Using a Small Loan to Buy Something?
"Pay attention! Borrowing money, costs money". You will find this text on many websites and in many advertisements aimed at loans. This is often justified. In fact, with one of the most popular forms of loans today, this text may even be in bold: the Small loan , also known as a flash loan . The Small loan is recommended with a number of advantages, for example that you have the loan amount in your account within 24 hours and that you can even borrow money without your financial situation being tested at the BKR in Tiel. And who doesn't need an extra 200 or 300 US dollars at the end of the month?
Borrow money quickly: the risk of a Small loan.
The great danger lies precisely in this accessibility with mini-credit. By means of a Small loan you can borrow money for free, or receive an advance. You borrow an amount and repay exactly this amount without paying interest on it. The condition is that you make the repayment within a set period. The financial situation is usually already problematic for many people who take out a loan. Because there are virtually no barriers, this loan is very accessible. It is often the case that if people need money and apply for it via a Small loan, they also need this money immediately.
This loan is free in itself, but depositing the money into your bank account within 24 hours is considered an additional service by the lender. And there are costs associated with this extra service. That is actually the first snag in the grass. The second problem often arises when repaying the loan. When the term ends, usually after a maximum period of about 21 days, the loan amount must be repaid. If you do this, there is no problem. However, if you cannot meet the payment obligation, the lender is merciless. In that case you have not complied with the agreement you have entered into and you will be presented with a fairly high penalty interest. In this way, a Small loan becomes very expensive and you repay a much higher amount.
Is this allowed and possible just like that? Yes, it may and is indeed possible. The fault lies with you. You enter into an agreement and you are the one who has not complied with the rules. The lender is therefore fully entitled to. A big advantage for the lender is that he runs as little risk as possible. In the worst case, the lender will get his own money back and there is in any case no loss. In addition, the lender also engages in customer loyalty. To be able to take out a Small loan, you must create an account via a website. To gain the trust of the lender, you can first borrow only a small amount of 50 or quickly 100 US dollars. If you pay off this Small loan properly at the end of the term and if you prove that you are a reliable customer, the lender will take you a step further. You will be given the option to request a mini loan again and because of your good behavior you can borrow up to 200 US dollars next time. Every time you neatly repay the borrowed amount, you will receive more financial scope when applying for this loan.