A small loan is generally a loan of $ 4,000 or less. Indeed, below this amount, credit organizations favor revolving credit. Practical and flexible, this small loan can be very useful, provided you know how to use it. We have identified how to get the smallest credit possible as cheaply as possible.
Small credit: only at the best rate
The need for a small loan of around 1000 USD is generally due to an unforeseen event. It can be an unforeseen expense, or a late cash inflow.
Under these conditions, one usually needs to get credit quickly. But we must be very careful because, as we will see later, this type of request generally involves revolving credit. However when it is misunderstood, this small loan can quickly cost too much.
To obtain a small cheap credit, you must find:
- The cheapest possible revisable taeg rate
- The repayment speed adapted to your budget
- The best promotions
And above all you have to find the best offer for which you can get an immediate agreement in principle . Indeed, some specialists hold out small rates, but only retain a few files in the end.
To avoid this type of disappointment, the credit comparison that we offer does not just establish a ranking of revolving credit offers online. Our system provides an immediate response in principle from credit organizations. Everyone can know what better small loan rate they can actually get. The best revolving credit offers are generally those of Cofidis, Cetelem or Sofinco revolving credit.
On the other hand, there is no immediate credit. Whatever it is, a new quick little credit makes at least a week between the first accepted request and the arrival of funds on his account. So do not rush, at the risk of paying too much, or simply get scammed.
Small credit = revolving credit
Revolving credit has always been criticized, particularly because of its high rate. In reality, revolving credit is subject to the same legal limit – the rate of wear – as depreciable credit. This maximum limit is established by the Banque de France and reviewed every quarter.
It is therefore the credit organizations that decide to set higher rates on revolving credit, because this product is more risky. Credit institutions and banks see no point in spending operational time on a small loan because their processing load is the same as on a large loan for which they will earn more money. For a quick loan, revolving credit is generally the only solution . For obtaining a fast credit, the best is still to have already a revolving credit in progress. In this case, you just need to request a transfer directly to your bank account. It can be a store credit having opened a revolving credit contract.
Bank overdraft: far too expensive
This is undoubtedly the product in which most small loans are housed. We are not careful and through our authorized overdraft limit, we let go of an incredible amount of agios! We don’t feel like we’re making a small loan. In the vast majority of cases, bank overdraft rates are higher than the revolving credit rate.
It is often the ease that drives us to use a bank overdraft or the shame of opening a real loan … And yet for a small loan, it would be cheaper!
Micro credit: support adapted to small credit?
Microcredit is perfectly suited to mini credit. But micro credit is intended to finance a social or economic development project on a very small scale. It is not really a consumer credit intended for individuals in the classic sense. In other words, it is really important in the device of the social and solidarity economy.
Who to trust ?
Whether you need a travel credit, a car credit or a simple need for money, small credit can be a solution. We recommend turning only to organizations that are well established.
Beware of false promises
You should be wary of the many scams in revolving credit or small loan of money. Indeed, many scammers position themselves on this market because there are as many loans refused as for larger amounts. To be very clear and as the Law recalls, “No payment, of any kind, may be required from an individual, before obtaining one or more loans of money”. So never accept this type of proposition.