We are all aware that 99 out of 100 people apply for credit sooner or later in their lives. But in what situation, what kind of credit is worth choosing? What kind of loans are there? We thought we would write an article by the end of the year that answers these questions. Here it is:
The credit line
The credit line is linked to our bank account and is used to provide you with additional costs if you need to cover extra costs. This means that your bank account balance can go below 0. Of course, it is worth returning as soon as possible, as interest is ticking on it.
Your credit card
Many people think that credit card is not a good thing. We would rather say it is dangerous. But for someone who handles it is extremely useful. It’s not much different from your credit line. If we repay the amount used on time, we will have to pay 0% interest on it. That is, we used the bank money for free, and we can even earn extra points with some banks.
In fact, we are talking about an unsecured loan. Here, the bank only gives us money based on what our payment morale used to be and how much we earn. Personal loan interest rates (APRs) currently range from 15% to 20% over a 3-year term.
This type of credit is less widespread in Hungary, although it is a very favorable option. The point is that we do not get a loan based on our wages or real estate, but on the money we invest. Let’s say we have EUR 100,000 in a securities account and we get a loan of EUR 4,000. It’s that simple.
This is probably the most complicated loan agreement. After all, not only our earnings and payment morale are examined here, but even the real estate has to meet. We’ve written many times about mortgages. We know it can be for buying property (new, old), renovating, building, or even for free use. It is very important that we compare them properly with the calculator of the loan.com! Certainly in many cases it is everal million forints worth it for a few minutes.
These are some of the loans that might come with you. If you have any questions, feel free to contact us! We help you find the best credit and get the best deal financially.