Consumer Loan Myths – What Should You Believe? Consumer loans, quick loans, mini loans. Dear child has many names. Whatever you choose to call it, they all cover the same thing: a short-term loan with a relatively small loan amount.
You’ve probably heard people say a lot of different things about these types of loans – both negative and positive. Unreasonable, towering interest rates and financially irresponsible. Easy, fast and convenient.
What should you believe in?
There are many different providers of consumer loans. Therefore, the different loan terms vary; such as the amount limit, maturity, installments and interest rates, much from provider to provider. The competition in the market is intense, so it should be possible to find a good and cheap loan.
A good idea is to use an online calculator that can find the best and cheapest consumer loan on the market. However, it can still be difficult to understand the advantages and disadvantages of consumer loans.
Therefore, in the next two sections, two lists are drawn up – one with advantages and one with disadvantages. In the end, you will get some good advice on what to pay attention to in connection with a consumer loan.
Choose the loan amount and loan period and find the loan that works best for you – free and no obligation!
- Easy, fast and easy to search online.
- No high requirements for you as a borrower.
- Do not explain your financial situation.
- You do not have to tell or show documentation for what you need the loan for.
- Greater freedom over other loan types.
- Do not provide any special security.
- Optimal as a short-term loan solution.
- Increased opportunities for obtaining a favorable loan, as the competition among the providers, is great.
- You can redeem the loan at any time at no extra cost.
- Often higher interest rates than with other loans, as the provider is not given any collateral.
- You must not be registered as a “poor payer” with RKI or the Debtor Register.
- You can register with RKI if you do not meet the monthly payment deadline.
- If you do not do your preparation properly, it can become a costly affair.
- If you are young with low or no income, the loan conditions can be bad.
- You may be tempted into a high loan amount you may not need.
- Think carefully – do you really need to take out a consumer loan?
- Talk to your own bank about consumer loans before making a decision.
- Get different offers from different providers before choosing one.
- Make your own loan plan in relation to paying off the consumer loan.
- Consider what the loan will be used for and what it will mean for your finances.
- Don’t choose a high loan amount just because the provider allows it.
- Be sure you can pay back the loan within the time frame.
- Try different providers’ online loan calculators to see how much a loan will cost you.