Quick credit is entered into with the idea of borrowing a relatively small amount quickly. Currently, there are credit companies that offer credits between 100 and 1500 USD and can pay quickly. An attractive offer for consumers who have to make up a financial deficit but whose costs are high, very high. And the high hidden costs are an unpleasant surcharge on the bill after taking out the credit.
Quick and easy credit is a lie
The word says it all: borrow money in the blink of an eye. A good solution if you need money quickly, you think. Flash credit providers can pay you back the loan amount in a very short time, sometimes within ten minutes. The amounts are between 100 USD and 1500 USD and are therefore also called mini loans. Borrowing large sums of money is not possible with flash credit. The interest you pay for flash credit is high; the legally authorized maximum interest rate is 14%. So you’re paying a high price for this quick fix. The granting of usury is actually a better name for these credits; if you take out a personal loan, you pay an interest rate that starts at 4.1%. The minimum term is six months, compared to three months in the case of a flash loan. The terms of a personal loan and a revolving credit are therefore much more favorable.
When taking out a personal loan or revolving credit, no collateral is required. In the case of flash credits, a guarantee for the loan to contract is requested during the application process. Almost none of the candidates want to ask (often ashamed) their family or acquaintances to act as guarantors and therefore choose the (anonymous) option Global guarantee. The credit institution will then guarantee your loan against payment. These additional costs, which are disproportionately high, are not visible to the customer on departure; they do not become so until later on the invoice and are added to the high interest rate.
Lenders registered in Belgium check each loan request with the Capital lender so that they can assess whether the new loan is financially sound. If you grant loans and credits in Belgium, you must hold a credit broker license. International suppliers do not have these authorizations and cannot be obliged to do so as long as they only work online.
Credit providers and lenders are not allowed to extend credit without testing the CL. Foreign suppliers who work only online are allowed. Therefore, the risks of borrowing money increase because the maximum credit limit is not checked.
FSMA license: reliable lender
As a Belgian credit provider, you need a license. Consumers can trust that if they are dealing with a licensed party, they will be working with a reliable professional party.
You can borrow responsible money online through recognized banks and brokers. Take the time to check if the license number is present on their sites and find out about the reliability of the broker in question.