Request a Mini-Loan or Mini-Credit
A mini credit is a type of loan which is also known as “flash credit”, “flash loan” or “mini-credit”. This is a type of loan designed to offset a temporary need for money. In general, people who take out such a mini-credit, are facing a temporary lack of financial means. A mini-credit is a loan with a very short maturity and for a modest amount. For this reason, a check with the CCP is not mandatory: the amount can be transferred to your current account fairly quickly. You will also have to repay the loan amount at one time, with the interest due, when the loan is due.
In the case of a mini-credit, you can only borrow a modest amount, ranging from a few tens to a few hundred euros. This type of loan can be very interesting if you want to repair or replace your washing machine, but you have not received your salary. A mini-credit also lends itself well to the settlement of unexpected large bills or the repayment of a debt. Often people use a mini-credit to deal with a short period of shortage. Once their finances have recovered, they will repay the debt. Of course, it will not be only the loaned amount that will be repaid: the credit will also have to be paid.
Why contract a mini-credit?
The reasons for taking a mini-credit are very varied and depend on the person and the case. Some people will opt for a mini-credit to pay a big, unexpected bill, while others will use the money to have their car repaired. In all cases, the mini-credit will be contracted to remedy a temporary lack of financial means. Once the salary or other income is paid, the debt can be repaid.
Before getting a mini-credit, however, it must be realized that this is a relatively expensive type of loan because there is considerable interest to pay in addition to repayments. However, if you opt for a mini-credit, you will have to consider this additional amount to pay. You could also opt for alternative (and less expensive) formulas instead of a mini-credit.
Make an optional simulation for a mini-credit or a mini-loan
Alternatives to a mini-credit
A mini-credit is a relatively expensive way to borrow money. There is not only the high interest to pay, but also the short deadline to meet. In some cases, it is better to look for an alternative, especially if you know in advance that you will not have enough money to repay the debt and pay the interest.
In this case, you might consider asking your family or friends to temporarily lend you a small amount. The interest payable will often be limited or even non-existent. Other ways to get money fast are to go “in the red” to your bank or pay with a credit card. However, these are two very expensive methods to borrow money, so you have to think carefully before you start. That is to say save money to cope with the unexpected. Unfortunately, this option is not always feasible for everyone.
Who can contract a mini-credit?
To qualify for a mini-credit, certain conditions must be met. It is necessary :
- Reside in our country,
- Be 18 years old or older,
- Have enough income to repay the debt on time.
Every adult who resides in Belgium and who has a sufficient and regular income, can therefore apply for a mini-credit. Fixed income is not necessary because allowances, alimony or other sources of income can also be used to repay the loan amount to the lender. If you are sure you have enough money before the credit deadline, you can take out a mini-credit. What matters to the lender is the repayment of the debt and the payment of interest. However, the risk for a small credit lender is quite limited given the modest amount and the short term of the loan.
The costs of a mini-credit
In addition to interest, which depends on the amount and timing of the mini-credit, a lender may also charge additional fees, such as:
These fees only apply to new customers. A customer can identify himself using his electronic identity card. In general, this method does not incur costs. If you prefer to identify yourself in another way, some fees may be charged: eg if you send a copy of your identity card by e-mail, by post, by fax or by uploading it on the site the lender.
Some mini-credit lenders offer you the choice between a “normal” payment amount and a “super-fast” payment. For the last option, additional fees will be charged.
In general, requests made via SMS or the lender’s website are free. If you submit your request by e-mail, fax, telephone or in person, an additional cost will be charged.
If you prefer to receive a paper bill, more and more lenders will charge a fee because they want to reduce their paper consumption and CO2 emissions. Billing by e-mail remains free.
Seeking an advantageous mini-credit
If you have decided to take out a mini-credit, it is better to choose the most advantageous lender. The lenders of mini-credits will not all yet apply the same conditions and the same rates. Thanks to these differences, you will be able to obtain better conditions from certain lenders.
By comparing the fees charged by several lenders, you will quickly find the most advantageous lender. Making such comparisons is also very easy: just ask for quotes from several lenders and compare them, or use an online simulation tool or a price comparator. Especially in these last two cases, you will know in a few minutes where to contract a mini-credit at an interesting rate. By examining the offers of the various lenders, you will be able to avoid a lot of expenses.
Looking for a reliable lender
In looking for a lender, it may be that the lack of experience plays you tricks. After all, it’s not every day that you decide to borrow money. A loan or mini-credit is very expensive, so it is essential to find a reliable lender. Nobody wants to partner with a lender who offers you impossible terms, does not it?
In fact, it only takes a little bit to ensure the reliability of a mini-credit lender. Simply enter the name into a search engine and review customer reviews and ratings. This will undoubtedly allow you to spot not only the benefits, but also the disadvantages of a specific lender. It’s better not to blindly trust a sales consultant, if you want to avoid paying too much for your mini-credit.
Ask for a quote
A quote contains a lot of information to help you find an advantageous mini-credit. It will indicate the amount of interest, the due date and other related costs. By comparing annual costs, you can quickly find the most advantageous mini-credit.
Please note that a quote is only valid for a certain period. You will be able to take advantage of the conditions and rates indicated only if you accept the offer within the pre-established deadlines. Once this period has passed, you will have to request a new quote, which may partially or completely derogate from the offer of the first quote.
More and more lenders are now offering (potential) customers the opportunity to request a quote online. Thus, you will have all the necessary information in a few minutes, which allows you, if necessary, to contract a mini-credit immediately. If you choose another method to request a quote, it will probably take longer to obtain the quote and thus to contract the mini-credit.
