Buy on installment – Installment loan
Are you in the store and want to make a purchase, but you don’t have the money available for that at the moment? Then you can buy it by installment and borrow money to pay the costs later. You can of course immediately take your purchase home, but it is not yet necessary to pay for it. The big advantage of this is that you can save afterwards, although on the other hand it is important to keep a close eye on the interest rate.
If you want to buy a product on installment, you have to take into account considerable costs. You can of course easily trace the extent of these costs in relation to the purchase amount by looking at the interest rate. In general, it will not be too low and in proportion to borrowing money you will actually pay too much for this. If you compare both options, in most cases it will turn out that buying on installment is the most expensive option of the two and before you do this it is advisable to also look at the other alternatives. If other alternatives prove to be cheaper than installment purchase, that may be a better option.
Credit cards and installment purchases
Installment shopping is a popular way of borrowing money, using the credit cards available. Do you have a credit card from one of the major chain stores? Take a good look at the interest rate you pay, as well as the term of the credit. These are important factors that influence the costs that you ultimately pay. In addition, make a comparison online. Based on this, you can determine which lender is most interesting in your case. Do you want to use installment payments, or perhaps take out a regular loan on the other hand?
You can order a credit card from many of the major lenders, so that you can now buy on credit. Of course, it is actually just borrowing money and so, just like with regular borrowing, it also applies that an application for a credit card is seriously considered and that you can safely be rejected. Just as with the regular way of borrowing money, it is also the case with the credit card that the applicant must have a salary that shows that if you choose to buy business on credit, you will also be able to repay it. For example, if your salary is not found to be sufficient enough, in some cases you can choose to simply lower the limit, so that installment purchases will still go, but that you simply reach the limit earlier.
You can buy something on installment, but you can also choose a credit opening or an installment loan. These last two options are generally cheaper than buying or paying, since the chain stores like to earn a nice amount. With the regular loans you ensure that you pay a competitive interest rate and you can count on enough money to make the purchases you want. Compare the different options online and make sure that you can design the borrowing money as cheaply as possible, so that you do not pay too much. If it’s a small expense that you want to use installment purchase for, consider a mini loan first, as this is often a more economical option you can use.
So you see that buying on credit will usually not be the most profitable. So there are other ways to borrow money smarter and thus reduce the cost of your loan as much as possible. So think about this and do not act too quickly, because buying on credit can really be very expensive and that is of course not worth it if it can also be cheaper. Often when buying on installment, it appears that consumers are doing things a little bit too hasty and that the consequences – in this case the costs – that are subsequently faced are not properly considered. Try to do this anyway, because in the end it just isn’t worth paying for at high cost.
View interest rate installment
Therefore, a significant interest rate usually applies to installment purchases. In some cases, this can go up to an APR of 20% when paying by installment if you are not careful. Of course, no other loan can compete with this and that is why in most situations it is simply smarter to simply borrow money through the trusted way than to opt for installment purchase, because that is ultimately just a waste of money. So take a good look at this and also take a look at the other forms of borrowing money to see if it will be more profitable than choosing to buy on credit, this will probably be the case. Products that you can buy on credit are often pretended to be very attractive offers and many consumers think that they use them. In reality, however, the costs often turn out to be higher than previously thought, and this could even lead to financial malheur.
Even if you buy an installment product that is not too expensive, pay close attention to the interest rate. It may seem that you think that the costs, and therefore also the interest rate, are not too high, but you can still be disappointed. If the interest rate turns out to be too high, try to focus on one of the above options instead of buying on installment, because in many cases this can ultimately result in a lower interest rate and therefore automatically also a cheaper loan.