The difference between different loans

Taking a loan is nothing strange. Today, you can borrow money online or at the bank. But which loan should you choose? Here we work out the concepts so that you can choose the right loan – simple, fast and safe.  

The market for online loans is large and you probably heard of both fast loans and private loans, but what is the difference really?

 

Private loans and quick loans are unsecured loans aimed at private individuals

Private loans and quick loans are unsecured loans aimed at private individuals

What differs are the loan terms, primarily the interest rate and the term of the loan. You can apply for a private loan from the bank and usually the terms are better than for a fast loan that you apply online with a credit company. However, the handling of a fast loan is considerably shorter than that of a private loan. When you apply for a loan online, you are usually notified immediately after you have sent your application. A private loan can take between 2-5 business days to be processed.

So, to summarize, is a quick loan:  

  • A private loan with a higher interest rate
  • One smaller loan
  • A loan to be repaid within a maximum of 90 days
  • A loan that is paid out within 24 hours

While a private loan is:

  • A loan with a lower interest rate
  • A bigger loan
  • A loan that can be repaid within 1-15 years
  • A loan that is paid out within 2-5 days

 

Which loan is the most expensive, fast or private loan?

Which loan is the most expensive, fast or private loan?

Generally speaking, a quick loan is more expensive than a private loan. This is because the bank can usually offer a lower interest rate on its private loan than an online lender. If you have landed a private loan with your bank, you are probably already a customer and the bank has a good overview of your personal finances. In addition, the bank can offer a longer repayment period than a private credit company. The bank simply runs a smaller risk than the credit company.  

Quick loans are also called consumer loans, blank loans or SMS loans. When you borrow money online, it happens very quickly, even faster than when you apply for a loan online at your bank. The money is paid out within 24 hours and if you have a bill that is urgent, this is a true savior in need. Very few banks are as quick even if you were to submit a loan application online. At the same time, there is a reason why fast loans are usually defined as high-cost credits. A quick loan should be repaid quickly so that the interest rate does not go away.  

Keep in mind that although a private loan is cheaper than a quick loan, there are also some similarities between private and quick loans:

  • There are fees for both types of loans. The size of the fees may vary and the bank’s fees may not be cheaper than the credit company’s.
  • The interest rate is set individually. This means that even if the bank CAN offer a lower interest rate, you may not receive a lower interest rate if your credit rating is crass.
  • Both fast loans and private loans can have either a fixed interest rate or a variable interest rate. Loans with variable interest rates can become more expensive over time. Make sure you know what type of interest you receive before signing the loan agreement.

 

Which loan is best, private loan or fast loan?

Which loan is best, private loan or fast loan?

It depends on your needs and your own financial circumstances. Your bank can offer you good loan terms, but if you have payment notes, it is likely that the bank does not want to lend you more money. In that case, the solution can be a quick loan. Choosing a good quick loan is not easy, but you can get help along the way. At LoanShooter you can compare different types of loans to quickly find the right solution for your needs. It is free to use our comparison service and no matter which company you choose, you can feel safe. We only mediate lenders who are under the supervision of the Swedish Financial Supervisory Authority.

Having trouble getting a loan?

If you normally find it difficult to get a private loan, it is not at all impossible that you can get a sms loan anyway. After all, most sms lenders have lower requirements than banks have, since sms loans are significantly smaller than a regular private loan and because the loan period is so short.

However, different lenders have different requirements on their borrowers when it comes to income and some do not allow payment remarks while others do, so if you have payment remarks or a really low income you should turn to a lender who thinks it is okay.

 

Low income? Choose a lender that makes an individual assessment

Low income? Choose a lender that makes an individual assessment

Here on Astro Finance you will find many sms lenders who use an individual income assessment. This means that they do not have any minimum income requirements, which means that many who normally find it difficult to get a loan may be allowed to borrow even if they have a low income or fully and live on income from tuition or A-cash.

When you turn to such a credit company, they weigh your income against your expenses and it could very well end up with you getting a loan. Look in the top right of our reviews to see who makes an individual assessment or check out the loans that do not require any income.

 

Borrow with payment note

Borrow with payment note

Having a previous note of payment does not actually have anything to do with your current repayment ability, so we think it makes sense that you get the opportunity to borrow anyway.

As you have probably seen here on Astro Finance, we have many sms lenders that allow payment remarks, just look in the column Note and you will see which ones do it. Otherwise, you can only check for “Show only lenders who can accept payment note” at the top of our first page and all sms loans you can take despite payment note, or click here. Smooth, right?

 

Sms loans without UC

Sms loans without UC

The lenders who do not take a credit report from UC usually do it elsewhere, but it is not impossible that it leads to a slightly more generous assessment of your ability to pay. So if you find it difficult to get a loan elsewhere, it may be worth trying to borrow from such a lender.

Remove credit card details online and in apps

Today it is super easy to spend money online. Especially if you have card details saved in an application or account online. Usually, companies online ask if you want to save credit cards online and then you have to actively remove them. It’s easier than ever to just click “buy” or “charge card”. Your online account is filled with one click. Money collected from your personal account where you have a limited amount of money.

 

Remove credit cards online

credit cards online

To break the habit of easily spending money online or through applications, it is best to remove your card details online completely. If you do not have your card details in, for example, an Loanlink House application, it will take longer the next time you fill up your account. One trick can be to cancel online purchases completely for your credit card and order a new credit card. Then you are absolutely sure that all credit cards are blocked.

Deleting your credit card details will take longer to make a purchase the next time you choose to do so. During that time, you can think about why you should spend money. To complete an impulse purchase, it is only this little time that is required and you then save money quickly or rather faster.

 

Remove credit card details

Remove credit card details

Usually, it is very easy to remove credit card details and payment methods with a maximum of four simple steps. We describe how it can be done with four below four steps on a website where you pay via the internet.

  1. Open your application or account on computer.
  2. Click Change Payment Methods. Your account opens.
  3. Click Payment Methods.
  4. Click Remove under the payment method to be removed.

The payment method will be removed from the account for which you have registered your details. Usually it is even easier to remove payment method with different apps. Payment methods can be easily removed via the settings function. Then the credit card is deregistered and you can alternatively register a new credit card.

Do you tend to keep your payment methods on active accounts online or in apps? Or do you remove them immediately after you purchase a product or service?