Christmas Purchase – Compare Loans vs. Installment purchase

Before Christmas, people think how to give loved ones. Not all gifts have their own resources. Merchants will be happy to sell the goods on installments or arrange a loan However, it must be repaid after the holidays. Good Finance has looked at whether it is preferable to borrow from Good Finance or to buy in installments.

Today, one can literally borrow gifts anywhere. On the web, at non-banks, at banks, from community portals through peer-to-peer platforms, but also directly at the retailer’s installment store.

Some buyers think that installment goods are not even credit

Some buyers think that installment goods are not even credit

But they are wrong. Being attracted to the goods such as zero increase or zero interest does not mean that the gift will not be overpaid by a penny. On the contrary, attention must be paid to such offers. 

Consider a laptop that costs around 500 dollars on the Good Finance. Let’s see how much we would pay for it if we bought it:
– through consumer credit at the bank
– through non-bank installment sale

In the previous article, we compared a credit card purchase and a permitted overdraft.

Consumer credit

Consumer credit

You can also buy Christmas gifts through a dedicated consumer loan at the bank. The interest rate is lower than the permitted overdraft or credit card. Current interest on consumer credit in banks ranges from 3.5 to 17.4%. You can find their overview here . The advantage of consumer credit is that you can borrow a larger amount, even several thousand dollars, and repay them in small amounts over a longer period.

  • Why are low loans more expensive? Because they are risky
  • Did you pay online for the goods and did not arrive? This is how you proceed.
  • Beware of fraudulent e-shops

Experts therefore advise to take consumer credit for more expensive things and not on a laptop. The disadvantage is that its equipment can take longer, even several days, and you will not avoid bureaucracy with documenting income. Pre-approved loans or even loans that you recall online are also commonplace.

In our case, a 500 dollars laptop loan that the buyer would pay back a year would receive the most advantageous loan at Good Credit, where it would have zero interest, the monthly payment would be 41.67 dollars and the amount paid would be only 10 dollars, a 2% fee for granting credit. However, this is only the first loan in this online bank.

  • See also other bank offers

The lowest interest rates were given to us by online calculators on the banks’ websites when entering parameters: 500 USD loan for 1 year.
Not every bank receives a $ 500 loan, as the bottom line is from $ 700 or $ 1000. You can view the report here. Interest rates range from 3.5 to 17.4%.

Installment purchase

Installment purchase

You can borrow gifts from installment companies or non-banknotes. These promise fast on-the-spot loan processing, low repayments and even free shipping. Non-banknotes mainly specialize in low loans in several hundred dollars, for example, notebooks. But they are expensive.

Interest ranges from 10 to 30% per year and sometimes more. In addition, you should beware of late penalty penalties, which are high, as well as various credit processing fees. The annual percentage rate of charge (RPMN), that is, what you actually pay for a loan with fees, may be higher than 30%.

Although some non-banknotes also offer repayments with no increase or zero interest, be careful. They usually have the condition that you have to repay the goods very quickly within a few months. If you fail to do so, you will normally pay interest that goes up to 30%.

We saw how much it would cost to buy a 500 dollars laptop through hire purchase: As we have been informed in the e-shop, these calculations are only approximate, you will not be able to find out the specific conditions until you have filled in all the required data for the purchase.