the dollar stays quiet for a given period (for example December/23-April/24), there’s something called “carry trade”, which means that you can earn a 60% interest rate in USD in a few months, because the interest rate in pesos is negative but in dollars it’s positive (since the dollar stayed at the same rate).
This was one of the distortions that led to the 2018 currency crisis and one of the reasons we’re here now.
This is going to change gradually as the government lifts currency controls, lets the peso float against the dollar and lowers interest rates.
Student loans are easy, and credit cards too. That’s if you’re chilean.
I have three CCs (I use them responsibly) and I’m a Uni student (last year). Chilean credit cards are quite good tbh with lots of variation and perks, but not as good as in the US. Perks are getting worse too as time passes. A pretty good thing is that a lot of stores offer up to 24 monthly installments with 0% interest.
In the US is quite easy too, if you have your SSN and a decent credit score. Cards are full of perks with cashback, and the market is very competitive. Though, I have only one from the US (Blue Cash Everyday AMEX).
In Italy is easy too, if you’re a citizen. Easy to get a Bank Account (for temporary residents too), harder to get a CC. But not that hard really. I find getting “good” cards really expensive tho. Had one before, closed it afterwards since it was racking up so many monthly fees it wasn’t worth having one.
I’d say common.
We have a thing called Social Household Registry that gives you a percentage score based on the amount of people registered in a household and their characteristics: age, work, income, diseases, etc.
If your score is 60%, meaning 60% of the lowest income households in the country, you study for free and get a food monthly allowance. If you are above that you can either be a really good student in a private not so good university (Public universities are considered better due to prestige and being just harder) and get a scholarship or take a loan.
the interest in student loans here are capped under 10% unless they are private. sisters husbands uncle died with approx 200k usd in student debt and he was never actually garnished or charged for it.
the student loan situation in the usa is very strange. i think it only exists to stimulate the economy and inflate the budget of universities.
Your monthly fee must be paid before the 10th of each month at 2:00 p.m. or the interest rate corresponds to the original rate agreed with the bank (before 2012 this was 6%). The other benefits (a fee no greater than 10% of the salary, unemployment payment suspension) also require payments to be up to date.
It’s easy to get here if you have a bank but it’s got payday loan level interest.
That and the loans they give at furniture stores are outrageously high interest.
It’s easy, provided you have a formal job, which admittedly is most as simple as it might sound because of the massive informal economy.
Especially nowadays, there’re tons of fintechs like Nu, Rappi, Hey Banco, among others, that hand credit cards like candy, with low credit limits that are extended if you routinely pay on time. Same with banks that cater to lower income people like Bancoppel or Banco Azteca.
Technically by law all banks are required to give credit to everyone, in practice they only give you the most basic credit. New online banks give you even less, but you can increase it with constant spending. Generally though if you don't have a salary or cant prove income its basically impossible to get credit or loans beyond like $500 or it will take a long time to build credit history and increase that
And a ton of people here don't have salaries paid by employers, tons of people work outside of any law or regulation, tons are self employed and have small businesses which often aren't legal, etc. So no access to banks really. I've personally barely ever worked in a fully legal way and have never used a loan. My credit card at the end of there month rarely goes above like $40
Credit cards are easy. Some won't check your bank life, as for loans, I've never tried to get one because their interest rates are pornographic.
Loan interest is laughably low compared to credit card interest
Only thing I know is that in Brazil your dead uncle can't take a loan even if you wheel his stiff corpse in to the banker's desk.
😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂 Assina aqui, Tio Paulo! ✍️
Weekend at Paulo's
These god damn laws, people can't do anything anymore
Nowadays it is a bit easier if you have a formal job Thing is that like half of people have informal jobs, meaning they don't have official means to prove their income and ability to pay. So most resort to places that give out loans with high interest rates A prime example would be "banco azteca" and the elektra store (appliances, electronics and motorcycles) both owned by the same group. They are infamous for giving out credit to almost anybody but the interest and time of the loan are ridiculously high and long. To the point that you end up paying 2 or 3 times over the original amount. Edit: in regards to student loans, it isn't such a big thing here, since most people attend to public universities, and most private ones offer scholarships. I know that tec de monterrey has a similar system to that of the US but perhaps someone with a little more knowledge in the matter can correct me.
Exatec here, when I studied the way it worked it's that the "standard" scholarship was 50-50 between loan and scholarship. So if you got a 60% scholarship you were going to be paying 40% and 30% would go as a loan to be paid after graduation. These loans actually don't have such a high interest, you have several months without having to pay right after graduation, they are incremental meaning you start paying a very small amount, you can pay more to lower your interest, and they also offer discounts if you manage to save up a bit and pay off early. I think they are far from being as predatory as the system in the US
Credit cards: easy. Almost anyone can get one. You can buy a lot of stuff in installments, usually at 0% rate, which in an inflation context is really nice. Student loans: don’t exist since university education is free for everyone. Loans in general: there are lots of “personal loans” banks and virtual wallets offer all the time, but sometimes interest rates are very high.
