In essence, all available types of loans are divided into two major categories – short-term and long-term loans. In principle, the definitions of these credits are quite self-explanatory. Short-term loans are loans of a smaller amount that are issued for a shorter period, usually up to one year. Long-term loans are larger loans that are issued over a longer period, such as several years.
In order to start choosing the most appropriate loan for your needs, a person has to consider some factors that have a determining role in the selection and classification of loans.
- First of all, a person needs to know how much they need to borrow. In order to be able to assess the amount of borrowing required, there must be a clear understanding of who will use these finances. If it is an urgent purchase or bill that has to be paid, the person can easily understand how much will be needed. If a loan is taken, for example, for construction or repair work, it is worthwhile to attract a specialist who can evaluate the total cost of these goals.
- Secondly, the person has to realistically assess how long it will take to repay the borrowed loan. This will most accurately be done by assessing the size of the loan amount and the person’s monthly income. To evaluate your solvency and the size of your monthly payments you will be able to help the credit company, but before choosing a loan it is important to estimate how long you can repay the amount. It is important to know this to determine which type of credit will be the best solution for your needs. If you need a longer period to repay your loan, you may want to look at the options for long-term loans. If you need to borrow a relatively small amount of money that you can repay within 30 days, the best solution is likely to be a short-term loan.
- Thirdly, it is important to evaluate the interest rates applied to loans. The loan interest rate is, in essence, the amount of money you overpay by returning your loan. Short-term loans tend to have very low interest rates, whereas long-term loans have lower interest rates. In the case of long-term loans, it is worth considering the annual interest rate (APR), but for short-term loans, the monthly interest rate should be the focus.
You can read more about all of the above on our website. We have, with the best of our conscience, tried to describe and comprehensibly describe information on all types of loans available to providers, as well as to explain who should pay particular attention to each type of credit. Remember that information is general and has an informative role, you can get accurate information about your particular situation by contacting the particular credit institution where you want to draw your credit.
As mentioned earlier, you can find various types of short-term credits at providers. Short-term loans are the best option if you need to borrow a relatively small amount of money for a relatively short period of time. Fast loans are usually issued for amounts up to € 4,000 to be repaid over a period of up to one year.
SMS credit is a type of short-term loan that can be executed by SMS. This type of quick credit is a good solution when there is money you need to get fast. It is possible to receive an SMS loan simply by sending a properly formatted message to the relevant credit provider. SMS Credits are usually issued for money ranging from € 5 to € 700 for a period of 10 to 30 days. The biggest advantage of SMS credits is, of course, the ability to borrow anywhere in the world, as borrowing is possible by sending one SMS. At the same time, money can be obtained quickly and efficiently in your account to cover the necessary expenses.
Quick loans are by nature a convenient and easy way to borrow relatively small amounts of money for a short period of time. Quick credits are different from SMS credits by the fact that quick loans can be made online or by physical arrival at the creditor’s branch rather than by SMS. Quick loans are the ideal solution for situations that require urgent money and urgency. Credit institutions that offer high-speed online loans offer up to € 4,000 to borrow for up to one year. Fast internet credits are often available for first-time borrowing without interest. It is worth remembering when choosing a quick loan issuer. Y
Consumer credit is a short-term loan, which differs from other types of short-term loans in that it is possible to borrow the necessary funds at lower interest rates when choosing consumer credit. Depending on the creditor chosen, the credit may be up to € 10,000 for up to 72 months. It should be noted, however, that the maximum amount set by creditors is most often € 3000 with repayment term up to 36 months. Consumer credit typically has more flexible terms and friendlier credit repayments than other types of quick credit. Consumer credit is suitable for making larger, urgent purchases or paying for services.