Urgent loans – often better than their reputation
In the past, the variant of the express credit has been discredited every now and then. The reason for this was often hidden costs or very high interest on the loan. Today, the express credit is under the strict control of banking supervision and consumers are protected from dubious offers. Nevertheless, black sheep still roam around in this segment. As a consumer, you should be well informed about the individual loan offers in advance.
Why an urgent loan?
It is often the case that you need money quickly to make a certain purchase. This becomes particularly clear in the example of car repair. Normal consumer loans often take a long time to be approved and the money is actually available. An urgent loan, which is increasingly being issued by online credit institutions, usually makes this procedure much faster.
In many cases, the loan is approved within 24 hours and the money is transferred within a few days. Anyone interested in an express loan will find it more information here. The advantages at a glance:
- quick commitment,
- quick payout,
- flexible terms,
- flexible loan amount,
- often no purpose is required,
- can be requested from home.
The conditions of the individual providers differ greatly from each other. Here you should not only consider the effective interest rate and the monthly installments, but also compare other factors. One should pay particular attention to service and processing costs in order not to experience any unpleasant surprises afterwards.
Effective interest rate
The APR is the annual cost of the loan. It is given in percent.
Service and processing costs
In any case, you should inform yourself about possible additional costs. If, for example, each call for advice costs high fees, a low annual interest rate is not that attractive anymore. Processing fees sometimes appear excessive.
In the event that the credit plan is not met, special payments are required in many cases. This can be if you cannot repay the monthly installments or if you repay the loan amount early. All of these aspects should be kept in mind when considering an emergency loan.
Recognize the financial situation
If you want to use an emergency loan to bridge a financial bottleneck or make an urgent purchase, you should be aware of your financial situation. If you are able to manage the monthly installments, there is nothing wrong with an emergency loan, such an emergency loan from online banks is often even cheaper than a corresponding loan from a direct bank.
However, those who are not financially able to make the repayments should seek professional advice to get their financial future under control. If you pull the emergency brake in time, you avoid falling into a debt trap.