Nowadays fast loan or so called payday loan is one of the most popular type of loans. When you have temporary financial difficulties, you have possibility to borrow the necessary amount of money using only Internet. Loans like fast loans are conveniently and easily obtainable – you do not have to go outside the house to get it. Unlike bank loans, you can get fast loan in very short period of time which is usually a couple of minutes.
Fast loan is loan of money which is great solution for situations when you urgently need money, but you are shy to borrow it from your relatives or friends, or they just do not have spare money. The main aim of these loans is to help people in extraordinary situations, for example, accidents, urgent payments of bills, medical visits or just temporary lack of money when you need to survive until your next pay day.
Fast loans are not meant for entertainments or unnecessary purchases, but taking into account a fact that potential client does not have to tell the target for which the loan will be borrowed, borrowers often use their loan irresponsibly. Although fast loans are much easier to get, they are one of the less favourable loans, namely, they have short repayment terms, they are available in small amounts of money, as well as they have high interest rates which have to be repaid with loan principal.
Fast loans became popular in the year of 2007, and from that time the number of lenders has grown. To attract new clients and maintain the competition between lenders, creditors introduced a new type of loans – interest free loans. Of course, it does not mean that the loan is absolutely for free – it is free only for the first time which means that interest free loans are available only for new clients. If you are a new client, interest free loan is very advantageous. In the case of interest free loan lender gives, for example, 100 Euros, and borrower returns 100 Euros without losing any cent from its own money. Interest free loans are not profitable for lenders – these loans are used just for marketing purposes. It should be mentioned, that interest free loans are absolutely for free only then, when borrowers repay them in time without extension of repayment term. Of course, borrowers can extend a repayment time, if they cannot repay the loan within the prescribed term, but in that case interest free loan becomes a regular fast loan with interest rate.
No one is safe from situations when personal funds are run out, but money is urgently needed. When person understands that the only option is the fast loan, it is important to compare lenders of fast loans before making a decision. Each lender has different offer – factors such as maximal amount of loan, amount of first loan, repayment term and interest rates varies depending on lender. To find the best and the most appropriate deal, it is recommended to find special tables on different Internet websites where offers of fast loans are compared. It is also important to understand the amount of necessary loan, the means which will be used for loan repayment and the time which will be needed for full repayment before the submission of request. If you do not surely know when you will get your own money, it is smarter to avoid fast loans – inability to repay the loan is one of the easiest ways to get lasting financial problems. Often solving of these problems leads to bankruptcy.
Lenders can be compared from different aspects. For example, you can find out whether lender offers interest free loans. If you have not borrowed the loan yet and if you do not need a big amount of money, it is recommended to choose the lender which offers interest free loans for its new clients. If you have borrowed an interest free loan earlier, it does not mean that you do not have an opportunity to get interest free loans anymore. The majority of lenders offers interest free loans, therefore, you can get an interest free loan from each of them, namely, you can borrow an interest free loan from each lender becoming their client for the first time. All you have to do is to choose the most advantageous and the most appropriate offer. Taking into account that interest free loans are one-off loans, it is useful to compare the amounts of money which are handed out in the first time. These amounts fluctuates between 50 lari and 1000 lari. The majority of lenders offers interest free loans which do not exceed 600 lari. If you need more, options decrease.
One of the most important aspects which have to be compared are interest rates. The total amount of money which will have to be paid to lender for its service directly depends on interest rates. This factor is the most important factor for those who borrow money from one lender repeatedly or who need bigger amounts of money. Interest rates have to be compared, because creditors can offer loans with interest rates from 10% and more. If you are planning to borrow an interest free loan with interest rate 0%, it may seem that it makes no sense to compare interest rates, but actually it is recommended to explore this aspect. Of course, there is no need to pay an interest when you have interest free loan, but life is too unpredictable – there can occur some financial problems during repayment time which may lead to late or skipped payments. In such situations borrower have to extend a repayment term paying for that, so interest free loan becomes a loan with mandatory interest. This is why you should pay attention to interest rates ahead of time.
Every borrower hopes that it will not need to extend a repayment time, because it means that credit commitments will protract and borrower will have to pay bigger amounts of money for interest. Because of this it is recommended to compare interests for extension of repayment time. Interests for extension of repayment time, like interest rates of loans, are quite high. Compare and choose a lender which offers the lowest interest rates both for loan and extension of repayment time.
