Loan for home electronics / appliances

The purchase of the necessary electronic equipment for our apartment is usually an expense of several thousand USD. Few families can afford to buy it using savings. Most Poles do not save money at all because low incomes do not allow them to do so. Fortunately, today home appliances/electronics can be easily bought in installments.

When a washing machine or fridge breaks, so equipment absolutely needed in every home, many people have no choice but to seek help from a bank. When deciding to buy in installments a product worth even several thousand USD, it is worth considering all possible types of financing. And so to buy electronic equipment for borrowed money – you can choose from a cash loan and installment loan.

A cash loan is the most common bank loan

A cash loan is the most common bank loan

This is because it is a very flexible solution, and the money obtained in this way can be used for any purpose. Many people decide on such a loan in order to finance the purchase of electronic equipment/household appliances. However, we must remember that this type of bank loan can cost us a lot because the bank will add the commission and the preparation fee to the costs of the loan. Additionally, when deciding on a loan with insurance, the price of debt increases even more.

An installment loan offered in stores is another solution to finance the purchase of home appliances. This option may turn out to be much cheaper, especially if we hit the 0% installment promotion.

This type of offer is very often found in hypermarkets

This type of offer is very often found in hypermarkets

Such as Media Markt, Saturn or even Tesco. If we have already used credit products in the past, and our history in the Credit Information Bureau is positive, then we can purchase equipment without the need to provide evidence of income.

A very interesting solution can be the installment purchase on the Allegro website, which for some time gives the opportunity to buy on credit. All you have to do is be a registered user of the portal and select the appropriate option when purchasing equipment.

PayU installments, because that is the name of the financing system, allow you to buy products up to USD 20,000. Payments are made for us by the bank cooperating with Allegro that grants us the loan. However, we undertake to pay monthly installments on time to the lender’s account.

How to get a Short-term loan?

Increasingly, Poles go to private companies granting short-term loans. Opinions about these companies are quite critical. However, this criticism mainly comes from people who have never used the assistance of a private offering lender the so-called.

Online Payday loan. Does such a short-term loan have to be expensive? Well, no, you can often get it cheaper than in the bank, and even for free.

Virtually all of us once had the opportunity to use any loan

Virtually all of us once had the opportunity to use any loan

You can borrow money from family, friends and also in the bank. Recently, it is very easy to get a loan from private companies, which are growing in our country. Competition among them is constantly growing, so they outdo each other in their offers. Some of these companies will grant us loans cheaper than in a bank – for USD 0.

Several companies providing short-term loans in Poland are able to lend us money completely free. The promotion applies to the first loan taken out by the customer in this company. So far, such promotions have been offered by such brands as E-Money and Via SMS. There are more and more similar institutions, so we can expect more such promotions in the near future.

Free short-term loan? So what should the lender earn? The loan company will only benefit if the customer is unable to repay the loan on time (i.e. within the set 30 days) and will extend the deadline – of course for a fee.

The promotion also aims to give the opportunity to check the operating principles and speed of service for new customers – so that they can return again for another loan if needed.

Short-term loans are granted for a period of 1 to 30 days

Short-term loans are granted for a period of 1 to 30 days

With the possibility of extension. Given the actual interest rate per year, it may seem unusually high. However, in this case, we borrow money for a short repayment period (reaching about the first month), and not for the whole year.

Considering the time, and therefore the speed of payment, the payday loans are unmatched. When applying for a loan via the internet, the money will be transferred to our bank account even in a few minutes.

Payday loans are usually given remotely, i.e. via the Internet or telephone – without leaving home. The customer confirms personal data by transferring a penny from his bank account to the lender’s account. The loan agreement is delivered by post or e-mail to the address indicated by the borrower.

What is a Current expenditure loan?

Still many people in our country decide to take out a loan just because they are running out of funds for current expenses. Although this should not happen at all, it turns out that this is a fairly popular temporary solution for financial problems. Let’s check where it is best to borrow money for current expenses?

Banks today offer a whole range of financial instruments that we can use during minor problems with current expenses. However, you should stick to the rule not to incur further debts in order to pay back earlier. This situation leads to a financial pyramid, from which it is difficult to leave. Temporary financial problems can be solved inexpensively by using financial products offered by the bank.

If we are the owners of a credit card

If we are the owners of a credit card

It will be the cheapest to finance current expenses with its help. Remember, however, to avoid withdrawing cash from an ATM, because then the bank collects enormous commissions on this account.

