Short Term Loans Without Credit Bureau
Short-term loans immediately without Credit Bureau It happens again and again that unplanned expenses exceed the budget. Without Credit Bureau, we will solve your money problems with short-term loans. If you apply for a loan, you cannot avoid Credit Bureau – and if so, only because another credit agency checks your credit rating. “Short-term loan without Credit Bureau” – what you should consider.
Short-term loan comparison – service providers that really help.
For example, most of the account-holding house banks do not grant installment loans with a loan term of less than twelve years. Do you have one or more negative Credit Bureau entries? For consumers who actually only need something for a few or at most two calendar weeks or even only for two calendar months, there is now a real variant, the so-called short-term loan.
We would like to inform you in more detail in the following guide about this relatively new type of loan and also explain which special providers are available in this area. Definition: what is a short-term loan? Short-term lending is a special form of credit that is granted to those who seek loans under certain conditions.
That is why there are only a few service providers on the German labor market who have concentrated on such short-term loans. Above all, in contrast to conventional installment loans, the short-term loan has 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 also due to the short repayment period. Most providers start at USD 100 and only grant new customers a loan amount of max. 500 USD. How does a short-term loan work? The form of the short-term loan is approximately the same as that of a normal installment loan.
In specific cases, this means that you will only receive the requested loan amount after the lender has checked your creditworthiness. In contrast to the conventional installment loan from credit institutions, in the event of a negative booking of Credit Bureau in practice, short-term loans are granted in practice by the applicant. In contrast, this is somewhat unusual for installment loans, so that low-credit consumers are in favor of a short-term loan due to this situation.
If the client has also made use of additional services, such as the 2-rate option, these will also be offset against the loan amount. Fun Facts: Short-term loans are pretty expensive financing! Before deciding on a short-term loan, you should know that it is a relatively expensive form of financing.
In some cases, using your own bank overdrafts can be cheaper than granting a short-term loan. When does a short-term loan make sense? In several cases, borrowing a short-term loan is highly recommended for the respective borrower or even the only possible financing. In principle, the following reasons in particular speak in favor of granting such a loan:
Due to the low loan amount, the overdraft facility is in practice the only possible short-term loan option for customers. For example, if you need USD 500, you will not find any other suitable type of credit other than the bank overdraft facility. Installment loans are generally only granted with a minimum loan amount of USD 2,000, and even the smallest loan usually has a minimum amount of USD 1.
A thousand dollars. Because, on the one hand, the short-term loan is often the more cost-effective alternative to the overdraft facility and, on the other hand, the overdraft facility is not available to every individual consumer, for example in the case of negative credit, the short-term loan is well thought out under these conditions. In addition, it is primarily the borrowers who have opted for a short-term loan who have a negative entry in Credit Bureau.
Even a so-called third-party loan without Credit Bureau is out of the question, since here too the minimum loan amount is usually 2000 or 3000. In this case too, the short-term loan would be the only suitable financing option. The extremely short-term financial constraints are probably the basic prerequisite for taking out a short-term loan.
In addition, consumers choose this type of loan if they want to pay out as quickly 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 even explicitly point out that processing and payment can take up to 15 days, unless the client chooses an additional fee-based option.
This also includes a much shorter payout time, but can come at an additional cost of up to USD 50. The use of a short-term loan that you should consider well, because it is a fairly expensive loan mainly because of the relatively low interest rates. Only when one of the above points makes short-term credit business useful in practice is the only suitable form of financing recommended.
What are the advantages of a short term loan?
We already explained the advantages of short-term loans in the previous chapter, but we want to go into more detail about them. In this context, the advantages of the short-term loan should be pointed out. At a glance, there are the following advantages in particular, from which you can benefit with a short-term loan: Not only in the short-term loan do many consumers see the advantage that it is also possible to take out a loan if the Credit Bureau entry is negative is.
In addition, the borrowing is not passed on to Credit Bureau as usual. Because quite a few consumers view the credit listed in the Credit Bureau as a negative characteristic, this is often described as advantageous. In addition, those customers benefit from the short loan who actually only spend a small amount, such as USD 300 or 500.
The simple application process is also an advantage, as the loan can be drawn on via the website from any of the service providers listed below at any time and without any problems. In addition to the differences mentioned above, there are some other disadvantageous aspects of short-term loans: The biggest disadvantage of short-term loans is that it is a very costly form of financing that is almost independent of the respective service provider.
What Are the Benefits of Short Term Loans?
Interest rates of between eight and twelve percentage points are customary, so that the short-term loan is essentially comparable to the current account credit in terms of acquisition costs. The so-called 2-rate option can also make sense for a number of borrowers, but is often also associated with additional costs of between USD 20 and 50. Adding up all of these expenses, including the interest rate level, it is quite possible that the consumer will have to repay around USD 600 for a short-term loan of USD 500 with a period of 30 days.
In any case, this disadvantage must be taken into account before you hastily opt for a short-term loan. Who offers short-term loans? After extensive information on the subject of short-term loans, we now want to put it into practice. Below we will list a few service providers with the essential conditions that are geared towards short-term loans.
However, as already mentioned in the introduction, there are currently no more than five companies in Germany that offer such a special loan. The selection of the three most renowned and most widespread short-term credit providers includes: vexcash focuses on short-term loans and clients can count on the following general terms and conditions:
The short-term loan from vexcash is therefore extremely expensive with an effective interest rate of 13.90 percentage points. In some cases, the interest is still more than four percentage points higher than with a current account credit, so that the question actually arises for which customers this form of financing makes sense. In general, the short-term loan from vexcash is only recommended for people with a negative entry into Credit Bureau and an urgent need for equity capital in small amounts, although there are some competitors in direct comparison of the providers where short-term loans are cheaper to get.
Another provider of short-term loans is the Capital Lender, in particular with its umbrella brand xpress. However, the achievable loan amounts lie in a very narrow corridor, between USD 500 and 600. New customers can get 500 USD as the maximum loan amount, while existing customers request more than 600 USD.
At a glance, xpressscredit currently offers the following conditions: In this case, the funds are available within 24 hours on the player’s account, but there are additional costs. For some time, Cashper has also been one of the most renowned short-term loan providers. Applying for the loan is easy via the website and this lender also offers some fee-based additional services.
Of the three service providers mentioned above, the Fine Bank, with an effective interest rate of 7.95 percentage points, is by far the one who can offer the cheapest short-term loan. In direct comparison, there are many reasons why you chose Fine Bank when you want to take advantage of a short-term loan. Conclusion on short-term loan: the advantages and disadvantages are balanced!
All in all, the short-term loan is certainly a very good financing option under certain conditions, as it has various advantages. The short-term loan is particularly suitable for customers who only have a low liquidity situation for a short time or who have a negative entry in Credit Bureau. For example, the financing of consumer spending between USD 100 and 1000 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 the overdrafts.