Taking out a small loan is often to have extra money for a short period of time. Because it is a small amount and the period is relatively short, it can often be borrowed at an attractive interest rate. What you could also do is instead of taking out a small loan, an amount overdrawn on your checking account. It is often possible to be in the red for example 1000 US dollars without too much effort. You often have a better overview than if you take out a loan. Look at different providers where you can borrow a small amount inexpensively and where you have a good feeling. It is also important to see what exactly the conditions are for taking out a small loan . Lenders and banks have different interest rates. That is why it is certainly worthwhile to compare the different interest rates with the different providers.
For example, do you want to borrow a small amount?
Your wages have not yet been paid, but you will be short of money this month. Or that bill you received must now really be paid. These are all real-life examples. How easy it is to borrow 100 US dollars for a short period at an attractive rate. You have some extra money at your disposal, so that you have a little more freedom. After all, it's for a short period of time and it's a small amount.
There is the mini loan for people who are temporarily short of cash. But also people who would like to keep some extra money on hand for unforeseen expenses, a mini loan is an ideal solution. This loan type is a credit ranging in amount from US $ 100 to US $ 750 with a maximum term of thirty days. A mini loan can only be taken out by people aged 21 and older.
A mini loan is ideal to take out to bridge a shortage of money over a short period. For example, if you are a hundred US dollars short and you really have to pay your rent, such a credit is ideal. You can borrow a small amount very easily and quickly, which often takes a few days at a bank. You are also very quickly rid of the mini loan, because you must pay it back within thirty days
It is advisable to compare the interest rates with the different providers. This can save you money. Read the general terms and conditions that the lender applies to borrow 100 US dollars. If you plan to borrow $ 100, the lender expects you to pay back this amount within a specified time as well. Therefore, stick to the agreements you have made. If you don't keep the agreements, it could cost you extra money on top of the interest you paid to borrow $ 100.
What is an SMS loan?
An SMS loan is just another word for a mini loan. This form of borrowing can only be found on the internet. It is a short-term loan, an SMS loan should be repaid in just a few weeks with a hefty fee for the credit. If you are in need of money for a short term, an SMS loan may be an option for you.
It is common knowledge that many young people are short of money. They want to go out and have a telephone subscription, in the latter case they often spend their calling minutes and receive extra costs. Individuals who would like to borrow a small amount because, for example, there is not enough money left for shopping at the end of the month. For this group, loans are available for which you do not have to go to the bank.
Lenders who want to provide working young people and / or private individuals with a small amount for which you do not have to go to the bank. Borrow a small amount, also called mini loans / flash loans, these are loans that you can request via text message or online and repay within a short period of time. Lenders who lend you a small amount usually offer you amounts up to $ 500 and some up to $ 750.
What you should pay attention to is that with these types of loans a short payment term of 15 to 30 days is used. Make sure that you pay off your loan on time with these types of loans and avoid rising fines such as reminder costs and collection costs. If you have done all this according to the rules, you can borrow a small amount again next time without any problems.
No interest is added to these loans and no BKR testing is done. What will be charged are handling costs (administration costs). These handling costs depend on the loan amount. The handling costs can often add up and are very high converted to annual interest rates. It is therefore quite expensive if you want to borrow a small amount more often.
What should you pay attention to if you want to take out a small loan?
Consider money you want to borrow simply as a commodity. Some suppliers offer better service than others. With some suppliers, a certain product is also cheaper than with others. It is the same with money. When purchasing a loan, proceed in exactly the same way as if you have, for example, set your sights on a video recorder. The critical buyer will almost always have to spend a little less to realize his wishes. Why not choose the most attractive price and the most favorable conditions for borrowing money? Banks and other lenders are required to report the effective annualized interest rate. This is the actual price of a loan that includes all costs, expressed as an interest rate per year. This way you can see exactly how much you pay. You can easily compare the prices of the different types of loans. You can also compare the prices of the various providers. When selecting the most suitable loan, you also have to pay attention to other things. What are the terms and conditions of the lenders? For example, can you make early repayments without penalty? Will the loan be forgiven if you or your partner dies prematurely? These are important points to pay attention to when you take out a loan.
The question of when you should borrow or when you can save better is not easy to answer.
There are advantages and disadvantages associated with both saving and borrowing. If you expect that your desired purchase will decrease in price over time, it is obviously smarter to save for it. The advantage of saving is that you receive interest on the savings. That is a bonus. Only if you, as a single person, receive annual interest in excess of the $ 1,000 tax exemption, do you have to pay tax on the excess. Married couples and cohabitants together have a tax exemption of $ 2,000 per year. (These exemption amounts are for 1992.)
If you borrow money to pay for a purchase, the advantage is that you can immediately enjoy your purchase. And maybe your purchase will be much more expensive in a few years. The price you pay for a loan is of course the interest. But this also has a tax advantage: you can deduct interest paid as a personal obligation on the income tax return. However, it is not certain that you can continue to deduct interest paid from the tax. In the past, proposals have been made in the Lower House to abolish the deduction of interest paid. Of course you first have to ask yourself whether you can afford the interest and repayment of a loan. If you can't save that amount, it will probably also be difficult to pay the interest and principal each month.
Because it is a small amount, you could also ask family or friends to borrow the amount. Make good agreements and put it on paper if necessary. With a small loan, stick to agreements to maintain a good relationship.