In the midst of the drop in rates on credit cards from the country’s main commercial banks, and the possibility that the purchase and sale of portfolios will skyrocket, given the alternatives in interest rates, more and more people are analyzing the best options to reduce the impact of rising credit on all fronts.
(How to take advantage of lower interest rates from banks).
Given this, many wonder what is the best option in the forms of payment in the credits to decide which one to choose. The question then arises: UVR or fixed rate credits?
To resolve this question, it is worth first understanding the requirements and its characteristics to determine which modality best suits the needs of your pocket.
The UVR (Real Value Unit) is a unit whose value depends on inflation, that is to say that the value of the quota and the balance of the credit can vary depending on the behavior of inflation.
(In microcredit there will be a new usury rate).
For their part, fixed-rate loans, as their name indicates, are those whose rate it does not change while you are paying for it.
Under this modality there are two payment options: the capital payment, in which the odds decrease as time progresses. On the other hand is the fixed fee with constant monthly installments until the end of the credit.
For Edgar Jiménez, professor and director of the Financial Laboratory of the Jorge Tadeo Lozano University, the most convenient thing for ordinary people who request a loan is to pay at a fixed rate, taking into account the high inflation.
(Demand for credit slowed down: these are the reasons, according to Banrep).
“Maybe the UVR loans worked when they required low inflation, but right now, if someone has a UVR loan, my recommendation is to go to a fixed rate, even if inflation begins to subside, because these loans have become more expensive”Jiménez said in a Portfolio Live (see video).
For the expert, credit in pesos is more stable, since users also have more control over how much to pay with fixed rates, while credits in UVR can have high variations from year to year. In this case, it is appropriate for cases in which the credit does not exceed a period of one year.