Fast Payday Loans: Loans within minutes cost a lot of money

The principle lasts even longer: loans are paid out within minutes and without much paperwork. Applications are made via SMS or special platform and the credit check and the payment of the usually not more than a few hundred usd loan amount done automatically.

Apply for a payday loan through the relevant platform

Apply for a loan through the relevant platform

Such fast payday loans are now conquering the German market. When processing the loans, prepaid credit cards are used. Credit cards allow transfers of funds within a card network in real time. If you have the right card and apply for a loan through the relevant platform, you can withdraw the money from the ATM a few minutes later.

The loan amounts are not high and are mainly used to avert a serious bottleneck. However, there are frequent bottlenecks: those who do not have any liquid funds on Fridays can not wait until the next payment on Monday. A loan of a few hundred usd with a maximum of one month’s duration can be a welcome relief in such situations.

Fast payday loans are not cheap

Lightning loans are not cheap

However, Fast payday loans are not cheap. The two-digit debit interest comes from processing fees, with which the effective interest rate can add up to 90 percent per year, also because of the usually short maturities and low loan amounts. In addition, prepaid credit cards, which are required for real-time payment, also cost from 50 usd upwards per year.

Without sufficient credit, even Fast payday loans are not available. Automated credit checks use data from Credit bureau or other credit bureaus. If the loan is not repaid, this usually also entails a corresponding negative entry. These loans can not be a permanent solution because of the costs anyway.

 The loan installments

 The loan installments

Apart from emergency cases, Fast payday loans seem rather inappropriate. Financial bottlenecks can be avoided with good creditworthiness with appropriate planning. Debt rescheduling can also be part of such planning. If the money is regularly tight at the end of the month, the loan installments can be reallocated so that the current burden falls. Then there is sufficient liquidity available on the account and no emergency loans are required.

Incidentally, customer-friendly banks and intermediaries are very quick to pay installment credits. Ideally, incoming applications are processed promptly so that an offer can be sent on the same day. Above all, mediators through their various bank partnerships allow payments by express transfer or pickup at the counter.