If the stove is canceled today, you apply for a quick loan , and you have the money in your account tomorrow and you can call the repairman. In a week’s payday, you pay the loan and everything is fine. This is the ideal situation with a quick loan, but it is good to know the potential risks and beware of them.
Quick loans (also called micro-loans or Finnish loans) have existed in the Czech Republic for 6 years and help people solve short-term lack of money. The maximum amount of microloans is CZK 4,999, as five thousand is the minimum legal limit for consumer credit .
The biggest advantage is speed
A quick loan will not help you to dream your home, but can solve an acute shortage of several thousand. Choosing a fair provider has many advantages:
Negotiation over the Internet, telephone or SMS. You don’t have to go anywhere or fill in piles of paper.
Money within an hour, maximum the next day. The basic feature of unexpected expenses is that they do not wait. Speed is really useful.
No revenue control. Thanks to small amounts, providers do not verify the applicant’s creditworthiness, thus speeding up the process even further. Nevertheless, fair and responsible providers consult the registers.
Pay attention to sanctions and addictiveness
A quick loan is a good servant, but a bad master. Study the conditions carefully and do not underestimate them because of small amounts. Because of high interest rates, you can get to completely different amounts over time. Therefore, always try to repay fast loans as quickly as possible and take into account other limits:
Loan maximum 4 999 CZK. This amount may not cover all unplanned expenses, but it will certainly be sufficient for the most important ones.
High fees. Often, fast loans are subject to high interest rates and penalties for extending or late repayment.
Maturity within 30 days. The maximum repayment term is usually 30 days, but it is even shorter for many providers.
Addictive. Quick loans often tempt people to use them repeatedly, although they do not need them. Remember that even this loan can become very expensive and you can fall into a debt trap.
Don’t rush to select a provider
While the micro-loan format always remains roughly the same, there are large differences between providers. There are many of them on the market and in some of them you can pay off your micro-loan by half. To see which providers you prefer to avoid, check out the Good Lender test. Analysts compared 13 providers and listed their pros and cons for each. The second source for searching for a fair micro-loan may be a test of the BankovniPoplatky.com server, whose results were simply summarized by the editors of Small Lender. In this test, 15 providers could score up to 10 points according to 10 criteria. But only one won the full number.