Long-term loans are loans that are usually issued for a longer period. Typical long-term loans are chosen by people who need to borrow more money to make a larger purchase. Long-term loans are usually the most appropriate, for example, if a person wants to buy a new car, renovate a place of residence or buy a real estate. Depending on the lender, it is possible for the consumer to borrow up to several tens of thousands of euros and return them at a convenient time. Typically, long-term loans are issued for a period longer than one year, but the specific maturity of the loan is individually assessed, depending on the loan amount and the borrower’s solvency.
When choosing the best credit for you, it is always a good idea to evaluate how much you need to borrow and how long. By evaluating how much a particular purpose a person borrows, it is possible to gain a better insight into the most appropriate form of credit. If you have the desire and need to borrow for a few tens or hundreds of euros, then perhaps a quick or consumer loan will be the best solution. If you need to make a bigger purchase or pay for recurring expenses, for example, if you need to carry out repairs and hire workers, then long-term credit will be a better solution.
The biggest plus for long-term loans compared to short-term loans is more flexible repayment terms and more friendly interest rates. For accurate information on a specific long-term loan, the best solution will be to contact the selected credit institution to obtain a long-term credit offer and evaluate its benefits.
Types of long-term loans
Thomas Bigger.lv You can find several different types of long-term loans. In order to be able to make an informed decision about which type of long-term credit will be best for you, evaluate your goals, which will be filled with borrowed money. To better understand which credit to choose, the size of your loan, your solvency, and your credit APR are assessed. Remember that, unlike short-term credits, you may need a pledge or guarantor to make a long-term loan. Long-term loans have lower interest rates than short-term loans. Applying these lower interest rates, lenders can, because of a much more careful assessment of the debtor, before the loan is issued and often require a loan pledge or guarantor. Loan against the collateral or guarantor will provide the credit institution with a loss in the event that the debtor will not be able to meet his credit obligations.
Long-term credit is a type of loan that is issued for a longer period, usually from 3 to 6 months. Depending on the specific situation, the amount of the loan and the solvency of the debtor, the repayment term is assessed individually. There may be borrowers who repay their long-term loans within 3 months, but others do so in 12 and even more months.
Thomas Bigger.lv offers you the following types of long-term loans:
- Credit line
- mortgage loan
- Car Credit
- Loan combination
Why choose a long-term loan?
Long-term loans will be the most cost-effective solution if you need the finance to make a big purchase or pay for services. Most often, people sign long-term credits for car purchase, home purchase or repair, course and tuition fees, medical care, and other big expenses.
Long-term loans usually have lower interest rates than short-term loans, which is why it is worth considering where the type of credit will be most suitable for you to cover the specific costs. If you have to pay recurring bills or pay the rates, it may be more profitable to make a long-term loan than to take a quick loan every time you know you will have to pay a semester or course fee, buy it for repair, or pay repairers for the work done.
Most often, long-term loans are used to realize more intentions and quick loans are used for unexpected daily spending and emergencies. At the same time, it is worth remembering that everything depends on the financial situation and solvency of a particular person, there is no single scheme for everyone to choose the most appropriate type of credit.
Therefore, we reiterate the importance of assessing the need for credit and your solvency before drawing up a loan. Failure to fulfill credit obligations can result in high penalty payments, damaged credit history or, in the worst case, court proceedings.
Long-term loan against short-term credit – how to choose?
If you need to borrow a relatively small amount, for example, € 100, which you can pay back next week, then the best credit will be for you. However, when you need to borrow € 7,000 for home repairs, a long-term loan will be a better option.
The most appropriate type of credit depends on your needs and solvency. In some cases, it may be difficult to assess which type of credit will be the best choice. If you need to borrow, but you do not know which type of credit is the best, then evaluate or want and you can repay the loan gradually and in the long run or, however, repay faster.
Despite lower interest rates on long-term loans, savings can be made in some cases by choosing a quick loan even if it has a higher interest rate. This is the case when the borrowed amount can be repaid within a short period of time, such as one week or one month. However, if you know that you will need at least 6 months to repay the loan, long-term credit will always be the best solution.
You can get more detailed information about long-term and short-term loans by contacting the credit institution of your choice. Thomas Bigger.lv will help you compare and choose between available creditors, but it will be possible for you to get a specific offer directly by contacting the credit institution. Another option is to use the credit calculator available on the creditor’s website if the creditor offers it. This will allow you to evaluate several creditors before making your choice.
You have the right, before making a decision, to consider several offers before you choose the most optimal offer for you and your options.
Long-term loans – what to remember before designing?
Of course, in the case of any credit, it is important to remember to consider the need to borrow your opportunity to repay the loan. It is just as important to carefully read and evaluate the terms and conditions of the creditors’ agreement, the limitations and the obligations of both parties. It is important to evaluate these basic things, regardless of which credit type and creditor you have chosen.
Always evaluate all contract terms and make sure you understand them and their possible consequences before you sign the contract. This point is particularly important to avoid getting into an unpleasant situation where one of the parties is misunderstood. In order to avoid additional expenses, it is assessed whether you will be able to fulfill all the terms and conditions of the loan repayment and make them on time. Late payment delays may result in various sanctions, which may include the payment of penalty interest, the involvement of debtors and even bailiffs.
Always remember to make sure that your monthly loan payments do not exceed 20% – 30% of your monthly income before signing a long-term credit. It is possible to calculate the monthly amount of the loan with the help of a credit calculator. These credit calculators are a service offered by many bank and non-bank creditors. These calculators provide an approximate insight into the total and monthly cost of the credit. It is worth remembering that the credit costs calculated in the credit calculator may differ from those calculated in the credit offer developed by the creditor, but the credit calculator can be a good tool for obtaining approximate calculations.