Some banks provide the option of making transfers from a credit card to a selected bank account – so we can pay home bills or transfer some funds to your personal account. Credit card debt can be settled in full or spread over monthly installments. The credit card is renewable, so after its repayment, the funds are still available to us.

Another solution is a cash loan, which can be used for any consumption purpose, and thus for current expenses. However, this is a more expensive solution compared to a credit card, because the bank often charges a large commission from us (interest rate on the loan). In addition, the cost of the cash loan also includes preparation fees and often compulsory insurance.

If we have a personal account at the bank

bank

We can apply for a debit. It works on the basis of a credit limit, which, like a credit card, is also renewable. To use the overdraft, our pay must be regularly credited to your bank account.

The credit limit depends on our creditworthiness and the amount of monthly inflows to the personal account. This solution is great for settling current expenses, provided that we remember to pay back the debt.

Many people regularly use non-bank loans to finance current expenses. In this way, however, you can easily fall into a spiral of debt. In the case of para-bank loans, you should adhere to the principle that you do not take another loan to pay off the previous one.

If we’re going to use a non-bank loan once

money

It may turn out to be a good solution, especially since some non-bank companies grant each new customer their first loan for free.

When deciding on any current expenditure loan, remember that sooner or later the debt will have to be paid back with interest. Therefore, it is worth considering our financial situation in the future – will we be able to regularly repay the commitment? Maybe it is time to give up the unnecessary expenses, without which we could do without?

The most popular cash loans

Although the list of the most popular cash loans changes every year, Poles are still attached to the most known banks. Unfortunately, the offers of the most popular banking institutions are not the cheapest at all. Until recently, an attractive cash loan could be found at cooperative ticket office savings and settlement, but after the affair with Good Finance, clients often bypass these institutions with a wide-angle.

Unfortunately, the most popular cash loan offers are still not the cheapest. This situation is affected by many factors, which probably include customer confidence in the bank’s brand, large advertising campaigns very often with the involvement of well-known people, as well as access to branches/branches.

The cheapest cash loans

The cheapest cash loans

They are not the most popular also because it is much harder for them to obtain a positive credit decision. If the loan is cheap, the bank does not earn much on it – so it does not risk paying out the loan to uncertain customers, even those who have had past due payments.

A large sale of cash loans is generated by banks with significantly more expensive loans in their offer cash. In these institutions, it is usually the easiest to get a loan.

Advantages such as minimum formalities and the lack of the need to present a certificate of income generated attract a number of customers regardless of the price or cost of debt.

The sale of cash loans also depends on the size of the bank

The sale of cash loans also depends on the size of the bank

it’s capital and the number of branches. The largest institution of this type in our country is Good Credit, which is one of the leading banking institutions in Europe.

However, will we find a cheap personal account or the cheapest cash loan in this bank – unfortunately not? Therefore, when looking for the best cash loan for yourself, you should be guided by the APRC (the actual annual interest rate). It is also worth at the beginning of the search for an attractive loan, check the offer of the bank that maintains our personal account.

Each year, cash loans represent more than half of all bank loans granted. This is because they are the most available, they can be used for any purpose and rarely require security. And although bank cash loans have been offered alternatives in the form of non-bank private loans, those still interested in contracting the most popular bank debt are in short supply.

Loan for apartment renovation

If we want to take a loan to renovate our apartment, we basically have two options. We can choose a cash loan and a mortgage. Which one to choose depends on the amount you want to borrow and the loan period.

We can take one of three types of bank loans for the renovation of an apartment or house. They differ mainly in the amount of interest, repayment length and security. In this case, the highest interest-bearing loan will be a cash loan, which can be used for any purpose, so also for renovation.

The actual interest rate ranges from 9% to even 35%, depending on the bank’s offer. Taking out a cash loan in the event of a house or apartment renovation will come out the most expensive for us, but the easiest way to obtain the necessary funds is to get it.

Let’s say we are interested in the amount of USD 8,000

money

The time in which we want to repay the loan is 12 months. The monthly installment should be from 700 USD to 800 USD, depending on the bank and its offer. Considering the mortgage, it may turn out cheaper, but we will face additional security charges – the costs will increase significantly.

The situation is different when we want to borrow a much higher amount, e.g. USD 40,000. Then we pay the bank a lot more than when paying the same amount of mortgage.

Additional costs associated with, for example, collateral and property valuation are nothing compared to the high real interest rate of the cash loan.

