Looking for financial support for a specific goal, we can find different products. The most important thing is to be aware of our financial capabilities and needs. And then we will be able to find and use, among others from the optimal solution, which is consumer credit. Where to look for it and how to get it. You will find the answer below.
Types of loans
There are many different divisions on the market, classifying loans depending on the entity that applies for them. The basic division looks like that there are loans for business entities and for individuals. Let us consider those concerning natural persons. Well, banks can give us:
- Consumer credit
- A consolidation loan
- In the form of a credit card
- In the form of a mortgage
With such a large range of financial products, we should not have problems with choosing the right solution to our expectations and needs. Each of them has its own specific conditions that must be met together to fully apply for it.
What is consumer credit?
The consumer loan is called a solution regulated by a special purpose act, which provides that a consumer is granted a loan by a creditor as part of business operations, but for private purposes. It can be a banking institution. The amount of such credit (its maximum level specified by the legislator) is USD 255 550. The consumer may also apply for a loan in the maximum amount indicated in a foreign currency. The consumer credit agreement requires written form for its validity, unless separate provisions require another specific form. The provisions of the contract should be formulated clearly and without any doubt of the consumer. The lender is obliged to provide the borrower with a copy of the consumer loan agreement. Such consumer loans include leasing, loan, revolving loan or loan for the purchase of a specific product.
Obligations and rights of parties – lender vs borrower
Let’s start with the lender first. He has a number of obligations governed by the Consumer Credit Act, which he cannot refrain from wanting to maintain his status. First, it is required to inform, at every stage, about the fees and commissions that will be added and collected when signing the borrower’s consumer credit agreement. Secondly, before the borrower signs the contract, the lender will have the right to scrupulously check his ability to contract, in other words simply his creditworthiness. As for the borrower, among his rights, the legislator mentions, inter alia, the right to early repayment. However, contractual provisions should be taken into account that may impose an additional charge on the borrower in this respect. Another important right of the borrower is the option to terminate the loan agreement within 14 days of its signing. Remember when concluding the contract to read its provisions carefully and if we find even a shadow of doubt as to any provision, it is worth asking about it immediately so as not to generate additional stress related to the interpretation of the contract.
Where can you find a consumer loan?
You need to spend some time finding the best solution. Favorable consumer loans are available at various banks, but also non-bank institutions. To make a good choice, we should think about what purpose we want to spend the funds, and then intensify the search to collect offers that we compare, and finally choose the optimal offer of consumer credit, tailored to our capabilities. Remember to borrow as much as we can pay back. Let’s pay attention to the interest rate and do not be guided solely by the ads we saw in the media. Often, banks emphasize only the lowest interest rates on loans (and it is reserved only for people with the highest creditworthiness) to win customers. But you can also use a simpler solution. Without leaving home, completely online, using the Internet via a mobile phone or laptop or tablet, we can enter the secure and convenient service. And there, in just a few steps, just fill out the easy form, leaving basic information to receive loan offers after a few moments of verification. The right choice is ours. And everything is done without collecting documents and without wasting time in queues to the bank.
What is the difference between consumer credit and consumer credit?
The basic difference between consumer and consumer credit lies in the purpose for which the borrower incurs an obligation. Consumer credit, we can spend for any purpose we come up with. It can be a car purchase, travel, renovation, a set of suitcases or a plot fence, or a recreational house etc. And with a consumer loan, the funds are paid to the borrower directly or are transferred to the account of the indicated entity in order to purchase a specific product or service.