Pros and Cons of Quick Loans

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Joined: 19-12-2019
Posts: 90
composed on: 02-04-2020 06:51
Title: Pros and Cons of Quick Loans

Quick loans belong to the so-called low credit class, because the lender reinsures its risks with high interest rates and requires quick repayment. The simplified form of loans has become a favorite topic of millions of people, a quick way to get what you want, to satisfy immediate interests. The frivolous attitude of consumers has discredited microloans to the extent that they have acquired problems by not repaying their debt on time or simply being stuck in a closed system.

However, quick loans have many advantages, for example:

  • You get a loan approval very quickly. As with refusal. Usually, in addition to an identity document, a certificate of employment with permanent income is required. A few minutes after filling out the application - and the result is on the monitor. In case of refusal, you can try to take a smaller amount, but you should not take money from several organizations at the same time. Firstly, often lenders try to track such processes, and secondly, as practice shows, not the fact of having a loan, but the number of loan agreements, negatively affects the person’s further financial fate.
    Filling out an application is all that is required of you, because immediately after receiving the decision, you receive the requested amount of money to the account. Recall, we are talking about a situation where money is needed very, very urgently.
  • If you plan to give money quickly, then the interest paid by you will not be so great. Long-term lending does not always guarantee the most favorable conditions. Some payment schemes provide first interest payments, then on the body of loans. In this case, as in the case of a microloan, attention should be paid to the possibility of early repayment.
  • No matter how high the percentage, it will be clear to you, because the registration procedure is very clear. You know how much you are asking, and you see how much you will need to give back later. Simple math makes life easier.
  • You can fill out an application from anywhere, and you can withdraw cash at any ATM at any time of the day.
  • Microloans - this is another chance for borrowers with a dubious credit past. By repaying the loan on time, you can get points.
  • Approval of the application is likely even if you have a bad credit history.
  • You do not need to search for guarantors, notifying relatives about temporary financial difficulties. Microloans do without a mortgage and without guarantors.

Fast money also has disadvantages, such as:

High bid. When converted to annual interest, the rate may seem monstrously high. But if you focus on the amount of overpayment, then this is not so much. For many, overpayment is morally simpler than the lack of overpayment, if necessary, to seek help from relatives and friends. Your creditors are not interested in why you need money, and this gives some psychological comfort.
Microfinance does not solve global financial problems. These are programs for individuals, that is, for small households. We are talking about the amount that is not enough "to pay", but, as statistics show, most do not need more.
Short term is both an advantage and a disadvantage. On the one hand, you are not so long in debt. On the other hand, you need to pay with the nearest salary.