Sometimes due to hard luck, life catches people off-guard. They are faced with a situation where there is an immediate financial requirement. Visit https://kreditus.eu/lt/paskolu-palyginimas/greitieji-kreditai for more details on quick loans.
Applying for a loan may not be the best solution in such a case. Loans involve a lot of paperwork and take time to get approved. Thus, there is a special category of loans called quick loans. As the name suggests, quick loans are approved within a matter of hours. The loan approval is almost immediate, and the money is generally available on the same day. However, some people refrain from availing of a quick loan even when they need it the most. It is because of the myths surrounding quick loans.
Myths around quick loans:
Let us dispel all the common misconceptions that people have about quick loans.
1. All applications with a low credit score get rejected:
Some applicants tend to think that a low credit score would mean that their application will be surely rejected. However, that is not true in all cases. While credit score does play a role in loan approval, lenders also consider a host of other factors such as job profile, disposable income, employee profile, and so on. If the other factors turn out to be positive, the loan application still stands a chance. But those with a low credit score may have to bear a higher interest rate.
2. The interest rate is always high:
It is yet another myth that makes people think twice before going for a quick loan. The interest rate is high for those applicants with a poor credit profile. Also, we must consider the fact that quick loans are granted without the borrower submitting collateral. Thus the interest rate is fixed accordingly. Compared to a quick loan, other options for obtaining an unsecured loan have even higher interest rates.
Different lenders have different rules. Today, banks are not the only place where people can apply for a quick loan. Financial institutions other than banks also offer quick loans with more relaxed rules. With some lenders, there are no pre-payment charges. With others, the borrower must complete a certain number of instalments to be eligible for prepayment. As a borrower in peril, one has to take the time to check the eligibility requirements and factors that each lender considers. Then, they can proceed by applying to those lenders with whom they have a better chance of approval.