Life, although beautiful, but sometimes creates such conditions that you urgently need money today for unplanned costs, for example, a sudden breakdown of equipment, which can not be avoided, or urgent expensive repairs. It is inconvenient to borrow money from acquaintances, so micro-loan is the only right decision.
Micro-loan is a financial instrument that enables individuals and small entrepreneurs to obtain a small amount of money at low interest. In developed countries – this is the most effective way to support solvency of an individual. In most cases even people with poor credit score get personal loans online approval. So bad credit loans are the best way to get money for emergency.
Wide Range of Financial Services
Private firms and numerous banks offer a wide range of services for lending money to individuals and legal entities. The most convenient and fast is online cash advance, because it eliminates necessity for wasting time in queues and does not require personal presence in a particular financial institution. If you need a small amount of money, you can get a micro-loan, which is processed, as well, through application in the Internet. Private entrepreneurs give money under a variety of interest and conditions. there are also interest-free loans that are usually taken to purchase equipment.
When to Take a Micro-Loan?
A micro-loan will be a justified step if you temporarily need money and are firmly convinced of near receipt of funds. Money is needed immediately, and your wages for a couple of days is delayed.
Before contacting Speedy Payday Loans, consider whether you can borrow somewhere else. If money is needed urgently or credit history is poor, then it is pointless to go to the bank. But consider possibility of borrowing money from friends or relatives. Ask for advance payment at work. If these options do not fit, then there remains a micro-loan.
The advantage of micro-loans is speed of application. It is enough to fill in the application form and present your passport. Application can be submitted via the Internet, and you can receive money in half an hour in cash, on a card or electronic wallet. Requirements are very soft – you do not need big income, and bad credit history is often ignored. You will not need any guarantors or references.
Guidelines for Online Payday Loans
- As a rule, micro-loans are provided not by large banks, but by small credit organizations, such as Speedy Payday Loans. Therefore, the first thing that should be paid attention to is reliability.It is necessary to find out whether the organization is a member of microfinance organization registry. Do not be shy and ask for documents confirming licensed activities of this organization.
- You should also get acquainted with the terms of micro-loan. To do this, you need to carefully study terms of the contract.In most cases, the borrower falls into the debt hole because of his own action. Staying in euphoria from possibility of obtaining loans online easy, the borrower doesn’t pay attention to the terms of the contract.
- It is necessary to decide in advance what amount should be taken as a micro-loan, and for how long.Depending on the terms and amount, interest rate on the loan will be determined. Online cash advance is given for a short period of time, so before signing the contract, it is necessary to decide, how the loan will be repaid.
- A very important point in entering into a micro-loan agreement is possibility of early repayment of a loan.Some creditors instead of encouraging borrowers to return money ahead of time, on the contrary charge additional fees.
- Also you should pay attention in the office of the credit institution to the rules for applying and issuing micro-loans.In accordance with law, rules should be posted in a conspicuous place and be accessible to all customers. If you do not see such rules in the office, then it’s better not to continue working with such organization, most likely these are scammers.
Pitfalls of Micro-Loans Online
The main disadvantage of micro-loans is a very high interest rate. Over time, debt increases so rapidly that it leads to financial collapse. For a couple of days, interest overpayment will not be big in absolute terms, but for a month – the amount of debt will double.
If you do not repay micro-loan on time, penalties will be imposed. From now on, they can increase interest rate, add serious penalties for each day of delay, start charging interest on unpaid interest.
Information on overdue micro-loans, as well as for ordinary loans, falls into bureau of credit histories. And since it is very easy to delay payment with such high interest rates, applying to MFI is fraught with increased chances to worsen your credit history.
Is it Worth Taking a Micro-Loan?
A micro-loan can be considered as one of the options, if there is a constant income and shortage of money is a temporary phenomenon. But even in this case it is better to borrow from friends or get a credit card with small limit.
That’s when in any case you should not apply for a micro-loan:
- money is needed to pay off other debts. In this case, you do not solve the problem, but exacerbate it;
- there is no permanent income. Without income, you can not repay on time and very quickly will get into hopeless situation.
