Do you want to make a purchase for which you currently do not have the money? Then you can borrow the money. You can take out a loan for this, but you can also decide, for example, to use a credit card or an installment purchase. What works most easily, what does it cost and what ultimately makes the best choice? We list the various options.
Use of a credit card
You can first of all use a credit card. You can then already pay for the purchase, while it is not yet necessary to pay for it immediately. At the end of the month, the credit card company will send you a bill that you must pay. Can you not do this at that time? Then the company will charge you for a loan and you still have to pay the amount in installments. Keep in mind that interest rates can rise considerably, making this an expensive form of borrowing money. On the other hand, you do not have to take out a separate loan for it, so it works very easily.
Purchase by installment
Buying on installment is also generally easy. You can buy a product and immediately use it, while you do not have to pay the full amount. You agree with a seller that, for example, you use 10 monthly installments to make the payment. This is a form of borrowing money that works very easily, but usually costs a lot. You pay a high interest rate to the seller. Therefore, be careful with this form of borrowing money and opt for a consumer credit instead.
Borrow money through a consumer credit
Borrowing money through a consumer credit involves most of the work. You must report to a bank or other lender to apply for a loan. You can borrow money if you have sufficient income and you have, for example, no other (large) loans. In that regard, it takes a little work. On the other hand, you can count on a relatively sharp interest rate, so that the costs for the credit remain limited. In the long term in particular, consumer credit is the most interesting form of borrowing money if you want to finance certain purchases.