There are already more than 8 years of rapid online microcredit, helping people to solve unforeseen events and emergencies. It seems yesterday when the crisis hit Spain and that people needed loans and financial services that banks did not grant. At that time, the private online lenders began to come into play, which little by little have become more than an ally for those who need financing.
Not even the large number of criticisms they have had for their high costs have had any effect on the number of new companies that have left and the amount of microcredit that has been requested year after year.
Month after month and year after year the numbers continue to rise and therefore more and more companies are providing these services.
Today at creditore we will talk about the mini-credit sector, so you know another way to get fast money.
What is a microcredit?
The microcredit is a variation of the traditional credit service that consists of granting small loans to people who could not otherwise obtain credit, usually because of low economic resources. Related barriers can include unemployment or underemployment, lack of collateral and credit history.
Sometimes, the microcredit is provided to finance a commercial initiative of the recipient. As we have always mentioned in this blog of creditore the market for loans and fast loans is immense. This sometimes makes it difficult for people to choose the best one that best suits their needs, so we always recommend the use of instant mini-credit comparators. Not only will it speed up the selection process but it will help you see what is the best product for your particular situation, saving a lot of time and of course money.
The microcredit sector is booming
As more and more entities offer online financing services, they have had to differentiate one from the other by offering different things. Like everything at the beginning is new and the competition is very similar. In the beginning, all the financing services offered low amounts of money, a one month repayment term and a 100% online process. Nowadays the competition and the flowering of more and more companies in this sector, has made hundreds of possibilities exist. They started by offering larger amounts, until reaching € 750, then began to extend the repayment terms. And today we have a wide range to get the funding we want.
As is normal everything in life advances, and more in the competitive world in which we live today.
If a company wants to stand out or stay needs to evolve and offer more and more advantages to the client, so that before a huge range of possibilities choose your service or product. In the microfinance sector exactly the same happens, that’s why loans and quick loans are always offering more advantages and more possibilities to their clients.
They try to attract attention to their improvements that distinguish them from the crowd. And as a final result, the client makes their respective comparisons choosing the most suitable one for their needs and is pleasantly benefited
The influence of mini-credits on the Internet
Neither the criticisms nor the attempts of boycott that have suffered the mini-credits in Spain have served so that the number of applications sent has decreased. This is because year after year the numbers continue to rise and therefore more and more companies that provide these services.
Although they have high costs, for the most part, the great advantage that makes them so irresistible is their speed. However much banks strive to belittle these types of financing services, they can not compete with their effectiveness.
When you need money urgently the most you care about is getting the desired amount in a matter of minutes, nothing more. For this reason, the microcredits have made an effort to improve and advance in this field, which makes them stand out from any other financing method available in the market.
But the advantages of microcredits are not simply that they are very fast. Since they also offer another good amount of advantages over any other traditional financing method.
As it can be the shortage of paperwork for your request, the possibility of requesting it from home or any other place with a Smartphone, a Tablet or a PC. The possibility of getting the money we need without having an endorsement or a payroll, etc.
Meet here the free microcredits of the online market.
Is it worth the cost of fast credits?
Many people think that the costs of mini online loans without payroll are too high. The reality is that everything depends on what is compared, because if the only thing we compare is the APR what they have, because if they can seem exorbitant costs.
But as we know, we are using a yardstick that does not fit reality, since the APR is designed to be able to compare the costs that services have on an annual basis.
And the microloans are paid in a maximum period of 30 days, so that “annual” cost does not exist and is nonsense.
When Yes request a microcredit
A microcredit can be one of the most useful financing tools if we use it responsibly.
These are some situations in which it may be advisable to apply for a microcredit :
We have an unforeseen
We break the car, an appliance, we have to pay a higher bill than normal, we have to return to the Treasury, etc.
These are unpredictable expenses that we can not postpone.
If our budget is adjusted, we can use a microcredit to get out of this situation.
Expenses for health
Having to visit a specialist or buy medicine that does not cover social security can be a problem for our economy.
But it is an expense that is going to have a direct impact on our health and therefore is not postponable.
We want to save
A bank draft or a fine can cost us more than the microcredit fee.
If we can pay a fine in the first fifteen days, we will have a 50% discount, and if we do not have the total amount of the reduced fine, we can request a mini-credit before having to pay double.
When not request a mini-credit
As we have said, microcredits can be very useful if used responsibly.
However, there are situations in which they are not a good option:
We are not sure if we can return the money
If we do not have enough income, we think that we will not have it or for any other reason.
We foresee that we will not be able to return the loan, it is best that we refrain from asking for it.
If we fall behind in the payment of the loan we will end up paying more for the delay commissions.
We request microcredits as usual
If we use minicreditos regularly as a form of habitual financing, we can fall into a debt spiral from which it is not easy to leave.
It is better that we tighten our belts and not apply for credits that, misused, will eventually make our life more complicated.
If the expense that we “need” to do is a whim or an expense that does not need to be covered immediately, it is better that we save and wait to have the money by our own means, without resorting to microcredit.