Loans at the moment
The method of obtaining one of these express money amounts can vary. In general, you could get it from your smartphone ; But other options, such as by telephone, are also usually available in a large part of the companies that work in the sector.
Thanks to the great diffusion that is being given to them in countless advertisements in different media, apart from conversations "between brothers-in-law", the issue is giving much to talk about. To avoid further confusion due to the dimes and diretes, we are going to clarify three of the myths that are repeated the most.
Those loans are legal usury
No, they are not. With a practical example we will understand. Imagine that you work in an aquarium. There are employed people there who are in charge of cleaning the fish tanks, who prepare the diets for the fish or who feed them. Do you think the one who feeds the goldfish earns the same salary as the one who goes into the aquarium to feed the sharks? Clearly not. Feeding sharks carries an inherent risk that must be charged.
The same goes for loans at the moment. They streamline all the paperwork, they do not ask for collateral most of the time, unlike commercial banks where they do not risk granting loans. All this increases the risk of non-payment, and consequently, they require greater compensation. In any case, we are talking about sums that are not excessive. So high interest rates never pose an onerous burden for the borrower.
120% interest on a principal of € 200 gives € 240. If you pay the principal plus interest in 10 installments, you would have to face € 44. It's not that bad, is it? However, interest of 120% would be unthinkable and abusive in the credits offered by traditional banking entities where the amount of credit is higher.
If you have heard of people who have not been able to pay their debts, it is for two main reasons. They may have entered a vicious circle by missing a fee. The default interest is exorbitant in this case. You may have fallen for an offer that you did not understand. Be wary of offers that are too good to be true, and apply for your credit in trusted entities, registered and where the information appears understandable and detailed. So you will know what to expect next.
They give you money even if you figure in the ASNEF
There is much controversy about this. For those who do not know, the ASNEF is the list of defaulters in Spain. If by any chance you have contracted debts of any kind with a bank or with a company, it is very likely that you will appear on the list of defaulters. In general, most of these companies do not directly lend to defaulters. When you provide your data, the lender will make a quick query in said list and in the case in which they find you in the ASNEF they will deny you the credit.
It is also true that there are possibilities that they will grant you a loan, but rest assured that in this case they will require some guarantee of payment on your part or a guarantee. Remember that credit companies are not the little sisters of charity. They are companies that must earn money to pay salaries and offer benefits to their owners, and they get that from businesses that close successfully. Just like you.
If you are going through a delicate situation and you want to know in advance the chances you have of being granted the loan, companies usually publish the percentage of credits they grant on their web pages. These are usually around 80%. In other words, they grant 4 out of 5 requests.
They grant interest-free loans
How? You mean they work for the love of art? Are you trying to convince me that you get up early every day so as not to earn money? It sure is not. In this you have to pay close attention. It is true that you are going to run into such propaganda, but, as the saying goes, the Devil is in the details.
First, you should read carefully to know what they mean by not charging interest. It may be that they charge you a commission that acts in the same way for real affections. This is what happens with currency exchange agencies at the airport. They always advertise No Commissions in their posts, but the truth is that then the exchange rates are exorbitant or they charge you a fixed price for the transaction. Don't fall for this crass mistake, please.
On the other hand, you could come up with an offer. I do not deny it. This happens because within the multitude of companies in the sector, everyone wants to acquire new clients, so it is a small gift to build loyalty, and on the way, to evaluate how good a payer you are going to be in the future. When they give you such an interest-free or almost interest-free offer, it is usually not for large sums. Companies are not so naive as to take so much risk. They reach out to you, and then later on, if they trust you, you can establish a business relationship that benefits both of you.
Jerome P Allison
I am a freelance writer and consultant for companies and individuals, with a particular emphasis on fintech, technology, startups and online marketing. More information