Depending on the type of purchase, various solutions are available to you. From the simple procedure with a loved one to the signing of a credit agreement, let's review the different options as well as their advantages and disadvantages.
A loan. For whom, for what?
As always, the first question to ask is the degree of necessity to take out a loan. Although legal standards are in place to avoid the risk of over-indebtedness and although measures to check your creditworthiness exist, taking out a loan makes a financial commitment.
It is therefore not a step to be taken lightly.
Next, it's helpful to ask yourself some questions:
- Are you domiciled in Switzerland?
- Do you have a regular income that is sufficient to pay off the principal and interest?
- Are you of legal age?
- Do you have a healthy financial history, with no debt collections?
The answers will guide you in your first steps.
Of course, the type of purchase and the amount involved are decisive. While it is important to note that credit facilities exist as complementary solutions to mortgage loans, the following information will mainly cover loans from a few thousand francs to a few hundred thousand francs.
Maps
Credit card
Of course, the purchase with your card is not necessarily associated with a loan. However, it is indeed a deferred repayment of an amount made available. Apart from a fixed fee for the use of your credit card, there are no interest rates.
On the other hand, if you are late in paying off your card, late payment interest will be applied.
You have to count on an interest rate of 12%. So be mindful of your follow-up.
Lately, the amounts of expenditure involved have been limited. This may reduce your scope of action.
The store menu
If you need merchandise available in the retail trade, some brands will offer you a purchase through their card.
Be careful, however, as interest rates can be as high as 12%. This is not the most cost-effective solution.
Safe options?
Although credit cards issued by banks as well as well-known retailers are often reputable, the process of accepting credit and charge card distribution is not as thorough as when applying for credit. As a result, the risk of default is higher. The consequences can be severe.
Purchase by deposit and overdraft
The Down Payment
Increasingly rare, it is sometimes possible to buy a property by putting forward a simple deposit totalling 30% of the purchase value. The balance is then honored by regular payments spread over time.
This is an interesting solution as the possible costs are reduced. However, you need to have the starting capital and interest on late payments is a risk that should not be underestimated. This practice, which is relatively interesting for the consumer, is tending to disappear from the commercial circuit.
Overdraft
As with the down payment, it is not a loan in the traditional sense of the word. However, this can be an interesting alternative depending on the overdraft interest rate applied.
If your bank agrees, they can accept that your bank account is overdrawn. This gives you some leeway in terms of your cash flow.
Of course, just like the limits of the cards mentioned above, the amounts involved are limited.
And what about leasing?
Often associated with vehicles, the costs incurred over time remain high and you are almost never the full owner of your property.
In addition, there are constraints imposed by this form of financing, which are detailed in various articles available on our blog.
This is a solution that is limited in its application and restrictive in nature.
And the buddies?
It's possible! Given historically low interest rates, offering a higher borrowing rate to a loved one could encourage them to take out a personal loan for you.
Be careful though, good accounts make good friends and risking a relationship for an incomplete or late refund can cost you more than money.
Also, we are not notaries; Any contractual agreement must include valid and legal terms. Unless you have a wealthy and generous uncle, it is therefore an easy solution in absolute terms but risky in practice.
The Obvious Fact: Private Credit
Amounts that are sometimes reduced and sometimes high, the creation of a solid file that meets legal standards, sound advice and interest rates from 3.90%... Going through a credit platform seems to be a relevant, secure and flexible option.
There's no need to complete any tedious formalities, your advisor will take care of it for you. There is no need to set a fixed fee, as the study and submission of your application are free of charge. You don't need to be dependent on your loved ones; The network of partner banks is extensive.
Opting for a consumer loan offers you, in the end, a complete solution.
What do I need to bring?
If you answer yes to the questions asked at the beginning of this article, all you have to do is do a simulation on a recognized platform such as Milenia.
Your advisor will then be able to ask you the right questions and offer you the formula best suited to your needs. Tailor-made is essential when it comes to financing. So your personal loan deserves it too.
As far as your file is concerned, an identity document, payslips, marital information if applicable, any outstanding loans and your other sources of income and expenses will suffice.
Is it fast? Everything is completed in a few days and the payment of your loan is made directly into your account right away.
The icing on the cake? Unlike the forms of financing mentioned above, you are free to buy your loan early or transfer it to another institution. At reduced or no cost and with complete freedom.
If your personal situation does not allow you to give a positive answer to the questions asked, simply contact Milenia to explain your case in more detail. You will be welcomed as you should be and advised in a professional and caring manner.
People are at the centre of our concerns and our values guide our actions. We look forward to hearing from you!
