That is why we often have emergencies when we need money for urgent needs, but we do not have the money we need right now. In this article, we decided to tell you how to handle these situations correctly.
Give true answers to key questions
If you have a sufficient amount of official income and well-defined goals for which to spend your money, then the usual consumer credit is the best option. Such a credit does not oblige the user to provide a pledge; In order to qualify for a consumer loan, you will first need to provide the bank with documents proving the real amount of your income. After reviewing such documents, the bank will decide whether or not to grant you a loan. If the creditor responds positively, you will be able to receive the consumer credit within one business day. The amount of a consumer loan can vary. Of course, this loan will be much smaller in size than a mortgage loan, but on average the amount of such loan varies from several hundred to several thousand euros.
Before you apply for a loan, answer yourself a few simple questions: “Do you need money so much that you have decided to take a loan for which you will have to pay interest?” And “Have you chosen the right type of credit?” , you will first need to contact your credit specialist and inform them about the purposes for which the credit will be spent. The consultant will advise you on the optimal program for your case.
You also have to ask yourself more detailed questions, giving true answers:
- For what purposes are you ready to apply for a loan? On this issue lies the importance of money spending, its urgency. Expenses can be deferred for several months, when you raise enough funds and can pay off your expenses without paying interest.
- How much money do you need? Determine the amount of credit you want to process. Don’t take any extra money as you will have to pay a commission for every euro borrowed by the bank. At the same time, you run the risk of spending the rest of your money on daily expenses that are ultimately not profitable.
- How long will you be able to repay your consumer loan debt in full? Analyze the terms of various credit offers and calculate how much you will have to pay for a consumer loan? Analyze the various credit offers and calculate how much you will have to pay for it or another loan repayment term. From the data received, choose the cheapest consumer loan.
Importance and purpose of consumer credit
A consumer loan can only “save” you if you need a large sum of money for a specific purpose. For example, you have decided to replace old furniture, travel or repair. The main advantage of a consumer loan is that it can be drawn up without pledge as the pledge is the officially certified income of the borrower.
To find out the exact amount of the loan, you will need to visit the lender’s department, where the credit specialist will review:
- your income level ,
- the amount of the existing financial commitment,
- credit history.
The loan is repaid in equal monthly installments. But the amount of such contribution may not exceed 40% of your net monthly profit.
Your credit card provides a line of credit, that is bank money, that you can periodically use. The credit card conditions can be varied, as are the services included in servicing such a plastic card.
A credit line on your bank card will help you make small urgent purchases or, for example, repair your car. You can either use a credit card or not. You do not make any payments to the creditor during the period when you are not using the borrowed money. However, some banks charge their customers a monthly fee for maintaining your card account, that is, simply for its existence. Therefore, you need to clarify these issues before you receive your card.
An amount equal to two of the client’s monthly income is usually reserved on the credit card. You can keep such a card in place so that you can use this peculiar airbag in an emergency.
If you have used the loan amount (in whole or in part), you will have to repay the debt in the same way as a regular consumer loan – by making monthly payments. In cases where a scheduled card repayment is not yet available to you, you may pay an annual interest rate for using the credit.
Many banks, in loyalty to their customers, allow borrowers to use a discount period to repay their credit. This means that money taken from the card can be refunded without paying a commission for a certain period of time . This term is set by the bank itself.
A relatively popular financial term that few know. In fact, overdraft is very much like borrowing money with a credit card: if you have run out of money in your bank account but need to buy something urgently, you use the funds the bank has given you in the form of an overdraft. This credit will not be repaid with monthly payments, but as soon as your account is credited. For example, you have received a salary and the overdraft amount used is immediately deleted. As a result, your funds account has become less, but the ability to re-use overdraft facilities has been revived .
To qualify for this type of cash loan, the customer must have made a profit of at least € 350 (after taxes and other monthly payments such as utilities) in the last 6 months.