It can happen to anyone that you are in the red and need money quickly; many people then take a mini loan. We have figured out what a mini loan is and how things are arranged.
How favorable is such a loan
You remember how it used to be when your pocket money ran out earlier than the month itself. You went to your parents and asked them for an advance for the following month. Eventually you paid them back the amount within a few days so there was nothing wrong. This is the principle of a small loan for you. If you need money quickly and the amount is very limited, you can take out a mini loan, which means you have the money available for a short period to quickly pay a certain bill. A mini loan is a loan that seems very beneficial to most people. The question is whether that is the case. We examined a number of things.
The application for a mini loan
You can apply for this type of loan in a very easy way. You don’t have to fill in complicated forms and you don’t have to go to the bank. Most lenders issue such a loan based on an SMS that you send them. A copy of your ID card and a bank statement are usually sufficient information that you must send to receive a mini credit. It is arranged within a few hours so you can get the money very quickly.
The interest on a mini loan
If you take out a mini-credit, the rule is that you do not have to pay interest. That would be very good news, were it not for having to pay handling costs or administration costs for such a loan. If you start calculating well, you will often discover that these costs are higher than the interest rate that banks may charge you for such a loan. The interest that you do not pay is therefore actually paid, but then under a different denominator.
Where is the danger of a mini loan
Mini loans have had an extremely bad name for a long time. It was not for nothing that there was a danger behind this type of flash credit. The main danger is that you may not be able to repay it in time. You enter into a very short repayment period of 10 to 30 days. If you unexpectedly have another financial setback during that time, the amount that you have to pay back will rise in the form of a fine that you will receive on top of the repayment. Sanctions can also be taken against you and with a bit of bad luck you get a BKR listing every few decades. Then you get problems later when you want to take out a mortgage. If you have a monthly shortage of money, the problems can increase. You are then constantly in debt with a lender.