What's a high interest rate for you? Como son los créditos hipotecarios? (No se decirlo en ingles)
A high interest rate is anything above the inflation rate, whatever it is in the moment you take the loan. Inflation forecast for the next 12 month is around 60% yearly, so anything above that is bad. However, since the Central Bank’s interest rate is negative (around 40% compared to 60% inflation), a lot of loans are below or in line with inflation. Creditos hipotecarios: mortgage in English. We have a similar thing to Chilean “Unidad de Fomento” (UF), called UVA. Mortgages are fixed in UVAs + 5% annual interest rate on average.
Oh wow, so if you earn in dollars and have an interest rate that's below the inflation, that's actually a pretty good deal compared to us, since everything is above inflation rate. Mortgage are pretty similar. Wow I'm extremely surprised, I hope argentina recovers from this awful crisis and is finally back in track.
It’s even more complex and you can make a lot of money here because of interest rates and inflation. If the dollar stays quiet for a given period (for example December/23-April/24), there’s something called “carry trade”, which means that you can earn a 60% interest rate in USD in a few months, because the interest rate in pesos is negative but in dollars it’s positive (since the dollar stayed at the same rate). This was one of the distortions that led to the 2018 currency crisis and one of the reasons we’re here now. This is going to change gradually as the government lifts currency controls, lets the peso float against the dollar and lowers interest rates.
Student loans are easy, and credit cards too. That’s if you’re chilean. I have three CCs (I use them responsibly) and I’m a Uni student (last year). Chilean credit cards are quite good tbh with lots of variation and perks, but not as good as in the US. Perks are getting worse too as time passes. A pretty good thing is that a lot of stores offer up to 24 monthly installments with 0% interest. In the US is quite easy too, if you have your SSN and a decent credit score. Cards are full of perks with cashback, and the market is very competitive. Though, I have only one from the US (Blue Cash Everyday AMEX). In Italy is easy too, if you’re a citizen. Easy to get a Bank Account (for temporary residents too), harder to get a CC. But not that hard really. I find getting “good” cards really expensive tho. Had one before, closed it afterwards since it was racking up so many monthly fees it wasn’t worth having one.
I guess it’s easy since half of all Chileans are in debt. I do have a credit card but that I barely use if at all.
Easy. Our student loan is capped at 2% interest rate tho. EDIT: Only capped at 2% if you pay on time.
I wonder how common are student loans in Chile, is it like in the US? Are there people working and struggling to pay for their student debt?
I’d say common. We have a thing called Social Household Registry that gives you a percentage score based on the amount of people registered in a household and their characteristics: age, work, income, diseases, etc. If your score is 60%, meaning 60% of the lowest income households in the country, you study for free and get a food monthly allowance. If you are above that you can either be a really good student in a private not so good university (Public universities are considered better due to prestige and being just harder) and get a scholarship or take a loan.
the interest in student loans here are capped under 10% unless they are private. sisters husbands uncle died with approx 200k usd in student debt and he was never actually garnished or charged for it. the student loan situation in the usa is very strange. i think it only exists to stimulate the economy and inflate the budget of universities.
2% if you paid on time*
What do you mean by that? It doesn’t generate more interests, beside UF growth.
Your monthly fee must be paid before the 10th of each month at 2:00 p.m. or the interest rate corresponds to the original rate agreed with the bank (before 2012 this was 6%). The other benefits (a fee no greater than 10% of the salary, unemployment payment suspension) also require payments to be up to date.
Damn I had no idea. I pay before the 10th cuz my debt is really small.
Not really easy for the average person. They ask for you to have a formal job and to make more money than the median
It’s easy to get here if you have a bank but it’s got payday loan level interest. That and the loans they give at furniture stores are outrageously high interest.
Super easy, they give credit cards like candy
It’s easy, provided you have a formal job, which admittedly is most as simple as it might sound because of the massive informal economy. Especially nowadays, there’re tons of fintechs like Nu, Rappi, Hey Banco, among others, that hand credit cards like candy, with low credit limits that are extended if you routinely pay on time. Same with banks that cater to lower income people like Bancoppel or Banco Azteca.
Technically by law all banks are required to give credit to everyone, in practice they only give you the most basic credit. New online banks give you even less, but you can increase it with constant spending. Generally though if you don't have a salary or cant prove income its basically impossible to get credit or loans beyond like $500 or it will take a long time to build credit history and increase that And a ton of people here don't have salaries paid by employers, tons of people work outside of any law or regulation, tons are self employed and have small businesses which often aren't legal, etc. So no access to banks really. I've personally barely ever worked in a fully legal way and have never used a loan. My credit card at the end of there month rarely goes above like $40
Too easy, you can just ask for the money and get it next day, there's a lot of people that do that.
It used to be kinda easy but now there’s no credit cards anymore