In dry economic terms, consumer credit is a certain amount of money that is transferred to temporary use by households to purchase consumer goods. In other words, this is an Overdraft, which is issued to citizens (not legal entities) for the purchase of certain goods.
Consumer credit can be targeted (it is issued for the purchase of a specific product) and not targeted – in this case, money is spent without a report to a financial institution. Also differ in terms of issuance: there are short-term, medium-term and long-term lending.
In addition, there are bank and non-bank loans
In the first case, you most likely have to collect a whole package of documents, which may include a certificate of employment on the average wage over the last six months, a document confirming the ownership of real estate or a car, a certificate of registration of a vehicle, a passport with a mark of recent border crossing, taxpayer registration card and other documents.
In the case of a non-bank consumer loan, you will most likely be dealing with a microcredit on the Internet, for which you will only need a passport and TIN, and the whole process will take only a few minutes.
What are the benefits and benefits of consumer credit
- If you understand that the price for the goods you need in the near future will significantly increase, then with the help of a loan you can buy it right now, securing yourself from overpayment.
- In the same way, you can avoid the unpleasant situation when the right thing disappears from stores or becomes scarce.
- Reverse situation: With credit, you can buy the most popular product when the price is high.
- You do not need to choose the cheapest model from the whole product line. By getting consumer money, you can buy exactly what you need.
- Consumer loans can be paid in a variety of ways: either with a single payment when the required amount appears, or in installments, making small, comfortable amounts for you over a period of time.
In addition, if you choose lending services in the online service, you will be able to control all cash flows: how much has already been paid, how much is left to be paid, how much interest is accrued to date and how much will be credited to the maturity date. Online lending services also often provide the first loan at a 100% discount, ie interest will not be charged on it.