Today I want to talk about mini-credits , a financial product that does not take too much time with us, that many people are still not clear about its operation and that it is important to know why they are increasingly on everyone’s lips.
A product that has very clear dangers but that well used can solve certain specific economic troubles
To avoid these dangers of indebtedness and know how to use them better than the tips and tricks of one of the leading companies in the sector such as PepeDinero.
And that is what you will find next. A series of tips for you to know when you can and when you can not request a mini-loan and you have to do to never get into debt.
Since the mini loans were born, more and more people are choosing this financing system when they need urgent money instead of going through the bank window.
And it is that mini credits offer many advantages: they are fast, easy to hire, they ask for much less requirements than banks, they can be requested anywhere, anytime …
However, one of its big cons is that they are expensive and that, in addition, they have a great risk of over-indebtedness .
Responsibly used mini loans are a good financing system to get extra money for specific unforeseen expenses. However, if we misuse them we can end up enrolled in ASNEF or even in judicial proceedings.
5 keys to use mini credits and enjoy money without taking risks
1. Ask for just the exact amount of money you will need : The more money you ask, the more you will pay. Most mini loan companies allow you to contract a new loan once we have paid the first one.
Therefore, it is best to ask for the minimum amount of money possible and, if you need a new loan, repay the first one and request another one.
2. Approximate the expiration date at the time you charge : Before requesting a mini credit it is important to plan and make sure that we will not exceed the repayment term.
If we do not pay on time, the lenders will start to apply commissions and the credit can end up being very expensive.
Some companies such as PepeDinero offer the hiring of extensions to be able to extend the term.
3. Do not chain mini credits : Although, as we have already indicated, it is usually possible to contract a new mini loan once you have paid the first one, it is not the most recommended practice.
The mini credits are designed to be used in a timely manner to cover unforeseen expenses, but they are not designed as a source of recurring financing. The more mini loans we ask for, the higher the risk of over-borrowing.
4. Compare : Almost all mini-loan companies have similar performances, but not all of them have the same prices.
Many companies offer discounts, attractive prices and even free credits to attract new customers.
Compare and take advantage of offers to save the most .
5. Contact your lender : Extensions, free early repayments … Many lenders offer facilities to their clients to avoid over-borrowing. If you have any questions or have had any problem with your mini credit and you are not going to pay it in the agreed term, contact your lender and look for solutions.
Although mini loans are relatively simple financial products, since they usually only charge interest and do not apply commissions or require the contracting of related products, as in any other type of loan, it is important to read the contract well and make sure you have understood All terms before applying for the loan .
What happens if I don’t pay my mini loan?
Although each company has its methods, in general most follow a similar process in case of default:
1. If the due date has arrived and you have not yet paid, you will be contacted by phone / e-mail to remind you of the payment.
2. They will start charging you late payment interest.
3. If you still do not pay, from the 2nd installment you will be included in a list of delinquents such as ASNEF or RAI.
The most advisable thing is to resolve the debt as soon as possible since the interest of late payment will increase the credit more and more and, while we are in ASNEF, we will not be able to access the traditional bank credit.
If we begin to accumulate debt we may even end up in legal proceedings. Therefore, before hiring a mini loan it is vital to make sure that we will be able to pay it on time.