Think before you borrow! Save money on loans here

Whether quick loans have a positive or negative sound can be very individual. It is also something individual, what you want to spend your money on if you are applying for a quick loan. Overall, applicants for quick loans can be divided into two categories: those who have received some unforeseen bills and those who want a consumer loan.

Some considerations they both should make are, first of all, whether the loan can be repaid on time. Is it soon payday, and if one stands and lacks the money here and now, a quick loan can be a good way out. By taking out a loan that helps at the end of the month, one can create air in the economy, thus avoiding unnecessary stress and savings on e.g. food.

There are advantages and disadvantages of all types of loans, and this also applies to the quick loan. The benefits lie in the fact that it is easy and quick to search. It can be done from home, and thus there is no turnaround time such as in the bank. One also avoids having to send papers back and forth, as it is possible to sign with its easy ID and there should be no security.

When talking about providing security, it applies to properties such as houses and cars. If you do not own any of the parts, you will not be able to set them as mortgages either, so the interest rate will increase instead. Precisely because quick loans are easy to take and without human contact, the review of one’s personal finances is also lacking. If you do not already have an overview, you do not know if it is possible to repay the loan, and in the worst case you will be registered in Credit Bureau as bad payer.

What is the money for?

To avoid the Credit Bureau, it may be an idea to look at what the loan should go for and whether there are other possible alternatives. In a few cases, a simple review of the budget can make you get the money you have every month – late in the month – is missing. This can be when shopping for food. Instead of shopping every day, it pays to do it once a week and then for the whole week.

It is gradually possible to borrow anything from a few hundred kroner to over 100,000 DKK. It can be very tempting to have access to such high amounts. Most quick loan providers have an upper limit on the first loan. This means that it is possible to borrow, for example, 4,000 kr the first time. If the loan is then repaid on time, the next loan rises to 10,000, etc. You get access to more money, the better you are to pay back.

If it is a mortgage or car loan you are looking for, it might be an idea to go to the bank instead. Here you can put the house or car as security, and thus get a lower interest rate, and longer maturity. It can be a very expensive affair if the loan is taken as a quick loan, as interest rates will make the final repayment very large.

On the other hand, if the loan is for consumption, quick loans are the right solution. There can be many unforeseen things in our everyday lives. It can be any electronics that get rid of, the pet that has damaged furniture or clothing – in general, everything that can give a headache if you cannot afford to replace it. However, there is a tempting but very uncertain reason to take a loan to pay another back. Here you end up in a vicious circle that can be difficult to get out of again. Then it is smarter to tighten the budget a little, and quietly become debt free.