Having to borrow money is something that most of us need at some point in our lives. Sometimes it can be a loan for a home but many times for smaller things. There are even circumstances that many do not think of as a loan.
Buying something on installment is technically a loan and often a credit company is behind the company that sold you the product. There are several different financial products offered in Sweden at the moment and it can be difficult to choose or know to whom to turn.
Dear child has many names but a bank is a bank while a credit company is a credit company. Although both lend money and offer financial services, it does not mean that you are guaranteed the same service. It is important that you think about it and compare before signing an agreement.
What is a Credit Company?
It is important to know what you are comparing and to make the right choice when it comes to money. When you think of credit companies or lenders, many think of a bank or other company that lends money.
The big difference when it comes to a bank is that they have to call themselves banks because they make withdrawals and deposits from the Riksbank. A bank needs a special permit from Finansinspektionen to be able to call itself a bank. They then have a major overhaul and carefully monitor the banks to ensure that they follow all the rules and laws that exist.
When it comes to a credit company, the rules are a little different. They must have a permit from Finansinspektionen, but the checks carried out by FI are not the same as with banks.
There is also something called a deposit guarantee that the banks have where the money that you have in an account up to a certain value is covered by some kind of insurance, if the bank would, presumably, go bankrupt which is not with a credit company.
Of course, you can both borrow money and invest money with a credit company, and this is usually very easy. Investments also tend to have higher returns from a credit company compared to a regular bank, but there is also a greater risk.
The fact that the application is often simpler with lower conditions is due to the fact that the control from FI is not the same with the different lenders. Generally, there is not as much bureaucracy at a credit company as there is at a traditional bank. Which makes credit companies an easier option for smaller loans.
Smaller loans are therefore usually preferred with a credit company as the repayment times are short and you do not have to worry about repaying over a large number of years.
Are there different types of credit companies?
There are different companies that specialize in different financial products. It can be difficult to choose sometimes but it is important that you know what you want and compare the options that are available. There are many different lenders and they have different offers and products. There are both fast loans, private loans and the newest one being 3GS loans. A 3GS loan is a loan where private individuals lend money to people who want to borrow. Those who lend benefit from it by getting the interest you borrowers pay.
In addition to lending money, there are also many who offer different types of credit loans. It can be an option if you want extra security for unforeseen fees or if you don’t know how much you need.
No matter which credit company you choose, there are advantages over the larger banks. One of these is that you can often borrow without UC. That is, another credit reporting company is used, which makes it easier if you want to apply for additional loans in the future, such as mortgages.
Many times, payment remarks are also not a problem as many credit companies offer loans even to those who have one or more remarks. Therefore, there is almost always an option for everyone, no matter what situation you are in.
The great advantage of credit companies is that it is simple and smooth. Many times the money becomes available the same day or the next day. That you can apply through the internet and get a response within a couple of hours is always preferable in case of an emergency.
How do you know if a credit company is safe?
All credit companies and banks are reviewed by the Swedish Financial Authority. It is therefore very safe to borrow in Sweden from Swedbank and credit companies.
Although it is considered safe to borrow from credit card companies, it is important that you be careful when making your choice. You can easily find information both on the internet and at FI about lenders. We recommend that you always compare before applying for a loan. Both so you get the best deal but also to make you feel confident in your decision.
There are also loan intermediaries that provide loans to banks and credit companies with which they cooperate. Then you get multiple offers from secure lenders with a single application.