Our lawyer examines for you the advantages and disadvantages of these two financial instruments so that you can choose the one that best suits your budget. And your repayment capacity. Choose the formula that suits you best with the wise advice of our lawyer. Discover the installment loan or credit opening.
How to choose between the installment loan or credit opening?
The installment loan
For example, if you finance improvement work in your house.
- You pay in periodic installments, generally every month;
- The payment terms are fixed throughout the duration of the contract;
- You cannot take out new credits;
- The interest is known prior to the conclusion of the contract;
The credit opening
For example, a VISA card or a purchasing card in a large retail chain.
- You are free to repay whenever you want;
- Payment terms are irregular;
- You have the possibility of making new withdrawals up to the discounts made and within the limits of the amount of credit granted;
- The interest rate is calculated based on the actual use of the credit;
In conclusion
Finally, opting for one or the other type of credit will depend on the purpose of your credit. Apparently, you have more freedom of use within the framework of the credit opening. Additional fees may be higher with a credit card.
In any case, the installment loan is very secure since it is based on a very precise contractual document. Which protects consumers and you know precisely in advance how much you pay monthly as well as the total cost of credit.
