Do you want to request a mini credit? A mini credit is also called a mini loan and is a financial product that is intended to provide you with a little extra money for a short period. In contrast to a revolving credit or a personal loan, a mini-credit has a short term. In general, this duration varies from 15 to 45 days. Within this period you must have repaid the borrowed money with interest. The higher the amount of the mini-credit, the longer the term.
When to apply for a mini credit?
You can take out loans for various purposes. For example, for the purchase of a new car or for the renovation of your house. In such cases, the amounts involved are considerable and you will need a long-term credit that you pay a lot of interest on. But you can also imagine situations where you temporarily need a few hundred euros extra. Because something has broken in your house, which urgently needs to be replaced. Or because you happen to have an expensive month with many birthdays and you actually can’t wait for your next salary. A mini credit can then be a good temporary solution.
How much can you borrow with a mini credit?
Although the lack of this may feel like a heavy burden, a mini-credit involves relatively small amounts of money. Do you want to request a mini credit for a small amount of money? You have to think about amounts of several hundred euros. With providers like Ferratum you can borrow from as little as 100 euros and with others as little as 50 euros. The maximum loan amount for a mini credit is 800 to 1500 euros. Not huge amounts, but money, that you can give just that little bit of air that you need in expensive periods.
Apply for mini credit from the age of 18
In the Netherlands you are legally mature at the age of 18. From that moment you are also responsible for your finances. This means that you can also apply for a mini-credit from this age. Although a mini-credit is easy to arrange and does not involve excessive amounts, this form of loan is not without obligations. The duration of the mini-credit is short and you must ensure that you repay the borrowed amount within the specified period. If you do not comply with this, you will be fined and your debts will only increase further.
Mini credit without BKR assessment or payslip required
Do you want to apply for a mini-credit without a BKR assessment? In the case of a mini credit it is usually not necessary to provide a payslip. So even if you do not earn much or have no work, you could qualify for a mini-credit. There is also no BKR assessment when applying for a mini credit. This is a big advantage especially for people who are known to the Credit Registration Office in Tiel. Previously they could not go anywhere for a new loan, with a mini-credit a temporary solution is offered for a low amount. Ask for help from an official body such as your municipality or NIBUD.
Global Guarantee or other guarantor
Most mini credit providers state in their terms and conditions that you must have a guarantor for the amount to be borrowed. In the unlikely event that you are unable to repay the credit, the guarantor is deemed to do this for you. When taking out a mini-credit you can propose a personal guarantor yourself, but if you do not have one, you can also use an institution such as Global Guarantee, who want to act as guarantor for a fee. In the case of a personal guarantor, this person will also have to submit various details before the mini-credit can be approved.
Costs for the mini credit
The well-known slogan also applies to applying for mini-credit: Borrowing money costs money. Logically, borrowing money is not free. The lender incurs costs for staff and loses interest by temporarily lending capital. This must of course be compensated. Therefore, a mini credit must always be repaid with a predetermined interest rate. The higher the amount you borrow, the more interest you have to pay. This is something that you have to take into account. Of course, it should not be the case that the interest on the mini-credit will put you in trouble again when paying it off.Financial Markets Authority
The Netherlands Authority for the Financial Markets (AFM) is the independent financial market regulator in the Netherlands. If you want to apply for a mini credit, it is important that you choose a reliable provider for this. A provider that adheres to certain codes of conduct and that is clear in the way it works. This way you know that you are dealing with an honest party and the risks for everyone are limited. Credit providers such as Creditmash, Ferratum and Bankate are examples of such reliable providers.
Inform and request mini credit
Before you apply for a mini credit, be well informed about the conditions and consequences of such a short-term credit. No matter how you get used to it, it remains a loan and you should never think about it too easily. If used responsibly, the mini-credit can be the perfect solution for temporary money problems. If you need a structural solution for the long term, then other products from Creditmash or Bankate may be better suited.