Can it pay to take up small loans

Image result for small loans

You hear more and more about the popular loans on the net, but for one reason or another there is usually always only focus on the larger loans. How many times, for example, have you not heard an advertisement that boasts having the best loans of over DKK 50,000 at the lowest interest rate? This is also nice enough, but the truth is that it is actually only a very few of us who need to borrow hundreds of thousands of dollars. One can therefore wonder why you never really hear about the small loans for how do you find the best solution for you if you just want to take out a cheap loan 500 kr ? In this article we have to look more closely at whether it is actually worthwhile to take up a small loan and how to take it upon yourself to find it. Happy reading.

First of all, consider borrowing through friends

Image result for small loansPerhaps the idea has already dawned on you – why not borrow money through friends or family? You can also consider this well if you are sure that you only need to borrow a small amount. When you choose to borrow money from a provider on the web or at your bank, you must of course be aware that this is rarely free and that you will pay for it no matter how small an amount you choose to borrow. You can therefore pay twice as much if you want to borrow 500 or 1000 DKK online – this of course depends on which provider you choose. Therefore, if you do not need a large loan and do not necessarily want to thank a lot of fees and extra expenses, you may want to consider whether it is possible to borrow money through one of your relatives if the account looks tight.

However, before you choose to borrow from a friend or family member, there are some things to consider. Have you previously borrowed money from them, and if so, did you manage to repay the money? If you have previously borrowed money from one of your loved ones that you have not paid out, there is a great chance that they will not be willing to lend you money again. It is also important to think about their financial situation, or at least what you know about it. It may well be that you have a tight economy, but if they are in more or less the same situation as yourself, it is not fair that you ask them for money. Even if they would rather have lent you the money, they are not very likely to have the opportunity at all. In that case, it is a better idea to ask some others.

Think about your relationship

Image result for small loansLast but not least, you must of course also think about how close a relationship you have to the person from whom you want to borrow money from. Is it a close friend you have known for years or is it a new colleague on the job that you really only talked to a few times? You can avoid a potentially embarrassing situation by just asking people about money that you actually know at a personal and deeper level. You can also consider whether you would borrow money for people you know hardly. No, well?

Last but not least, a relationship can quickly become strained as soon as there is money involved. As soon as you have borrowed money from a friend or family member, it will be your responsibility to make sure that the money is paid back. Remember to communicate openly about your situation and when you can repay the loan. If you completely ignore the fact that you have borrowed money, your loved one may be tempted to believe that you have either forgotten about the loan or that you are simply not going to repay the money. It can quickly put them in a strained situation, so it’s a better idea to communicate openly.

You can also find free loans

If you do not feel that it is an ideal solution for you to borrow through your friends or family, fortunately there are other options as well and you do not have to borrow thousands of dollars if, for example, you only need 1500. still primarily focus on the larger loans over DKK 50,000, there are still more and more providers who directly specialize in small loans. When we talk about small loans, we usually mean loans below DKK 10,000, but how small a small loan is, varies again by the individual provider.

Even though, in the past, you could generally expect that all loans cost money, you will probably be surprised to find out that it is now possible to take more and more loans completely free of charge online. Many online providers, for example, give you the opportunity to borrow up to DKK 1500 and free the first time that you borrow money from them – you will not pay for an expensive creation fee and you will not have to pay for all interest. However, this offer is, as a general rule, only valid for your first loan from the provider, and you must therefore be aware that if you need to borrow money again or do you want to increase your loan, it will cost you.

The providers make use of this strategy in the hope of attracting new customers, and if you do not spend more than a few thousand dollars, you can advantageously choose a free loan that also helps improve your credit rating! So it’s a win / its situation.