What is consumer credit?

 

The term ‘consumer loan’ usually means an amount borrowed to an individual, usually on an unsecured basis. Such credit is usually personal. This type of loan is called consumer loan or consumer loan.

Consumer credit comes in many different variants. Before submitting your application, you should know what the characteristics and goals of each are. To a large extent, this loan distinguishes between two types of loans: short-term loan and revolving loan. Both also have other subcategories.

Non-renewable loan – various types

Non-renewable loan - various types

One of the most common loans is definitely a home equity loan. When you buy a home for your family, your expenses don’t end with monthly mortgage payments. Home is an ever-evolving commitment and requires almost constant care and repair. Sometimes, for example, minor renovation works need to be carried out.

If you decide to take out a home loan, you can borrow money to pay for your home equity. The terms of such a contract usually range from five to fifteen years. Money is mainly used to improve the house itself or make additional construction near the house.

However, when applying for a home loan, you need to think about it well. This means that your home will be at risk if you have a problem with your monthly payments. Never go for a loan you can’t really afford. Consider extending your loan for a longer period to make sure you can pay your monthly installments.

Another very popular loan is car loan or, in other words, car leasing. Almost everyone who owns a car bought it with a car loan. New vehicles are very expensive and people are rarely able to save as much money.

Before you start dreaming about a new car, think about how much you can spend on it. Then, according to your financial capabilities, watch cars that meet these criteria.

Of course, it is tempting to buy a more expensive car and extend payments for a longer period. However, this is not a good move. Cars lose their value over time and you can easily find yourself in a situation where you continue to pay back the loan, even though the car has lost value and there was a need to buy a new one.

Of course, a non-revolving loan offers more types of financing – for example, various micro-loans and quick loans – but the ones mentioned above are the most common.

What is a revolving loan?

What is a revolving loan?

A revolving loan is a loan that can be used repeatedly and remains open as long as you need the money. If it is not repaid in full every month, interest is charged (based on the interest rate attributed to the loan).

A revolving loan in the most popular form is a credit card. It is used all over the world and everyone who has or had stable income at some point has at least one credit card.

Credit cards are usually used when traveling, for booking airline tickets or hotels. Also in the event of unforeseen emergencies. Some people use credit cards to pay for daily expenses, such as food and transport, and then pay back the money every month so that the loan does not accumulate interest. These people have a limit set by the bank and depends on income – as a rule, the more you earn, the higher the limit you can get. It also has to do with your credit history – if it’s favorable, the limit is higher.

Another popular revolving loan is a housing loan. Just like a home loan, the home loan line is based on borrowing your home equity. In this case, you must be careful not to exceed the accumulated capital. Also remember that in this situation your home is used as security.

A home loan is mainly used to repair or remodel something at home. This is often done to increase the value of the property.

Consumer loan – what should you remember when applying?

Consumer loan - what should you remember when applying?

Always choose a proven lender. In addition to banks, there are many online institutions and companies, so compare all offers first.

Familiarize yourself with the interest rates offered by various lenders to ensure that you choose the most favorable option.

Take into account your current financial situation as well as your plans for the future. If you’re planning a career change or moving to another city, it’s probably not the best time for a loan.

Also think about how long you take out a loan – what is the most optimal period for you.

How to apply for a loan?

How to apply for a loan?

Often, the application process discourages people from applying for a loan. With usyou won’t have such problems.

We intermediate in granting loans and finds the right solution for every client, regardless of his financial needs.

The application process is simple and fast. You only need to provide your name,  email address and phone number. After submitting your application, Astro Finance will contact you with the best loan offers from selected lenders so that you can choose the option that suits you best. After confirming the offer, the money will be transferred to your account.