What is a quick loan – a quick loan may be the answer to your dreams. You may have heard that quick loans are expensive, even if they look cheap on paper. But what does a quick loan actually cost? You will find the answer here.
What is a quick loan?
Mortgages are a general term for fast loans taken out of the bank through private companies. They are also called quick loans, SMS loans, online consumer loans, mini loans, click loans and probably a lot of other things as well.
Common to them is that you can borrow a smaller amount without explaining what the money is going to be used for. You can use them on a new iPhone, travel or used car.
All click loan providers have different ways to make money. Some do it via monthly interest rates, others do it through startup fees and others again via increased interest rates if you do not pay on time. The many different ways to pay for the loan can make it difficult to see what the loan actually costs and where you get the cheapest mortgage.
Interest and fees
For all loans, their APR is stated, which is the total annual cost as a percentage. These are the numbers you need to look at to compare loans and to find out what the loan will actually cost you. Here, interest and fees are added up and converted into an annual percentage. When comparing the APR, you should do it for the same size loan with the same maturity.
- Loan amount: USD 6,000
- Payment period: 2 months
- Monthly rate: 13.33%
- Start-up fee: USD 800
- OPEN: 791.6%
NOTE : The APR takes into account both interest and fees, which is why the figure has to be compared.
In this example, the APR may seem high, but this is mainly because the loan maturity is only 2 months.
Read the conditions
One thing is that you can compare OPOP, but you also have to remember to read the conditions and to keep an eye on “off prices”. Some providers are tempted with very low off rates in their price examples, so you may not be able to get the cheapest loan.
The terms may also mention that interest rates rise sharply if you default on your loan agreement, which means you have to pay extra interest on the rest of your loan if you forget a single payment or get paid late once.