How do I choose the term of my credit?

Do you want to choose the duration of your credit, but would you like to know what you should take into account? The term, just like the amount you want to borrow and the interest, is of great importance, since it is an important factor with regard to the final costs. Take into account the maximum durations as laid down by law, but also think about the duration that best suits your wishes.

 

Legal terms

Legal terms

On the basis of the amounts that you can borrow, legal maximum durations have been set. For example, are you going to borrow $ 500? Then the maximum duration is 18 months. The moment you borrow $ 5,600 this is 36 months and the maximum term for a loan of $ 20,000 is 84 months.

Credit sum Maximum duration
$ 500 18 months
$ 2,500 24 months
$ 3,700 30 months
$ 5,600 36 months
$ 7,500 42 months
$ 10,000 48 months
$ 15,000 60 months
$ 20,000 84 months
$ 37,000 120 months
$ 50,000 240 months

 

Amount you wish to borrow

credit loan

Also keep in mind the amount you want to borrow. It is quite possible to repay an amount of a few hundred euros within a few months, but with an amount of for example $ 10,000 you will need a few years for that. Use your income and the fixed costs that you have to calculate the ‘space’ in your income. Use that space for both the interest and the repayments to see how much time you need to repay the loan. Too short a time will result in high monthly costs, but too long a term for a loan will ensure that the final costs of the loan will be higher.

 

Goal that you have in mind

credit loan

Thirdly, take into account the goal that you have in mind when you want to determine the duration of a credit. For example, are you going to purchase a new car? In any case, ensure that the duration is no longer than the expected lifetime or usage period. In this way you avoid having to continue paying for the car, while you are no longer using it. Always state the purpose to your financial adviser or lender, so that they can advise you on the duration of the loan on the basis of this.

What type of loan is the best for buying new furniture?

A loan for a car, apartment or house – it is not difficult to find today a loan for such a purpose. To furnish the apartment in installments, we have several options to choose from – check which ones before you decide to take a loan from the bank. Do many people wonder what furniture loans to choose?

However, first, you should think about where you intend to buy them (buy in the store, the order in the carpentry shop)? This is a key issue. Is it a ready-made set that can be found in a furniture showroom, store or catalog, or maybe we dream of custom-made furniture. There are several credit options – all you need is good creditworthiness and proven income.

The most popular type of loan

The most popular type of loan

That is great for buying furniture is a cash loan (or cash loan). We can get such a loan in virtually every bank. What’s more, today cash loans are even available online. All you have to do is find the right offer and register your interest in the bank or on the website.

The cash loan can be used for any purpose, so with the money obtained from the cash loan, we can buy furniture in the selected showroom or order it at the carpentry workshop.

Another option for buying furniture on credit are shopping in installments in furniture stores and showrooms offer in installments. In this case, it is the bank that pays for the goods we choose, while we undertake to pay the monthly installments on time. If we have already used any credit products and all receivables were repaid on time, then we will receive an installment loan even without income certificates.

When it comes to custom-made furniture

When it comes to custom-made furniture

In a carpentry workshop (wardrobes, kitchens with built-in home appliances), there should be no problem with the purchase in installments.

Usually, a good carpentry workshop gives you the option of selling in installments on similar terms to stores and furniture stores. Thanks to such solutions, furniture manufacturers generate much higher sales.

Acquiring each of the loans described above should not be a problem for people who receive regular remuneration for work, retirement or disability pensions.

However, it should be remembered that our credit history, which is collected in the Credit Information Bureau, is also of great importance to lenders. Let’s make sure that it is positive – it will help in the future to take another bank loan.