One moment did not pay attention and one has built a car accident: total loss. Now you urgently need a new car, but where do you get the money from? There are many situations in life where you need money fast. Whether the washing machine broke down, a reminder flapped into the house or an important school trip is pending. A suitable loan can thus be a great help, so you get the small change needed.
What is a short-term loan?
- For whom is short-term credit the right choice?
- How do you get a short-term loan?
- The special forms of a short loan
- The pitfalls of a short loan
- What do you do with a bad Private credit?
- The current figures for short-term loans
In such cases it is important that you do not have to wait forever for a loan application, because you need the money quickly. That’s why short-term loans are the right choice, because not only can you apply for them quickly, but you also get the money faster than with the usual types.
What is a short-term loan?
The process of applying for a loan can be quite nerve-wracking and time-consuming. First of all, you have to compare different providers, move from one bank to the next, or ask in private that you can borrow a small amount. If you have found the right provider now, you do not simply say how much you want and then receive it.
You first have to fill in lengthy forms, submit income statements and much more. After that, the bank collects the Private credit information, which must also be positive. The entire process until the loan is confirmed can easily take two weeks.
Only then you get your money. If you have a lot of bad luck, the loan application is rejected and you have to start over. Since the whole process is more than time-consuming, there are more and more short-term loans on the market.
These have the advantage that you receive a confirmation or rejection of the application within a few hours. Even the money is not long in coming, because often this is already after a few days in the account.
For whom is short-term credit the right choice?
It should be kept in mind that applying for a short-term loan also entails some risks. After all, the bank wants to hedge, which is why the interest rates are usually higher. The terms can vary greatly, with a matching income must show. In this respect, a short-term loan should only be used if no other way remains.
Only if one can not do without the money, such a loan is the right solution. The best way to try in advance, whether you can bypass by a installment payment or delay the payment. Likewise, relatives or friends can help if you only need a small amount. But if there is no other way, you should apply for the right short-term loan.
How do you get a short-term loan?
Today there are several ways to get a quick loan. The local banks are usually a bad address. These are still heavily stiffened by the large and long loans that people need, for example, to buy a home. Small or fast loans are rarely part of the portfolio.
- Online credit comparisons
That’s why you should start directly on the Internet. Here you can enjoy a large selection, as more and more online banks offer various ways to quickly get a loan. The only important thing is that you do not resort to a dubious provider. Also, if you need the money fast, you should not act hastily. A good solution is a prior comparison, after which you choose the optimal offer, which corresponds to your own ideas.
- Pay attention to independence
Especially an independent comparison can save time. Furthermore, it is important that you bring some conditions, so you can get an instant loan. First and foremost, you have to be of age. Likewise, it is important that you complete the applications of the bank completely and truthfully. As a precaution, you should have salary or asset records available for a higher loan amount. Otherwise, only a permanent residence is needed.
The special forms of a short loan
There are not just short-term loans that are similar to traditional models. This means that a short credit does not necessarily have to consist of a term, a freely selectable purpose and the desired sum. Some providers have limited to fixed forms of the Blitzkredits. So you only get the loan if you use it for a car repair.
This is not valid for any other purpose. Especially popular are fixed sums, because thus the bank knows exactly, which risk enters. The fixed sums are only a good choice if you need so much money. Otherwise, the models offered differ by their terms. Sometimes you have to use other products of the provider to get the loan with the good conditions. Here you should be careful.
The pitfalls of a short loan
- House bank is not necessarily good
Also, if you are under pressure, you should not just choose the next best bank just because it offers a quick loan. Especially on the Internet you have to be careful, because there are many different providers who want to take advantage of the emergency situation. For example, they advertise with a particularly good offer. Favorable conditions, low interest rates and a pleasant duration. But you should not get involved too fast, because these are usually only promotional measures to attract customers.
- Pay attention to the fine print
You should always read the fine print, so that you can avoid later increases in the conditions. Not to forget that many banks reject you if you have a negative or bad Private credit. The Private credit is an information which describes the creditworthiness. In other words, how high the solvency is.
- Difficulties with bad Private credit
A bad Private credit can easily lead to the entire application being rejected. It is just as difficult for the unemployed or Harzt 4 recipients. These are usually rejected immediately, because the required credit rating is too low.
What do you do with a bad Private credit?
An entry in the Private credit can arise faster than you might think. Already a reminder, a late payment or the overdraft of the credit card will be recorded on the Private credit account. In this respect, here are all the data that are interesting for a bank. Especially branch banks require a Private credit statement before issuing a lightning loan.
This one does not submit personally, but the bank gets these directly from the Private credit. If there are negative entries, the bank can reject the loan. But often it is the case that you can not do without the money, even if the Private credit does not look too flowery.
Even in such a case, the Internet is the right address. There are many providers that allow lending without reviewing the credit rating. The disadvantage of this is that you usually get worse conditions. After all, the bank must balance the risk that you may not be able to pay. Therefore, the interest rates on credit-free loans are often higher.
Another solution is to use a guarantor. A relative or friend with a positive Private credit and appropriate credit standing may advocate for the person as a guarantor. Thus, the bank would get the money from this, if you can not pay.
The current figures for short-term loans
Over the last few years, a lot has happened with short-term loans. This is also due to the fact that more and more online banks have come up, who want to snatch each other’s customers. This competition is fortunate for the customer, because that is how the prices and interest rates fall.
A few years ago, you had to set well over 15 percent interest on a lightning loan on the table, but that has changed today. Many providers work with an interest rate of around 3 percent. Only in rare exceptional cases, the interest rate can rise to over 10 percent.
But not only the interest rates have changed a lot, but also the usable sums. In the earlier times, an instant loan seldom exceeded 10,000 euros. Depending on the provider, you can even claim up to 70,000 euros today. But you should not only pay attention to these conditions, but also to the duration.
Here, the current instant loans have copied much of the long loans. Thus one can freely choose between a term of 1 and 120 months. However, it must always be remembered that a longer term also increases the costs that have to be repaid.