The loan is intended for people who need money quickly. If you can predict that you may quickly need extra money in the future, you can take out revolving credit. If you do not have revolving credit, but you really need money within a day, you can opt for a flash loan . Keep in mind that flash loans are relatively very expensive. Effective interest rates of more than 1000% are therefore certainly not exceptional.
But suppose you still need such a flash loan . For example, you want to quickly book a trip to a distant country because a family member has died. However, you are without money, so you need money quickly. Fortunately for you, flash loans exist. This way of borrowing is so fast that the money will be in your bank account within a day. There are drawbacks to these very unusually fast ways of borrowing money. Be sure to read the bold parts in this text carefully!
Borrow money within 1 day
When you need money quickly, you want it in your account as soon as possible. With a regular loan, such as a personal loan, it takes at least five working days. If there is no time for this, there are various options: The flash loan or borrowing from acquaintances. The disadvantage of borrowing from acquaintances is that it sometimes creates tension if the loan is not repaid on time. Financial problems can cause quarrels within your circle of friends or family. That is why the flash loan, also calledmini loan ormini loan, is sometimes a better alternative. This flash loan is, however, very expensive. So be careful when purchasing such a flash loan.
Money in your bank account within 24 hours
Borrowing money within 1 day can quickly provide money. When taking out a flash loan, you usually have the money in your account within 1 day (depending on the processing speed of your bank). You often have the money in your bank account within 10 minutes! This mini loan has a short term (15 or 30 days) and in some cases is also intended to bridge the gap between your expenses and the date on which you receive your salary. For example, if you have no more money and the wages only come in a week, you can take out a mini loan. There are several providers active on the market, who generally deposit the money you want to borrow into your bank account within 1 day. The amount of these loans varies between 100 and 750 US dollars. So if you want to have a large amount in your account within 1 day, this is not a solution. Then temporarily borrowing from family is an option, on the promise that you will pay it back as soon as the credit has been taken out. Do you still want a flash loan? Take a look at the amount that you have to repay a month later!
Be careful with a flash loan!
The costs for this flash loan are not expressed in an interest rate, but in administration costs. These administration costs amount to tens of US dollars . It is very tempting to request such a flash loan, but it often costs much more than you expected in advance! With a flash loan of 500 it is not surprising that a month later you have to pay back 625 US dollars ! If you do not want to borrow the money within 1 day, it is better to be patient and apply for a usual credit, such as a revolving credit. These loans have a more favorable interest rate and are therefore cheaper.
Of course, borrowing money still costs money. But this way of borrowing money costs a lot of money. Therefore, think 3 times before applying for such a flash loan.