Advantages and disadvantages of consumer credit

disadvantages

 

Sudden costs, sudden bills, we’ve all been there. How to manage unexpected costs without calling relatives and friends for help. Consumer credit is one of the options that many rely on. So, what is exactly is consumer credit? Basically, it is loan that doesn’t have so high requirements from the customer as normal loans from the major banks. Let’s take a look at the advantages and disadvantages more in detail.

 

Advantages

  • Easier to get than a normal loan from major banks, because the requirements aren’t so high.
  • You can get it faster than normal loan, you may receive even the same day you apply
  • Payback system is often more agile. You may be able to choose on online app or web service how much you pay any month (of course interest rate sets some limits)

 

Disadvantages

  • Interest rate is higher than in normal loan. Therefore, you should always apply first for normal loan.
  • Some companies may have difficult terms to understand and it might be difficult to negotiate with them if problems arise and you have difficulties to pay back
  • Consumer credits are often released by companies who don’t have bricks and mortal office, so you can only communicate by phone and email.

 

We hope this information helps you when you are considering between a normal loan and consumer credit. Don’t hesitate to contact us for more information and consumer credit comparisons. We can find you the best offers and promotions available at the moment.

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