The majority of lenders offers loans with repayment term which is 30 days, but some of them offers a little bit longer repayment term which is 45 days. Not all borrowers can repay their loans after couple of days, therefore, if you need longer repayment time to avoid extension of repayment term, compare lenders to find the one which match your requirements.
Another myth about fast loans which dominates in society is that fast loans can be obtained in any hour of day. Of course, it is not true. You can submit your request in every hour of day, but lender will investigate it only in its working time. Taking into account that this aspect varies depending on lender, it is needed to explore which working time is the most appropriate for you. Some lenders work only on weekdays, but some of them work even on weekends and holidays. The majority of lenders do not hand out loans in night hours, namely, from 11:00 PM to 07:00 AM.
It is useful to pay attention not only to lenders working time, but also to time in which loan is handed out. Fast loans are called fast loans because you can get them in couple of minutes, usually within 15 minutes, but, of course, there are some lenders who cannot lend you money within such short period of time, therefore, if it is important to you, pay attention to this aspect. There are lenders who hand out money only within one hour or even one day as well.
Also age restrictions have to be explored. You have to know that if you are not of legal age, you cannot receive fast loans. Of course, it is not that simple – age restrictions are even stricter. Majority of lenders hand out loans only for those persons who are at least 20 years old, therefore, if you are 18 or even 19 years old, it is hard to get fast loans. Also persons who are older than 70 years may have difficulties to find appropriate lender.
There is no need to hurry with submission of request, even if you have found the best deal. To be absolutely sure that a lender which you have chosen is the best, remember to read reviews about it. Reviews can give out a lot of useful information which sometimes differ from information which is showed in lender’s website. Reviews are usually from people who have already used lender’s offer, therefore, any criticism or minuses will not be hidden. Of course, we cannot absolutely rely on these reviews, but it is always useful to explore some independent information.
When you have chosen the most appropriate lender, remember to read its conditions. Only after careful reading of conditions submit your request for loan. If you have not borrowed the loan from chosen lender yet, you will have to register. During the registration borrower will have to give an information such as personal data, number of bank account, phone number, as well as income. Required information may differ depending on lenders. Given information has to be precise and true. To finish the registration and to confirm your identity, you will have to transfer a fixed amount of money to lender’s bank account.
When the registration is finished, you can submit your request for loan. You will have to give an information about necessary loan, chosen repayment term, as well as level of monthly income. This is the last moment when you can change your mind and avoid credit commitments. When required information is given, submit your request and wait for lender’s response which will be positive or negative. If your request will be accepted, a loan will be transferred to your bank account.
Not only borrowers have criteria to choose the best deal, but also lenders have criteria to evaluate borrower’s request. Borrower has to be citizen of Georgia or non-citizen with a residence permit, as well as it has to be of a certain age. The most important criteria is income and credit history which are evaluated in the moment of request receipt. Lenders are evaluating whether borrower’s income is appropriate for requested loan and repayment term. If lenders will discern any risk which can hinder repayment of loan, request will be rejected.
To avoid financial loss lenders will check regularity and amount of borrower’s income. The bigger amount of money is requested, the stricter borrower’s solvency is evaluated. Borrower has to give an information about its income, but unfortunately there are borrowers who lie about their actual financial situation. In this case lying is criminal activity. Of course, if requested amount of money is small, lenders do not require any proof, but when requested amount of money is big, lenders can require to show some documents which officially certifies personal income. These documents can be, for example, reference from tax revenue service or employer, or bank account statement. This is why people who do not have stable income or who work in informal work may have difficulties to receive big amount of loan.
Request can be rejected if client has bad credit history, because lenders worry that borrower will repeat the history and will not repay the loan. We make our credit history by ourselves, therefore, we are responsible whether it is positive or negative. Credit history shows all the credit commitments – both previous and actual. By credit history lender can tell whether borrower has had difficulties with loan repayment or it has any debts. If borrower is registered in debtors register, information about debtor and its debts will stay there for several years, although the debt will be repaid. If potential client is in debtors register, it may have difficulties to receive loans in the near future.
Fast loans are great solution to solve temporary financial problems, but it is important that they do not become a routine. Taking into account that every decision connected with loans is serious, we must treat it responsibly, because frivolous and irresponsible borrowing may limit our chances to get any loan in the future.