What is a quick loan?
Mortgages are a loan that covers a small amount that you can borrow as a loan. It is easy and quick to record quick loans, so many Danes use this solution if they lack money right now and here.
Why quick loans?
One popular question is why one takes out quick loans rather than other loans, such as bank loans. The primary reason is that it is much easier and quicker to pick up quick loans than other loans. In a busy day, it may require a lot of planning to get past the bank during its opening hours to apply for a loan. Furthermore, it can also be a longer process, where documentation is required in relation to income, fixed expenses and more, which one is assessed on the basis of.
Here, quick loans are much easier, as you basically do not need documentation to record such a loan. A quick loan can be taken easily and quickly at home from the couch outside the closing time of other branches. Furthermore, it can take the bank time to approve a loan, whereas a quick loan can be taken up within a short time, which is ideal if you lack the money right away.
When do you pick up quick loans?
There are many reasons to record quick loans. A quick loan can be useful in many situations, as what appears in the above section is easy and quick to record.
The typical reasons for taking out quick loans are situations where you need the money right now and here. It can be in connection with unforeseen bills that you do not have the money to cover up on.
Mortgages are also popular in connection with good offers, such as a new bike or new TV, where it is required that you have the money now and here to benefit from the offer.
New loans on the road
Already in the 00s, quick loans came to Denmark, which was before the Danes had a smartphone at hand. Since then, the quick loan has been through several phases to develop into the consumer’s advantage. It has become easier and faster to record quick loans, partly because most Danes today have easy access to the Internet via smartphones, tablets and computers.
The market for quick loans is becoming more and more popular, so competition between providers is constantly being intensified. There are also more and more providers on the pitch, which means that existing providers have to do their part to adhere to.
The various providers are enticing with different offers to get their hands on new consumers. They do this, among other things, by offering free first loan (if this is repaid within 30 days), grace period (for a specific period), free approval, choice of payment break – and much more.
New quick loans 2018
In 2017, legislation on quick loans has changed. This is also worth considering when borrowing money. The many providers have always advertised that you can easily and quickly record quick loans, where you will receive the money immediately.
However, the Danish legislation has put an end to why there should now be 48 hours before the money is paid out.
This legislation exists to protect the consumer from hasty decisions. Therefore, the consumer now has 48 hours of reflection when they can undo if the loan application is based on a spontaneous decision. In this way one is forced to think about why it is only those consumers who have a real need for the money that will borrow, as the others can report within the report period.
Loan money right away
If you want to borrow a quick loan, it is most often because you want to have the money right away. “Has the new legislation put an end to quick loans?” – and both. As mentioned above, one must have a reflection period of 48 hours, if you want to record a payday loan. However, the legislation only affects the loans that are considered to be quick loans. These are loans with a maturity of up to 3 months.
Therefore, you can still take out loans without this 48 hour reflection time. Simply put the loan so that the maturity is longer than 3 months. According to the legislation, many loan providers have taken this into account, so you can record a quick loan with longer maturity for most loan providers.
If you take a quick loan with longer maturity, you have to pay less of each month – though over a longer period. If you are willing to do so, you can take out such a loan and get access to the money immediately.
Quick loan overview
It is optimal to have an overview of what to pay attention to in connection with quick loans.
As mentioned, one must have the new legislation in mind when having to borrow money. If you want a quick loan with a maturity of up to 3 months, you will have to go through a 48 hour reflection period. However, you can get the money right away if you are willing to extend the term.
In addition, one must be extremely aware of the loan’s interest rate and maturity, so that you do not get any unpleasant surprises in connection with the loan or repayment of the loan.
As a rule, there are no strict rules in connection with the admission of quick loans. However, you must be at least 18 years old, you must be resident in Denmark and have access to NemId, and furthermore you must be able to be contacted by e-mail and telephone. An additional requirement in relation to the admission of quick loans is that one must not be registered in RKI (Ribers Kredit Information), which is a register of bad payers.
There are a lot of different providers of quick loans, so one should not take the first one the best, even if it seems tempting. It is a good idea to make yourself an overview of providers so that you can find the loan that best suits a given situation. When examining different loan providers, one should include the size of the loan and the length of maturity one wishes to pay back.
Basically, the idea behind quick loans is that they have to be paid back quickly, which is why the interest rate is also very high. However, different providers can offer different lengths of maturity, however, within the limits of the quick loan. A good idea is to plan the maturity of the quick loan by the number of days to the next salary, so you make sure you have the money to repay.
Furthermore, one should thoroughly study the consequences for what happens if one does not comply with the payment agreements. It can have expensive consequences, which can be difficult to pay off. Therefore, it is very important that you are realistic in relation to a loan and the possibility of repaying it.