With this page you will find out why you ought to not take out a small loan or mini credit score. But beware: Sometimes having an one-off mini loan may help you out. So it is not that individuals completely discourage it. You will discover out what the disadvantages of the type of small loans are usually and you will know, after looking over this article, that there are enough less expensive and safer alternatives!
Why you should not take out there a mini loan
Mini loans are sometimes known as a mini credit or even a flash credit. In both instances we are talking about small financial loans with a maximum loan quantity of up to 100 euros (sometimes up to 1500 euros) for each application.
They may be loans for private people with a super short term. The timeframe is usually a maximum of 30 days, improving to 62 days (2 months).
Smaller lead times
In case you apply for such a loan, you need to usually be able to prove that will someone is your guarantor. Aint able to you do that? Then you use out insurance. This normally makes this loan extra costly.
Need a bit of money temporarily
This may also have happened to you that you simply temporarily needed some extra cash to pay a bill. Sometimes per month lasts just a little too long as well as your wage comes as called. We all do not recommend taking out the mini-loan, but in certain situations it can be a solution and even sensible. If with this loan you are able to avoid having to pay expensive tip costs or even bailiff expenses, then a mini loan is a great option.
Small credit is always expensive
But remember that borrowing cash always costs a lot of money. Which is certainly the case with small credits! You often have to settle the money within 15 in order to 30 days.
You should therefore be 100% sure you can stick to this contract. Reasons to take out this little loan? You have received the hefty reminder and so you urgently need a little money to prevent extra costs (remember that you simply also pay extra for the mini loan).
Borrowing a small amount of money is certainly unwise
Of course it really is ultimately up to you what you do. Yet borrowing a small amount of money via a mini-loan provider is very costly. For example , if you request four hundred or 500 euros, after that additional costs will be additional. If you convert these additional costs into an interest rate, you may pay 15 to twenty percent interest! Borrowing five hundred euros costs you just hundred euros.
Are you able to also repay these additional costs within 15 : 30 days? Do you have debts? Then you definitely put yourself extra within the money debts. Use a mini-loan if it really can’t be completed differently, but do this as soon as! Otherwise, look for an alternative.
Alternatives borrow cash
There are really sufficient better alternatives to lend money. Because why could you apply for a very expensive, small mortgage if you can also go to buddies or maybe a brother or even sister, or your moms and dads for a little money? We all call borrowing money through acquaintances also borrowing cash privately.
Nevertheless , it is smart to make great agreements with acquaintances even though you borrow money. Draw up an agreement in which you record every agreements! This prevents trouble afterwards.
Do you have the structural shortage of money is to do you have debts or can there be a chance that you will get debts? After that register with the Gemeentelijke Kredietbank. Sometimes you can borrow from your Municipal Credit Bank. Exactly what are they doing? They chart your debts and then pay all of your debts. You then only have one debt outstanding and pay back this monthly.