Different formulas of consumer credit

Are you looking for a consumer credit, or are you curious whether the proposed financing form for a new purchase falls under this? There is a good chance that this is the case, since all loans except for the mortgage are actually covered by consumer credit. That is not a problem in itself, although it is wise to keep a close eye on the costs of such loans. An interest rate above 15% is no exception, which means that the interest there is relatively high.

 

Loan and sale or installment

Loan and sale or installment

First of all, you can opt for an installment loan or a sale or installment. In the first case, you simply take out a loan that you pay off on the basis of fixed deposits. The sale or payment works in principle the same way, even if you do not get the monetary value, but a product at your disposal. You pay this off with monthly, periodic deposits. In addition, interest is charged on the outstanding amount. For amounts up to $ 1,250, the APR for an installment loan or sale is 19.5%, which means that you pay a substantial interest to be able to save for your purchase afterwards.

 

Financing rent

Financing rent

The second important form within consumer credit is the financing rent. When you rent a car or a PC you can pay a monthly price for it. In addition, there is generally an option to purchase at the end of the lease at a price determined in advance. Bear in mind that providers of such a construction may charge a maximum of 13.5% interest on the value of the product. If you also have the option to purchase the product directly, this is generally a more economical option.

 

Credit opening

Credit opening

Finally, you can opt for a credit opening. This is, as it were, a possibility of ‘going in the red’. Only when you use the reserves do you pay the interest periodically. It is possible to repay the credits at an accelerated rate, but to take them up again later. As a result, you always have some extra money in hand. If you choose a credit opening with a card, you can charge a maximum of 16% interest. The interest amounts to a maximum of 12% per year if you choose to open a credit card without a card, even if you sacrifice flexibility.

Leave a Reply

Your email address will not be published. Required fields are marked *