Often people need extra resources to meet their daily needs and to achieve greater goals. As demand increases, so does supply, and various types of credit are now available in the range of services. Internet Credit, SMS Credit, Short Term Credit – How to Understand Which Offer to Use in a Specific Situation? At first glance, loans for private consumption may seem similar, and you may not always be able to choose the one that suits you right away. That’s why Henry MOney’s specialists have put together a brief guide to lending to individuals. Read on to find out which cash loan is best for your needs!
5 principles of loan allocation
Loans can be divided into:
- lender. Money can be borrowed from a private individual, bank loaned, and can be instant SMS credit from non-bank lenders or online credit provided by Henry MOney;
- repayment term. Short-term credit is repayable within 12 months, medium-term credit is between 12 and 48 months, while long-term credit is a loan with a maturity of more than 48 months;
- interest payment terms. Usually interest payments are required to repay the loan, but there are some lenders in the non-bank sector who have access to cash credit online with a 100% discount on the loan commission. Note that such a lucrative credit, with a total repayment equal to the principal sum of the loan, is usually only available when you first borrow;
- type of collateral. This is a loan, with or without a guarantor or pledge. If the loan is issued against collateral, it is valuable property – housing, land, car. Short term instant and SMS credit are usually granted without collateral;
- for borrowing purposes. The purposes for which a cash loan is sought can be very different: tuition fees, home improvement, car purchase, home appliances repair, etc. Some lenders require you to specify the purpose of the loan, others do not require this information to be disclosed. Usually, online cash credit and SMS credit are issued without such formalities, but in order to get a loan from a bank you need to be prepared to tell you the reason for the credit.
As you can see, the categorization principles can be very different, but everyday loan names are common, which does not always explain their nature. Read on to find out the most important types of loans!
What is what?
Frequently requested loans have acquired their names over time, mainly with reference to the purpose of the loan (mortgage loan, car leasing, etc.) and the application principle (SMS credit, internet loans, etc.) and these names are now used by all lenders. Continue reading to find out more about each of the types of credit available to individuals!
This is a long-term, long-term loan from a bank for the purchase or improvement of a home. The process of obtaining a mortgage loan is usually a lengthy one, requiring the submission of various references, assessments, and the need for a guarantor and / or mortgage.
Student or study loan
These loans are intended to support the study process. The student loan covers the tuition fee, while the student loan is used to cover your daily expenses. These are long-term loans, which can mostly be obtained with a state guarantee.
Leasing is a type of loan provided by both bank and non-bank lenders. Leasing Principle – The customer’s choice of product is purchased by the leasing service provider, allowing the product to be used by the customer until all leasing payments are covered, and then the product becomes the property of the customer. Leasing is mainly used to purchase cars and large household appliances.
Consumer credit is a medium term loan offered by banks and sometimes also by private creditors. The purpose of this loan is usually similar to that of leasing, which is to provide the customer with funds to make larger purchases. Only after receiving a consumer loan, the customer borrows a certain amount of money and the purchased item is immediately taken over by the customer.
Quick Credit – SMS Credit or Internet Credit
Fast credit is a short term short term loan provided by non-bank lenders. Mostly it is a credit on the internet, but some lenders also have SMS credit available. In both cases, it is a short-term loan that usually has to be repaid within 10-30 days, although the limits for each lender’s credit may vary.
Quick loans can also be broken down into :
- credit on the internet. You can apply for this credit through the Internet – a profile is created on the lender’s website to further organize the borrowing process. Typically, online credits are granted within 20-30 minutes, but registered users can borrow even faster and get paid in as little as 15 minutes *. Good credit on the internet is also available from us – Henry MOney;
- SMS credit. When applying for an SMS loan for the first time you have to register on the lender’s website, but the next time SMS credit is available by sending a text message – so you can borrow even if you don’t have an internet connection. With some lenders, SMS credit is available to regular customers who have successfully repaid at least one loan. But with many creditors, new users can also borrow via text message.
Fast Credit has its name due to the time it is issued – if the customer meets the lender’s requirements, the SMS credit or internet credit will be issued in about 15 minutes *.
A credit line is also an internet cash credit provided by non-bank lenders. This type of loan is not quite the same as SMS credit and instant credit, where the entire amount of the loan is immediately transferred to the borrower’s bank account and the customer can then proceed at his or her own discretion. The principle of a credit line is the same as for credit cards or overdrafts offered by banks – a certain amount of money is available to the customer, but the amount of money required is determined by the customer at a given moment, thus saving on interest payments. This is a great loan at a time when you are uncertain about the amount you are expecting to spend, such as starting extensive repairs to improve your home, taking your vehicle to a repair shop, or covering treatment and rehabilitation costs.
If you need a loan and your planned expenses aren’t prohibitive, online credit can be a handy solution. While instant credit and SMS credit on the Internet seem to many to be very easy to obtain, Henry MOney urges you to always think about your solvency! Everyone has to independently evaluate their ability to repay the loan on time. Ask yourself the following questions:
- Do you really need a particular type of loan, such as internet credit or SMS credit, because without the extra amount of money the situation will get worse?
- Is the short-term credit appropriate to your level of income and expenses and will not create a gap in next month’s budget?
- Are you well aware of the principles of responsible borrowing and understand that loan repayment is the borrower’s top priority?