All about small loans – what you should know?

 

It is not always the big wishes that consumers want to fulfill with a cheap installment loan. More and more users want to finance their small purchases with a so-called small loan. In the case of a small loan, sums between USD 1,000 and USD 5,000 are usually raised. In the loan comparison, however, you will also find loans from 500 dollars for your wishes. Small loans are particularly suitable for consumer requests. For example, the financing of a kitchen, the purchase of electronic items (TV, computer, laptop, hi-fi system, etc.) or the next vacation loan falls into the category of small loans.

We also recommend an online loan comparison for a small loan. Because even with small sums, you can save money on borrowing through the cheap online interest rates. With smaller amounts in particular, 50 – 200 dollars in interest savings can make a big difference! Simply use the loan calculator and enter the desired loan amount there. With the term, you can easily adjust the credit rate to your financial situation. If you extend the term (eg 48 months), you can expect a lower rate. With shorter terms, the rate increases, but you paid off the small loan more quickly.

What are the requirements for a small loan?

What are the requirements for a small loan?

A small loan is a special form of an installment loan with the addition that it is a comparatively small loan amount. According to the credit check loan compass, the average loan amount for new installment loans is around 10,000 dollars and a small loan is accordingly below that. A trend towards the use of small loans can also be seen among consumers. Smaller loans are used more often for new purchases, especially among younger consumers. The reasons for a small loan can be very different, but they all have one thing in common: the requirements for a loan must be met!

The special feature of a small loan is the loan amount. In our loan comparison you will find small online loans starting at USD 500 with a term of 12 months. The 12 months also represent the lowest limit of the term. You must also be of legal age, usually have a bank account and have a corresponding credit rating. If you can meet all of these credit requirements, nothing stands in the way of a small loan. Select one of the small loan providers in our comparison and submit a free and non-binding loan application. With just a few steps, you can get your small loan with an instant commitment.

How do I get a small loan with a term of less than 12 months?

How do I get a small loan with a term of less than 12 months?

Do you want to take out a small loan and take a shorter term than 12 months? You can find various providers on the Internet who also offer terms of 30 (1 month), 60 (2 months) or 90 (3 months) days. These providers have specialized in granting small loans with very short (short-term small loans) terms.

Is a small loan worth it when buying in installments?

Is a small loan worth it when buying in installments?

Taking out a small loan does not always make sense. In our comparison, we already have very cheap small loans, but it can sometimes make more sense for you as a consumer to forego an online small loan and instead use the financing from your dealer. For example, if an installment purchase is offered, then we can only advise you on such an offer. 

When buying in installments, you pay back the purchase price in convenient installments without incurring interest. If you like, you can get a loan with 0.00% interest here. With such a purchase, however, pay attention to the actual total costs! As soon as hidden costs appear, financing via our loan calculator can be worthwhile again. When buying in installments, always be aware that this is also about the total amount. The lower this is, the less you have to pay for your purchase.

Do all banks offer small loans?

Do all banks offer small loans?

You may notice that the higher you choose the loan amount in our loan calculator, the more loans you get compared. This is due to the fact that not all banks offer a small loan with a small loan amount or a short term. Some financial institutions simply do not offer small loans because the small sums are not worth it. This does not mean that these banks do not want to have small loan customers. Since banks also have to act economically, not all small loans can offer profitable offers. With the sometimes low interest income, the banks may incur higher costs than you could earn with a small loan.

It is all the better for you that in the loan comparison you can find the banks that have optimized your processes to such an extent that they can offer small loans even with low interest income. In most cases, they are so-called direct banks, which have no branch business and pass the cost savings on to their customers in the form of low interest rates. Benefit from the online small loan, which you can easily take up yourself with a free loan application.

Use small credit to reschedule the overdraft facility

Do you also have a disposition and may not be able to get out of it for a long time? The dispo line is often based on your current income. This means that an overdraft facility of USD 3,000 can also be available. If you can repay this again and again and only have to pay the interest for one month, this is no reason to take out a debt rescheduling loan. However, if you are always in the overdraft facility for several months, you sometimes have to pay very high interest rates.

If you want to redeem your overdraft facility on a permanent basis, we recommend a small loan for debt restructuring. By taking out the installment loan, you can pay off your overdraft facility in one fell swoop and pay it off in small monthly loan installments. Due to the interest rate differences from the overdraft facility and a loan, you pay back the same amount at significantly more favorable terms.

A fallacy of an overdraft facility is that there is no monthly payment, but only a quarterly interest payment. However, this only pays the interest on the overdraft facility and not a single cent goes into the repayment. In a study in 2017, it emerged that the banks demand an average overdraft rate of 9.78% pa You can find small loans with us for less than 3.00%. Before you continue to pay such high interest rates, you may want to think about overdrafting. In our small loan comparison, you can quickly and easily calculate your individual debt rescheduling loan and, of course, apply directly if you wish.

Small loan possible without credit check query?

If you apply for a loan from a bank, you will always be asked for a credit check. If you have already been rejected by banks because of your credit check history, then we cannot help you with our offer. Our loan application also has an automatic credit check query carried out by the loan providers. If you have a negative entry there, the loan will also be rejected by the banks.

It is important to add that you have a negative credit check entry. If you apply for a loan through a bank, there is always a query and at the same time this query always appears in your credit check information. You can always tell from such entries in your credit check information who has requested which information about you. For example, when applying for a loan, the bank would like to validate your current liabilities and find out about your payment practices from the past.

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