The most common reasons why Hungarians take out a loan

There can be countless reasons why we apply for credit. Whether it is buying a home, simple shopping, a family event or buying a car, the palette is very colorful.

However, there are a few credit targets that we often apply for a loan for. Based on our customer feedback and our banking experience, we have compiled which are the most common loan objectives and which loans can help you the most . Whatever credit you need, you should use a loan calculator to help you compare the best deals.

Technical articles, higher value goods

Technical articles, higher value goods

It is a constant favorite, and is listed as one of the most frequent loan targets almost every year, while the Christmas season has been outstanding in this regard. The failure of a refrigerator, washing machine, or television is commonplace, as is the replacement of laptops, mobile phones, and other electronic devices.

If there is a real emergency and you need to replace your device urgently , we can help you with a commodity loan or a quick loan, but we are cautioning everyone to take out a loan just to own another consumer electronics device.

There is no need for a fourth curved screen 4k smart phone, but you don’t have to replace your cell phone bought a year ago with the latest one if we couldn’t afford it otherwise. However, if you have a good reason for the exchange and only credit is available, there are several options to choose from depending on what you need.

What kind of credit is worth borrowing?

What kind of credit is worth borrowing?

Whether you are shopping in a physical store or online, you can now find merchandise credit almost anywhere, which can be a quick help and can be claimed locally.

This is often the case with our product detail, with a 0 percent APR, but it is worth noting that a merchandise credit will usually be ours with a credit card , which has regular costs and is a very expensive affair if we do not refill money. The APR can be up to 36-40 percent if you use a commodity loan to make a purchase.

A cheaper solution is a personal loan 

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Which can be found in banks’ offerings even below 10% APR, and in the range of several hundred thousand forints to 10 million forints, we can arrange several goals from one loan.

 

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Another “popular” credit target is car purchase. The average Hungarian driver changes his vehicle every 5 years and can usually afford a used car. To do this, according to The Shadow statistics, they mostly require a loan of less than $ 5 million , which is enough to bring a few years of usable vehicles to the family with some self-help.

However, it is difficult to look for external financing for a used car . Car loans and leasing are available almost exclusively for the purchase of new cars , which can cost you millions in costs, and even require your own resources and cover, which will usually be the vehicle you want to buy.

What kind of credit is worth borrowing?

What kind of credit is worth borrowing?

Buying a used car can also be a good companion to a free-to-use personal loan because, as the name implies, you can spend it on exactly what you want, so you can buy a car from it. Unlike other credit products, personal loans require neither collateral nor self-sufficiency, all we need to do is verify regular monthly income.

Since the loan amount can be up to 10 million HUF, we can buy a new car. If we stay with the used one, we can not only settle 100% of the purchase price, but also all the costs that may be incurred at the time of sale.

Another benefit of this loan is that you can have the money in your checking account within a few hours of applying, so it is ideal for you to find an occasional purchase and act quickly. 

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