An unexpected vacation that pops up out of the blue, your freezer that gives it up, new furniture for your home … there are a thousand and one reasons why you suddenly need money. There are different types of loans that can help you out, with advantages and disadvantages. Borrowing always costs money but borrowing money directly is now easier than ever. You can take out a personal loan, mini loan or revolving credit. The latter is technically not a loan (because you do not get any money deposited into your account) but closely related.
A revolving credit is a flexible loan and is usually applied for if you do not know how much or when you need the money. You agree on a limit and you can withdraw this amount freely, whenever you want. There is therefore no duration attached to it. Another advantage is that you will only repay a monthly percentage once you have withdrawn money. You can also withdraw money again and again. The interest depends on the limit (and is lower than a personal loan) and is variable – so it can also turn out unfavorably. The borrowing costs are also not fixed and you need discipline to always pay off the loan.
Another form of direct money borrowing is the personal loan; it is usually requested for a purchase that you want to make at that time. The amount is therefore deposited into your account in one go and you pay a fixed amount each month. The loan is linked to a term. The interest is fixed (and is often somewhat higher than for a revolving credit), but you will not be faced with any unpleasant surprises. You cannot withdraw if you have paid off, and if you repay early, you can get a fine. For both the personal loan and the revolving credit, it is checked whether you are on the ‘black list’ of the CKP (Central for Credits to Individuals).
For small loans you can request a mini loan; usually an amount of less than 1000 USD. You usually have it in your account within 24 hours (or sometimes after 10 minutes), so that’s nice and fast. It is not checked whether you have a CKP registration and the loan usually needs to be repaid quickly. With a mini loan the interest is higher than for the 2 previous loans, but you also pay faster.
Which loan is best depends on what you need it for. For direct money you can view the websites of many lenders. Pay attention to the interest and the costs that you have to pay. Together they are indicated under the APR, so the lower the better. Also don’t forget to read the conditions. On the websites you can request free quotes via the loan simulator, see what your (monthly) payments will be and compare them. And you are smart enough to then choose the cheapest provider and keep as much money as possible in your portfolio.