Short-term loans: why is this type of loan so criticized?
At the moment, it seems to be fashionable for some bloggers and online journalists to report on short-term loans in general. Why this is up to date can only be guessed! The fact is, however, that pretty much every current article on the subject has more or less neglected the subject of correctness and objectivity.
Which is a shame, because what is common with other loans and their providers does not seem to apply, especially when it comes to short-term loans, namely: the differences in the mini-loan offers! But that’s exactly what you should focus on. Especially when it comes to making it clear to potential prospective customers of a short-term loan that there are differences.
If you want to give potential prospects for a mini loan or short-term loan a real orientation with a variety of loan offers, you have to sit on the bottom of your pants. Say: do your journalistic homework! Do thorough research, analyze the market, make an objective comparison! It is simply not enough to simply complain about too high interest rates, generally too high costs and lack of transparency.
Different loan levels for short-term loans
The first point of criticism on our part regarding the generalized articles on the subject of short-term loans concerns the statement that should be interpreted as generally valid, that the maximum loan amount is USD 500. Wrong, because the loan amount varies from mini loan provider to mini loan provider.
While it correctly ends at 500 USD for one, it is 600 USD for the other and for another provider it only ends at 3000 USD. So how can you simply say that 500 USD is the end? Anyone who, based on such an unfounded statement, has the self-understanding of providing help for loan seekers with his article should question himself. If there is already talk about money and credit, then please with a certain self-claim – right?
Non-transparent additional options?
Another topic that gives rise to criticism is the constant “complaining” about the additional options and their costs. It should also be noted here that those who can read have an advantage! But the advantage increases if you understand what you read. Every provider, be it Fine bank, Infra bank, Cream bank or Best bank, has different options in the program.
However, these do NOT differ in the option itself. The difference is in the cost itself. Because these vary considerably from provider to provider. In addition, the options are not voluntary for all providers. Because what costs money for one provider, for example express transfer, is free for the other. No ifs and buts!
For one mini loan provider, the costs are based on the amount of the loan taken out. The other, however, estimates a fixed price. Here, too, it is important to take a detailed look at the service options offered for each individual small loan offer. In particular, what effects they have on the processing time or payment period. In addition, please do not forget the estimated costs.
Our conclusion on short-term loans in reporting
The two examples mentioned in this article alone are clear evidence of how different the individual mini loan offers are in the market. And not just in terms of interest and term! Ignoring these differences more or less knowingly in short-term credit reporting is simply unacceptable. Because “avoiding” such information usually costs the money of the consumer! Especially when exactly the same online magazines and the journalists who work behind them when reporting on other types of credit, a lack of objectivity or inadequate research can mostly not be assumed.
So why then such negligence on the subject of mini loans / short-term loans? Why not do a really objective comparison of the providers? Is it perhaps just a general adaptation of the bad image of Payday Loans from England? We don’t know either, but we’d be interested in the answer. And an answer from the so-called credit – or rather: money experts – will certainly not be given to such a question! As an “expert” you would indirectly admit a weakness of your own performance or “knowledge”.