Loans in 5 minutes
They streamline the process to the point of being able to provide money in the time it takes you to have a coffee. If we add to that the existence of low interest rates that incentivize banks, it goes without saying more. We have created a new market niche overnight.
These ultra-fast loans come to cover a demand that traditional commercial banks had overlooked to date: the need to cover a last-minute overdraft or face an unexpected one. Previously, we covered this gap with small loans to our family or friends, but now there are financial entities that can solve the mess. Imagine that you don't want the people around you to know about your difficulties. So, you can access this service.
Will they really give me the money?
Well, let's see, no one gives money away. You should already know that financial institutions are companies and, as such, they obtain benefits by providing their services. What's new is the immediacy aspect and the lack of paperwork. Now, no one is going to lend you money if you cannot ensure that you are going to return it. For that they will ask you for a copy of your ID and a bank statement or proof of income. Apart from that, you will need to be connected to the internet because the vast majority work online. Approaching the closest office is now a thing of the past.
The preferred profile of these entities is that of a professional with regular income who must face an unforeseen event. Imagine the self-employed person who is dedicated to porting with a van and his vehicle breaks down. You have to pay your social security fee. You cannot leave the account at zero. If you don't fix the vehicle immediately, you won't collect your bills and your entire business will go to waste.
This is a clear case, although they do not usually dismiss any credit because the use that you are going to give the money is different than the merely professional one. I repeat: the important thing is the payment guarantees that you offer as a customer.
How much can you give me? How are they returned?
In general, these credits range from € 300 to € 1,000 , but it is also true that it will depend on the policy of each bank. The quick loan industry is very dynamic and competitive. That is, there are many companies for all tastes, so take a good look at the requirements. You will avoid inconveniences. When you ask for money for the first time they do not usually grant you large amounts. If you earn the bank's respect as a customer, you can ask for higher sums later.
An expert tip : search well. As the sector is on the rise, you can find offers from banks that want to attract new customers and lend to a particularly attractive interest.
The fees and interests are usually high. Around 20%. That is, in the end you could be paying several times the amount you have asked for. Nor is it something so serious because we are talking about small amounts.
The time it will take you to repay the credit does not usually go beyond three months . Everything will depend on the amount to be paid. Remember: the longer the time, the greater the interest they will put you. It is logical. They are taking a higher risk of default.
I have been told pests of these quick loans.
In Spain, banking activity is regulated, and there are rights that protect consumers from possible scams. That is not to say that they do not exist, but they are rare. In any case, there is a whole battery of recommendations to avoid giving it to you with cheese.
First of all, never ask for money just because, or more than you need. As mentioned above, the interest charged by the bank is generous. What's more, if you fail to meet one of the installments, you could be running into cheating debt. Interest usually increases, and could include some type of penalty. Many are impulsively asking for money, and that's something you should never fall for. Read the conditions well!
How do I choose the best option if I never got the numbers right? Voucher. Here's a trick to compare credits without messing it up. Add up all the amounts that you will have to pay, then divide it by the principal, that is, the amount you have asked for. How many times are you going to pay the amount? In theory, everyone should be around the same figure. As a general rule, be wary of bargains.
The next thing is to see if you will be able to pay the installments on the dates you have committed. Behave responsibly, because banks also have rights that protect them from malicious customers.
If the worst happens to you ...
It turns out that everything bad that had to happen has happened, and now you can't afford a fee. Well, be honest at all times with the bank. Let them know in advance of your non-payment, if you can. Do not think that you are going to be the first or the last to whom an unforeseen event is going to happen. The credit company could provide you with an alternative. They are surely used to dealing with cases like yours. That will be a thousand times better for them to think of you as a dishonest person.
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