What to look out for when buying on finance

What to look out for when buying on finance

You have your eye on a fancy laptop or smartphone with an equally fancy price tag. Buying them on finance or on credit is often possible, but what is the best option for you? Before you decide, always make a careful comparison of the different options.

What should you look out for?

If you intend to buy your new phone, laptop or TV on finance or on credit, you should bear the following in mind.

1. Interest

Buying a new device or appliance on finance or on credit often entails additional costs. So be sure to work out what you pay in the end for your purchase.

2. Retention of ownership

The seller of the device or appliance often continues to own it until you have made full payment, due to the fact that there is a chance you could cease making repayments along the way. Always check to see whether the seller retains ownership.

3. Store credit cards

Some shops provide a credit card that can be used to buy their products on credit. If you have cards issued by a number of different shops, it might be easier to lose sight of everything you are paying off.

What are your other options?

If the price of your purchase is too high to fit into your monthly budget, there are other options open to you.

Savings

If you can do without that new TV or mobile phone for a while longer, you can save up for it and after a few months pay for it in one go. If you already have some savings, you should use them to make your purchase.

Regardless of whether you buy on finance, on credit or borrow the amount you need, you will always pay interest. If you pay for the item in full, you avoid paying additional costs in the form of interest.

Taking out a loan at KBC

Imagine you drop your smartphone and it breaks or suppose your laptop crashes. Should it ever happen and you need a new device fast but don't have the means to buy it right away, you could always apply for a personal loan at KBC. You can start borrowing from as little as 500 euros.

1. Interest at 5.43%* maximum

At present, the interest charged on a personal loan is a maximum 5.43%*. Always make a careful comparison of your options.

2. You immediately own what you buy

If you take out a personal loan at KBC to buy an item, you own that item right away. 

3. Apply for and manage the loan online

You can apply for a personal loan online using the KBC Touch app. As your application is made digitally, you don't have to drop by your branch. Touch also allows you to monitor your loan at all times, which ensures transparency as regards your payments. You can keep a close eye on things in your app, at all times .

* Representative example: for an instalment loan of 1,000 euros to be repaid over 24 months at a fixed annual debit rate and annual percentage rate of charge of 5.43% , you pay 24 instalments of 44.01 euros per month or 1.056,13 euros in total. Rate valid from 3 May 2017 for an instalment loan used to various personal purposes.

 

Attention, borrowing money also costs money

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