With a small loan or micro-credit can quickly settle issues when there are financial constraints. The new washing machine, Playstation or the new mobile phone can be bought immediately, without a big hole in the household budget will be torn. Whether this is better for a credit line of the house bank or a microcredit that can be completed online, shows a comparison best.
Clever use of small loans
A small loan is ideal for purchases in the lower price segment, because it is not always the big wishes, whose financing sometimes seems impossible. Even with small sums of money on the account can be scarce, especially at the end of the month. As defective devices such as TVs, laptops or tablets take no account, cash is required for the new purchase immediately. Small loans can provide a suitable alternative as bridging finance to bridge the time to salary receipt.
For smaller sums of up to 600 euros, either a microcredit or a credit line is available. The repayment credit is always linked to the checking account of a bank or a bank. The amount of the loan must be agreed individually, often 500 euros are automatically set. A higher limit must be agreed individually and is at the discretion of the bank. The repayment of the loan takes place immediately and simply by cash on the account. If this is not sufficient, the account is frozen after two to three months until the credit line has been paid off. The interest on the disposition credit is often many times higher than other forms of credit.
Sample Invoicing VS. microcredit
Here is a concrete example of when a micro-currency can be worth the disbursement credit:
- The average discount rate for many branch banks is around 10%, the overdraft rate up to 15.5%. If you now cover 500 euros for a credit limit of 300 euros for a month, you pay in the end 5,08 euros.
- As counter-example Vexcash: If you take here 500 euros as a loan over a period of 15 days, you get at the fixed 13.9% interest on just 2.90 euros costs.
For small sums and maturities, of course, the difference is not huge at first but especially when amounts and maturities or overdraft periods are larger or the overdrafts accumulate, you can save money by taking a loan regularly.
The microcredit as an alternative to the dispo
A more flexible and cheaper alternative to the credit line is microcredit. He also belongs to the small credits and a loan can be applied for very quickly and easily, so as to compensate for the account relatively spontaneously at the end of the month. The loan is confirmed in real time and the money is transferred quickly – usually within 2 days. For the express credit option, even on the same day, if all documents are received by 14:00.
Vexcash offers a particularly good option, where the repayment period starts at 15 days and can last a maximum of 90 days. For new customers, the loan amount is between 100 and 500 euros, so perfect to bridge a small financial bottleneck. For repeated borrowing up to € 3,000 can be requested.
A payout is possible despite entry to the private credit, but the private credit score must be at least in the middle range. So you must not be over-indebted. For the application, only an identification by post-beneficiary procedure or a guarantee is necessary, you do not incur any pre-costs or processing fees.
Prerequisite for a microcredit
Of course, certain conditions must be met for a micro-loan.
- No debt
- Residence in Germany
- German account
- Sufficient creditworthiness (variable)
The best loan for you
At first glance, the bank’s outright loan for instant cash solutions seems to offer the best loan. As far as the availability of money is concerned, the credit line is superior to microcredit. However, the benefits of microcredit, such as those offered by Vexcash, outweigh the benefits.
A microcredit can be granted despite negative private credit information after examination, moreover, the loan does not have to be repaid immediately. Also, the conclusion of a loan via smartphone is easily possible, so the money is quickly available for you on vacation. With a guarantee or a post-ID, you confirm your personal data and can apply for a fast loan at any time.