Sometimes it is necessary to take out a loan. You can opt for different types of loans – quick payday loans that will allow you to receive money almost in an instant, but which you will also have to pay back fairly quickly, or higher amounts and installment loans. The latter have the advantage that you can borrow much more and the repayment will be spread later.

However, many people are wondering whether it is better to decide on an installment loan, or whether they can just shop in installments? What is a better idea? Here is a brief comparison. 

Shopping in installments – when is the best idea? 

Shopping in installments - when is the best idea? 

Installments can be freely decided by those who care about a specific thing. If this thing is expensive and currently exceeds their financial capabilities, buying it in installments may be a good solution. Thanks to this, you can enjoy it faster and pay back the whole commitment in parts over the following months. People who could buy the product for cash decide to buy new equipment in installments. Why spend your savings right away if you can gradually pay back the debt? Installments are often so low that you hardly notice them in your monthly budget. This is undoubtedly one of the most frequently taken loans. 

Installment loans – who will benefit from them? 

Installment loans - who will benefit from them? 

Installment loans are loans that can be taken even at non-bank institutions. Hence, you can receive them fairly quickly, and apply for them even online. The fact that the repayment is divided into several smaller parts is caused by a higher amount than in the case of payday loans. Loan companies came up with similar offers because many people needed a higher amount than only 2000 or 3000 PLN – which was the maximum value of debt in numerous companies. Installment loans are more convenient than bank loans because they require fewer formalities. On the other hand, however, bank loans have lower interest rates and many people consider them safer. Undoubtedly, with really large amounts, it is worth deciding on a bank loan. When the amount does not have to be particularly large and the time is pressing, installment loans are a remarkable solution. Plus, it can be given for any purpose. So you can pay for them with a few things, or even spend on something other than the original assumption.

Installment purchases and installment loans – comparison 

Installment purchases and installment loans - comparison 

If we need cash to pay for the purchase of a specific thing, shopping in installments has that we borrow exactly as much as needed. No more zloty will go to us and will not be subject to interest. It is much more convenient than taking out an installment loan and then going shopping – it may turn out that the equipment was much cheaper or we still lacked funds. You can take many different things in installments. However, if we need money for some other purpose, a loan may be the only possible choice. In both cases, we can negotiate on how high installments we agree (and the lender agrees), how many there will be and how much the total cost of the loan will be. It’s good to know that there are many different offers at the moment.

We can read about installment loans as well as the possibilities of making purchases in installments on the internet. In the case of installment loans, however, we have much more information, plus special rankings and comparisons – so it’s easier to choose the right offer. When deciding on shopping in installments, we have no influence on who will be our lender, although we do not have to worry about security, because the bank that gives us the money is certainly reliable. We can also receive both types of loans in the same way. At the moment you can also buy various installment products online. 

Shopping in installments or installment loans – which is better? 

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As a rule, installment loans are easier and faster available than bank loans. However, installment purchases are an even faster method to have your dream thing, and to do all the formalities for the customer the store where you buy. The buyer, who is also the borrower, has only the task of choosing the right product that he wants to buy, and then read the contract carefully and if everything suits him, sign it.

In the case of installment loans, you must complete all formalities yourself – for example, provide the necessary documents and complete a loan application. So if someone cares about comfort and time, and knows what exactly they want to buy, he should decide to take the product in installments. However, if there is a lot of expenses and the sum borrowed is to be allocated to several different things or not to buy a product, but something completely different, the form of the loan will be definitely more appropriate. Among Poles, there are the most people who buy something in installments. Installment loans alone come second.