What pays off the most: credit in ROR, cash loan or credit card
Before you decide on any loan commitment, you need to carefully analyze your current budget. You will also need to identify your needs because each credit product will be slightly different. That is why it is so important to know each of them thoroughly before you make your final decision.
A cash loan
Today, cash loans are the most frequently chosen product for financing current expenses. The amount of credit that the bank can give you depends primarily on your creditworthiness. You pay the consumer loan in equal or decreasing installments specified in the schedule. You can adapt it to your needs and financial situation because it is relatively flexible. In addition, you can take advantage of credit holidays in loan repayment, if you find yourself in a situation that you will not be able to pay the installment on time.
If you care about the time when you need extra money, you will probably get the loan in your bank to which you transfer the salary. In this case, you have a chance for a cash loan without certificates. The lack of documents that you should provide to the bank will certainly shorten your path to get extra money.
Cash loan – pros and cons
- availability in every bank,
- negotiable loan terms,
- credit holidays,
- no need to specify the purpose of the loan,
- early repayment option,
- automatic repayment option.
- credit costs,
- additional fees for changing activities,
- formalities (if income documents are required, the procedure will take much longer).
Some call the credit card the best friend, others consider it the greatest enemy. In fact, a credit card is not a bad option if it is in good hands. You can use your credit card for purchases when booking a hotel or car on the go.
How does a credit card work?
The credit card billing cycle lasts 30 days, during which time you can freely use the funds that the bank lent to you. At the end of this cycle you will receive a statement on which you will find all transactions and the amount to be repaid, you have about 24 days to pay interest, the interest-free period usually lasts 50 days. For example, a Millennium credit card has up to 51 days of interest-free period, at mBank the interest-free period is 50 days.
There is also an online credit card available at several banks, which you can apply for through your banking transaction system or from the bank’s website if you are not its customer.
How does a virtual credit card work? Basically the same as a plastic card, except that you can pay with it only on the internet. What’s more, some of the banks will send you plastic with a card number, your name and surname, but this card, although it will look like a traditional credit card, will only have the function of a virtual card.
How to use this card? All you need to know is your credit card number, expiration date and three-digit security code. You can find this data in the online banking panel.
Credit card – pros and cons
- convenience of use,
- possibility of making reservations, e.g. cars abroad, trips, flights or hotels,
- numerous rebate programs,
- long interest-free period,
- card insurance against theft and loss of money,
- you can spread your credit card debt into installments,
- a good way to build a good credit history.
- interest rate, if we do not pay the debt on the card on time,
- ATM withdrawal fees.
Which credit cards should you choose?
- CitiBank credit card – one of the most frequently chosen cards
- PKO credit card – one of the most popular “loans” on the market
- mBank credit card – an optimal card suited to the needs and possibilities
- ING credit card – wide limit from 500 to even 20,000 PLN
Overdraft is a very simple solution that you can use at any time. At the moment when you want to pay for purchases in a stationary and online store or when you need to withdraw money from an ATM or make a transfer.
A revolving loan is related to your settlement account, it is a permanently available credit line that you can use for any purpose. The limit increases the balance of funds available on your account. It is a flexible product, you decide when and how you will use it.
Revolving loan – advantages and disadvantages
- financial reserve guarantee,
- interest accrued only on the amount used,
- flexible product.
- debt risk.
You have 3 thousand on your account PLN, you pay 6 thousand PLN, i.e. the balance is 3 thousand. PLN minus. Bank from these 3 thous. begins to charge you interest. After a few days, the account receives your salary of 2,000. zł. The balance is therefore 1 thous. PLN minus. The bank charges interest on this sum.
Although the number of Poles who do not have enough money by the end of the month has significantly decreased in recent years, we are still at the forefront of the most indebted societies (according to CSO statistics). So if you need extra cash, don’t forget common sense and thoroughly analyze your budget and needs.