What precautions to take before contracting a quick loan? We tell you
Updated: October 2020
Mini loans can be very useful when it comes to getting money quickly. Ideal when we have to face an unforeseen situation or unexpected expenses. But, before using this type of product, we should take some preventive measures. In our article today at eldinerorápido.es we show you the precautions to take when hiring an online loan .
Currently the market for fast loans and mini loans has been increasing due to the situation in which both banks and the vast majority of Nigerian society find themselves. This has made the conditions for the loans tougher and at the same time economic difficulties force many to have to resort to this type of loan to cover specific holes and other unforeseen events.
Quick mini-credits have high interest rates
Most of this type of credit can be requested very quickly and easily through the Internet.
That is to say, these are fast online loans of not too high amounts that do not ask us for guarantees, but rather affordable conditions in principle.
They are a perfect way to be able to indulge yourself, take a little trip, have an extra in times of many expenses such as Christmas, face an unforeseen payment, and so on. But it is precisely due to this ease of access that special care must be taken before requesting a mini online credit of these characteristics.
It is quite tempting to know that you can get money quickly and with little paperwork as in this type of website. However, it must be borne in mind that both their interests and their deadlines are demanding.
About the cost of mini loans
In most cases the interest fluctuates between 15% and 30%. The term to return them is between one month and six months depending on the amount.
In addition, in case of not paying the installments on time, the interest for late payment is very high and can significantly increase the interest on the money that we have requested up to almost 100%, if we include other penalties that can be charged for the non-payment.
Ultimately, the consequences of non-payment can reach the courts and create serious legal problems.
And, before requesting a quick loan through the Internet, it is necessary to be very clear that you will be able to return the money within the term that we have agreed with the financial institution.
The best way for this is to do a little analysis and forecast of our economic situation. If we do not do this we risk not being able to meet the payment, and once we fail the first time everything becomes quite complicated and expensive. Even when companies give us the opportunity to extend deadlines.
In addition, it is convenient to be up to date with the promotions offered by the different financial companies, since we can find, for example, with companies that offer us the first free mini-credit and contracting our fast loan with them can save us a lot of money in interest.
Compare between the different offers
Another recommendation before requesting one of these loans is to do research and consult various websites and financial companies, in order to choose the online mini-credit that best suits our situation.
It is also vitally important to read carefully and especially the fine print of the conditions that we are going to sign with the financial company in question. On our website you have extensive information on conditions and comparisons that can help you. If you want to access our comparator, click on the button below these lines.Advertising
Quick credits yes but with a head
In contrast, requesting several quick loans at the same time or resorting to them every time we have a small debt or want to buy something is not very advisable either.
We will end up losing a lot of money in interest, not to mention the problems that the non-payment of not one, but several mini credits or quick loans can generate. And of course, if we have an outstanding debt, paying it by contracting a new one with the mini-credit company is a way to make the problem bigger instead of reducing it, unless the part that we request is only a small percentage of the debt that we have to pay and again we are sure of being able to return it in the agreed time.
Finally, we go with the situations in which it is more appropriate to resort to an online loan, among which are the following: emergency expenses such as a breakdown in our house or our car, dental expenses, an essential appliance that we have to buy , etc.
These contingencies, as well as a small advance on our salary in case it is delayed and we have to face daily expenses for food, transportation or household supplies; have a little more money and not fall short when enjoying our vacations or at times like Christmas if we have not been able to save enough; or to spend on a small investment, as a work tool that we will pay off quickly.
We hope that these tips will help you to dispose of this type of credits in an intelligent and responsible way, and thus be able to enjoy its advantages and not suffer the bad consequences of using them for a purpose without planning or at an inappropriate time.