As a borrower, you have to remember that the loan repayment starts already next month after receiving the loan. This means that you have to plan and distribute your budget so that you are able to make monthly loan payments and your regular monthly payments without problems. The repayment of the loan must, of course, be a priority, but it is important to find a balance so that you do not hinder other monthly payments, such as rentals and utilities. If you do not know how to plan your budget correctly, then perhaps it would be a good idea to visit a financial advisor before drawing up a loan. A financial advisor can help you group, prioritize and plan your finances. Financial advisor services can be found both at your bank and privately.
Long-term credit without jobs
Long-term loans are serious loans designed to help individuals realize long-standing dreams. It is not advisable to make long-term loans or any other type of credit without serious cause and necessity. As we have said many times, we are carefully assessing the need to borrow and repay our credit facilities on time.
Despite all of the above, it is important to remember that situations in life are different and can happen in any way. Financial difficulties can come unpredictably and work may be lost suddenly. What do you really want to do if you need to sign a long-term loan but don’t have a job right now?
Obtaining a long-term loan without a job can be very difficult, but in some cases it is not possible. Of course, it should be remembered that working out a credit without a job is probably not the best option. If you have come to a situation where you have been left out of work, then consider whether it is time to try and get credit?
Can it wait?
Perhaps the best solution, if you are left without a job, is to postpone large purchases or investments until you find your job again and get financial stability again. If you choose to postpone your credit commitment until you have recovered your financial stability, it can help you move faster on your feet, because you won’t have to worry about having to make a monthly payment.
Postponing the credit and the big target to a later date does not mean that it will never be fulfilled. It is even possible that you will be quicker at the crib and you can repay the loan sooner if you post it for a better time. Consider whether the goal you want to borrow can wait and evaluate your financial stability.
In any case, the best solution will be to postpone big spending for a while rather than head over to new credit commitments. The fact that a person does not currently have a job does not mean that the person does not have the usual monthly expenses – renting, utilities, spending on food and other everyday expenses are not lost anywhere. That’s why it’s worthwhile to postpone taking a loan for a better time if it’s possible.
If the necessary expenditures are urgent and urgent, it may be possible to draw up a long-term loan without a job. This is likely to be a longer and more unpleasant process than it is when a person is both solvent and good credit.
In some cases, it is possible to pledge your movable or immovable property for a long-term loan. One way to borrow without a job is by mortgaging your movable property, or a car. This is called auto credit. It is possible to make a car loan by pledging your car as collateral to creditors, if you are unable to repay the loan. Car loan companies can issue up to 90% of the value of the car on credit, but take into account that if you do not fulfill your credit obligations, the credit company will dispose of your car. You can read more about car loans here .
Just as with a car, it is possible to mortgage real estate to get credit. Real estate can be a plot of land, a house or an apartment whose official owner is You. In this case, just like with a car loan, it should be remembered that by mortgaging real estate in exchange for a long-term loan, it is possible to lose this real estate if not all credit obligations are met.
Long-term credit with bad credit history
Multiple factors are important to the creditor when drawing up a long-term credit. In order to be able to assess the borrower as a trustworthy person who will be able to repay the borrowed loan, several factors are assessed. These factors are most often the amount of credit, personal solvency, and credit history.
Solvency is important because the creditor will assess whether the person will be able to repay the borrowed amount and for how long. When evaluating how much you need to borrow, remember to evaluate your solvency. There must be a known balance between the amount of the loan and your monthly income. Assess your situation and opportunities to ensure a balance between the monthly amount of credit payments, the monthly independent payments and your income.
Credit history can play a crucial role in the approval or rejection of a credit application. If a person has a negative credit history, this may indicate to creditors that there is a risk that the individual will have difficulty in meeting his credit obligations.
If a person has previously had a problem with credit obligations, the credit may be refused or the creditor may claim the collateral in exchange for the credit. Thus, the creditor can secure against losses that may occur if a person is unable to meet his credit obligations.
Poor credit history lasts for several years and so it is important what kind of problems have damaged a person’s credit history and what sums of money it has been. If the credit history has been damaged several years ago and all liabilities and penalties have been settled, the creditor may choose to ignore the damaged credit history. Each situation is different and the approach of credit institutions to this issue varies according to the policy of the credit institution in these matters.
If you have a damaged credit history and the courts need to borrow, there may be ways to deal with this problem. There is no guarantee that the credit will nevertheless be obtained because it depends on individual credit institutions.
First of all, the most important thing in this situation is to carefully and repeatedly consider your options and borrow only if there is full confidence that there will be no repayment of the credit drawn up for the problem. If you have any doubts, then it would be best to postpone the credit until you have improved your solvency and there is no doubt about the ability to meet your credit obligations.
Secondly, it is important not to hide this situation from the creditors. The best approach would be to contact the credit institution by phone or in person and to explain the whole situation. It is possible that the credit history has been damaged during the financial crisis, by unforeseeable circumstances or for some other reason, but now your finances are much more stable.
The third and last option is to opt for a mortgage or a mortgage. Often this is the easiest option, of course, if you can mortgage movable or immovable property or find guarantors. If there is no such option, it is probably the best option to postpone taking a loan. Postponing a loan does not necessarily mean its worst. Perhaps it will be an advantage for you, your family and your finances if you choose to take a long-term loan in the future.