In this article, we describe account credits and how they differ from private loans, bank loans, and quick loans. We are also looking at the possibility of taking out an account credit without a Credit Checker and what it means.
We will also list a number of lenders that offer account credits, to give you some options to choose from. We also explain what the concept of “high-cost credit” means to you as a borrower and how it affects the cost of the loan. Come along!
What is Account Credit?
An account credit differs from a traditional fast or private loan. The credit can be compared to a credit card online, where you are granted credit with the lender. It usually stands at USD 5,000 – 50,000. Once you have been granted the credit, you can choose to use as much of it as you need. You can withdraw money from the credit until your credit limit is reached.
Many lenders make it very easy for customers to use their credit. Some lenders even offer a mobile app where you can easily specify how much you need to withdraw from the credit and the money is then quickly deposited into your bank account. Other lenders, like Monk, give you bonus points that lower your interest rate if you handle the payments.
The advantage of an account credit is that you do not have to make a new application every time you need money. Once the credit has been granted, it is free for you to withdraw money at any time, as long as you take care of your repayments and do not exceed the credit limit.
It does not cost anything to have a granted, unutilized credit. Thus, it is easy to apply for a credit and then utilize it only when needed. Then you always have a financial buffer available if you need capital urgently.
The difference between bank credit and fast loans
A fast loan is a traditional small loan without collateral. You apply for the loan and choose the amount and repayment period. Then the money is paid to your account.
If you want to borrow more money you need to make a new application. Account credit is like a virtual credit card, where you only have to apply once. Then you can borrow money yourself by using your credit. The credit is then repaid monthly during the selected repayment period until the entire debt is repaid.
To apply for an account credit
Applying for an account credit does not differ significantly from the process when applying for a regular quick loan. You start by filling in your personal information in a simple form on the lender’s website. There you also choose your desired credit limit and the repayment period.
Then you identify yourself with the help of BankID. Credit information is also made using one of the credit check services. Occasionally, account credit is offered without a Credit Checker, but the most common is that a Credit Checker is used at higher amounts.
Once you have your credit card granted, just notify the lender when you need to use the credit and withdraw money. They are usually deployed the same day or the day after.