We offer you all the information you need to know to choose the best microcredits. Then you can compare among all offers personal microcredit market up to 1,200 euros and get the extra cash you need to deal with any unforeseen economic you may have.
How are current personal microcredits?
Personal microcredits are a financial product with which we can get up to 1,200 euros. They are called personal because the guarantee rests solely on the person who has requested one of these minicréditos, ie, does not need anything or anyone to support the request for microcredit to be granted and in the case of default, the applicant will respond with the set of present and future assets, before the lender.
When the return period ends, we must return the amount that has been lent to us plus the interest, which will be based on the amount obtained and the term to which we have requested the personal micro-credit. In case of not having collected enough money and not pay, we will be in breach of the contract we established with the entity, so we will apply late interest and other expenses, which will increase the debt we have contracted. To avoid this situation, before applying for the personal microcredit, we have to ask ourselves if we are going to be able to raise enough money to face the amount owed.
The granting of fast microcredits has increased significantly during the last years, since they are easy to obtain financial products and can be adapted to practically any need, always within limits. These loans are specially designed to solve emergencies that require a quick solution and little money. For example, they can be used to pay a traffic fine, to avoid a bank discovery or to repair domestic breakdowns. However, as its price is high, it is not advisable to use them on a recurring basis.
Personal microloans present certain differences with other forms of financing, such as the fact that they have fewer requirements when requesting one of them. We also need a smaller number of documents to present and above all, we stand out because we can have the money in our hands in much less time.
What will a personal microcredit be for?
When we decide to use one of these products, we must be clear that these are the credits with the highest price in the market and with the shortest repayment term. Once we have this clear, it is essential that we ensure that we can reimburse the capital in the period previously established with the lender, before hiring them.
In any case, these products were created with the purpose of resolving specific unforeseen situations that require an immediate economic response and never as a usual or recurring financing channel. These are the most common and appropriate purposes for which personal microloans can be very useful:
- Banking discoveries that involve large commissions.
- Traffic fines for those who offer us a discount for prompt payment.
- Failures of essential appliances in a home like repairing the thermos or the washing machine.
- Medical services that are not covered by Social Security such as going to the dentist or the eye doctor.
Although these are the most common purposes and in which it will be most convenient for us to request immediate microcredits, it is important that we do not hire anything if we are not totally sure of being able to face the clauses of the contract.
Where can I apply for a personal microcredit?
A few years ago, when we needed to obtain financing, the only option we had was to go to the banks and visit their branches/offices repeatedly, after many paperwork, to obtain a loan. However, with the arrival of private lenders, who market installment loans, we have a much wider range of options- GAD also provides them.
The possibility of going to a bank branch to get personal loans is still there, but now we can also request these personal microcredits that are faster, comfortable and accessible. Not only that but the private capital companies that market them have adapted to the online world and with the immense amount of entities that are in operation, it is possible to get these personal mini-loans 100% online. The paperwork will also be many minors and we will save the displacement to the branch and the consequent waits.
The average price of personal microloans
Although they are a type of personal loans, microcredits have a series of differential characteristics that make them different from other products with a personal guarantee. For example, these loans are granted faster than bank loans and have a much shorter repayment term, so the APR is not the best index to calculate its cost and compare it with other products. In this sense, to compare the price of several micro-credits, it is better to take as a reference the cost of 100 euros to be repaid in 30 days, because this way we will know how much the company will charge us for each day that has elapsed.
On the other hand, we must also know that, fortunately, apart from the interests involved in contracting these microcredits without paperwork, we will not have to pay any kind of additional commission or related products. That is, we will pay the price stipulated in the contract. However, if the repayment period expires and we fall into default, the lender will take a series of measures to reimburse the loan with interest, among which we can find some commission as a penalty for the outstanding debt.
One of the ones usually adopted by several lenders is the debt position commission, for which they will charge us for each reminder of our non-payment. Likewise, higher default rates will also be applied to us, which will increase our debt even more. Therefore, it is never advisable to contract these products if we are not sure of being able to return the money on time because we could fall into a spiral of indebtedness from which it would be very difficult for us to escape.
Are there free microloans?
In recent years, with the great popularization that the private equity lenders sector has experienced, many of them have decided to differentiate and expand their client base by offering cheap microcredit with different conditions from the rest. So, currently one of the most common advantages that we can benefit from is the option to get the capital of mini-credits for 0 euros.
However, there are many advantages that we can obtain and then we list the most common ones:
- Free Mini-credits
- Microloans with discounts on fees
- Loyalty programs
- Amounts over 1,000 euros
- Option to repay the capital in terms of more than 1 month
These are the most common offers we can find, although, generally, they will require us to comply with certain requirements in order to enjoy them.