8 reasons to buy by installments
Magdalena Parys

Are you temporarily out of cash, but thinking about a new computer? Perhaps installments are the solution you need.

An installment plan gains popularity as it is convenient for buyers and allows them to buy products that are out of their reach at the moment, but need them for work or at home. Besides, buying by installments makes you a reliable partner for a bank who may, one day, grant you e.g. a mortgage. Here’s a list of other benefits.

1. Too little money

Even if you meticulously plan your monthly budget and list potential expenditure, some unexpected expenses – repair or health problems – may drain your wallet and bank account. In order to stay in black, think about an installment plan. You get the whole requested sum straight away and the repayment deadline is usually set for the next month. Besides, installments are low enough for you not to feel overwhelmed with additional expenses. In other words, instead of spending PLN 1,500 at once for a new telephone, you pay PLN 150 for ten months (+interest, i.e. 6.5% of the order value) to a bank that granted you the loan.

2. Machine needed on the fly

Kids have just come back from a two-week horse riding camp. Piles of dirty laundry. T-shirts, shorts, socks, etc. Sadly, the washing machine has just broken down and refuses to cooperate. For all your spare funds went for the camp, not much has been left for any new equipment. Plus, the salary will not credit your account for the next three weeks either. In such case, consider buying a washing machine by installments. Repay it with no haste by adjusting the amount of installments to your financial capacity (use an installments calculator to make the task easier) and stop worrying about what the kids will wear to school.

3. Shame not to pick up a great bargain

Stores tend to lure buyers, especially online, with bargains and deals. The usual discount season are holidays – Mother’s Day, International Children’s Day or Saint Nicholas’ Day – and end of season and mid-season sales with prices slashed by 70%. It would be a waste not to use such occasions, especially that your clothes are already a little worn out. If you see shoes or a coat at a bargain price, don’t get discouraged by a low account balance and go for installments.

4. Have a savings deposit

Investing in shares and bonds may really pay off, but make sure that your money is intact until the investment starts bringing profit. Remember that you will earn nothing if you close the deposit or saving account too early – you will not see any interest due to breach of contract. Even the newest 4K TV set is not worth taking the risk, especially that you can buy it by installments.

5. 0% installments

When selecting an installment plan, pay attention to the amount of monthly installments and their cost (interest rate). However, 0% installments are an exception – they do not cost you anything for there is no interest rate and commission fee applied. This means that if a TV set costs PLN 2,000 and you spread your payment into 10 interest-free installments, every repayment will be PLN 200 and not a “penny” more.

6. Closer to luxury

Apple products are no doubt from a premium segment. Imagine that you need at least PLN 1,000 (on average PLN 1,300) to buy a 2012 iPhone 5 and the newest iPhone 7 costs over PLN 3,000. When you compare these amounts to average salary in Poland where, according to the Central Statistical Office, over 70% of people earn less than PLN 400 gross (national average) then it is easier to understand why hire purchase makes sense. Even if you earn PLN 3,000 you can afford luxurious high-quality products that make your dreams come true.

7. Fast, conveniently and securely

Standing in line in a bank is a common thing as the formalities take time. Apart from waiting in line, think about time you need to get to the bank, receive the bank’s decisions and print all the documents. Eventually, online installments were created to satisfy those who are impatient, in a hurry and practical. You do not have to leave home or worry about a courier as the whole process is carried out online (just buy, select installments, fill out a form and wait for a decision). The loan is granted by a bank, it is not any shady payday loan.

8. Building credit history

Most of the people dream of having their own apartment, but to make this dream come true you need a lot of cash – usually tens or hundreds thousand PLN (in large cities a square meter costs about PLN 4,000 and more), so bank’s help is indispensable. Granting a loan involves an analysis of several factors such as your income and other loans you are repaying. Therefore, it is good to have a credit history in Loan Information Office (Biuro Identyfikacji Kredytowej). Building such history is easy as it involves using a credit card or buying by installments. Your reliability increases with each monthly installment you repay.

Don’t be afraid of hire purchase. You risk nothing. Check out the installment plan with PayU!