As a result of the crisis, a lot of private companies appeared to lend small amounts to users who needed extra money to meet urgent expenses. After so many years, the market is saturated with them, so much so that sometimes it is difficult to decide which mini-credit to choose. To make this task a little easier, in this article we review aspects to look at in order to make a decision.
Cost, term and amount defines mini-credit
Obviously, each user has different needs when they go to apply for financing, or rather, the need when we request a mini-credit is (or should be) the same: face an urgent expense. What may change are the applicant’s circumstances. Therefore, each one will give a different importance to each of the following elements that we understand are important to decide on a loan or another:
It is the most obvious condition. And it is that in the case of mini-loans it takes special importance, since many offer a first free mini-credit, that is, without interest of any kind. After the corresponding period, we would only have to return the money that had been loaned us at first. If we can get a free loan, why pay for another that includes interest?
As a general rule, mini-credits have a very short repayment period. It usually only takes a month, something that we must take into account, since we will have to pay all the borrowed money at once. That is why it is important to check if a lender has a longer term, if that increases its cost or if, once the time limit is reached, it allows payment to be postponed and at what cost.
As in the first applications, sometimes we can get a free mini-credit, another characteristic of these lenders is that, usually, in the first application we cannot ask for more than 300 dollars. Then, as we pay successively and as the agreement dictates, we can access larger amounts. However, there are some private equity companies that allow you to request higher amounts from the outset. If we need more than 300 dollars, we will have to keep this in mind.
Other aspects that we can take into account when deciding are the costs of default interest, the speed of the concession or the type of customer service that the company has, among others.
The fundamental requirement before requesting financing
In addition to these keys, we have to make sure of one more: we must confirm that we can return the mini-credit within the agreed period before requesting it. The interests of this type of financing are very high, so a default could lead to a significant increase in the balance to be returned, in addition to assuming that we were registered in a file of defaulters. To prevent this from happening, we must ensure that we can pay the mini-credit.