Urgent credits
They ask for the urgent credits to cover immediate needs for liquidity, which do not manage to be covered only with the credit card and where the credits to the consumption or personal loans are not usually so agile. Also, when a person is in an economic or labor hole it is difficult to him to expire very much with the requisites of the banking institutions. Also they are used when, looking for the discrección, we do not want to reveal the destination of the dineror.
The urgent credits that financial intermediaries grant type Cofidis, Cetelem, etc., as well as the banks and savings banks. Some companies specializing in urgent credits in fact belong to the same banks that produce the mortgage and personal loans, but these subsidiary small-scale enterprises are specializing in the urgent credit. For example Mediatis belongs to the Bank Sygma or Crediagil to the Santander.
The principal advantage is the immediateness, all the companies offer to have the credit in 24 or 48 hours. Another advantage is that only they usually ask for the last two payrolls, or for the amount of the revenue or of the quarterly VAT if one is autonomous.
Disadvantages
The disadvantages are very serious because they are going to harm straight to our pocket in exchange for this immediateness:
- The interest rate can be raised exaggeratedly, especially if we put it compared to other types of credits. TAE can come even to 25 % the interest rate.
- The amortization plan, the quotas of return of the credit that offers us to itself it is usually neither comfortable nor flexible. They abide by stage and prearranged period and it is impossible to change them. One, two or three possible pay-off periods correspond to a certain quantity (for example to 24 and to 48 months), but it is possible to negotiate either a minor different term, nor even not term because they do not offer it.
Example:
We do a simulation in the loans calculator with the following result:
A loan for 3.000 euros to an interest TAE of 24,6 %, that the entity allows to amortize in 42 months, that is to say, 3 years and a half. The monthly quota would be 107.22 euros, what is quite comfortable, but we will have to pay 1.500€ only in interests, that is to say, half of for what we ask we pay it by way of interests and in the end we have to return 4.500€.
These credit companies recognize that although they select very much the credits that they grant, it is inevitable to have a high slowness that can come to 10 %. This business of the urgent credits is for many persons the last one of the resources and when something trumps the non-payment risk it is high.
The experts, how have we already seen in the disadvantages, warn of the risks of resorting on the urgent credits to face to the extraordinary expenses since to resort to these products does not do any more that the sobreendeudamiento to aggravate. For Adicae (Association of consumers and users of banks and boxes), down these loans there hide interest rates too many high places and clauses that rub the excessive thing.