The term “credit” comes from Latin and means “believe” or “entrust”. Accordingly, in today’s world, a loan could be seen as entrusting money, believing that it will be repaid.
Under certain conditions, loans are usually granted by banks, but also by private individuals. In return for lending money, the lender also receives money, this is called interest. The amount of the interest depends on various factors and is agreed in writing by the contracting parties in a loan agreement.
The interest rate is determined by individual criteria such as the desired amount of the loan to be granted, its term, the amount of the installments to be paid and the current situation on the interest market. As a rule, the interest on a loan is based on the so-called key interest rate, which is set by the Lite Lender. If this is low, the general interest rate level is also low. Conversely, this also applies: A high key interest rate results in high lending rates.
What is an express credit?
If a loan is applied for in the conventional way, it can take several weeks or months for the borrower to register a payment. However, sometimes customers are in a hurry, for example when there are unexpected expenses. This is the case, for example, if necessary household appliances – such as a washing machine – are broken and urgently need to be purchased.
But cheap purchase opportunities can also be used thanks to a rush credit. For example, it is possible to buy the dream car at excellent conditions if existing offers can be flexibly taken advantage of.
Such so-called consumer loans give borrowers the greatest possible flexibility and the chance to fulfill their wishes. In contrast to a normal bank loan, in the case of an express or quick loan, it only takes between 24 and 48 hours between the application and the receipt of the money. Therefore, the express credit is a suitable instrument to increase short-term liquidity (ie solvency). Urgent or fast loans are granted from around 1,500 USD up to several 10,000 USD. The exact amount depends on the customer’s creditworthiness and the lending institution. Urgent loans are usually granted online.
Advantages of an express loan
The express or quick loan also has numerous advantages over conventional bank loans. Its most important characteristic is the speed with which an urgent loan can be processed. If borrowers normally wait several weeks from the approval of the application to the receipt of the money, this process takes only a few days for the express credit. This speed gives the borrower the greatest possible flexibility with regard to his purchase decisions as well as better liquidity.
The latter is an important point especially for the self-employed and freelancers. If this group of people chooses an express credit without Credit Bureau, it does not appear in the Credit Bureau entries and therefore does not affect their own liquidity. This point is important if normal bank loans already exist or are to be used.
Requirements for an express credit
In order to be able to take advantage of an urgent loan, certain requirements must be met. These include, for example:
- Proof of a permanent job by means of an employment contract and / or proof of salary
last three to six months
- a positive decision from Credit Bureau regarding the credit rating
- the borrower must be at least 18 years old and at most 58 years old
- the borrower should have a checking account with regular cash receipts
- the attachable net income should be at least 1070 USD for a single person and at least 2350 USD for married people.
Some online institutes also grant an express credit without Credit Bureau. The self-employed and freelancers generally do not receive a consumer credit due to their uncertain financial situation, although there are exceptions here as well.
A self-employed person must be able to provide other evidence in order to get a rush credit approved. For example, he must use a business license to prove that he has been self-employed for at least three months. For this purpose, freelancers can submit a letter from the tax office stating their tax number and the specified area of activity. In addition, the lending institution requires business documents that a tax advisor should compile and issue. These documents contain a concrete breakdown of receipts and expenses as well as supporting documents. With the help of the required information, the bank or the lending institution wants to ensure that the loan is actually repaid.
What should be considered before applying?
Before the application for an express or fast loan is completed and sent, the future borrower should consider a few points. In advance, for example, it makes sense to think carefully about how much money actually comes in every month and what the average expenditure is.
If possible, these considerations should be recorded in writing in the form of an income-expenditure table and compared. This table can now be used to calculate whether an additional financial burden can be borne by paying in installments and what is the maximum monthly installment payment. It should not be underestimated, but also leave space for financial scope. This could be useful if, for example, suddenly unexpected expenses have to be made during the payment phase.
How is an urgent loan applied for?
The application for an urgent loan is usually made by post. The borrower usually fills out an inquiry form online and then receives a suitable offer and the documents required for an application. Now it is necessary to fill out the application correctly and truthfully and to provide the information with the necessary documents – copies are usually sufficient.
The complete application is then sent back to the institute, which now decides on it within 24 to a maximum of 48 hours – the duration varies from provider to provider. In the event of a positive decision, the money will be transferred immediately. In order to speed up the process even more, all copies of the documents should already be available and ready to hand before the application is sent.