There are always situations in life in which you suddenly have to rely on a large sum of money. On the one hand, these are purchases that are so urgent that they can no longer be delayed. On the other hand, there are always moments in which there are simply unforeseen costs that go beyond the already tight financial framework. In such a situation, consumers are very happy when there is still a chance to breathe new air with a small loan. In this situation, it is particularly important that the money moves to your own account as quickly as possible.
What are urgent loans – an overview
For this reason, some providers have decided in the past to offer their customers so-called urgent loans. This is a special offer, which is primarily characterized by the fact that you as a consumer and borrower can very quickly get the money. So if, for example, you have to settle a rushed invoice, it is a more than successful way to draw various advantages to your own side.
As with many other forms of credit, this is about finding cheap providers on the market. This is because the different companies sometimes differ quite clearly from each other. It is therefore important to find the time to conclude such a transaction in order to be able to sound out the market to some extent.
As a rule, this is already a suitable way to then be able to uncover exactly the options that you really want to subsequently use for yourself and your own financial situation. Depending on the period over which the money will ultimately be paid off, it is a more than successful way to correct the costs of this question to a very decisive extent.
Urgent loans to the account immediately
As the name suggests, express credit is all about getting the money into your account immediately. This requires a fast and uncomplicated application process. Online loans in particular are therefore suitable for urgent payments.
When does the express credit make sense?
Now, of course, one has to devote a little more intensive attention to the subject of express credit in order to really understand at the end of the day which processes and rules are hidden behind the complete system. In the beginning, it is therefore of great importance to first consider the possible situations in which such a loan is taken out.
Fast money is needed
These are always cases in which it is no longer possible to wait more than two weeks or more before the bank finally gives a decision as to how the application is made. Instead, the money is needed immediately in order to continue to maintain their own quality of life and to free themselves from the tense situation. At the same time, a rush credit is always characterized by the fact that it is not a particularly high sum that can be obtained in this way. This is largely due to the fact that the costs due to the perfected processes are slightly higher than is the case with a normal installment loan.
- Short-term bottlenecks
This means that the express credit is often only used to give a chance to bridge an urgent phase. This can go as far, for example, until there is again the chance to obtain a loan through the normal house bank. From this you can see very clearly where the qualities can be found in this context.
- Online notification within hours
There are now many companies that have included the express credit in their own portfolio. First and foremost, consumers should refer to the World Wide Web. Above all, this is due to the fact that the entire processes are carried out much more quickly here than is the case with a normal house bank. Often, the decision as to whether the loan can ultimately be granted is received within an hour. However, it often takes a little longer for the money to reach your own account as desired.
Are the requirements fulfilled?
- Minimum age
So that the express credit can really be issued in a safe area, it is also advantageous if one or the other requirement is met. For example, the borrower must be at least 18 years old to be able to apply for the loan independently.
- Regular income
On the other hand, it is also important to have a regular income, which can also be the pension that is transferred to your own account every month.
- Possibly two applicants
If there is no regular income, many banks require a second applicant, who is therefore included in the calculation and can be used for payment and payment if necessary.
Possible uses of express credit
In practice, there are now some cases in which it could be very helpful to take out an express credit. This is not about financing a property or a car, since the costs of the loan form are a bit too high for this and it is usually not such an urgent situation. The following examples with invoices clearly show how important it can be to be able to use an option such as express credit via the Internet.
- Example car repair
Let us assume that a person has a somewhat tight schedule in terms of the monthly budget. Now the car needs an unforeseen repair, for which there is no more money. But since it cannot be dispensed with because the car is used for professional purposes, it now takes a quick way to get 1,000 USD. After a short search, the urgent loan offers the chance to get the money at a fixed interest rate.
A bank makes the offer to the customer for this purpose, which allows financing at an interest rate of 2.99 percent over a term of 12 months. This would mean that less than € 87 would have to be paid each month to service the loan. With this form of payment, the loan would no longer exist after only twelve months, with costs of less than 30 USD.
