Quick loans are, in short, a smaller loan that you borrow for a shorter period of time. With some of the lenders, you can get the loan paid off within an hour or you can wait a maximum of one to two business days. The reason why it was initially called sms loan is that they used to send a sms to borrow money. This is not so common today, but all loan applications for fast loans are usually handled via a loan form on the lenders’ website. There are many different concepts for these types of loans, eg micro loans, mobile loans and internet loans, etc., but it is basically the same service that the lender has to offer you as a lender.
The loan amounts for quick loans can vary quite a lot
As is the loan period, t he default is usually that you can borrow between $ 500 and $ 15,000 with a loan period of 15-90 days. Interest costs and setup fees can vary greatly depending on the lender you are applying to. Some of the lenders even offer new customers where you can borrow up to $ 15,000 for 30 days with 0% in interest and $ 0 in fees. There are plenty of such new customer offers from several lenders and is perfect to apply for as long as you can repay within the loan period to avoid reminder fees and interest rate premiums. At FreeSavers you can compare fast loans and see all costs, conditions, credit information the lender takes on you and information about payment times from the time you apply until you have moneyin your bank account.
The truth about effective interest rates
The effective interest rate on fast loans is something that has been extensively discussed over the years. It is not uncommon for this to be at a few hundred percent which can sound very much, and is something that creditors have received a lot of criticism over the years. The reason for these high figures is that you actually compare a quick loan of 30 days against a regular annual loan, which is not a correct comparison. An annual loan that is repaid within 30 days may well be more expensive than a quick loan when you count all costs and fees.
A quick loan is preferable if you partly want to borrow a smaller amount of money, if you intend to repay the loan within 90 days or if you have difficulty getting a loan from some of the larger private banks because of your low credit rating or payment remarks. Then if you simultaneously use a price comparison site where you find a lender that fits your terms, well then you can minimize the cost of your quick loan.