But a loan has its advantages - it is given for longer terms and you can borrow a larger amount from the bank. Therefore, this method of financing is suitable for making expensive purchases: a car, furniture, building materials, expensive equipment and electronics. With its help, you can pay for education or a travel package.
In essence, payment by installments is more like an installment plan. Only the store sells you the goods by installments, and usually its price is higher than that of goods sold without installments. It turns out that the fee for using the installment plan is included in the cost of the goods. In this respect, it loses to payment by installments, since the costs are borne by the buyer.
Another option is installment cards. They are something between lebanon mobile database a regular credit card and a store installment plan. The issuing bank provides the cardholder with a credit limit, within which he can pay for purchases in partner stores. If the goods are purchased in a partner store, then there is no difference between the price of the goods purchased with personal funds or with an installment card. There is also no fee for using the installment plan - you will only have to pay for the delay in returning the funds.
What are the advantages of installment cards for the buyer:
Possibility to receive cashback.
Convenient accounting of funds. You buy goods in installments in different stores, but you do not need to keep numbers and terms in mind - the bank itself reduces all the amounts into one monthly payment. Therefore, using an installment card is convenient and comfortable.
The seller’s benefit is also obvious: he gets new clients and increases the average bill.
And what is the benefit for the bank? It’s simple – it increases the number of transactions and earns more on commissions.
Purchase with a credit card
Credit card― another way to buy goods or services on credit. It is similar to an installment card, but has its own characteristics. It allows its owner to make purchases on credit using borrowed funds provided by the bank.
How a credit card works:
The bank issues a credit card for you and sets a credit limit on it - the maximum amount that can be spent on purchasing goods and services or withdrawn in cash.