Disadvantages mini credit – Borrow without asking

The mini credit offers an interesting solution for many people. We have all experienced that financially things are not going well for some time. In that case it may be good to temporarily have some extra money available to, for example, pay for daily costs. Even when there is a large invoice at the end of the month that you cannot pay immediately, taking out a mini-credit can provide the perfect solution. There are several interesting advantages to taking out this form of credit, but it is still important to take sufficient account of the disadvantages that you as a borrower are confronted with. We are happy to list them all for you.

High cost

High cost

Characteristic of a mini-credit is the high price tag attached to it. Given the short duration, it is not possible for the lender to charge a periodic interest. Instead, he chooses to charge a so-called start-up cost. This cost is only charged once, but is often very high. In the worst case, this can amount to as much as 20 percent of the requested loan amount. In addition, it is very important at all times to repay the borrowed amount within the specified period to the financial institution with which the mini-credit was taken out. If you do not do that, you may incur a considerable fine, which can make the loan even more expensive.

Short duration

Short duration

A second not unimportant disadvantage that we have already mentioned in passing is the short duration of this form of credit. A mini-credit may be specifically intended to temporarily help people out of need, but the duration of 30 days is often very short. To give you a comparison, a mini credit must be repaid on the day that the statement of your credit card will also be deducted from the bank account. When taking out a mini-credit, always ensure that you can repay the borrowed money in time with certainty. If that is not the case, you may be fined.

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