Many people today have credits and debts at various credit issuers or banks. Considering the difficult days people had to face during the economic recession the number of people who were not able to pay their rates increased very much.
In the following rows of this article you will be able to find out more about the advantages and disadvantages of a certain type of credit, namely the online one. You know how helpful the Internet can be in various situations. When it comes about credits, it seems that some credit issuers expanded themselves on the online zone and with a huge success.
There are various types of rules when it comes about this credit category. First you must make sure that the credit issuer is offering a 100% online credit or if you can just apply for it online and after a preapproval you must go to their office location to sign all the other papers.
People who may be in a hurry to obtain small amounts of money in a very fast manner will certainly search for the 100% online credit offers. You may wonder if these credits where all you have to do is to load your ID card and give some information about your working place, are legal. It seems that they are. Are they risky? To establish that, you must gather more knowledge about how these credit issuers work .
Let’s imagine that you are the person who wants to lend a small amount of money. Usually the 100% online credit issuers offers just small amounts and for very short periods of time.
To be more specific they lend money for a month. These are the so called Payday Loans. Sometimes the loan period can be extended to three months but not more than that.
They have very attractive commercials and they take advantage of the dark situation in which many people find themselves into these days. You may wonder how come? As you read at the beginning of this article, many people gained bad credit scores because they were not able to pay their rates and interests. This happened for various reasons.
Maybe people lost their jobs, maybe their rates and interests increased over night or many other reasons helped these people getting themselves in such bad situations. Who are we to judge? Any reader of this article can find himself in such situation and we all know that nobody ever want that to happen.
These credit issuers offer loans even for customers with bad credit history. They promise many things. In their commercials they show you the world through their eyes. They introduce themselves as your best friends when you are in need or as your only chance to obtain a loan. But are these things true? The answer is: Not entirely. Nobody says to not apply for these credits, but you must pay allot of attention when it comes about interest rates.
They are quite huge. If you can afford them and if you are more than sure that you can pay back the loan in time you can feel free to try it. Otherwise you better think twice. You may find yourself in a situation without an end. This is the main reason why you can be advised to stay away from these types of credits.
If you have the smallest delay the interest rates will be almost double. You will never have enough money to cover them. Even on these credit issuers websites you will see this warning. Not with these words, of course, but they will advise you to borrow money in a responsible way.
These are, as you can see, the disadvantages of such 100% online credits. Let’s start now with the advantages. You will not have to send them too many documents to obtain such loan. As you read earlier, they usually ask for an ID card copy and sometimes, but not all the time, they also ask for an income proof.
All these documents can be loaded, in a scanned form, directly on their websites or you can email them. You will also need to give them a contact phone number and email.
The contract needs no handwritten signature. All they need is an electronic signature after they had a recorded phone conversation with you. Another thing you must make sure you have is a credit or debit card attached to a bank account.
Most of these credit issuers request that the bank account will be the one in which you receive your monthly salary. To prove that, you will have to provide for them a bank statement. To offer them all these things will take no longer than 15 or 20 minutes.
How fast will you receive the approval? In one hour, or less than that, you will know if they approve the loan. After the approval arrival, you will have the money in your account in less than three hours. This means that just using your PC, without any displacement you will have the money that you need till next month.
As you may think this is a great advantage. Many people wonder still, if these electronic signatures are valid or legal. In case you do not pay the loan can they do something against you legally?
It depends on the lawyer you work with. I have read about lawsuits won by the debtor just because the interest rates were considered to be immoral. But these are rare situations. Usually the creditor has all the chances of winning a potential lawsuit.
With all these things being said, when you find yourself in need, you should think very well if such credit can help you or it can get you in more muddy waters than the ones in which you swim already.
People in need have the tendency to lose their judgment. I hope this article will help you make the right choices related to this specific topic. Some mistakes can be repaired but others…not as fast or as easy, as we may want.