Since there is no official form of credit, lightning credit, there are a lot of contradicting statements about lightning loans, especially on the Internet. This is how loans are called lightning loans, although you do not deserve this name.
What is a real lightning credit?
In the best case, the money should be available within 24 hours with a lightning credit. Further details such as duration and amount may vary, since the main focus is on the quick availability of the money. Other synonyms that are used for a lightning credit are the express credit, express credit or instant credit.
Which form of credit can be called a lightning loan?
The criteria are now clear. Very quick processing and payment are required. The term and the amount of the loan are irrelevant at first. The following types of credit are therefore possible:
|Mini credit||Payment possible in 24 hours||Loan amount up to $ 600 possible. Maximum duration 7 – 60 days.||Very unbureaucratic in the application. Additional options such as Sofortüberweisung are very expensive.|
|Mortgage||Payment directly in cash. Requirement pawnshop nearby||You need a valuable item that is deposited as a pledge. Loan amount depends on the object. Currently the most expensive form of credit on the market||Recommended only in absolutely urgent cases when there is no other option. Credit-independent.|
|Overdraft facility||The amount of money is available directly from the checking account||Credit line is based on income. High eff. Annual interest||You only get it with sufficient creditworthiness and a regular income.|
|Short-term loan||Payment possible in 24 hours||Loan amount up to 3,000 USD possible. Running time 7 – 180 days.||Very unbureaucratic in the application. Additional options such as express payment are very expensive.|
What about a normal online loan?
Often one reads on the Internet of loan offers that promise a very quick payment. If you take a closer look, you will very often notice that these are normal installment loans. The application process for an online loan alone can take a long time. In any case, a post-identification procedure must be carried out. For sending the documents and the subsequent processing of the bank alone, you have to plan at least 2-3 working days. It can take 2 weeks before the final payment is made. It’s a very long time compared to a mini loan that can be paid out within 24 hours.
The interest on a lightning loan
When you want to take out a loan, interest often plays a big role. For large loan amounts, particular attention is paid to which provider offers a low interest rate. In the area of lightning loans, the interest rate is secondary for many borrowers, because the focus is on a fast payment. Nevertheless, especially in the area of fast loans, you should pay attention to how high the annual percentage rate is.
Mini loan providers or pawnbrokers can pay for your service very well. Percentage interest is usually much higher with these forms of loan than with an installment loan. So compare exactly how much the additional costs for a lightning loan are. In most cases, e.g. for loans with a longer term of $ 1,000 or more, it pays to wait longer for the payout and pay less interest.
In summary, it can be said that forms of credit such as mini loans, mortgage loans and overdrafts can be described as lightning loans. All these forms of credit have in common that you can dispose of the loan amount within 24 hours. A clear disadvantage here is the high interest that has to be paid on all three forms of credit. Normal installment loans, which can be taken out through well-known comparison portals, definitely do not count as lightning loans.
Finally, it remains to be said that you should be clear about the advantages and disadvantages of a lightning loan. Rather ask yourself several times whether a quick payout is really the most important. In most cases, a lot of money can be saved here.