What is a flash credit now?
June 28, 2019
We have recently received a number of questions about flash credits. There were many questions about whether we could provide information about the advantages and disadvantages of a flash credit. Today we decided to write an article about the flash credit. A flash credit is a credit, usually for small amounts, which can usually be requested within a few minutes. With flash credit providers, it is often sufficient to enter a number of data on the internet and determine the amount you need. The amount is then transferred within a few minutes. With a flash credit, the borrowed amount must be reversed within a few days, at the latest within a month. Flash credits can be useful if you need some money quickly, but make no mistake, because flash credits are very expensive. We will discuss the disadvantages and costs of a flash credit later.
Advantages of a flash credit.
More and more flash credit providers are coming. These providers fight each other by offering favorable conditions. It is becoming increasingly easier to request a flash credit. It is now possible to request a flash credit by means of an SMS. You just have to text the provider and your desired amount to the provider and within a few minutes the money will be in your account. A flash credit can be useful when you urgently have to pay a bill, but do not have a sufficient balance. Since the repayment period is very short, you must bear in mind that you must repay the amount within a few days.
It is just possible to request a flash credit if you have an BKR registration open. However, the amounts that you can borrow will not exceed a few hundred euros. For large purchases you will therefore have to find another solution.
The disadvantages of a flash credit.
The costs of a flash credit are extremely high. On the internet, the providers state that when the amount is repaid within a few days, you do not have to pay interest. This is of course utter nonsense. You may not pay any interest on the loan amount, but you do, of course, vary by provider, pay a € 25 administration fee. Suppose you want to borrow an amount of € 100, then you ultimately pay € 125 for it. So it can also be said that with a small loan of € 100 you pay 25% interest on your flash credit. You will wonder why you do not have to pay interest, but administrative costs?
It is established by law that the maximum interest rate for a flash loan may be 16%. Providers of flash loans find the maximum interest rate of 16% on flash loans much low and therefore come up with creative ways to make people pay more, also known as scammers. Always read the conditions carefully and only take out a flash credit if you really cannot do anything else! Even in that case we would not recommend it!
Flash credit providers and flash credit providers themselves have been in the news a lot lately. As mentioned earlier, it is because of the high costs associated with flash credits and the attempts of the providers to circumvent rules. Many providers do not meet the requirements and are therefore fraudulent. Of course there are also providers who neatly adhere to the rules. Governments are currently working on stricter controls and even prohibiting flash credit providers.