This type of loan is used by people who need to borrow an amount of several tens of thousands of crowns.
Cash loan is very popular mainly because you get it very quickly, sometimes even the next day. To obtain a cash loan you can do without a guarantor. The client can use the borrowed money for anything without giving a purpose, whether it is needed for the reconstruction of the kitchen or for example buying a car.
“The biggest advantage of a cash loan is certainly quick access to money. At present, an online loan is a very popular option and can be taken out from home within minutes. The simpler the method of settlement, the better the client has to think about whether he will be able to repay the loan, “ advises Tom Sawyer analyst Michal Kozub.
Consumer credit is also known as hire purchase. It is intended, as the name itself suggests, to purchase consumer goods or services. When the old refrigerator is out of service, it needs to be replaced with a new one.
But where to get money quickly?
Consumer credit can be arranged directly from the seller. Based on the client’s financial situation, the amount of the monthly payment, the due date and the repayment period will be agreed. The main advantage of hire purchase is that the goods do not have to be paid in full, which is practical for the family budget.
Consolidation is designed for people who have two or more loans often with different providers. If the client no longer manages to pay their debts, it is a good idea to consider their situation realistically and to contact a bank or credit company for consolidation. In this situation, the selected company pays the old debts of the client and merges them into one larger loan. This usually reduces the monthly payment, the interest rate and the final amount that the client would overpay on multiple loans.
“Consolidation of loans is currently a topical issue. Clients use this service especially at a time when loans accumulate and the sum of monthly installments exceeds the tolerable limit. Thanks to consolidation, they have the possibility to negotiate new repayment terms and significantly reduce the amount of repayments so far, ”Kozub explains.
Although many may be surprised, a credit card is a kind of loan. Its big advantage is that the owner does not have to repeatedly apply for new loans. He has the money on the card at any time. The credit card also provides a convenient form of shopping with various discounts and points, which can save considerable money on purchases. The card works easily. On the card, the owner has at his disposal the amount of money he draws and pays once a month either the full amount he has spent in the given period or the minimum specified installment.
A microloan is also called a payday loan
This type of loan usually refers to an amount of up to ten thousand crowns, which can be a one-time household help. People often use this option to cope with the pre-pay crisis period. This type of loan should never be a regular solution for money that is missing before you receive your salary. It should only be used for extraordinary expenses (such as unexpected and urgent repair of a car or washing machine), for which there are no savings and for which it is clear that it will be paid from the payout.
The advantages include their availability for riskier groups and the fastest access to money without unnecessary administration. When choosing microloans, it is necessary to choose the provider well. There are absolutely dramatic differences between prices and conditions.