- Example credit card debt
On the other hand, of course, there are also one or the other case in which an even higher amount has to be used to free yourself from an urgent situation. For example, a consumer suffers from being unable to pay the credit card bill that has been accumulating recently. In the meantime, it has turned into a proud 8,000 USD and proceedings would be instituted against him if he was unable to settle the bills within a short time. Even with such a sum, the express credit would offer the chance to pay it.
However, if the loan should ultimately be rescheduled to a normal installment loan because its interest rates are much lower, a bank should also give this option to its customers. Now it is time to take a look at the funding when the amount of such a loan increases to 8,000 USD. In this case, the longer term of three years is spontaneously chosen in order to be able to react appropriately to the different situations and circumstances and still have enough money per month for your own life on your side. In this example, there is an amount of around USD 233 per month that should be paid. At the end of the three years, the cost of the loan was even less than 280 USD, which again shows very clearly how important such help can be in the situation.
What special forms / subforms are there?
Express credit confirmation via SMS
There are still various breakdowns in the case of express credit, as the banks once again want to place themselves specifically on the market. It is now possible to apply for a very urgent urgent loan, in which the confirmation is even sent to the consumer via SMS within just a few minutes.
This way, he really knows immediately how to react in the situation. So this is the first important point to watch out for in any case. Indeed, this is one of the fastest ways to get a loan. For this reason, it can be worthwhile to focus more on these points.
Quick loans and instant loans
On the other hand, house banks now also offer an emergency loan, which is also known as a quick loan or instant loan. From the beginning, however, it is of great importance to be able to optimally use the advantage for yourself. It is therefore possible to get these offers through the normal bank. Now it is important to know for yourself that these offers are usually somewhat more expensive than is possible on another side.
In individual cases, these sub-forms are one or the other an important point that should definitely be considered. So it is much better not to simply ignore this.
What are possible pitfalls
Of course, there is also one or the other point in the case of an emergency loan where the granting of such a loan can fail. At one time or another, companies are focused on offering customers these requirements in order to have a little more security for themselves. Ultimately, the costs associated with a loan are influenced to a very significant degree by how high the risk is on the lender’s side.
- a) Minimum age 18 years
- b) regular income
- c) Residence in Germany
- d) possible second contractual partner
Now it is important to look at the meaning of the individual points, which must be observed in any case.
- to a)
Right from the start it is clear that only people who are at least 18 years old are able to decide on such a business. This is simply due to the fact that the legal basis contributes a very important part from the start to the fact that the individual options can be implemented as specifically as possible. Anyone who deals with the points from the start will see an important advantage overall.
- to b)
At the same time, it is generally absolutely essential for the borrower to have a regular income. A mere side job is often not sufficient, since something like a permanent job is required to be able to take action in a suitable way. For the customer, this means that it is important from the start to be able to submit the relevant documents as quickly as possible, if necessary. Moreover, in practice it is the case that the pension is also considered a fixed income if the borrower is a little older. It is also possible to clearly present your own security to the entrepreneur, which is why it is worth taking a bit of care.
- to c and d)
For people who fail to prove a regular income, one should make sure that a second partner can be included in the contract, who guarantees in a certain way. This means that the cost of the loan may also be covered in full, as it will then have a fixed income. This is in itself one of the measures that would like to provide the company with a certain level of security.
Urgent loans online vs. at the bank
Of course, nowadays it is possible to get your hands on one of the loans either via the World Wide Web or through a normal bank. Now there is one or the other advantage on each side, which can be examined more closely in this course.
Personal advice vs…
On the bank side, it becomes clear that a consultant is available all the time, with whom you as a consumer can contact you directly in order to take further steps in a targeted manner.
This means that you can also get information yourself in this way and do not have to fully trust the information from the Internet. In itself, this is a point that cannot be easily dismissed by hand.
… Greater variety
On the other hand, the World Wide Web is primarily about the higher density of banks that can be used there. At the same time, this leads to quite a lot of competition on the market, which is one of the very important reasons why the prices for the rush credit are usually somewhat lower if you want to opt for this type of application.
