An online credit covers a wide variety of ways of financing. This is the reason why it is important that you differentiate the financing itself, from the credits by Internet. Many of them are made through crowdlending platforms or private lenders.
What is an online credit
Online credit has now emerged as the most frequent type of alternative financing that customers and, in general, users most often use. To begin with, we can define the loans we get through the network, such as those obtained online through credit platforms.
Since the financial and economic crisis devastated Spain, the country has gone through these arduous moments that have led people to turn increasingly to this type of financing in their day to day. The cases have grown exponentially, since the requirements that are requested for the approval of a credit are not as strict as those imposed by banking entities.
However, we must bear in mind that the other side of the coin are the interests that are presented at the time of their return. Online credit is becoming more fashionable, especially the ” express money” or the one that offers money in a few minutes with great ease.
The main characteristics of online credits
This type of credit is focused mainly on individuals. That is, it does not focus in a specific way on companies. In addition, another feature that makes more and more people opt for this non-traditional option is that it is not necessary to argue or detail the reasons or the purposes of money.
The requirements of this type of financial product are very lax. You will not need much more than to have the DNI in force, be of legal age, more or less regular income and have a bank account that is associated with you.
Also, the term of return of an online credit is quite short. This attribute is due to the fact that, normally, it serves to cover a specific need for cash. Normally, the term does not exceed 30 days, although many companies that offer this product allow you to extend the term of return in exchange for fees. Sometimes, this postponement of payment even exceeds three months.
On the other hand, the amount that you will be given with a non-bank loan is not very high. Keep in mind that it is used for specific moments, which usually do not exceed € 1000. The average is between € 300 and € 5000, but depending on the platform where you apply for the credit, the amount of money may vary.
Later, you should bear in mind that there are two types of platforms that offer these credits. The crowdlending are those that give you the amount of money with their own funds, while, on the other hand, there are private lenders that act as intermediaries with the previous ones.
The time you have to wait to get credit is practically nil. You request it instantaneously. At the latest, they will pay you the money within 24 hours, although you will usually receive it before this deadline.
In addition, companies usually do not carry out any type of study on the risks that the credit operation can have. As well as studying incidents that may have with the person requesting the money, since no prior study of solvency, or at least, not in excess.
What you should keep in mind is that, since there is no exhaustive study about the clients, the cost for non-payment is high. This sometimes leads to a succession of legal and legal problems about clients who have enjoyed this type of financing.
Therefore, although initially requesting an online credit is really attractive for the individual, we must also be aware of the responsibility and commitment that you assume. Hence the importance of returning the money within the established period or requesting its extension by the appropriate route, since you can request an extension of the return period if you need it.
Also, the main problem of the defaults of the quotas is that when you stop paying them, they will begin to increase interest on late payments. Which, in the end, usually end up in the courts.
The conclusion if we analyze these characteristics is that, although it is simple and fast to request a credit through Internet, you must be very clear that you have to return it without exceeding the term that you have established. In this way, you will not be overwhelmed later by the interests of the delay. That is, it uses financing responsibly.
Credit by Internet: types
1. Personal credit online
The personal credit that is contracted through the Internet is that which is offered exclusively to the individual. Normally, it is small amounts of money that do not exceed € 1000. This type of financial product does not require guarantees and is granted instantaneously. However, the linked late payment interest is usually quite high.
2. Fast online credit
The online credit that is granted quickly is the one that can have a monetary amount of up to € 10,000. The period in which it will be granted ranges between 24 and 48 hours. To return it, at most, you will be granted 4 or 5 years.
3. The online mini-credit
Internet microloans are a type of quick credit. However, the amount offered is much lower than the quick credits described above. Far from offering the € 10,000 of fast loans, the maximum they offer is € 900. In this case, the return period that is granted is of more or less thirty days and the concession is made in just a few minutes.
Internet credit through ‘crowdlending’
Another way to get an online credit is to use the crowdlending pages. Platforms of this type are those that grant loans to individuals and companies having previously made a detailed study of each operation.
Its objective is to grant better conditions, as far as possible, for investors, borrowers and for applicants in general. Through the non-bank credits that are obtained by these platforms, both individuals and companies can get the financing they want.
The necessary requirements to apply for an online credit
Depending on the credit company you choose over the Internet, the requirements that you must meet may vary. In most places what you will be asked for, first of all, is that you reside in Spain, although not always. You can request them once you have reached the age of 18. However, sometimes it is not enough to be of legal age, but you must be between 25 and 70 years old.
Another requirement is that you present the DNI, NIE or, if applicable, the valid passport. They will also ask you to have a positive credit history, as well as having an account number, a mobile phone number and an e-mail address .
As we have mentioned, it is important that you use it responsibly and be able to return the amount of the credit within the agreed term. Otherwise, you may have legal and legal problems. Finally, you will only have to fill in a form with your application providing all this information, as well as the necessary documentation.
What are the advantages you can have with online credit?
1. The interest rate
The interest rate that the online credit has varies depending on the repayment term. Sometimes, it can even be up to 8%. Keep in mind that the shorter the return period, the better the conditions will be.
2. Agility in the operation
Once the Internet credit company receives your financing request, the risk department will proceed to study your operation. However, the usual thing is that in less than 24 hours you have an answer, especially if it is a fast online credit. The worst thing that can happen to you is that it takes 48 hours. Once it is approved, you will be notified instantly so you can enjoy the amount you have requested.
3. About CIRBE
Many of the non-bank credit companies do not consume CIRBE. The clients of an entity that have not had any loan or credit, or that have never signed a guarantee or guarantee, are those that are not registered in this list. It is not a record of defaulters, but of people who have performed these actions, even if they have returned it. The status of the contracted loans is updated in the list.
The CIRBE is important, since it is one of the main tools of a bank to know what your debt capacity is. In this way, you will study and assess your ability to return an amount of money that has been lent to you.
Clarified this, what we want to point out is that many of the companies through which you can hire credits online do not consume CIRBE. This means that by contracting credits in the network you will not appear in this list.
4. No additional products
Internet credit does not require you to hire additional products to be able to obtain them, since the steps you have to perform are minimal. Contrary to what usually happens with other personal products such as deposits.
5. There are free early repayments
With the online credit you will be able to amortize the money that has been given to you in advance. There will be no cost to do it totally or partially. Do not forget that, apart from this possibility, you can request a shorter return period in your application. Well, as we have mentioned, the lower the term, the better the conditions will be.
6. It has the backing of the Bank of Spain and the CNMV
Some platforms that offer these financial products have the license of payment entities granted by the Bank of Spain, as well as the Participatory Financing Platform registered with the CNMV.
Why is online fast credit possible?
The factors that have generated the growing popularity of online credit are many. For example, the fact that now the Internet is universal or that the culture of credit among the population has grown. Also, today families have new financing needs and greater economic difficulties in their respective homes.
However, there are two specific aspects that have been more influential. The first thing that we have to take into account is that there is a system of verification of requests that is automated. This allows them to be approved instantly if the data is valid and correct.
A second factor that has favored the growth of the popularity of this credit model is the new emergence of tablets and smartphones . Having access to the Internet or the possibility to connect to the Wi-Fi network, the user can access from any point and at any time or day, be it a holiday or even at Christmas.
Finally, undoubtedly, the advantages and the possibility of obtaining money instantly adapted to the needs of each one with agility, not very severe requirements and total transparency and security have also contributed to its boom.
If you need to get financing for your expenses, your improvised or for a whim, a credit online can be the solution. It is possible to get one that suits what you are looking for even if you are in ASNEF. Although, previously informed about the different existing types, the interests of each, as well as the requirements and deadlines for return.