For most people there is probably a situation in which you have (temporarily) a little less money to spend, or that you have to make an important payment while your salary is still waiting. In such situations it is sometimes very useful if you can borrow money so that you can still handle your finances. For example, you could borrow money from a family member or close friend who has built an apple for the thirst and who is willing to free you from your awkward financial situation with the help of a small loan. But uncle you might consider taking out a small loan with a bank or other lender, such as a small personal loan or a mini credit.
Get small payday loan online
Before you can take out a loan, you must carefully determine how much money you need to be able to solve your financial problems. Once you have a clear picture of this for yourself, you can look for the various options that various lenders can offer you. You can look for a small payday loan and use this link to apply for it.
How can you borrow a small amount?
If you only want to borrow a small amount of money, you can choose from a number of options in our country, such as:
- Taking out a personal loan : this is a consumer loan form in which the borrowed money will be paid in one lump sum and must then be repaid by the borrower in predetermined periods. Each repayment term will thereby be based on a partial repayment and a certain percentage of interest that is calculated on the residual debt. The duration and interest will be laid down in a loan agreement with a personal loan and are invariable for the duration of the loan. Above all, in contrast to, for example, a revolving credit, it is not possible to re-take the balance already repaid, so that the course of the loan will be fully determined from the start. Due to the lack of certainty, the interest rate on a personal loan will be higher than, for example, a mortgage, but will be lower than with a revolving credit because the interest rate risk remains limited. In Belgium, lenders are required to check the borrowing history of an applicant for a personal loan with the CKP as soon as a loan is requested of more than 1000 euros or with a minimum duration of three months. In addition, the borrower will be protected because the maximum interest rate has been set by the government (this can only be adjusted every six months).
- Taking out a mini-credit means that you take out a loan that has a short duration (no more than three months) as well as a small loan amount. This loan will as a rule only amount to a few tens to hundreds of euros (and may not exceed 1000 euros). However, this loan form will not be free of charge. Often even in the short term you will not only have to pay back the borrowed money, but also a substantial loan fee to the lender. Because most providers of mini-credit only work on the internet, you should always look online for the most cost-effective solution in this area.
- Paying with a credit card is also a way to quickly gain extra financial leeway. With the help of this card you can not only make payments, but often also withdraw money at an ATM. The credit card company will then immediately make the payment, while you will receive an invoice at the end of the month. If you pay the credit card account immediately in one go, then usually no interest costs will be charged. However, this becomes a different story if you choose to repay the credit card account in installments. In addition, costs may also be charged for the use of the credit card by the provider of the relevant card. However, all this type of information can be found in the general terms and conditions that apply to a certain type of credit card. In these conditions you will also find the extras that are attached to certain credit cards, such as special insurance policies and forms of assistance that the user of the credit card can use. Using a credit card to borrow a small amount of money does not have to be expensive in all cases (this depends a lot on how you will pay off the resulting debt).
- You need to request your bank from (temporarily) red on your current account. Of course (for certain reasons) a bank can approve or reject this request. However, if you are allowed to be in the red, you can usually spend a small amount while you actually do not have it. As soon as money is deposited into the current account again, for example in the form of your salary, the negative balance will immediately be cleared. Although standing red at the bank is attractive, and extremely handy, this seems like a very expensive way to borrow money.
How do you want to borrow money?
Not everyone who wants to borrow a small sum of money will choose the same solution. This is not strange because the personal and financial situation will be different for everyone. For example, in certain cases you cannot apply for a personal loan or credit card because you have a negative registration behind your name at the CKP. You could also not use a mini-credit, for example, because you cannot have enough money in the short term to repay the debt and the fairly high loan fee.
In practice, it often turns out that the perfect solution for the one is absolutely not suitable for the other, while both people still want to borrow the same amount. It may even happen that one time you can make use of a certain loan and that you have to take a completely different path at another time in order to be able to borrow a small sum of money because personal and financial circumstances can easily change. Every time you want to borrow a small amount, you will have to assess which solution will be the most favorable at that time.
