Is it worth taking a small-scale cash loan?
We are often hit by a period of increased spending. There is a month when, in addition to fixed fees, there are also other such as home or car insurance, holidays with the family or some equipment breaks down. Then it is worth looking at the cash loan offers because experts say that it is the cheapest and also the fastest way to get the amount of money we need.
In every home, the need to borrow a small amount of money appears from time to time, and with her we ask ourselves whether to sign a contract with the bank for an overdraft account and be able to use it in an emergency, knowing that we will not be able to repay the loan during the period interest-free use a credit card or maybe choose to take out a cash loan.
Cash loan is the best solution
As it turns out, and as many experts claim, after analyzing offers from several banks, the most advantageous thing is to take out a cash loan – this solution is definitely the cheapest. This type of loan is most often used only when borrowing larger amounts of money. As it turns out, this is a mistake because the buffet for smaller sums is also worth going through the whole procedure. The advantage of this type of loan is also the mobilization to repay the debt imposed on us by the bank by setting the schedule of installments and the date and amount of their repayment. It is also very important to borrow money in the amount that we actually need, when applying for a loan it is not worth succumbing to temptation and borrowing twice as much as we need.
Overdraft on the account
In second place when it comes to profitability and favorable conditions is the credit limit in the account. In most banks, however, this is only a slightly less favorable option. However, we should remember that debit in the account is possible to obtain quickly only at the bank where we already have an account with inflows. Banks are not always willing to immediately grant such a credit line to a person who comes from the so-called street. It is also not easy to get a credit card immediately, although this solution is not the best idea in a situation where we want to get into debt for a long time.
Installment loan and card debt
The least profitable solution is debt on the card. It costs much more when the customer pays cash with it. Therefore, when taking a loan on the card, we should be sure that we will be able to convert it into a lower interest installment loan. It may often turn out that something that seems to be the most advantageous solution in practice turns out to be something completely different. Therefore, before any decision related to borrowing money, even if these are small amounts, we should carefully check the conditions, and often even contact specialists who will be able to tell us whether the solution will be actually beneficial for us, or maybe it is better to opt out.