This increases your chance of getting a loan despite the medium negative credit score credit rating. The fact is that you can get a short-term loan even if you have a negative entry in negative credit score. Credit despite negative credit score: Only very few really depend on it. Loans from Switzerland or the Principality of Liechtenstein despite negative credit score and “loans without creation without credit check” move into the focus of the population.
Short-term credit comparison – service providers who really help.
For example, most home-loan accounts do not provide installment loans with a repayment term of less than twelve years. Do you have one or more negative credit score entries? However, for consumers who only need something for a few or at most two calendar weeks or even just for two calendar months, there is now a real option, the so-called short-term credit.
We would like to inform you in the following guide about this relatively new type of loan and explain you which special providers are available in this area. Definition: What is a short-term loan? Short-term lending is a special form of credit granted to those who seek loans under certain conditions.
Therefore, there are only a handful of providers in the German labor market who have concentrated on such short-term loans. Especially in contrast to conventional installment loans, the short-term loan presents itself through the following special features: The main features of the short-term loan are that this type of loan is only granted for a very short period of time.
Another feature of a short-term loan is that the loan amounts are extremely small – of course, due to the short repayment period. For most providers, these start at EUR 100 and only allow new customers a loan of max. 500 EUR. ¿How does a short-term loan proceed? The short-term loan is similar in its design to a normal installment loan.
In concrete terms, this means that you will only receive the requested loan amount after the lender has verified your creditworthiness. However, in contrast to the conventional installment loan of the credit institutions, in practice, in the case of a negative booking of the negative credit score in practice, short-term loans are also granted by the applicant. On the other hand, this is somewhat unusual in the case of installment loans, with the result that creditworthy consumers declare themselves in favor of a short-term loan as a result of this situation.
If the client can also take advantage of additional services, such as the 2-pack option, these will also be credited against the loan amount. Trivia: Short-term loans are quite expensive financing! Before deciding on a short-term loan, you should know that it is a relatively costly form of financing.
In some cases, it may be cheaper to use your own overdraft facility than to take out a short-term loan. When does a short-term loan make sense? In several cases borrowing a short-term loan for the borrower is highly recommended or even the only way to finance it. In principle, the following arguments in particular support the granting of such a loan:
Due to the low loan amount in practice, the current account credit is the only possible variant of short-term credit for the clientele. For example, if you need EUR 500, you will not find any other suitable type of credit other than bank overdraft. As a rule, installment loans are only granted with a minimum loan amount of EUR 2,000, – and even the smallest loan usually has a minimum amount of EUR 1,000.
A thousand euros. Because, on the one hand, the short-term loan is more often the less expensive form of overdraft and, on the other hand, the overdraft facility is not available to every single consumer, eg in the case of a negative credit score, the short-term loan is well thought out under these conditions. In addition, it is above all the borrowers who have opted for a short-term loan, which have a negative entry in the negative credit score.
Even a so-called third-party loan without negative credit score is out of the question, as here, too, the minimum loan amount is usually 2000 or 3000. Also in this case the short-term loan would be the only suitable financing option. The extremely short-term financial bottlenecks are probably the basic requirement for taking out a short-term loan.
In addition, consumers choose this type of loan if they want to withdraw as soon as possible. The short-term loan is usually transferred to the specified bank account within 48 hours, but often only with an optional additional service. Some short-term lenders explicitly point out that settlement and payment can take up to 15 days, unless the client chooses a chargeable additional option.
This also includes a much shorter payout period, but can incur additional costs of up to 50 EUR. The use of a short-term loan, which you should consider well, because it is a rather expensive loan, mainly because of the relatively low interest rates. Only when one of the above points makes short-term lending in practice meaningful, the only suitable form of financing is recommended.
What are the benefits of a short-term loan?
We have already explained the benefits of the short-term loan in the previous chapter, but we would like to discuss it in more detail. In this context, the benefits of the short-term loan should be noted. In summary, the following advantages are the most important benefits you can enjoy with a short-term loan: Not only in the short-term loan, many consumers prefer that it is also possible to take out a loan if the negative credit score’s entry is negative is.
In addition, the borrowing is not passed on as usual to the negative credit score. Because not a few consumers regard the credit listed in the negative credit score as a negative feature, this is often called beneficial. In addition, just those consumers can benefit from the short loan, which actually only spends a small amount like 300 or 500 EUR.
Another advantage is the simple application procedure, as the loan can be claimed at any time and without any problems via the website at any of the service providers listed below. What are the advantages of short-term loans? In addition to the above-mentioned differences, short-term loans add a few more detrimental aspects: the biggest drawback of short-term loans is that it is a rather costly form of financing, almost independent of the provider.
The usual interest rates are between eight and twelve percentage points, so that the short-term loan in terms of acquisition costs is essentially comparable to the overdraft facility. The so-called 2-sentence option can also make sense for a number of borrowers, but is often implied with additional costs between 20 and 50 EUR. Adding up all these expenses, including the level of interest rates, it is quite possible that the consumer would have to repay around € 600 with a short-term loan of € 500, with a notice period of 30 days.
This disadvantage must be taken into account in any case before you speak prematurely for a short-term loan.
By whom are short-term loans offered?
After extensive information on the topic of short-term loans, we now want to put into action. Below we will list a few service providers with the essential terms and conditions that focus on short-term loans.
However, as already mentioned in the introduction, there are currently not significantly more than five companies in Germany offering such a special loan. The selection of the three most respected and widely used short-term credit providers includes: provider A focuses on short-term credit and clients can count on the following terms and conditions:
The short-term loan from provider A is therefore extremely expensive with an effective interest rate of 13.90 percentage points. In some cases, the interest rate is more than four percentage points higher than in the case of a current account credit, so that this position actually raises the question for which clientele this form of financing makes sense. In general, provider A’s short-term loan is only recommended for people with negative credit score incomes and urgent capital needs in small amounts, although in the direct comparison of providers there are some competitors for whom short-term loans are cheaper.
Another provider of short-term loans is the bank, in particular with its umbrella brand xpress. However, the recoverable loan amounts are in a very narrow corridor, between 500 and 600 EUR. New customers can get 500 EUR as the maximum loan amount, while existing customers get more than 600 EUR.
At a glance provider B currently offers the following conditions: The funds are in this case within 24 hours on the player’s account available, but there are additional costs. provider C has also been one of the most respected short-term loan providers for some time. The application for the loan is easily made through the website and this lender also offers some additional paid services.
Of the three above-mentioned service providers, the provider C, with an effective interest rate of 7.95 percentage points, is by far the one offering the cheapest short-term loan. There are many reasons why you have opted to use provider C if you are looking for a short-term loan. Conclusion on the short-term loan: The advantages and disadvantages are weighed!
All in all, the short-term loan is certainly a very good financing option under certain conditions, as it has several advantages. The short-term loan is particularly suitable for those customers who only have a low liquidity situation for a short time or who have a negative entry in the negative credit score. For example, the financing of consumer spending between 100 and 1000 EUR could be considered.
The disadvantage of the short-term loan, however, is the very short-term repayment phase and, of course, the not particularly advantageous interest rate, which in some cases is also at the level of overdrafts.