How to Choose a Loan?
The monthly budget of most people is limited by salary. We don’t always want to put off purchases or save money on them for several months. It is convenient to buy large purchases such as a refrigerator, a washing machine or a TV set on credit or by installments, all the more so as banks cooperate with retail chains and offer favorable conditions for targeted loans. When planning a major purchase, none of us wants to overpay. How to choose a loan and where is it better to take so that our desires do not cost us too much?
What Types of Loans Are There?
Before you go to the store to choose a new home appliance, we recommend that you familiarize yourself with the different ways to finance your purchase. We can distinguish the following types of consumer loans, which are convenient to use for the purchase of goods or payment for services:
- Instant online loan
- Bank express loan
- Consumer installments
- Limit Credit Card
- Cash loan secured
Online Loans from Payday Lenders
In order not to overpay for a consumer loan, pay attention to the type of loan and the rates for its provision. When choosing where to get a loan, compare interest rates and total cost. This is easy to do if you use the online service to search for the most profitable financial products, including loans. Let’s look at the most popular types of consumer financing.
Instant Loans Online
Instant loans on the card from the bank can be obtained without visiting the office. Banks seek to compete with microfinance companies in the speed of obtaining a loan and simplify the procedure for obtaining money as much as possible. In 30 minutes you can get money on a credit card from a bank. For such a short period, the bank manages to check the credit history and rating of the borrower. Banks take a certain risk, relying on the honesty of the client and on their scoring model for assessing the solvency of the client.
Express lending is the most popular way to buy goods on credit. In almost every large supermarket where household goods are sold, you can see representatives of banks or credit companies. It is possible to apply for a loan without leaving the store, you only need to have a passport and a tax code with you. Express loans are an off-line analogue of loans on a card, because they are issued without a certificate of income and without collateral. But be sure to check the credit rating of the borrower.
Consumer Loans Secured by Valuable Property
When buying expensive goods, such as a car or expensive equipment, the goods themselves are a guarantee for obtaining a loan. In the store you need to get an invoice, and then present it to the bank for a loan. If you need money in cash, for example, to organize an event, you can get money on the security of a car or real estate by providing documents to the bank. This procedure is longer, the decision is made within 1-5 days. The advantage is that you can study the terms of the contract, and then make an informed decision.