Consumers have a preference for quick fixes. With this, fast credit options are widely used for ease of use. All major banks and lenders offer a variety of options to customers. However, as everything has its advantages and disadvantages, you need to be aware of some issues in order not to make a wrong decision.
Ask yourself first if you really need the money and how it will be spent, if in an emergency or if you are buying a superfluous one. The recommendation is to opt for this type of credit only in case of real urgency.
What are the top fast credit options?
There are several ways to get fast credit, check out the main ones:
This means an automatic credit made available by the bank to customers when the account goes negative. After authorization by the customer, the overdraft covers the expenses to maintain the account with positive balance. In contrast, it has one of the highest interest rates on the market.
Store Credit Card
Most department stores offer their own network card to their customers. You can install in installments, receive the invoice at home or choose other payment methods, such as any bank credit card.
Pre-Approved Personal Credit
Many account holders have a bank pre-approved amount that can be withdrawn at any branch or ATM. This model is called pre-approved personal credit and the customer can withdraw any time he wants. However, he is stuck with the bank’s conditions for interest rates and payment terms, with no option to negotiate.
Financial and Moneylenders
Many lenders offer fast cash within 24 hours to clients. The medium is much in demand for little bureaucracy and few requirements to get the loan. There are also so-called loan sharks, people who work without central bank endorsement and are not tied to any financial institution.
Loan sharks are usually cash-strapped people who lend money without much collateral. On the other hand, despite the immense ease of opting for a loan shark loan is quite dangerous. Generally, when consumers do not pay they are persecuted and even life threatening.
What are the advantages and disadvantages of fast credit?
- It is easy to order and redeem. The customer will have the money in his business within a maximum of 1 week;
- Good solution for times of emergency. Ideal to cover unexpected expenses;
- There are not so many requirements on this type of loan, which facilitates the approval and redemption of money;
- Extremely high interest rates. Because it is more affordable and requires fewer collateral, fast credit interest rates are quite high. Before getting such a loan, remember that you will have to pay for it;
- Great chance of debt. As interest and terms cannot be negotiated widely, depending on the amount and the payment term, it is possible that the consumer loses control over the debt and becomes a snowball.