Instant credit approval: get quick money

 

It is not always possible to get over a long time before the loan approval, because in some situations it is simply necessary that money is quickly available. Most consumers then turn to so-called instant-approval loans, which are generally expected to make quick money.

24-hour credit

24-hour credit

Indeed: in the case of loans with immediate approval, which are also called 24-hour credit, express credit, quick credit, etc., the prospect receives a loan approval quite quickly, sometimes even immediately – but be careful: this immediate approval is always only of a preliminary nature. This means that even if the bank has made a provisional loan commitment, it does not necessarily have to be a loan. How can that be?

As a rule, loans with instant approval are offered on the Internet – either by banks or by credit brokers. The prospective customer has to fill out a questionnaire online, in particular according to personal details such as desired loan amount, name, date of birth, address, employment relationship, amount of income, collateral, duration and amount of the desired credit installments.

On the basis of this information, which is made online, the provisional loan approval (or rejection) is issued, so that the applicant must prove his income and financial situation so that the loan approval can also be confirmed. In addition to bank statements, he also sends pay slips and employment contracts to the lender, using the PostIdent procedure.

Loan with immediate response

Loan with immediate response

A loan with an immediate promise, with which one hopes for quick money, is not necessarily paid out faster than a normal loan, on the contrary: since instant loans are usually granted online and the documents to be submitted and the loan contract have to be sent by post, one will Loans in a branch bank are often paid out faster than internet loans.

Incidentally, the self-employed often look into the tube when it comes to loans with an immediate commitment, because the assessment of the creditworthiness and the income situation takes longer for self-employed people and is more complicated than for employees. In general, loans with immediate approval should be treated with caution: think about the extent to which the need for debt capital is actually necessary before you commit yourself to a loan in the medium or even long term.

The 0% financing in detail – Free loan

 

Many traders offer their customers 0% financing

Many traders offer their customers 0% financing

Most consumers have limited financial resources and have to save a long time to make a larger purchase, such as a new television or a car. This displeases the dealers. For this reason, retailers are considering various strategies for how they can increase consumer consumption. One of these strategies is the free provision of a loan in the form of so-called 0% financing.

0% financing – pay installments instead of saving

0% financing - pay installments instead of saving

The 0% financing is based on the principle of paying installments instead of saving. The easiest way to explain this principle is to use an example. For example, suppose a consumer who could save $ 50 a month is in a store and is interested in a new television that is priced at $ 1,200. Unless he takes out a loan, this consumer would have to save 24 months to afford this television.

However, many consumers do not want to wait that long and are therefore interested in financing at the lowest possible interest rate. For this reason, numerous retail, online and mail order companies that want to increase their sales offer their customers so-called 0% financing.
If the dealer should offer his customers 0% financing in the example shown here, this means in concrete cases that the consumer can pay off the TV in 24 installments of 50 USD each.

In many cases, 0% financing is just a supposedly good deal

In many cases, 0% financing is just a supposedly good deal

At first glance, 0% financing is a free loan. At second glance, however, you have to recognize in most cases that 0% financing is very expensive. The reason for this is the fact that 0% financing usually leads to a higher sales price. For example, it is conceivable that another retailer is offering the same television at a cash price of 1,000 USD. In such a case, the difference between the two sales prices of $ 200 can be viewed as interest for the financing.

The amount of the monthly installment should be the basis for decision-making for financing

The amount of the monthly installment should be the basis for decision-making for financing

As you can see from the example given, when financing a purchase, you should not only pay attention to the interest rate offered, but also to the sales price. A low sales price often leads to a decrease in the amount of the monthly charge, even with a higher interest rate. This can be explained very well using the previous example. Suppose a consumer does not buy the television from the first retailer, but from the second retailer, and finances it at an interest rate of 5 percent over 24 months. In this case, the consumer pays a monthly installment of 43.87 USD. It saves around 150 USD over the entire term.

Make credit card payment

In the past, payment with a credit card was particularly common abroad, in Germany it was not offered by many retailers – above all because the EC system was a sufficient alternative for a long time. A credit card payment was often only found where a relatively large number of foreign customers can be expected.

However, due to the massive expansion of online trading, the EC card has been largely displaced, since it is not easy to pay online with this. As a rule, only payment in advance, cash on delivery or online payment service (PayPal) or credit card is possible. If you want to buy cheaply in English-speaking countries, you will only have the option to either use one of the many online payment services or you can almost always pay with a credit card.

Get a credit card

Get a credit card

Since a credit card is very easy to obtain today – and often even without fees – or as a “light” credit card in the form of a prepaid credit card, which has the same functions online as a “real” credit card, more and more businesses are switching and offering also offer their customers credit card payment in addition to paying with an EC card or cash.

Making a payment in a normal business with a credit card is no different from paying with an EC card – first, of course, you should make sure that the credit card is accepted. You can recognize this by a logo (at the checkout) of the respective provider, for example VISA, American Express, MasterCard or Diners Club. However, many stores also accept a credit card on demand, especially for expensive purchases.

If you want to make a payment with the credit card, you usually have to show your ID so that the data on the credit card and the signature can be reconciled with the data on the card and the signature.

When paying, the credit card is then either inserted into a card reader itself or by the seller. You should insist on doing this yourself or not losing sight of the card if possible – why, see last paragraph. Then you enter your PIN and confirm the PIN entry.

After the credit card payment you should receive 2 receipts, on which the amount is noted. You have to sign one and compare the signature with that on the ID card. One should receive a receipt, the payment receipt and / or receipt, the other one will be retained by the seller who accepted the credit card payment.

Credit card on the internet

Credit card on the internet

You can also pay with a credit card on the Internet – logically you don’t have to identify yourself and you can’t either. However, the following is valid as identification:

  • correct cardholder data,
  • credit card number,
  • Security number / check digit and des
  • Expiry Date,

and of course the card company (VISA, American Express, MasterCard, Diners Club, etc.).

Usually, this data is only accessible to the holder of a credit card, which is why the payment can be considered secure – but: If someone else also has this data, they can also buy on behalf of the owner. This only works if the card is blocked, which is why you should have the card blocked immediately after a loss.

In this case, most card companies offer additional insurance as an inclusive service, for example if the card has been stolen, the thief purchases it immediately, but is nevertheless quickly blocked. If it can be seen that the card can be blocked immediately after the loss, the costs incurred are usually borne by the card company or its insurance company – so don’t wait too long, because the goodwill of the providers also knows limits.

But: It may also be that the card was not stolen at all and someone is still shopping with it, e.g. For example, if he steals the card and copies it – he also has all the necessary data without it being stolen. That is why you should never take your eyes off your card when making a credit card payment in a shop – at worst, it can otherwise be copied quickly by a fraudulent merchant or employee without you realizing it.

In this case, the card company or its insurance company rarely takes over the damage if you see on the invoice weeks later that someone else has bought with the card – here you have simply acted negligent and there is often only the way to get the result Retrieve damage yourself via notification.