The modern world is downright saturated with various loan offers, and if you are not an expert, you can easily get confused. Judging by the statistics of most banks, the most popular offers are plastic cards and consumer loans. What makes them different and why is it more convenient? Let’s see.
First of all, it’s worth finding out what you need a loan for. The overwhelming majority of banks require you to specify exactly where he wants to spend the loan. If you filled out the questionnaire, then remember that there is such a question and they demand to answer it. Yes, and a credit manager will be sure to ask you what needs you need a loan. In addition, what you said will also be checked. If you are ready to tell the bank in detail what the loan will be spent on, then you will not have any problems with consumer loans.
If this option is not suitable for you, there is no desire to tell in detail how and where the loan will be spent, then a credit card is the best choice for you. Remove from the card as much as you need and spend as you want.
Let’s stop and make a small clarification. At the moment, not only exist, but also non-target loans are very popular. They are also called emergency loans. When making such a loan, no one will ask you where you will spend the money received. However, obtaining an inappropriate loan will be significantly longer than a plastic card. We’ll have to collect a lot of documents confirming your wealth. It will be necessary to submit to the credit manager a certificate of form 2 PIT not less than in the last 6 months. As an alternative, you can provide a certificate of income from work, in the form required by the bank, i.e. The form must contain signatures and stamps of your manual and accounting department. And this will not end the processing of the loan. Employees of the bank will check whether you have permanent phones (work and home) and where you are registered (place of registration).
However, it is worth noting that low interest rates give popularity to non-target consumer loans, this is their advantage.
The next major difference between a credit card and a consumer loan is the term of use. In this case, a credit card is much more profitable than a consumer loan. A consumer loan, even if it is not targeted, is issued for a relatively short period of time, usually 1-2 years, in rare cases there are loans up to 5 years. As soon as you repay the loan, your agreement with the bank simply ceases to exist. The credit card does not have these drawbacks, and there are no time limits. As long as you pay in time, the bank can easily recover the loan and you can continue to use your credit card. You will not be constantly checked by the security service, while with a new consumer loan you will have to go through all the checks again.
One of the pleasant moments for credit card holders: for customers who close all payments on time, the bank reduces the interest rate on its own. It turns out that the more you use a credit card, the lower the interest rate will be.
It is worth noting that if the borrower retires, the bank has the right to freeze its credit card. However, if the customer is able to confirm his income level, the credit card will be valid. Yes, and take a consumer loan to a pensioner is also extremely problematic.
Thirdly, the plastic card and consumer credit are extinguished by different principles. In most consumer loans, you need to pay pre-determined payments on a monthly basis (such a payment scheme is called annuity). A credit card works differently. On a monthly basis, a minimum amount is paid to the debt (as a rule, it amounts to 5-10% of the total loan amount) and interest. Each new payment is calculated from the remaining loan debt – the less you have to pay, the less you pay.
Here the map has another important feature. The card has an interest-free period. It depends on the time of the loan and averages up to 55 calendar days. During this period, you can repay the loan without interest. The only thing that needs to be paid besides the loan itself is the fee for servicing the plastic card.
What to choose – you decide. There are advantages to both consumer credit and a credit card. If you regularly require loans, it will be easier and more convenient to issue a credit card, besides, you do not need to re-assemble the entire package of documents and wait to give you a bank loan or not. If you need to take a loan for a large amount at a time, then a consumer loan will be more profitable. Jeghåberherfår du alle de oplysninger, du vil vide.