Consumer credit | consumer credit

 

A consumer loan is a long-term commitment that requires a relationship of trust between the lender and the borrower. Consumer credit: its importance and its advantages and disadvantages at a glance

When financing a consumer good such as a television, a smartphone or even a new eat-in kitchen through a bank loan, this form of credit is usually referred to as consumer credit. This is a classic installment loan granted exclusively to private individuals by a lender for free use of the loan amount.

A consumer loan is granted at fixed, monthly, constantly high interest rates over the term of the loan.

A consumer loan is granted at fixed, monthly, constantly high interest rates over the term of the loan.

However, an exceptional case of consumer credit is a car or motor vehicle loan associated with the purchase of a motor vehicle or motorcycle in relation to the use of the loan amount. In addition, the lending house bank uses the purchased vehicle as collateral for this type of consumer loan.

Consumer credit with 7.95% interest! Consumer credit, like any other credit, has both advantages and disadvantages as follows: Compared to an overdraft, which is often used as consumer credit, “real” consumer credit is very easy to plan in terms of terms and conditions.

Consumer loans are usually granted as so-called blank loans.

Consumer loans are usually granted as so-called blank loans.

This means that the lender has no interest in the amount provided by the borrower. As consumer loans are generally a classic installment loan business with fixed credit conditions and credit characteristics such as maturities, debit interest rates and effective annual interest rates, they can also be compared with offers from other banks or with the help of one of the many credit calculators in the network.

Loans regularly concluded with a house bank are communicated to the credit bureau.

If a consumer loan is to be used to cover a desired good, it is particularly important to look at the many market offers through a credit comparison and to determine the most suitable for your own needs loan offer. With short-term cash requirements, a small loan or mini-loan can also be used as consumer financing.

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