Depending on what we intend to buy, we can distinguish the following types of loans and credits:
RATALNY very popular, we mainly use when buying products in installments, eg household appliances or RTV. But as we read that installments are at 0%, let’s ask why? Maybe you will need to buy insurance …
CASH or cash loan. A cash loan can be granted for both PLN 500 for three months and for PLN 150,000. PLN for 10 years. It is a loan, unlike cash loans, for a specific purpose, i.e. in accordance with the provisions in the contract. It may be, depending on the amount of the repayment period, granted without additional collateral (a certificate of income obtained is sufficient) as well as with collateral (eg a promissory note or a surety of third parties).
CONSOLIDATION allows you to consolidate your bank debt. In the case when we have several bank loans and loans (two liabilities are enough), we can combine these loans into one loan, in a consolidation loan. Thanks to this, we have only one loan, in one bank, and besides, the loan installment is smaller than the sum of credits and loans that we have repaid so far.
MORTGAGE. Also known as a housing loan. It is a long-term loan, the repayment period can be up to 35 years. It is usually given at a very high level (usually exceeding the amount greater than PLN 50,000). Is intended for the purchase of real estate, and the collateral is a mortgage established on this property.
CAR. Most often it is spent on buying a new or used car. The loan can also be used to finance the purchase of another movable property, e.g. a motor or moped. The loan is secured by entering into the bank’s registration certificate as a co-owner / owner of the vehicle. The second option is to prepare an assignment from third party and third party liability insurance to the entity financing the purchase.
A similar mortgage loan is MORTGAGE LOAN. Also secured by real estate (usually borrowers), but the mortgage loan can be used for any purpose (mortgage loan only for the purchase of real estate). With her help you can, for example, finance a general renovation of a house or flat. And then pay it back for 20 years …
RENEWABLE. Called a loan in an account or a debit in an account. It is triggered when the funds on the account run out. Interest is accrued on the amount of the limit used and only for the period in which we use the limit. Any impact on your account reduces your debt. Sometimes, especially at a small limit, it will definitely be a better option than a cash loan. And not to mention non-banking.
CREDIT CARD Like a renewable loan, the bank grants a credit limit to which you can debit on the card. If the debt is repaid in the non-interest period, the bank will not charge interest for using the loan. Typically, the interest-free period is 50-60 days. The offer of “plastic” cards is very large! It is therefore worth reviewing the offers very carefully and see which option is the most attractive and beneficial for us.
Above, the most important and the most popular financial and credit products for consumers have been presented. Remember to use them with your head. Very often, improper handling of a credit card or over-indebtedness leads to serious financial problems. The best option would be to not get into debt. But is this possible today?