If you are planning to renovate an apartment, you are certainly prepared for high costs. Even a slight refreshment of the space, or even renovation of a single room can cost a lot, not to mention a thorough renovation of e.g. a kitchen. In the case of renovation of all four corners, the amounts become large enough that many people think about taking out a loan. Is it worth it?
Credit card for smaller changes
If you know that the costs of your renovation will not exceed several thousand zlotys, then all you have to do is decide on a credit card with a sufficiently high limit. Even if you do not pay the whole amount in the first available period, you only have to pay the minimum value provided by the bank (e.g. several hundred zlotys) each month plus interest.
However, if you plan to hire repair crews that you will have to pay in cash at a specific time, then a credit card may not be the best solution . The withdrawal of funds from such a card is usually charged with high commissions and at the same time fixed fees, which makes it unprofitable.
Renovation loan for major expenses
If you know that renovation will take more money, then you should think about a loan for renovation of an apartment . Thanks to this, you will easily gain up to tens of thousands and you will have access to cash almost immediately. The real annual interest rate (APRC) for such loans is usually up to a dozen or so percent, before making a credit decision, calculate exactly what the monthly installment will be and whether it will pay off for you.
Or maybe you should think about a mortgage?
In the case of a high cash loan, it may turn out that the mortgage loan will look much better (especially when you are planning a major renovation of the entire property). In this case, the refurbished property is secured by the money that the bank lends. Thanks to this, the interest rate is definitely lower and more favorable than in the case of cash loans. On the other hand, getting a cash loan is easier and requires less formalities.
Decide for yourself which form of credit or cash loan best suits you. The above are, however, three of the most popular and most recommended ways. An alternative is also online loans in installments offered by non-bank companies and banks. This solution is quick and in many cases does not require leaving home.