What is a one-time credit and how does it differ from an overdraft?

The range of consumer loans is diverse: there are, for example, markets
bank loans, flexible loans, and instant loans. However, all these different types of consumer credit are either one-off or overdraft. In this story, we’ll get a closer look at the world of one-time loans and who’s granting the one-time loans.

One-time credit is granted only once

One-time credit is granted only once

A one-time loan is a good financial solution when you need a loan once for a specific matter. Overdraft is a good solution when you need a loan quickly and frequently. A one-time credit can be an unsecured or secured loan, while an overdraft is traditionally an unsecured option.

One-time loans can be roughly divided into three types: bond loans, instant loans and installment agreements.

Debentures

Debentures

For many, a bond is the one that comes to mind first when it comes to loans. A bond can be, for example, a mortgage, a bank loan, a car loan or a consumer loan. The borrower is granted a loan of a certain amount, the terms of which are agreed upon in the loan agreement. Once the loan has been repaid in full, the loan agreement will also be terminated.

Quick loans
A quick loan works in the same way as a bond, but the term is shorter: it is usually only a few weeks or months. Instant loans are known to have higher costs than longer-term unsecured consumer loans, but if the loan is repaid quickly, the cost of the loan will not rise unreasonably.

hire-purchase agreements

hire-purchase agreements

Almost all major retail chains offer installation contracts, especially for electronics and larger purchases. However, the installation is usually backed by a financial institution or bank such as Klarna or Svea. It is easy to negotiate the installment contract, but it can be cheaper if you remember to compare other financing options before trading.

Thus, one-off loans are less frequently referred to as “one-time loans”, but are found on the edge. Here are a few providers to get a one-time loan. However, keep in mind that all Loan Options can be found in our comprehensive loan comparison.

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