As with any case or phenomenon, including quick loans, there is a positive and negative side, only in this case, whether the borrowing of a quick loan is positive or negative depends on the borrower’s attitude towards the loan. Namely, if the borrower will treat the loan lightly and carelessly, it will most likely result in a negative credit history, but if the borrower will treat it responsibly and diligently, it will be successfully repaid and no consequences and credit history of the borrower will leave.

Of course, quick loans, regardless of the borrower’s attitude, have their own drawbacks, which make them disadvantageous in terms of borrowing in relation to other types of bank and non-bank loans.

Quick loans are their high annual interest rates

Quick loans are their high annual interest rates

One of the most important shortcomings of quick loans are their high annual interest rates (APRs), which tend to be from 100% up to several hundred percent and which are one of the most important indicators in the choice of creditor and credit type. If the annual interest rates on bank loans are between 10% and 30%, then the rates on quick loans are indeed astronomically high.

Fast credit companies are very well aware of this shortcoming, so the annual interest rate for one month, which, logically, is similar to bank loans, namely 10% – 30%, which corresponds to the maturity of quick loans, which is also often one month, is most often mentioned. For this reason, when comparing the cost of bank and non-bank loans, pay attention to whether the annual interest rate or the monthly interest rate is indicated so that there is no misunderstanding and unexpected overpayment in case of borrowing.

High interest rates are explained by the high value

High interest rates are explained by the high value

These high interest rates are explained by the high value added from the fast credit company – speed, convenience, simplicity, accessibility, which are essential criteria for the modern man and the technological age. In this case, one has to remember the saying that there is a charge for convenience.

Due to the above-mentioned shortcoming, the advantage of quick loans, which is, small loan amounts are no longer so low, because, we know, any bank or non-bank loan is made more expensive by interest payments, which, as we have seen, are very large for quick loans.

Before you borrow a quick loan

Before you borrow a quick loan

Even if the amount of the loan is very small, remember about the high interest rates that will result in you paying heavily! which are essential criteria for the modern man and the technological age. In this case, one has to remember the saying that there is a charge for convenience. Due to the above-mentioned shortcoming, the advantage of quick loans, which is, small loan amounts are no longer so low, because, as we know, any bank or non-bank loan is made more expensive by interest payments, which, as we have seen, are very large for quick loans.

Before you borrow a quick loan, even if the amount of the loan is very small, remember about the high interest rates that will result in you paying heavily! which are essential criteria for the modern man and the technological age. In this case, one has to remember the saying that there is a charge for convenience.

Due to the above-mentioned shortcoming, the advantage of quick loans, which is, small loan amounts are no longer so low, because, we know, any bank or non-bank loan is made more expensive by interest payments, which, as we have seen, are very large for quick loans.

 

 

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