Ever tried to “sell” you an interest-free loan? Perhaps he suspected this “offer” and thought he would be deceived. In this article we will tell you the interest-free credits and give you some alerts so you have a good experience.
There Is Same Credit Without Interest
When credits are advertised without interest they typically are interest-free credits. To confirm, you must analyze the APR of the contract . As a rule the APR is 0%. It is certain that some consumer chains advertise credit without interest but with a 10% opening commission, for example. Yes. Here they are not being correct because they are changing the name and the result is the same (pay).
What Is Credit Without Interest
Consumer companies are interested in giving interest-free credit for the purchase of their products. In practice, if you did not have this possibility you might not buy those products (and then the company would not take any margin). Or maybe buy a cheaper product … yes, because many times when we buy something on credit we look more towards the value of the installment and not so much for the total value of the purchase … which is very dangerous!
An example helps to clarify. When you buy a TV that costs you € 300 and whose monthly installment at 10 months is € 30. You may be able to buy a € 600 TV for the same installment but this time to 20 months. Soon, you will pay a lot more but your monthly effort is the same.
The distributor or retailer will be willing to slightly lower its margin to ensure the sale of a product. Whether it’s to shed stock, or to get quantity discounts with your suppliers. It does not mean that there are no good opportunities but these should be looked at very carefully and always having in mind the need to control your personal finances.
Credit Without Interest Or Savings: What Is Best?
If you have savings to make a purchase and if you even need to buy certain equipment, you may be faced with the choice between using your savings or borrowing an interest-free loan. What to choose?
- If you are a regulated person, it may make sense to make interest-free credit and keep your savings earning interest.
- If you are not regulated and if you can not keep your savings, it may be wiser to use the money you have collected for your purchase.
Never forget that these interest-free credits have a danger. An individualized credit does no harm to anyone. However, we are told by our credit renegotiation consultants who receive clients with several of these credits from different major consumer companies. Sometimes 3 or 4 … and here not only the family budget is in great pressure as there is not much room for renegotiation.