The freely available credits are those in which the money can be used for any purpose the applicant wishes. While the name of the loan suggests that the lender will not ask questions, this is not entirely true.
In all types of loans, the lender needs to know at least a little about the profile of the applicant, since he needs some assurance that the money will be returned. In the best case they will only review your credit history and your current employment situation.
Do not be fooled by the ads you will find on the Internet, such as “loans in minutes without questions”, since most (if not all) need at least to know your financial profile. They are known as freely available loans, non-destination loans or free investment loans, since the applicant will do whatever he wants with the money.
In reality, personal loans without any additional names fall into this category, since each person allocates them to what they want.
However, these types of loans have their advantages and disadvantages.
Advantages of loans without questions
- They are the fastest to get:
They can be requested from the Internet and sometimes only with your identity document.
- The requirements are minimal:
As the name says, they don’t ask you many questions, just the basics.
- Easy to find:
It is the type of loan used by most financial institutions and private lenders.
Disadvantages of free investment credits
- Scam Hazard:
They are loans in which certain scammers are hidden. Mike recommends being very careful if you are a private lender who is being asked for this type of loan. At the very least, you should review in detail the annual equivalent interest rate that you will be charged.
- Low amounts of money:
The amounts are not usually very high since being a loan with few requirements, the lender cannot run the risk of granting a lot of money without being certain that he will receive his money back.
- High interest rate:
It is usually one of the most expensive loans, since interest rates are high. This is the lender’s way of protecting himself.
Recommendations before applying for these types of loans
- Compare lenders:
Compare as many lenders as you can, starting with the bank you currently use. For this, Mike is a great tool.
- Look for recommendations:
Choose a lender known or recommended by someone you trust.
- Get informed:
Before accepting the loan, request the interest rate, the amount to be paid each month and the payment period.
If you want to avoid answering questions because you are on the list of delinquents, they may approve you or not, because with your identity document they can check your history. In that case it is a good idea to try to improve your credit history.