Lack of money is a problem that concerns more than one. No one is immune to a lack of cash even with savings aside to cope with the unexpected. In order to make up for this budget shortfall, small credit is presented as the optimal borrowing solution. It allows to have a small amount of money without providing proof at the request. It is not just people in need who subscribe to this type of loan. Moreover, the reasons that lead individuals to use the small loan are very varied.
As part of a purchase, small credit money can supplement your personal contribution. It can, among other things, finance small daily purchases such as provision, leisure or outing with friends. Given that the amount of the small loan varies from 500 to 5000 USD or 6000 USD at most, the possibilities of use are more extensive.
A small short term loan
Since this is a small amount of money, the contraction period does not extend over years as with a conventional loan or mortgage. In addition, the minimum duration of the small loan is equal to 3 months, in particular for an amount of $ 500 where payment is made in 3 installments. We do not have to ruin ourselves to make a loan. The higher the amount requested, the higher the debt. Then, it is better to renew as his credit, rather than seeing his debts grow. Especially since a long loan is synonymous with high rate. To compensate for the too long repayment period, banks protect themselves from possible customer failures by applying higher interest rates.
Freedom in the use of funds
Since this is a small amount, credit institutions do not require proof. A priori, the small credit is for individuals whose income is small. For lack of means, they are forced to borrow to finance their desires. Like loan without justification, this financial loan is very flexible in its use. A common feature of personal loan, the preferred credit of households. However, you must know how to manage your budget by avoiding unnecessary expenses given the freedom of use of money.
It should be noted that the small loan is a consumer loan that can finance the purchase of consumer goods and other services. Projects such as the purchase of a household appliance are possible thanks to this loan. The list of needs accessible from the small loan is far from exhaustive; TV, computer equipment, furniture, repair work, weekends, among others. The beneficiary is not obliged to explain to the creditor the destination of the funds allocated.
How to benefit from a small credit?
People who have small expenses to do can quite easily apply for a small credit from a specialist in the field. In order for the credit to be issued quickly, you will have to build a solid file with all the documents requested by the lending bank or the credit company. However, the file of any applicant who has been filed with the Francia Bank will not be retained. It will be immediately rejected by the lending institutions. Nevertheless, other solutions are presented to the over-indebted who can not use the conventional banking circuit. These alternatives are in the form of help and are offered in some French cities. Notwithstanding, the amount granted does not exceed 500 USD.
Check your borrowing capacity
Although the amount awarded is minimal, it is always advisable to check its repayment capabilities before committing. Moreover, it is possible to evaluate your financial situation on online credit calculators. For this, two types of tools are available to you; the credit simulator to simulate credit and another tool to know your borrowing capacity. They are able to determine how much you can support.
A personalized customer service can guide you throughout the loan, even before the loan is taken out. The advisor is supposed to give you instructions on how the credit works. He may ask you if you have made other loans at the same time to limit your debt. With several credits to repay, the borrower can lead to over-indebtedness, which is however frowned upon by the financial companies of the market.
A credit solution for low income
The major advantage of small credit lies in the fact that it can be subscribed, even without income or with an unstable situation. The unemployed have the opportunity to make a mini-loan, as well as people who receive allowances RMI, RSA and various pensions. Long before entering the formal process, assistance from credit platforms would be very useful. In fact, the bank’s response will depend on the duration of the allocations. It turns out that the lending institutions do not have a special framework for this type of loan which is managed à la carte. This requires careful study on a case-by-case basis, at the risk of not recovering the money allocated.
Another advantage of this type of loan is its small monthly payment, from 19 USD depending on the amount borrowed. For a credit of 500 USD, ie, the minimum amount, the refund will last for 24 months. Like any other loan with a depreciable rate, the monthly payment is the same until the last expiry.
The different forms of small credit
The small consumer credit
The most common small credit is probably the small consumer credit. It is intended to finance various needs. With a small loan for consumption, you can afford a cheap stay in the mountains, repair your car, pay taxes, buy a laptop, etc.
The revolving credit
The revolving credit can be considered as a form of small credit, since the authorized amount is from 500 USD, so the same as for a small credit. He is preparing for small projects that do not require a large budget. The capital of such a loan is constituted as and when repayments. In other words, the capital is available at any time. You do not have to wait until the funds are released to get your hands on it.
Find the best offer online
In order to take advantage of your loan, consider finding the offer at the best rate. It is always advantageous to compare the proposals before making the final subscription. Then, this operation is not very complex. Setting up the online credit comparator facilitates this task. No need to go around the banks for information on each offer. The comparator is directly linked with online credit institutions and takes care of doing it for you. The results are displayed instantly. It is thus easier to find the small credit that adapts to your needs and your particular situation.
Have a glimpse of small credit thanks to the simulator
After the step of the comparison comes the simulation. Simulating one’s credit does not force the borrower to question his future credit. It allows to have a first approach on the loan offer that it intends to subscribe, essentially, the rate, the amount of the monthly payments and the duration of the loan. Concerning the rate, it is not necessary to stick to the rate communicated on the advertisements, these rates of interest do not include the ancillary expenses of the credit of which the expenses of file the expenses of insurance. Only the actual rate counts, that is, the APR or the annual percentage rate of charge.
Is credit insurance compulsory?
Credit insurance is not mandatory, especially with a small loan that will not take years. Many credit institutions dispense with this optional step. With the exception of some signs that are quite sensitive about it. In this context, the borrower will have to take out insurance. It may be that the bank offers insurance, but the subscriber is always free to choose the insurance of his choice. In order to pay less, you can also compare the insurance offers on the market.
The purpose of insurance is to protect the lender from risks that may lead to non-payment of due dates in the event of disability, death or loss of employment. As a result, if the borrower is unable to repay the principal due, it is up to the insurer to complete the entire amount borrowed. In other words, the insurance participates in the guarantee of the small credit.
To conclude, the small credit has been designed to cover your small money needs. Restricted budgets can build capital through this loan. In case of emergency, it is a great help, because the granting of the loan is faster because the obtaining procedures are more flexible. After validation of the request, the funds are available on your bank account within 24 hours.