Quick credits are a valid solution to get out of a small unforeseen or urgent payment. However, we must bear in mind the consequences of not being able to pay the loan on time and what options we have in case it happens.
Next, we will check how certain fast credits allow us to adapt to our needs and provide us with flexibility in payment that avoids costly fees for late payment or default.
What happens if I can’t pay the fast loan on time?
Fast loans are characterized by granting and depositing the loan into your account in record time. In the same way, the repayment of the amount usually has a more limited term than in the case of personal loans offered by banks.
If we believe that we will have problems to repay the amount on time, we must apply for loans that are customized and adapted to your needs and thus avoid falling into a major problem by having to pay the expensive late payment interest. To avoid this snowball effect on fast loans, we must look for options that offer flexibility in the repayment of capital.
If you cannot pay the fast loan on time, it is best to contact the company and explain your situation. Sometimes, they are the ones who will contact you if you fail to pay any fee.
Can I request an extension to repay the loan?
In the case of fast loans, extensions are not usually granted to disburse capital. Certain entities offer the option of designing “tailor-made” loans, in which quotas are customized to avoid problems of non-payment of individuals to the maximum, through a method of analyzing the personal situation and borrowing capacity of each client.
This flexibility in the monthly payment allows us to extend the terms and thus adapt the monthly amount avoiding delays. Once the conditions have been set, they cannot be modified.
If you continue with problems of non-payment, a courtesy period of 30 days is generally granted, after which increasing interest on late payment begins and may end up covering up to 40% of the value of the fast loan. The fees vary greatly depending on the company and the particular conditions of the loan granted.
How to make responsible use of a quick loan?
As we have seen, fast loans are usually quite rigid in the payment of fees once the terms and amounts to be paid in the contract are set, thus reducing the chances of requesting an extension. For this reason, it is convenient to follow some tips when applying for a quick loan.
- Select carefully the amount we want to request: For example, with the quick loans of Good Credit you request the amount and the installments in which you want to pay the loan. For a loan of 3,000 dollars, you can pay monthly installments of between $ 25 and $ 1,666. Depending on your choice, you will be offered an interest rate and terms according to your proposal.
- Loans tailored to you: go to companies that design personalized installments to avoid the problems of default of individuals. Following the example of Currency, in the event that we fail to pay any fee, Good Credit grants you 6 days of courtesy in which no interest is applied and during the first month of delay interest is applied for the delay between 2 and 5%, considerably below average.
- Negotiate with the entity: If you think you will not be able to avoid default despite requesting a personalized loan, the first step is to contact the company as soon as possible and present your case. In addition, you should consult any questions you have regarding the issue of non-payment, no matter how ridiculous it is, for example, to know the interests that apply for late payment.
- Indebtedness: You must conduct a study of your monthly expenses, in a thorough manner. It is not advisable that the loan you have to repay occupies you more than 10-15% of your monthly income so as not to be drowned by other obligations, such as the payment of a mortgage, household expenses, maintaining a family, etc. Therefore, examining your “solvency ratio” will not only be a task of the lender but also of the borrower. On the other hand, it is never recommended to apply for a loan to pay another, since the accrued interest of both would enlarge the problem.
Following these simple steps, hiring a quick loan does not have to be a problem since they are very useful to solve those small contingencies that often arise in our domestic economy.