Quick loans often include tempting slogans as quick loans instantly on account within an hour. Its providers are mainly non-banking companies. Most often people take quick loans to suddenly cover the expenses of a crisis situation, to pay an urgent postal order before the payout, and unfortunately, some people take a loan to pay other debts.
Fast loans usually mean loans ranging from $ 50 to $ 100,000. In some cases, these may also be called micro-loans, which cover expenditure most often just before the payout. Microloans are usually amounts from $ 1,000 to 5,000.
What to study before negotiating
When negotiating a loan it is necessary to pay attention to the APR, which determines the rate of costs. In general, above 20% APR is already expensive and disadvantageous loan. Loans with an APR of over 50% are no longer acceptable and the client can get into a debt trap more easily. APRs above 50% are often for SMS loans. SMS loans often target troubled clients (debtors, in execution or without provable income).
Before signing the contract it is necessary to check the fees for negotiating the contract, the possibility of early repayment, and whether the contract does not contain an arbitration clause.
Advantages and disadvantages of quick loans
When seeking the most appropriate loan, the applicant should choose from more trustworthy companies. Also, read more reviews and find out as much company information as possible. A wide range of non-bank loans without a register allows you to choose the best quick loan for applicants.
In addition, many companies offer their first loan free of charge, ie without fees or interest. Currently, non-banking companies offer to arrange and provide quick loans online and almost immediately. New in the market is in some cases the possibility to work the loan.
Due to their declared rate of negotiation and money transfer, fast loans are also a frequent pre-pay solution. A quick payday loan can help bridge the time before regular income arrives to pay off various claims. For this reason too, they are often lower borrowed amounts.
The most common advantages of quick loans are:
- Speed of negotiation and approval of loans
- Arrange a quick loan online or by phone
- Possibility to arrange a quick loan at the weekend
- Easy access for non-performing clients
Disadvantages of quick loans
- very high interest
- high APR
- confusing contracts
- high penalties for failure to pay on time
People who decide for a quick loan for any reason should be wary. Even a small loan can easily cause large debts.
Providers of quick loans online
The providers of quick loans are mainly non-banking companies. Currently, banking companies are also starting to provide fast loans.
The table below provides an overview of frequent quick lenders who declare money to a bank account almost immediately. Often the applicant will receive a quick loan money in an account within 15 minutes, other times the quick loan approval will arrive within an hour. Non-banking companies are also marked with the first free loans. Most providers offer fast online loans without a registry and fast loans without proof of income.
As can be seen, the repayment period often changes according to the amount of the loan. With Monety Money Bank, the repayment period is up to 6 years with a maximum loan amount of $ 800,000. The table shows that most non-banking companies offer quick loans without proof of income and without a register.
On the Internet it is possible to use one of the quick loan comparators. These comparators compare fast online loans, fast registry-free loans, and non-revenue-generating loans. However, it is still the case that the applicant should consider the advantages and disadvantages of a quick loan.
Other alternatives should also be considered. With a longer-term solution, it is possible to arrange an overdraft facility for a current account that allows overdraft. Furthermore, credit cards for a current account or for several existing loans, consider refinancing the loan or consolidating the loan.