The advance payment of mini-credits. Does it have advantages? …
As we all know, the prices and interests of microfinance services are much higher than that of personal loans or consumer loans.
This is due to its low requirements, high speed, and fluidity.
Because they risk much more than traditional entities, granting money to all those who need it as long as they can return it within the indicated period.
It is logical that the interests are greater.
Another important point that many people overlook is that online mini-credits are very short-term products.
Generally no more than 30 days, so the advance payment of these small loans is very profitable
Although it is true that if we compare the APR of the products denominated microcredits online we will see that it is much higher than the one of the personal loans.
However, we must understand that personal loans have such a low APR because we will be paying for several years.
In contrast, the mini-credits will only be paying interest for the exact time that we have money.
So it is understandable that they should not be measured with the same yardstick (the APR) since they are different things.
What is an advance payment?
An advance payment is a type of payment that is made before your normal time, such as the payment of a good or service before you actually receive the good or service.
Advance payments can refer to one of two situations.
First, prepayments can be applied to any amount of money provided before the contractually agreed due date.
Second, advance payments can refer to any required payment that is owed before receiving the requested goods or services.
But the situation that we are going to talk about today in this article refers to the first one.
That is, the payments we make in advance of a mini-credit before the agreed time expires.
Do you want to know more? Well, keep reading …
How to save interest on online fast loans?
As we have mentioned, we only pay interest on fast online loans, as long as we have the money in our possession.
Therefore, we must be aware that if we return an early credit quickly we will be saving money in interest.
For this, the first thing that we must observe is if the lender with whom we have requested our quick credit accepts the advance payment for free.
Otherwise, what we can do is calculate how much we have left to pay interest and how much would be the cost of making the advance payment of our fast credit online.
If the cost is less than the interest, the most sensible thing is to return the money from the fast loan online as soon as possible.
This way we can be saved in the interests of our mini loan.
So … What is the advantage?
Basically, the advantage is that if you can make the mini-credit refund before the expiration time you can save a lot in interest.
In general, many lenders do not charge a commission for repaying the mini-loan early.
However, the advisable thing is to make sure of it.
Other ways to save when applying for an online mini-credit
Another of the main ways to save money when hiring a micro-financing service is to take advantage of the offers and promotions that the different entities take out.
For example, more and more entities with the desire to expand their client portfolio offer fast online loans without interest (0% APR), without commissions or hidden costs.
That is to say, the amount that we request (as a general rule, it will not be more than € 300) will be the amount that we have to return in the chosen term.
If you want to know them, enter our mini-credit meter now and choose the one that suits you best.
An old saying says … ” one should borrow as little as possible and pay as quickly as possible “.
This is especially true for mini-credits, which with its high-interest rate can help you save on interest.
If you can prepay a mini-credit, it’s best to do it without thinking too much.
Some people hate debt. Pay the loans as soon as possible through pdl debt consolidation.
It’s okay, as long as you know why he does it.
You can not put a price on happiness. Maybe you want to eliminate the debt before retiring, or just want a little peace of mind.
Take a look at the big picture and make a decision according to your financial possibilities.
Also, once you pay the debt you will be much stronger financially …