An alternative for you who are considering taking a micro loan may be to obtain a credit card instead. Criticism at http://fnwire.com A micro loan is rarely particularly cheap to take …
An alternative for you who are considering taking a micro loan may be to obtain a credit card instead. Criticism at http://fnwire.com
A micro loan is rarely particularly cheap to take and therefore there may well be other solutions that are better suited instead. One might be to obtain a credit card. Then it is not so easy that you can automatically say that it is a good idea as there are definitely pitfalls with credit cards as well.
The reason why a credit card might be better is that it is cheaper
Of course, there is often a card charge per year, but it is usually only a few hundred kronor. What makes it cheaper to borrow money in this way is that the interest rate is lower and that you do not actually have to pay anything at all if you settle the entire debt directly.
If you compare with a micro loan of 30 days, there is really no difference on a credit card where there is an invoice at the end of the month. If you pay the entire sum then it does not cost you any interest. Interest is only deducted when you have not solved the entire sum directly. The interest rate level is normally somewhere between 10 – 20%
Which is also normally lower than for the micro loans
Then it may very well be more difficult to get a credit card since there are often higher demands on the person who wants to get one. If you meet these requirements, it might be a good idea to consider purchasing such a card instead of taking a micro loan.
The important thing is just that you look up the traps that are with the credit card. You may well have a credit limit of SEK 100,000 or more and this allows you to spend money until you reach this level. If you have done so, the monthly costs will be high. If you are unsure if you can manage to keep the money, then you should not get a credit card, but it is better with a small loan for a limited time, though it may be a little more expensive if you look for kronor.