Anyone who devotes himself to these points must recognize in and of itself that in practice it can be more than worth paying more attention to the points than is currently the case. At the same time, it is also important to do a bit more research on the Internet. Because here is not the chance to simply ask a consultant for advice on how to do this in a bank.
In practice, however, the offers that can be accessed via the World Wide Web are often better. Above all, this is due to the fact that the costs for companies are much lower if they choose to address customers along the way. While a bank has to pay for the building and a lot more staff, these factors are practically eliminated with an online bank. This is also the reason why customers can experience this by the fees that are required for the express credit are once again significantly lower than would have been the case if one of the offers that the normal banks opened again and again place in the market. Anyone who is looking for a rush credit that has a very good balance sheet, especially in relation to the price / performance ratio, can rely on these advantages with a clear conscience, which are not so easy to handle let point. However, in the best case, this should be taken into account a little before the conclusion of a contract, so that in the end you will be fully aware of the various issues within the framework and be on the safe side.
What to do if you have bad credit rating?
Of course, a bad Credit Bureau is always a problem when it comes to obtaining a rush credit. This is because the majority of the companies available on the market place great value on the verification of this data.
This is mainly due to the fact that it is all about the security with which the bank gets its money back in the end. If you yourself have a rather bad entry with Credit Bureau, one or the other measure must be taken with regard to the express credit in order to be able to remedy something.
- Higher interest or costs
On the one hand, there are one or two companies on the World Wide Web that are committed to helping these customers too. A loan is offered without the Credit Bureau being checked. However, since the risk that the company is taking with such a business is clearly increasing, one must also recognize that the cost of the loan increases somewhat compared to the other providers on the market.
Only if you really want to accept this for yourself is it still possible to take advantage of the option for yourself.
- Have the guarantor countersigned
If your own income situation is not sufficient, you can use a guarantor or a second borrower. The latter is liable with his assets in the event of a repayment that is no longer possible. In this way, an express credit can be made possible even with poor creditworthiness.
With some loan offers, material collateral can be used for the loan. This is the case, for example, with the pawnshop. There is money here for valuable items. Even the classic home mortgage can enable an emergency loan despite poor creditworthiness.
The greater the amount that is to be taken up for an express credit without Credit Bureau, the greater the difference that arises in this way. You should only take advantage of such an offer if another request in the area has already failed. On the other hand, there are also one or the other option in which it would be far better to rely on an alternative from the market in order not to put yourself in too much trouble.
Current figures and interest rate developments
Of course, you can see from the development in and of itself how the express credit has changed somewhat in recent years. The policy of the ECB also played an important part in this, which is not so easy to dismiss. Because Mario Draghi has decided to set the key interest rates as low as possible in order to get the economy going a little more. For this reason, it can be worth considering these opportunities for yourself. So you should also pay attention to yourself and not dismiss these options so quickly.
With the key interest rate, which is currently as historically low as never before, there is no need to pay further attention to the development. Because of this, of course, the express credit was influenced to some extent. As a result, the cost of the loan fell even further about three years ago, although it is not yet clear how things will go in the future. First of all, interest rates will remain so low, which means that no further problems can arise here.
The alternative – personal loan
Of course, you also have to know that you can use the personal loan to reduce the costs in and of itself a little bit. So here you don’t just turn to a bank, but simply to a private person who you know better.
If the bank now has sufficient capital, it is possible in this way to obtain a loan yourself. Despite all the friendship, one should insist that both parties draw up a contract. This is due to the fact that otherwise problems can arise again and again, especially with larger sums. These then no longer only influence the loan itself, but also the relationship, which must be avoided from the start.
It is therefore important to address these points before it is possible to record further successes for yourself. Therefore, you need the opportunity to consider other options.
It is possible to download the corresponding bureaucratic forms for a personal loan on the Internet. These can then be printed out and signed by both parties. So this is a very successful way to put your own options into practice. In many cases, an interest rate is waived out of goodwill, which is another plus point that cannot be easily overlooked.