Another good way to get money to refurbish an apartment or house is a mortgage. This is definitely the cheapest solution for this type of expense.

The mortgage loan is secured by the borrower’s real estate

The mortgage loan is secured by the borrower

So if we are the owners of real estate, in the form of a construction plot, a house or even a renovated apartment, we can take out a loan against her. The repayment of such liability may be spread over even 30 years. Unfortunately, it is a loan for higher amounts, which starts from USD 20,000.

There is one more solution for people with a bad credit history. These are non-bank loans, among others, at companies such as Good Finance or Good Credit.

Although this type of loan turns out to be relatively expensive, for some people it is the only way to finance an inexpensive renovation. The amount we can borrow is much lower compared to the previously described types of loans, but it is much easier to access and requires no collateral.

To take advantage of a 10-year cash loan

For most of us, 10 years is a very long time, although for people who decide to take out a mortgage for such a repayment period, not so much at all. The situation is different for those who intend to enlist cash loan spread over 120 months or 10 years – unfortunately, it is getting harder and harder.

To take advantage of a 10-year cash loan

To take advantage of a 10-year cash loan

You must have a very good credit history. What’s more, not every bank will be willing to grant such a loan to even its best client. The greatest chance for a cash loan spread over at least 120 installments is given to people working in specific professions, retirees of the Ministry of Interior and Administration, people in freelancers such as a doctor, lawyer or architect.

So if we are going to apply for a cash loan that can be used for any purpose and spread the repayment period over 10 years,
let’s consider shortening the repayment time and possibly reducing the loan amount. Of course, given your real debt repayment options.

Such a long loan term can give us a boost if we do not knowingly calculate whether we can afford it. You can tighten the belt for a few months, but not for a few years.

The amount that can be obtained in the form of a cash loan reaches up to USD 150,000. And the repayment period of such an obligation can theoretically be up to 10 years. Unfortunately, banks are not willing to pay any amount for a period of 120 installments, so it remains to consider reducing the loan period to even 84 months or 7 years.

It is also worth thinking about another solution

It is also worth thinking about another solution

For example, if you intend to spend the funds obtained from the loan on the purchase of a car, then it is better to take a car loan. if while we intend to use the borrowed cash for real estate, e.g. a construction plot, a mortgage will be a much better solution and probably much cheaper.

A loan is another way to raise funds for a long repayment period mortgage. It can be obtained against the collateral of a house, apartment, etc.

The loan term of such an obligation may reach even 25 years. As part of the mortgage loan, we will receive cash that can be used for any purpose, and the interest rate is the lowest considering all other types of loans for individual clients.

Loan for a dream new apartment

A small percentage of people can afford to buy their own four angles. Apartments are once more expensive, sometimes cheaper, but they keep their minimum price that most Poles cannot afford. It will not be an exaggeration statement that everyone dreams of their apartment. These dreams can only differ in size, location or layout of the rooms.

Usually, customers buy apartments from the secondary market, second-hand, mostly in blocks of flats located in housing estates.

They are primarily cheaper than new apartments at the developer

However, some Poles are dreaming about a new apartment, like an unspoiled virgin square space. Apart from the specter of houses burdened with the ghosts of former tenants, the dream of just having your own apartment is a normal matter.

Due to the lack of cash, most people are forced to buy a flat on credit so that their dream of a better life becomes more likely. In principle, new apartments from developers are ready or already finished. In this case, if we want to take out a loan to finance it, we will come across a slightly different credit procedure than when buying a second-hand apartment.

When looking for the right credit offer, we should rely on the opinions of advisers or financial specialists. Leading credit consulting companies in Poland include Good Finance and Good Credit. You can also use your own installment calculators or financial comparison websites widely available on the internet.

Banks granting loans for the purchase of a new apartment

Banks granting loans for the purchase of a new apartment

Require the presence of such documents as an excerpt from the Land and Mortgage Register, agreement with the developer, building permit in the case of investment started, in the case of a completed building – permission to use the premises for housing purposes.

The bank may also request the submission of a work schedule and related amounts and payment terms. The last document will specify the amount and date of payment of the loan tranches. The bank also wants information about the developer, e.g. a document confirming its development activity.

Dreams about a new apartment cost a lot and it is difficult for most of us to realize it this way. Therefore, the mortgage is still one of the most popular banking products. Unfortunately, this type of loan is becoming increasingly difficult for the average consumer with income at least at the level of the national average. So if we intend to use such a loan in the future, let’s do it like this the earliest.