What are your first associations when you hear the word “loan”? Large and detailed application, waiting, difficult negotiations with the creditor’s representative?
Indeed, such loans are in high demand, but this is not the only type of loan
Modern people appreciate intelligible solutions, and the financial industry also has a relatively simple and operational loan – internet credit. It provides handy support in a variety of everyday situations and can help with temporary financial difficulties. Check out our latest article to find out how internet credit works and how to use it properly!
Soft credit on the Internet
Every loan carries risks, so the creditor uses different risk aversion mechanisms, usually a guarantee and a pledge. However, internet credit is granted both unsecured and pledged. An easy application process reduces the time it takes to process your application, so you may receive your online credit approximately 10-15 minutes after you submit your application. But why do lenders offer unsecured loans? There are several explanations for this:
- internet loan is a relatively small loan. Guarantees and pledges are usually needed to secure a large consumer loan, mortgage or car lease;
- internet credit has very strict repayment terms. Unlike other loans, internet credit must be repaid in full from your next salary, but late days are subject to penalties;
- Applying for an internet loan online and all communication with the lender is done electronically, but it is not yet possible to make a pledge and guarantee online.
The conclusion is that while an online loan is a simplified form of credit and you can get your desired amount of money relatively quickly, without the need for a guarantee, pledge and submission of documents, it must be used responsibly and prudently. The article goes on to describe the situations in which an online loan can be helpful and when to borrow better.
How to smartly borrow on the Internet?
The main features of internet credit are the relatively small loan amount and short repayment term. Such a loan is designed to allow people to borrow for everyday expenses, but not every situation is a good choice. Internet credit can come in handy if you need an extra amount:
- unplanned expenses such as computer or car repairs;
- essentials, such as winter shoes, textbooks, a monthly transport ticket;
- emergency services such as a doctor visit, home communications replacement.
An online loan can help you deal with other situations as no creditor sets a strict limit on how much you can use credit. Usually the lender is not interested in the cause of the borrowing, but each borrower must assess both the need for the loan and his or her ability to repay the loan. Internet credit not eligible:
- the whims of the moment;
- luxury goods;
- for entertainment;
- repayment of existing debts.
Just as important is determining whether an online loan is adequate for the borrower’s budget. Since the fast loan is due next month, it is recommended that you borrow no more than 30% – 40% of your total monthly income. If you already have loans with other institutions, you need to double-weigh your new credit risks. It is advisable to borrow only if, after making all the loan payments, you have enough money available to live up to your next salary.
Test your solvency yourself!
The lower the income level, the lower the credit limit. Currently, creditors are required to require proof of income if the amount claimed is greater than € 427, but applicants for smaller loans must independently assess their solvency. Internet credit is suitable for individuals:
- with a regular and sufficient income;
- with a stable job;
- with a responsible attitude to finance.
Some lenders also offer internet loans to borrowers with a negative credit history or without a formal job, but in this case the client has to expect higher interest rates, higher costs and also collateral.
How Good Is An Internet Loan?
Every credit comes with additional costs, but borrowing in full at the end of the loan does not damage the borrower’s wallet. You can use different strategies to reduce your total repayment and save on your loan costs, such as:
- Choose your first internet loan with a 100% commission discount
- repay the loan early, reducing the amount of interest payments;
- open a credit line on the internet, giving you the opportunity to withdraw money as needed.
Choose the Internet loan that suits you best!
A traditional internet credit is a loan that is transferred in full to the borrower’s bank account. Another online credit option is the credit line. We, Lydia Languish, offer such a service. Unlike the classic fast credit line, a credit line allows a customer to take out different amounts of their credit limit and pay interest only on the amount of money withdrawn. In terms of application, a quick credit and a credit line are identical, but the credit line has a more flexible repayment procedure.
Other types of consumer credit, such as consumer credit or credit cards, can also be applied for online, but usually take a little longer to process. Fast internet credit or credit line is the fastest way to borrow money, as in the event of a positive decision, money is transferred within about 15 minutes *.
If you follow the rules of responsible borrowing, internet credit can be a useful aid in today’s busy life. Lydia Languish Reminds – Borrow Responsibly When Evaluating Your Chargeback! Match the loan amount to your solvency, choose a trustworthy creditor and borrow when you really need it!