Are you thinking about renovating the apartment, but are afraid that the funds you have accumulated so far do not have to be enough? Credit can be the solution. However, although the market does not lack proposals for people thinking about changing the appearance of the interior, it is not difficult to guess that not everyone is just as attractive. Which ones are worth considering then?
What to look for?
Even before we decide to take out a loan to renovate the apartment, we should answer a few questions:
- How much renovation do we plan and what is its complexity?
- What is the estimated cost of the renovation and what changes can be allowed in this respect?
- What is our financial condition, and thus – how soon will we be able to pay off our obligations?
- When are we planning the renovation and do we have a lot of time to gather the necessary funds?
There is no solution that works great no matter the circumstances. However, if we are thoroughly prepared to make a financial commitment, we can be sure that we will be able to find the one that is best for us. Depending on what our plans are, it can be either credit card financing, a classic cash loan or a mortgage.
Credit card help
The renovation of an apartment is not always an equally impressive undertaking. It also happens that we are interested in refreshing the apartment rather than a radical change in its appearance. In this case, the costs are not large and usually close to two or three thousand zlotys. You do not need to buy expensive finishing materials, and in many cases you can do without even a specialized team. If we are planning such a renovation, we should consider whether instead of using a classic loan avail yourself of the possibilities offered by a credit card. There are at least a few advantages of using the card during a small renovation. If we already own it, we get access to the funds we need immediately. We do not have to wait for our application to be reviewed, nor do we have to be afraid that, judging the cost of renovation a bit too optimistic, we will have to stop it half deprived of finances. If we manage to repay the debt in the interest-free period (and in the case of not very expensive repairs it is not unrealistic at all), you do not even have to worry about the fact that you should give the bank more than it was borrowed. It is worth paying attention to the fact that even if we do not settle all arrears at that time, interest does not have to be high. Of course, deciding on such a solution should be approached responsibly to your own financial capabilities.
A cash loan
Unfortunately, the loan that is always waiting for us doesn’t really cost much. It also happens that it is connected with the necessity to incur serious financial obligations, so using a credit card becomes problematic. In this case, we should be interested in a classic cash loan.
The loan may prove to be helpful even if, in cooperation with renovation teams, you still pay with cash, and withdrawing with a credit card is extremely unprofitable. In the long run, a loan can also be much more profitable than a card, especially if we know that we are dealing with an amount that will be repaid long after the end of the interest-free period. Of course, when talking about cash loans, we must be aware that it is a solution with both advantages and disadvantages.
In the case of the latter, waiting time comes to the fore. It is no longer as it was a dozen or so years ago, but there is still no immediate access to cash, especially when we are interested in an amount higher than several thousand. It is also worth noting that the loan requires compliance with certain formal requirements, so you may need to provide a document informing the bank about the amount of our earnings. The loan also has its specific value. Before taking it, it is necessary to think about what changes we want to make in our house, how much fees we will have to incur in this respect, and… what to give up, if it turns out that there is a risk of exceeding the budget.
What to do when we do not really care about classic refurbishment, but about complete reconstruction of the apartment? Cash loans, although comfortable and attractively bearing interest, usually have a limited upper limit, so if we have very ambitious plans, the risk that it will not be enough to implement them is not small at all. In this case, the solution that should be subjected to a particularly thorough analysis turns out to be a mortgage.
For many people, the mere proposal to take out a mortgage to renovate an apartment seems strange. Indeed, this form of support is associated primarily with funds allocated for the purchase of real estate. This does not mean, however, that the bank will not be interested in crediting us for the renovation, especially if the collateral is the property being renovated. People interested in such a solution must take into account that the procedure for granting mortgage loans can be time consuming. However, keep in mind that we are talking about support with unquestionable advantages. It is worth mentioning here its interest rate – much lower than in the case of a cash loan.