No matter how much money we have on our monthly cheque, we all find ourselves under different circumstances in tight spots where our need for money is so urgent. There might be no one around to get a loan from, but in the age of the internet, there is a web of instant loan programs one click away, at your disposal in a variety of offers.
There is a multitude of websites like Sofortkredit that offer these loans, they are supported either by banks or loan institutions specialized in this kind of finance. Therefore, this is what to watch out for when getting an instant loan.
1- Processing Time: your need for the money might be too urgent, yet don’t let it blind you into lenders who take some days to get the funds you need. always look for the ones who approve faster to get the money quickly.
2- Loan Amount: Every lender sets the maximum amount instant loan they can lend, usually it is governed by State Laws, but still lenders are a little skeptic when it comes to first-time borrowers, if you are one, therefore, the maximum is restricted under certain rules and conditions. You should look for large amounts of money.
3- Low Interest: the state regulates the maximum interest instant loan lender can charge, and with the competition between lenders, interests are usually below the maximum interest, and sometimes very tempting low-interest charges. Which only means that you should compare the offers and choose the one that suits you perfectly.
4- Fees: another factor that comes into play is additional fees, they include three things, first is the opening fee which is the percentage of the requested total amount of money. Second is the fee for early repayment, in some cases, you are charged for early repayment of the loan. third is the penalty interest, this is the slippery-slope and joy of all benefit-driven lenders, in cases where money is not paid back within the deadline the lender will surcharge and add penalty interest.
5- Ability to make on time payments: don’t get carried away with your excitement to get out of the tight spot you are in. Consider wisely your current monthly dues like rents and utility bills. ad make sure you can still pay them on top of your loan. Make a list of priorities, and how much you need this loan compared to other things you will have to pay for anyway.
Instant Loans can trap you in a never ending debt cycle that will affect you both mentally and financially, you should consider your plans and how to get out of it, in other words, you should keep it a short-term solution, do not depend on it and try to get debts you will invest in long-term solution like finding a job or in a small project or something.
Instant loans are undeniably a brilliant idea to help people, yet lenders are interested in getting as much money out of you as possible, you should not fall into a dependence on them whenever you face a financial problem.
Finally, the tip that anyone can find useful is that there are things our body needs, there are things your mind needs, and there are things that are just psychological addiction we can do without although we’d die to have.