Available money supply is helpful
When an urgent investment is no longer deferrable, a manageable, immediately available money supply is helpful. For such cases, there is today the microcredit from the Internet, which is to have only relatively small sums, is paid immediately and for which not the bank must be visited.
“With immediate payment” often means here within a few working days. Via money transfer, however, the money may actually be available immediately and in the checking account.
Debit interest rate of 4.83% – 15.49% (depending on creditworthiness) fixed for the entire term, effective annual interest rate: 4.90% up to a maximum of 15.99%, net loan amount: 1,000 – 100,000 euros, contract period: 12 – 120 months. Representative example: borrowing rate fixed at 7.98% for the entire period, effective annual interest rate: 8,29%, net loan amount: 10,000 euro, contract period: 72 months, monthly installment: 175,29 euro, total interest cost: 2620,68 euro, total repayment ( including all fees): 12.620,68 Euro.
Credit check: Yes, but shortened!
It is obvious that even an online bank does not issue money without a credit check. Therefore, in particular, the following documents should be available:
- credit bureau information (a microcredit can very often also be a loan without credit bureau)
- Proof of a regular income (eg payslip)
- Possibly an official identity document (identity card, passport)
Unlike traditional commercial banks, micro-credit with immediate payment is “only” worth the reimbursement ability, so there is no need to order a guarantor or otherwise provide collateral. Important is the bank, which only gets to know the credit applicant online, that it will also be able to repay the microcredit. This means above all: a regulated income in sufficient amount.
Salary: At least 600 euros net, we recommend over 1000 euros net per month. For a micro-loan without income, the mention of a co-applicant with top credit rating on the basis of our experience is highly recommended.
Microcredit: amount and repayment
The classic microcredit is between 100 Euro and about 1000 Euro. A repayment should be made as quickly as possible and in one payment, often the term is set at 30 or 60 days. The interest rates are only marginally higher in a micro-loan with immediate payment compared to the classic loan, but are usually much cheaper than the overdraft, ergo the overdraft of the own checking account.
This is how microcredit business ends
The homepages of the providers are usually very user-oriented. This makes sense in that one does not want to scare the customer with confusing menus. The creditor first selects the loan amount and the term of the loan. The button “Apply for credit” then leads to a secure website that queries personal data. Here should not be lied, in the normal case, even with a microcredit these details are checked, especially if this wants to be booked with immediate payment. At the end of this process the applicant sends the online form legally binding and receives a confirmation by e-mail. The money comes in case of a commitment within a few days.
Caution is still required
As mentioned before: Not every provider of loans on the Internet is reputable. Dubious providers make mostly comparisons that sound all too tempting – such as:
- high amount of money in a very short time
- below-average interest rates
- no credit check
The good news: Black sheep are usually only found on loans of a few thousand euros. Our microcredit top providers are all reputable, cheap and discreet!
Even if microcredit often comes into question when punctual costs have to be met, care should be taken to ensure a well-founded comparison of providers.