Which consumer credit suits me best?

  • Uncategorized

Are you planning to borrow money, for example to be able to purchase a new television or computer? Keep in mind that you can choose from a number of different forms of consumer credit. You can choose a:

  • Installment sales
  • Credit opening
  • Installment loan

The different forms of consumer credit naturally have both advantages and disadvantages. We go through them one by one and in this way ensure that you get a better understanding of how you can best borrow money.

 

Installment sales

Installment sales

Installment sales are also available at Carrefour, for example when you want to purchase a computer of $ 1,000. You then pay 7% interest and 2.4% card costs. That means that the computer has cost you a little more than $ 1,100 in total after 2 years of credit. You pay around $ 100 to be able to spread the payment over 2 years. The interest of this type of consumer credit is in line with the market, but due to the card costs for the store (chain) you have to take into account that more advantageous alternatives are available. The advantage of this credit is the ease with which you can make the purchase.

 

Credit opening

Credit opening

You can also opt for a credit opening, such as that of MasterCard. You get access to a credit limit, an amount up to where you can withdraw money. For example, if you can borrow a maximum of $ 5,000 and you need $ 2,000 in the coming month, you will pay interest on it. You repay the loan amount in a number of installments. Flexibility is a big advantage, but keep in mind that these credit options usually continue to run indefinitely.

 

Installment loan

Installment loan

Thirdly, within consumer credit you can opt for an installment loan. In that case, you take out a loan for a specific amount, which you can use, for example, to finance a purchase. You pay a fixed interest per month and you agree on a loan term in advance. The big advantage of this is the clarity that you have with regard to the credit that you wish to take out. On the other hand, make sure that you only use the credit for purchases that are at least equal in duration to the duration of the consumer credit.

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