Request a mini-credit
Once the most advantageous quote has been found and the lender’s reliability verified, you can submit your request for a mini-credit. Since most lenders of this type of credit are mostly active on the internet, you will often be able to pay online. In general, all you have to do is complete an online application form and download the necessary supporting documents. Your request will then be immediately processed by the lender.
As this is a modest and short-term credit, there will be no need for mandatory control by the CCP. By omitting this laborious procedure, the lender can answer you in a few minutes if you are eligible for such a loan. However, there will be an internal evaluation of your repayment capabilities.
For new customers, an assessment will be made of the risk for the lender, in case he decides to lend you money. If you have already applied for a mini-credit with this lender in the past, your credit and repayment history will be used as a guide for your new application. If you have always repaid your mini credits in accordance with the contract, you can be fairly certain of obtaining a new mini-credit without problems.
Reimburse a mini-credit
As the amount of a mini-credit is very modest, the lender will often prefer to be reimbursed at one time (and it will also collect the interest due, of course). There will be no question of several monthly repayments. Once the mini-credit is almost over, the debt owed will have to be repaid at one time. That’s why most people use a mini-credit to finance a payment or purchase before their fixed income is paid. As soon as they have enough money on their current account, they repay the debt and interest.
Before taking out a mini-credit, it is better to check your financial reserves to see if you can meet your repayment obligations. Otherwise, you will face significant interest costs and / or refund penalties on the outstanding balance. In this case, borrowing a modest amount can be very expensive and even cause additional financial trouble.
A mini-credit and the CCP
The CCP (Central Credit to Individuals) is responsible for the management of several databases containing all loans and loans contracted in our country, but also all delays in repayment and bad payers. However, it is only the competent bodies, such as the tax authorities or financial institutions that grant loans, which are authorized to consult these databases. The law stipulates that each loan request of more than € 1000 euro and / or of a duration equal to or greater than 3 months must be checked to check if the borrower can borrow money in a responsible way. That is, the borrower can not be over-indebted or can not have had default or late payments.
As this is a loan of less than € 1000 in the case of a mini-credit and the amount must be repaid within three months, a check with the CCP is not mandatory. This is why the demand for a mini-credit can be treated quickly enough: the financial risk for the lender is relatively limited, if he decides to grant such a loan. It is obvious that one must always ask oneself if repayment of the mini-credit will be possible without problems and in accordance with the stipulated conditions and interest due. In case you do not honor your payment obligations, this fact should also be reported to the CCP, which could jeopardize any loan applications in the future.
The consequences of a mini-credit
As for all credits, a mini-credit will be granted by signing a loan agreement. In doing so, you agree to repay the debt owed and to pay interest within the pre-established period. It will be imperative to properly plan these repayments in your budget.
In most cases, you will therefore temporarily have less money to spend, once there is enough money in your current account. After all, you’ll have to pay back the money you’ve lent through the mini-credit. To avoid high interest or penalties, it is better to repay his mini-credit on time. Some people will sometimes even be forced to take out a new mini-credit to repay their debt.
This is a very expensive method that must be avoided at all costs. In such a situation, it is better to take out a personal loan or a permanent credit, because constantly borrowing money to repay one’s previous debts is hardly a sustainable way out of the shortage. In this case, it is advisable to look for a structural solution for your financial problems instead of contracting new expensive mini-credits.
The benefits of a mini-credit
By contracting a mini-credit, you can enjoy certain benefits, such as:
- you avoid refund problems,
- there is no cumbersome control procedure with the CCP,
- it is not a considerable amount, so your financial situation remains manageable (provided you do not contract several mini-credits with several lenders),
- you do not have to have a fixed income to apply for a mini-credit. Compensation, alimony or study allowances are sufficient to make an application,
- there is no need to defer a purchase or payment until there is enough money in your current account,
- a mini-credit can often pay unexpected bills on time, without you having to delay the repair of your car or appliance,
- you can usually apply for a mini-credit online, so without leaving home,
- you can apply for a mini-credit 24 hours a day, from any location and at any time.
The disadvantages of a mini-credit
If a mini-credit offers you a lot of advantages, there is of course also the other side of the coin. The disadvantages of this type of loan are:
- a mini-credit is a very expensive way to borrow money. If you intend to use this type of credit frequently, you would do well to get a permanent credit,
- as not all lenders are reliable, they will sometimes apply conditions that seem odd or they will charge unusual fees,
- the amount of a mini-credit is always less than € 1000, and therefore quite modest,
- as the term of a mini-credit is always less than three months, you will have to quickly repay the amount lent (and payment of interest obviously),
- the number of mini-credits to be contracted is limited to one mini-credit per lender. If you want to contract several mini credits, you will have to contact several lenders,
- repayment of a mini-credit is not done in installments, but in one go,
- in the event of late payments, very high penalties will be charged. It is therefore imperative to repay within the stipulated time.
Each loan or credit must be repaid one day, including mini credits. In the case of a mini-credit, the amount lent will have to be repaid at once, together with the payment of interest. The very short term of a mini-credit can sometimes be problematic, for example if you have unforeseen financial problems that prevent you from meeting your payment obligations on time.
In case of repayment problems, most mini-credit lenders will charge penalties in addition to the debt owed. In this case, this type of credit will cost you even more money and will probably cause you more financial trouble. In addition, the lender will be legally obliged to report your payment problems to the CCP. A registration with this body may jeopardize your chances of getting a new loan in the future or may prevent you from borrowing money through the official channels.
Nevertheless, many people will be tempted to solve their financial problems by resorting to a mini-credit. Before applying for a mini-credit, however, it is important to review your financial situation in the short term and to ensure your repayment capabilities. This method will allow you to avoid a lot of expenses and trouble afterwards.