For some years now, the internet has become the instrument of thousands of people to acquire and hire all kinds of goods and services. A few years ago that in Spain appeared a service never seen before, loans online.
These mini-credits range from 50 to 500 euros and have the distinction of being granted quickly and without paperwork. The repayment period is usually around 30 days and the costs are high due to the risk to the lender. All this has not prevented this financial product has grown exponentially in recent years. The monthly searches on google for the word “mini-credits” have multiplied by 4 in recent years, reaching nearly 12,000 today. This is a clear indicator of the popularity that these loans go through.
Why this boom?
There are several factors that could explain the increase in this sector. One of them is undoubtedly the closure of the financing tap by traditional entities. With the advent of the financial crisis, banks and savings banks have greatly limited access to loans, which has led people to seek alternatives. These alternatives have come through private companies, many from Eastern Europe, which have offered a quick service for those who need to solve a specific liquidity problem. To this we must add that more and more people have specific problems with money and need a quick solution.
Good use of the service
If we want to avoid future problems when facing the return of the borrowed money, we must remember a series of tips. The first is to know what are the real costs to be borne, loan more costs, and second to have future revenues that allow us to meet this debt. In case of possible delays it is better to agree with the lender a solution since otherwise extra costs are incurred that can be expensive. Another advice would be to go to companies in the sector that are consolidated and also offer better price conditions. Some of them get to give away the first mini loan or charge it at just € 5. Finally, you should avoid using this money to pay off other debts or defray unnecessary or unnecessary expenses.