Should you ask for a mini-credit because you need money urgently?

In the current loan market, we have the possibility to access a payday loan at GADCapital that gives us the money we need in a matter of a few minutes. It seems a tempting offer because in less than a quarter of an hour we would have in our account an amount of money that could be up to 1,000 euros. Without having to move from home and any day of the year. However, like any financial product, we must not forget that we are contracting a debt with its corresponding commitment to pay. Therefore, in the face of the enormous ease that lenders allow us to access mini-credits, we must be careful, so we will see in what situations it is advisable to ask for them and in what situations.

Mini-credits must be returned in a very short time

We all feel great that our bank account receives some extra funds, it is always appreciated. However, the money that comes from the mini-credits is not ours, it is from an entity that lends it to you in exchange for some interest. So you always have to return it. So, if we spend the money from the mini-loan, we must be sure that we can have it again on the date that the reimbursement period ends. In the case of mini loans, the interest is of the highest (in comparison with other financial products), since the risk of default is higher than in other loans.

The ideal situation to request a mini credit is when we need a small amount of money right now that we do not have at this moment, but we are going to have a few days later or next month. Therefore, whenever we are going to request a mini loan we must stop to think if in the time that the term ends (30 days as a general rule) we will be able to return the amount that they granted us. If the answer is a resounding yes, there should be no problem when requesting it because we will have the capacity to return them. On the other hand, if we are not very sure that we can face the payment, it is better not to do this type of financing.

This is an example of situations where urgent mini-credits can come in handy: We are going to keep the account in the red and our bank charges us enormous commissions for this fact. With a mini-credit, we avoid banking discovery. In this way, at the time we receive our income again (payroll or pension, for example) we can cope with the reimbursement of the mini-credit.

Yes to a mini-credit? Compare among several

As we have seen, these small loans are for money emergencies that we know we will be able to repay in a short period of time. At the moment we understand that a mini-credit is the most appropriate option for our circumstances, we have to know that the market is full of companies that offer it. So we can compare several options and get more advantages with us. For example, we can find free minicréditos with which we will only have to return the money we request, without paying any interest. If we ask 300 euros, we return 300 euros.