Use a small loan to buy something?
“Pay attention! Borrowing money, costs money”. You will find this text on many websites and in many advertisements aimed at loans. This is often correct. In fact, with one of the most popular forms of loans today, this text may even be in bold: the Small loan, also known as the flash loan. The Small loan is promoted with a number of advantages, for example that you have the loan amount in your account within 24 hours and that you can even borrow money without having to check your financial situation at the BCR in Tiel. And who does not need 200 or 300 USD extra at the end of the month?
Borrow money quickly: the risk of a Small loan.
The great danger lies in this accessibility with mini-credit. With a Small loan you can borrow money for free, or get an advance. You borrow an amount and also pay back exactly this amount without having to pay interest on it. A condition is that you do the repayment within a specified period. For many people who take out a loan, the financial situation is usually already problematic. Because there are virtually no thresholds, this loan is very accessible. It is often the case that when people need money and apply via a Small Loan, they also need this money immediately.
This loan is on its own or free, but depositing the money into your bank account within 24 hours is regarded by the lender as an extra service. And there are costs associated with this extra service. That is actually already the first snake. The second problem often arises when repaying the loan. At the end of the term, usually after a maximum period of approximately 21 days, the loan amount must be repaid. If you do this, there is no problem whatsoever. However, if you cannot meet the payment obligation, the lender is merciless. You have then not complied with the agreement that you have entered into and you will be presented with a fairly high penalty interest. In this way, a Small loan becomes very expensive and you pay back a much higher amount.
Can and can this be done just like that? Yes, you can and can indeed. The blame lies with you. You enter into an agreement and you are the one who has not followed the rules. The lender is therefore fully entitled. A major advantage for the lender is that he runs as little risk as possible. In the worst case, the lender gets his own money back and there is therefore no loss. In addition, the lender also engages in customer loyalty.
To be able to take out a Small loan, you must create an account via a website. To gain the confidence of the lender, you can first borrow only a small amount of 50 or 100 USD. If you repay this small loan neatly at the end of the term and thus prove that you are a reliable customer, the lender will go a step further with you. You will be given the opportunity to request a mini-loan again and due to your good behavior you may borrow up to 200 USD the next time. Every time you pay back the borrowed amount, you get more financial room when applying for this loan.