A personal loan is a loan that is given from a bank to a consumer. The desired purpose can be very different. With a personal loan one benefits from a very high flexibility.
The personal loan
A credit to fulfill the most diverse wishes.
A personal loan offers the borrower enormous scope. So it is possible to take the loan for a variety of uses. Whether, for example, a new car, a new freezer or a new stove is needed: the personal loan provides the necessary financial framework. Likewise, it is also possible, among other things, to pay for a renovation or to fulfill the desire of a long-awaited dream trip.
As a rule, the banks here allocate amounts that go up to several thousand euros, so that hereby a lot is possible. In addition, it is feasible to determine the duration and amount of installments up to a defined limit, which varies depending on the bank.
Are there special benefits?
Depending on the bank, for example, a break in payments, reduced installment payments or special repayments are granted.
Depending on the bank in which the personal loan is concluded, the borrower can enjoy various special benefits. For example, it is possible to make contractual repayments and any early redemption. Likewise, a rate break as well as reduced installment payments can be denied.
What is an installment purchase?
Purchase installments are offered by a variety of companies to finance various purchases.
Purchase installments are now offered by a wide range of companies. For example, it is feasible to finance the new furniture through an installment purchase from the company concerned. Or the new washing machine will be paid off with the installment purchase offered by the seller.
The procedure here is simple: Order the desired product, specify payment as installment purchase and with a corresponding credit rating, the purchase and installment payments are already “sealed”. However, if this process is used too often, there is often a risk of over-indebtedness.
In addition, for the corresponding installment purchases, usually very high interest rates are incurred which significantly burden the own account.
Personal loan better than installment purchase?
A personal loan offers significantly lower interest rates and special benefits.
It is often the case that a personal loan is actually the better alternative to buying installments. Thus, the borrower is hereby usually much more flexible. In addition, the interest charge on a personal loan is usually noticeably lower. In addition, with the latter in many cases further special achievements are granted, which is usually not feasible with an installment purchase.
What is a disposition credit?
Dispo is the overdraft facility for the checking account : it is considered the most expensive type of loan.
An overdraft is generally for example, as ” overdraft called”. This means it is granted by the bank framework in which one’s checking account overdrawn can be. Disposition credit is generally considered the most expensive loan option.
Although it is quite easy to take advantage of the credit: once it is set up by the bank, it is sufficient to issue a transfer and the amount is simply deducted from the current account, up to the limit of Dispos. However, this usually involves quite high interest rates.
Personal loan or repayment credit?
Personal loans are the better choice due to lower interest rates.
Who stands before the election “Personal Loan or Dispositions Credit ?”, For those recommending the personal loan. The reason for this is the usually much lower interest rate. For example, a personal loan usually requires a much lower interest rate. The differences are often considerable.
Personal Loan: Alternative to Dispo and installment purchase?
The personal loan is a much better recommendation compared to the installment purchase and discretionary credit.
Thus, a personal loan is usually the much better alternative to an installment purchase and a discretionary loan. Here, borrowers usually benefit from significantly lower interest rates, which can save a lot. In addition, many different special services are often included.
However, it is advisable not to “strike” immediately with the first private loan, but to take a closer look at the various offers from the banks.
The various personal loans differ not only in terms of interest accrued, but also, for example, in the amount of the possible loan amount, the term and repayment. So it is highly recommended to make a good comparison to save your own wallet.
How often can a personal loan be applied for?
With good creditworthiness and contractual payment of the last personal loan, this can be requested again and again.
If a personal loan has been applied for and disbursed in accordance with the contract, it is usually possible to conclude a new personal loan over and over again. Of course, the prerequisite is that you continue to have a good credit rating. These include, for example, a regular, monthly income and a positive bank scoring.
The personal loan offers an enormous flexibility, which can therefore be enjoyed again.