Almost everyone knows the phases in life when you go through financial constraints. Usually the despair is great because the losing streak has to be bridged somehow. In this case, an emergency loan is usually the rescue in need. An emergency loan is a loan between 500 and 5000 USD. Occasionally, the express credit is also referred to as a cash credit, personal credit or consumer credit. It can be issued by both credit institutions and private individuals.
For which life situations would an express loan make sense?
Just imagine the following scenario. The family car suddenly gives up at a very unfavorable time and the repair costs exceed the value of the vehicle. This is fatal for a family with children. With an express credit, the family can get a new used car within a few weeks and the world is in order again. Often it is also private purchases such as a new television, washing machine or urgently needed new furniture that make an urgent loan necessary.
A forthcoming move also entails high costs. Be it the rent deposit, renovation costs that cannot be avoided or the cost estimate of the moving company. Sometimes you just want to treat yourself to a nice long-distance trip, which the current budget does not allow. The express credit can solve all these problems and give a little financial freedom.
The express loan under the magnifying glass – the advantages and disadvantages of a loan
Like everything in life, taking advantage of an express loan has pros and cons. Before the borrower signs the contract, it is important to weigh it up carefully.
The advantages of an express loan are obvious. The borrowed money is a manageable amount that the borrower can repay relatively quickly in not too high installments. In addition, the small loan often comes up with attractive framework conditions, such as a cheap fixed interest rate and a very short waiting period. In addition, the borrower often benefits from very low processing costs with an express loan and can have the desired loan amount after 14 days at the latest.
Negotiation options are only available to a limited extent with an express loan. In most cases, you have no say in the amount of the installment, loan amount and term. All contractual conditions of the credit institution must therefore be accepted. In addition, in the case of an emergency loan – not like in the case of larger loans – the assigned customer advisor makes the loan decision. With a smaller loan, a computer decides the creditworthiness of the prospect.
The quick financial injection – first and foremost is the credit check
No matter how much the borrower is in financial trouble, if the creditworthiness, ie the creditworthiness, leaves something to be desired, a loan application is immediately rejected. That’s understandable because the bank wants to make sure that the loan can be paid back. The criteria for an urgent loan are not quite as strict as for a larger loan, but the following requirements must be met in any case.
The borrower must have a secure employment relationship and a salary that enables them to prove the monthly installments. In addition, the Credit Bureau information must be positive. Additional collateral is generally not required. Some banks also offer people with a negative entry the opportunity to take out an emergency loan, but caution is advised here. There are some black sheep among the lenders who are compensated for this risk with hefty interest.
How does the borrower protect himself from usury?
As with all contracts, the golden rule applies to small loans: always read the small print. The borrower must take the time to study the contract properly and have passages that he does not understand explained. It also doesn’t hurt to have a credit contract checked by a lawyer. If there is a catch in the contract, the lawyer will immediately raise the alarm. But if the terms of the contract are acceptable, a rush credit is a very good way to bridge some financial bottlenecks.