Credit and loan? What is the difference? Which one should you choose?


Sometimes there is a time when we need cash quickly. And regardless of whether it is a holiday, communion or a gift for a loved one, we face a dilemma. What will be better for us – loan or credit? It may seem that they mean the same thing, but if you look closely at the topic, it turns out that it seemed to be deceptive. So what are the differences between these financial solutions: credit and loan?


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Credit and loan – what to choose? It depends on the amount we need at the moment. If this is a small sum of up to PLN 3,000, then payday payback, with much less formalities and restrictions, as is the case with credit, will be a more favorable form. For amounts up to PLN 30,000, we may be able to find an attractive online loan installment offer. However, if we need “thicker” cash, over PLN 30,000, it is worth using a loan or installment loan.



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Although loans and credit are financial forms of support for a consumer who is applying for them, they differ a lot.

First, both money and tangible goods can be a loan, but as a loan we can only take it as money. The second difference between a loan and a loan is the institution that deals with granting them. In the case of credit, they will only be banks and credit unions. On the other hand, the loan can be granted by anyone who owns the money borrowed (including loan companies, financial institutions, natural persons as well as banks and credit unions).


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Importantly, the loan must always be in writing (the exception to this is electronic banking. In this particular case, the loan agreement may be concluded online, but only under certain conditions and requirements restricted by the provisions of the Banking Act). In contrast to the loan, which does not require such formalities and can be concluded even orally (except for the situation when the loan amount exceeds PLN 1,000 , then the contract should be drawn up and signed by both parties, both the lender and the borrower).


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When we take out a loan, we can take it for any purpose without worrying about whether the person or institution from whom we borrow will ask you for what specific purpose we will spend the money transferred to us. Even with low incomes, there is always a good chance that we will receive a loan in the amount we need at the moment.

It is different in the case of credit. Here banks are guided by the so-called the principle of loan purpose, i.e. in order to receive financial assistance from a bank, we must specify the specific purpose for which we want to allocate it in a special loan application. Also, before we get a loan, the bank must verify our creditworthiness. If it is too low, we will not receive credit.

However, even if everything is fine, it may happen that the bank offers us a loan amount much lower than the one we applied for. This is largely due to the amount of our creditworthiness, which in turn depends on the income we have; the higher the better for us.


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In addition, the lender, in contrast to the lender, has the right to check whether the money that has been awarded to us is used in accordance with the provisions of the loan agreement which we have concluded with the bank. If this is not the case, the lender in this case, a bank or credit unions, has the right to terminate the loan agreement.

This is possible because, unlike the loan, after receiving which we own the amount borrowed, in the case of credit, the borrower is only a temporary dispatcher of the amount that the bank has provided us with in the form of credit. In the event of any violations on our part, the bank as the owner of the amount lent to us has the right to terminate the contract.



money coins

When it comes to repayment, the term is always specified for loans. In contrast to the loan, where the deadline does not have to be given, but if there is no specific date of repayment of the loan taken, in this case we are obliged by Art.723 of the Civil Code, which clearly shows that:

“If the loan repayment date is not specified, the debtor is obliged to return the loan within six weeks after termination by the lender.”

Such a situation, however, is very rare, because companies providing online loans and payday loans set the date of repayment.


money coins

Despite the fact that the loan agreement is regulated by the Civil Code and the loan agreement is regulated by the Banking Act, both are subject to the provisions of the Consumer Credit Act. This is especially important , for example, when we want to pay off debts earlier. 

The cost of financial assistance is also an important issue. In the case of a loan, before taking it, it should be taken into account that our entire financial commitment to the bank will consist not only of the loan amount itself, but also the commission and interest accrued on the amount of the loan accrued, not to mention credit insurance, which additionally raises costs. In the case of a loan, the costs of granting it may be free of charge, but interest and commission are usually charged.

As we have already mentioned, when we need high financial support up to PLN 30,000, it is worth using an installment loan. Therefore, below are also some proposals for long-term financial support.


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