Comparing options and costs pays off
The moment you want to borrow money, even if it only concerns a small amount, you are advised to carefully examine all the options. Only in this way can you properly visualize and compare the costs and conditions. By comparing multiple borrowing options, preferably from multiple lenders, you can find the most favorable solution that best fits your personal and financial situation.
To make a good comparison, you need to request multiple loan offers from various providers, but also check which conditions and costs are associated with the use of a credit card or the red on your current account. You can then approach several financial institutions with the question of whether they want to send you the necessary information, for example in the form of a quote, but you can also choose to use a so-called comparison website.
On a comparison website, in addition to your personal and financial details, you also enter your wishes with regard to the amount of money that you would like to borrow and the preferred duration. Within a few minutes you will see a list of results on your screen with the most suitable loan product generally listed at the top. Often, to apply for the preferred loan, you only need to click on a special button or hyperlink. The relevant lender will then ask you for additional information and, among other things, perform a check at the CKP (if this is required by law).
Speed costs money
Borrowing money from a financial institution costs money in all cases, which most people are familiar with today, but not every loan type will entail the same costs. For example, if you apply for a personal loan, this will result in considerably less borrowing costs than when you would borrow the same amount in the form of a mini-credit, a credit card debt or a bank overdraft. One of the reasons why the loan payment of one loan form differs so much from that of the other is the time required to complete a loan. In this case you could argue that the sooner you want to receive the requested money, the more costs will be charged by the lender.
Tips if you want to apply for a small loan
Most people do not borrow money on a daily basis and therefore do not really have experience with this activity. Before you start borrowing money, it is good to read the tips below and take advantage of them:
- Determine first whether you really have to borrow money. Certainly if it concerns a small amount, it can sometimes be that you can also create some extra financial leeway in other ways. For example, you can start saving money by adjusting your spending and income stream or by postponing a certain purchase until you have managed to raise enough money.
- Search for the most favorable loan form by comparing multiple options and providers.
- Check the reliability of the lender, for example by looking up customer reviews and / or reviews using a search engine such as Google.
- If you have found a favorable lending method with a reliable lender, you should check whether you have sufficient repayment capacity to repay the debt entirely according to agreement and without financial need. If this turns out not to be the case, or even if you have doubts about this, then you are very wise to cancel the loan resolutely. After all, the chance of (financial) problems is always lurking, and of course nobody is waiting for that.
- Borrow only the amount of money you need, not an extra euro. After all, every euro that you borrow will entail borrowing costs. With some extra borrowed money you can definitely do fun things, but at the same time this will burden you with extra costs that you will be stuck with for a certain period of time.
- If you strictly adhere to the conditions attached to a loan and if, for example, you are unable to meet a repayment term, or cannot pay on time, then it is important to let the lender know as soon as possible. A suitable solution can then be sought together so that the problem does not have to get out of hand.
- Do not look too lightly at taking out a loan, even if it is only a small amount. By borrowing money, you will after all commit yourself for a certain period to agreements made and certain financial obligations.
- Never borrow money to be able to pay a repayment term of another loan. In this way, borrowing costs will only increase further and there is a good chance that you will continue to be burdened with financial problems. However, sometimes it is profitable to take out one or more expensive loans and thus save money or create more financial leeway every month.
Borrowing a small amount of money may not seem to bother much at first sight, but in practice it appears all too often that you have to incur quite a few costs. For that reason, you must always know exactly what you are doing, what is expected of you as a borrower and what you can expect from the lender if you agree with the loan conditions. Before you go to work with a lender, regardless of whether this is your own bank or a totally unknown financial institution, it is always recommended to carefully go through all costs (including the hidden costs such as administrative costs).
In addition, you will have to know all the additional conditions that are associated with a specific loan form. After all, if you do not do this, you may be confronted with annoying surprises, disappointments and / or serious (financial) problems. If certain things in the loan agreement or the general terms and conditions are not entirely clear, then you should ask for an explanation and only put your signature under the agreement if everything is completely clear. It is better to ask for explanations several times than to sign a contract that you do not know exactly what it entails. Ultimately, thorough research into the most favorable solution can save you a lot of money. Borrowing money always costs money, but you can often adjust the costs associated with a loan down a lot if you handle it conveniently.