Today, there are a lot of outbound loans in banks and other financial institutions offers. All so that people can buy the necessary goods with minimal a waste of time and nerves. The most common of these are consumer credit and installments. It remains only to understand what the difference is, which is more dangerous for the client installments or credit or there may be no danger. The main thing – with the mind to approach the execution of any contract, study the conditions, compare options. Then you will avoid serious overpayments and other troubles related to credit offers.
What is the difference between installment and credit
There are several points that differentiate between installments and credit:
- clearance conditions – if you want to buy the item directly from the store, you you can make a payment directly from the seller. Design the loan comes with the bank;
- availability of a down payment – this is often not required for installments, but if you do buy a car or an apartment on credit, you have to make a solid first payment;
- validity period – you will not find installments for a period of 5 years, but here the credits are is;
- early repayment option – all installments can be repaid by installments at any moment, but here on credit such opportunity is not always available.
It may seem that the difference is significant and much better for the client by installments. And when more convenient credit? Almost always if you choose the right financial institution!
Yes, in a microfinance organization you can get cash on your card in cash and dispose of them at your discretion. This will not be a fixed amount equal to cost of goods. You define the amount and the term yourself. Each micro finance company offers its own terms contract, so you can agree with them or not, choose the right ones for you.
How to make a payment by installments or credit
It should also be borne in mind that if you need installments, its design happens directly in the store. After selecting the product you will need to provide it employment documents, income statement, personally communicate with
representatives of the store. On the other hand, if you are specifically targeting this purchase, it is will be the right decision. There will be no risk of spending the money received on something else. Today, you can apply for a loan online without leaving your home or with anyone discussing this issue. Micro finance company do not require a certificate and are generally no different bureaucracy. So in each case you need to decide for yourself when it is more convenient credit, and when installments, and make the right decision!