Changing life situations and surprises can also bring surprises and difficult moments to your personal financial situation. Many financial advisers recommend that everyone has a savings fund, such as a 3-6 month income reserve, which they can turn to when needed, but many reserve funds are significantly smaller or non-existent. You can still easily prepare for surprises, for example, with flexible credit.
What does Flexible Credit mean?
credit is a continuous credit that is flexibly available to the customer as needed. The credit line is limited to a maximum of USD 2100, and the customer can extend the credit at any time, within the credit line.
Interest is only paid on the amount the customer has made available. Because of this feature, Flexicurity works as well as a kind of reserve fund, because if you do not draw down the credit, it will not incur any expenses.
The loan will be repaid monthly at least 10% of the drawn amount or at least USD 50. Of course, you can reduce your credit even more if you wish, saving you money on interest expenses. The loan has a maximum repayment period of 101 months if the entire credit is drawn down at once.
However, when the credit is repaid, the paid credit is released for reuse. So, for example, if your credit line is $ 2,100 and $ 600 has been raised, then $ 1,500 is still available. When the drawdown is reduced by USD 100, the drawdown limit is again USD 1600. This means that if a single application is able to obtain credit for a long period of time, as long as the one-time need remains within the credit line.
How do I apply for?
Applying for credit is done online by applying online . The first time a customer signs up for a service, they need to identify themselves with their online banking credentials or a mobile certificate in order to the lender to verify the identity of the borrower. Once the registration has been completed, the customer will receive his / her personal PIN code, which he / she will be able to use in the future to withdraw money by SMS. You can also manage your own credit by logging into your Account from the Lending Services website.
You can apply for the Flexible Credit if you are a citizen of at least 21 years of age and have a permanent address . Applicants must not have default payment entries. The applicant must also have a personal mobile phone subscription and a bank’s online banking ID or mobile certificate. The applicant may be required to provide the lender with a copy of the pay slip or statement of account, attached to the application.
You can apply for a loan at any time and you can get a loan decision within minutes. Loan applications are processed during the opening hours of customer service Mon-Sun 8 am to 10 pm. Most banks also pay cash immediately after the application is approved, which means that the borrower will have virtually instant access to the loan.
How Much Does an Credit Cost?
Of course, there are always costs to the borrower. Usually the interest rate of a loan depends on the risk taken by the lender: the higher the risk that the lender loses money, the higher the interest rate. Extreme credit is unsecured in nature and does not require guarantors. The interest rate for such loans is always higher than the interest rate for secured loans.
There are no monthly charges for an credit, so if you do not make the credit available, you will not incur any cost to the customer. When the credit is drawn, a withdrawal commission of 19% is paid on each draw. The drawn credit shall be repaid in monthly installments of at least 10% of the drawn amount or at least USD 50. The loan will be repaid at a monthly rate of 8.9%. However, no interest will be charged on withdrawals and withdrawals if the entire amount is repaid on the first due date. The faster the loan is repaid, the more you will save on interest expenses.
The interest rate on the credit is thus 8.9% per month, which means an annualized rate of 106.8%. The annual percentage rate of charge may vary, depending on, for example, the amount of credit, the amount of drawdowns and the repayment schedule. For example, if a customer takes out a $ 800 credit that is repaid in 12 equal installments, the amount of the installment would be $ 121.48 and the effective annual percentage rate of charge under consumer protection law would be 238.71%. The total amount to be reimbursed is then USD 1457,61.
How do I repay my credit?
Extreme credit is repaid in monthly installments consisting of credit repayments, withdrawal fees and interest. Flexibility is also quite flexible with regard to loan repayment, as the minimum monthly installment is only 10% of the drawn loan amount or at least USD 50. You can also repay your credit faster if you want and you can save a lot on your credit interest rates.
Due to its small monthly installment, credit is also well suited for a tighter budget. Of course, a small monthly installment means a longer loan period and thus higher total cost.
The Extreme Credit sends a monthly invoice to the customer for repaying the credit, which contains the required payment information. You can also continuously monitor your credit status through the online service. If the invoice is not received, the customer must actively contact customer service to find out the payment information and pay the installment according to the agreement.
However, if you are having difficulty making the monthly payment, you should contact customer service as soon as possible.
A customer can obtain one free month of credit per calendar year. Any outstanding loan repayments and interest during the grace period are added to the outstanding loan capital and thus affect future installments. The free month is an additional paid service that must be activated in advance through the online service or in conjunction with customer service. On your own, you cannot take a grace charge, so you must always agree in advance with the lender.
If the monthly fee is not paid as agreed, lender will send a payment reminder to the customer. In this case, the customer must pay not only the repayment, but also any delay costs incurred. If the repayment is not paid despite the reminder, the lender may transfer the payment to the debtor, in which case the customer will also be charged for the collection costs. In addition to costs, interest on late payment is charged, which is 49% (annual interest). An unpaid invoice can also result in an entry in the customer’s credit history, which can cause a variety of difficulties in the future. Therefore, in case of temporary payment difficulties, it is definitely wise to contact the lender as soon as possible and try to arrange a payment arrangement. It is in the interest of both that the credit is paid off without any special measures being taken.
Can I apply for loan?
If you don’t already have a reserve fund, credit can be a good safeguard against unexpected situations. We have compiled a list of the most important features :
- No monthly or annual fees. If you do not take out the credit, you also pay nothing.
- Flexible credit drawdown. You can also raise smaller amounts of credit within your credit line depending on your actual need.
- Small monthly installments. The minimum monthly installment is 10% of the loan amount you have made available or at least USD 50. If you want, you can pay more and save on interest expenses. If you pay the entire credit on the first due date, you will not pay any interest at all.
- Nominal interest rate 8.9% per month, 106.8% per annum. The current annual interest rate depends, among other things. the number of withdrawals and the monthly installment.
- Possibility to get a free month when you pay nothing.
- The paid credit will be released again. This way, you can use a single loan application for longer term credit.
In today’s changing world, our economy often has to be flexible. However, it is not a good idea to take out a loan to cover your normal monthly living expenses or other credit. If you feel that your monthly income is not enough to cover your expenses, you may want to take a critical look at your own consumption. Help is available for planning your own finances, also for free. For example, there are good tips and ready-made templates for your monthly budget on the website.