Small Credit: Why Small Credits Are Better Than Debt Credits

In many cases, consumers only need a smaller amount to settle outstanding bills or make an acquisition. Often an urgent car repair comes just when there are no reserves. Anyone who resorts to his discretionary credit in such a case must pay high interest rates for this. Significantly cheaper is the inclusion of a small loan. If the checking account is already overdrawn, this can be compensated with a small loan and high costs can be saved. There is no exact definition for a microcredit. In general, this means loans with an amount between 500 and 5,000 euros. If you need a lower loan, you should take a look at the subject of mini credit.

Advantages of small loans:

  • Provide short-term capital for smaller purchases and financial bottlenecks.
  • Ideal for replacing expensive discretionary loans
  • Small loans over the Internet allow a quick and easy processing of the request as well as a quick payment of the loan amount.
  • Due to the small amount, a small loan in a few installments can be traced back.
  • About an online comparison can be found in a few moments the cheapest offer

Requirements for a small loan

Requirements for a small loan

Even if a small loan involves relatively small sums, some credit requirements must also be fulfilled for this purpose. The guidelines for a lending are the same for most banks, about individual deviations inform a credit comparison or the websites of the credit institutions. As with any loan, the borrower must be at least 18 years old and have a residence in Germany. In addition, most banks require a German checking account.

Other requirements include a regular income and, if possible, a permanent employment contract. Anyone who has a fixed-term employment contract can still receive a small loan if it is valid beyond the repayment term. The income level must be proven when applying for the small loan. Employees simply add the last payroll statements. For self-employed and freelancers, the requirements are slightly higher. Depending on the size of the loan, the latest tax returns as well as profit and loss statements or a business analysis (BWA) are required.

Here are the requirements at a glance:

  • the borrower must be at least 18 years old
  • his residence must be Germany
  • a German checking account is usually required
  • a regular income must be demonstrable
  • a permanent employment contract helps

Even with small loans, the Private credit is queried

Before granting a small loan, the financial institutions carry out a credit check. This includes income as well as a query of the Private credit data. By means of such a query banks try to keep the default risk as low as possible. Among other things, banks are finding out whether the applicant is repaying further loans. In addition, the Private credit file shows how reliable payment behavior is in the past. Negative entries almost always lead to a rejection of the request. It is also conceivable that the small loan is only granted at a higher interest rate.

Small loans without Private credit

If the bank rejects the loan application due to a negative Private credit, there is still the chance of a Private credit-free microcredit. These are offered by various credit intermediaries directly via the Internet. Possible are small loans up to an amount of 3,500 euros. Since the loan is realized via a foreign bank, no query is required from Private credit. All that is required is a sufficiently high income. Such a loan could be, for example, the Swiss loan.

Before deciding on a small loan without Private credit, a few things should be considered. For example, there are some rogue vendors among the intermediaries who charge a down payment for fees and commissions. It also means hands off, if the granting of the credit is made dependent on the conclusion of an insurance. It should also be noted that the higher risk associated with Private credit-free loans requires a higher interest rate.

Small loans are flexible

A big advantage of small loans is the free choice of purpose. Whether the loan amount is used for the next vacation, a used car, a TV or to reschedule existing liabilities is completely irrelevant. This gives the borrower full flexibility and a financial room for maneuver, which would not be the case with real estate loans or car loans.

Small loans are usually offered for amounts between 500 and 5,000 euros. That is why they are used primarily to finance consumer wishes. Due to the rather small loan amount, banks usually only charge a very low interest rate. This makes the small loan an ideal alternative for a current account credit. Other debts can easily be rescheduled with a small loan, to avoid unnecessary fees for collection or reminder.

Despite the small amount, small loans can be repaid flexibly. The banks offer their small loans with up to 84 monthly installments. The monthly burden is correspondingly low. If the financial situation improves during the repayment term, the loan can of course also be repaid faster. For this purpose, borrowers should make sure that special payments and early repayment are possible for free.

Small loan with online instant confirmation

Anyone who has to settle an urgent bill with the microcredit or wants to take advantage of a short-term special offer depends on a swift decision by the bank. Branch banks, however, often spend a lot of time before they come to a decision. The whole thing goes much faster with an instant loan over the internet. Here, the applicant already knows after a few hours, whether the small loan is granted. A preliminary credit check is carried out using a standardized test procedure. For a correct examination, it is important that the applicant provides all the information needed truthfully. Misrepresentations would also make no sense, as they must be proven by documents.

How to manage payday loans and savings in times of crisis

We have already underlined how the period of economic crisis negatively affects household spending capacity and credit disbursement : if the available budgets are limited, more attention must be paid to outflows, including any installments of loans to be repaid.

If you have purchases or large expenses in the program, give yourself a maximum budget not to be exceeded. Consider also the maximum amount that you can repay every month when you decide to apply for a loan (” power of mortgage purchase “). If you choose to apply for a loan, whether it is finalized or not, analyze your economic situation over the entire duration of the contract before signing it.

It is very important to be attentive to the clauses and expense items that are proposed to you, to avoid finding you, under a contract already signed, with expenses that you did not foresee and that could put you in difficulty. Then check the pre-contractual information and the information that must be present in the contract.

Once you have this information, you can find the offer that best meets your needs and allows you not to exceed the budget you have set. To monitor your financial situation both at the time of access to credit, and in the repayment period of the installments, you can contact Advanti, a tool that allows you to plan debt in a conscious and sustainable way.

If these tips are valid for evaluating your financial situation and making appropriate choices, you should not forget creditworthiness. Have you always repaid the installments of your previous loans on time? Have you always been “good payers”? If you answered yes to the two questions, the information about you in the Credit Information Systems will be positive and you probably will not have trouble getting a new loan.

Loan in 5 minutes?

When I first visited the DuableCredit website, a new company in the loan market, I began to wonder if there is any sense in writing about it. As if their offer is to stand out from other companies providing payday – certainly not the amount of available loans or borrowing costs. Maybe it is something that the company stands out from among competing brands?

“3 minutes for registration, 1 minute for consideration of the application, 1 minute for transfer to a bank account” – this is one of the advertising slogans encouraging to reach for the DuableCredit loan. But what’s best, such a short time of granting the loan does not only apply to the company’s regular customers, but above all to those who reach for the loan for the first time. This is one of the main advantages of the company’s loans, but not the only one because the second equally important is the easy availability of loans.

What do I mean here specifically? The main thing is that in order to get the cash you need, you do not have to get too tired. In order for Lime-Credit to grant us a loan, it is enough that we are at least 18 years of age, we have an ID card and an active bank account. The company also makes it possible for people who have not the best credit history to get a loan and even applies a special “Credit history improvement” program. At the time of writing this article, however, I did not know the detailed information about this program yet.

Four loan rates: VIP, Lime Gold, Lime Silver and Lime Start.

Four loan rates: VIP, Lime Gold, Lime Silver and Lime Start.

Each of these packages differs in the amount of loans and is directed to a specific group of borrowers, depending on which loan you are reaching for. If we apply for the first loan, the system will most likely give us a Start package under which the maximum loan amount is PLN 400. The largest available limit is available under the VIP tariff and amounts to PLN 2,000. A large loan amount is not the only advantage of the VIP package as it also allows the possibility of obtaining more favorable terms of a loan or a 5-day free use of money.

A loan straight to your account or Paypal account 

A loan straight to your account or Paypal account 

DuableCredit enables you to get the cash you need either directly to our bank account, as well as to a bank card issued by Visa and Mastercard systems and a PayPal account.