Do you need quick cash in your bank account? We all have moments in our lives where we need money in a hurry.
Whether it’s to settle an urgent medical expense, furnish your lounge, buy a new car, or go on holiday, a loan can help you find the funds you need.
So, what are the credit facilities on offer in Finland? How can you source a loan at the best rate possible?
Unsecured Loans
An unsecured loan describes a loan that does not require any collateral from your lender. These loans are typically for amounts of €2500 or less. Be careful when you select your choice of financial provider for these loans. Only work with reputable lenders that are licensed by the local monetary authorities.
There are various financial vehicles available to consumers that offer unsecured credit facilities.
Credit Cards
Dig through your spam folder, and you’ll probably find credit card companies and banks offering you a credit card. This type of credit facility provides you instant access to cash, based on your current credit profile and income.
It’s possible to receive an interest moratorium on any credit you spend with the card. However, this moratorium will end around 55 to 60-days after purchase and interest added to any payments after that.
Cash Loans
Are you in need of cash in a hurry? Instant cash loans are available for a multitude of credit providers. The most common type of unsecured cash loan is a payday loan, where credit providers loan you money against your next paycheck.
Hire Purchase Facilities
These credit facilities are available for people that want to purchase a new car or another consumer product such as a lounge suite. These credit agreements are typically structured over anywhere between a 6-month to 5-year period.
Interest can be astronomically high with these types of credit facilities, always shop around for the best deal and pit dealers or credit providers against each other to compete for your business.
Mortgages
If you need to loan a significant amount of money, a mortgage facility is your best bet. Mortgages typically finance homes, but you can speak to your credit provider about extending a second mortgage on your home.
You can use a second mortgage for any purchase, and with an access loan, it’s possible to loan a portion of your mortgage facility without the need to secure the entire loan amount. A second mortgage is a cheap way to obtain finance, but it does come with risk. If you fail to repay the loan, the bank may repossess your home to settle the outstanding loan amount.
The Final Thought
Your credit score determines the interest rate at which financial providers will loan you money. Therefore, it’s critical that you ensure you only lend money which you can afford to repay. Failing to repay your loan in a timeous manner will result in blacklisting by the financial authorities.
You’ll find it difficult to secure further credit facilities with a poor credit history. Be prudent with your lending and always repay your loan.
