A lightning loan or instant loan essentially refers to a loan whose processing takes only one to a maximum of seven working days after the application. This has the advantage that the loan can help with short-term problems. A lightning loan without proof of income is particularly quick and easy to apply for, since all evidence of income, etc. are not needed.
What exactly is a lightning loan?
- When is the lightning loan worthwhile?
- Example of lightning loans without proof of income
- Special forms of lightning loans
- Watching and comparing
- What to do with negative private credit?
- Current figures and interest rate developments
What exactly is a lightning loan?
- Balance short-term bottlenecks
The definition of the TackCredites derived as already described from the term TackCredit. It is usually used in the case of short-term financial bottlenecks. This can include, for example, the rescheduling of a dispo loan as well as a surprisingly necessary repair on the car. In order to remain mobile here, long processing times for loans are often no alternative.
- Must be requested directly
However, the instant loan is not to be confused with the credit line. In the latter case, there is no specific award by the bank, as it is already granted with the account. A lightning loan can be applied for independently and promises similarly flexible and fast problem solutions.
- Certain conditions must be met
However, the conditions for a lightning loan without proof of income may vary depending on the provider. In any case, a basic condition is the legal age of the applicant. Only then is it legally possible to actually offer the loan. Some providers also require a minimum monthly income and only grant the loan without a proof of income if a second applicant is included. So it makes sense to compare in advance to know the requirements of the respective provider.
When is the lightning loan worthwhile?
Of advantage are lightning loans without proof of income whenever appropriate evidence is difficult or impossible to provide. In case of unexpected unemployment, the monthly fixed costs must continue to be paid.
However, a conventional bank loan will not be granted in this case because of the lack of income. Also a wage garnishment listed on the salary certificate can be a reason for banks to cancel a loan.
Often it is simply hardship cases in which such an instant loan without evidence is interesting. But it is also a good alternative for the self-employed, as they often have a much harder time obtaining credit approval despite their regular income from banks.
Example of lightning loans without proof of income
There are various offers for an instant loan without proof of income. The term may vary significantly depending on the amount of the loan and depending on the provider. The minimum term, however, is usually 12 months.
Suppose your own car is broken and has to go to the workshop. Repair costs amount to about 1500 €, which are currently not available. A lightning loan is the alternative here. With a term of 36 months and an assumed APR of 0.99%, the total volume of the loan is € 1523. Spread over 36 installments, this results in a monthly burden of € 42.30 that can be easily managed.
Based on a maturity over 24 months and an annual interest rate of 11.70%, the credit volume increased in comparison to € 1679.82. The monthly charge due to the higher interest rate and the shorter term increases to 70 €.
Special forms of lightning loans
There are various names for lightning loans:
Pericredit, Credita, Bicredit and just TackCredit. They all say the same thing: the loan is processed very quickly and the money paid out at a shorter notice. Lightning loans are thus a special form of credit, which offers even more flexibility.
In addition to the lightning loans with comparatively long maturities, there are also so-called microcredits. These are also paid at short notice, but the term is only a few days or months. Correspondingly small are also the amounts of credit that can be applied for in such microcredits. The advantage here: These loans can be promised even with medium credit rating or with private credit entries. Some portals also offer a staggering, which increases the possible loan amount with each successfully and reliably repaid loan.
Watching and comparing
- Dubious credit intermediaries
Anyone who enters “flash credit without proof of income” once in the search, receives a variety of offers. It seems easy to get such a quick loan, but unfortunately the devil is often in the detail here. There are a number of credit intermediaries who advertise to provide lightning loans without proof of income. Here, however, one quickly gets to pure intermediaries who then contact banks and then submit an offer to the applicant. The problem is that it may just work, but there is no guarantee of commitment. Instead, the intermediary issues an invoice for his work, which often aggravates the situation.
- Hidden costs
It is therefore important to make sure that you do not already incur costs simply by applying. Subsequently, the interest should be taken into account in any case. A high annual percentage rate increases the loan amount and thus the monthly burden. However, particularly favorable interest rates are often associated with additional conditions for lending, so that various offers should be viewed in advance.
- If possible – two borrowers
In many cases it is helpful to include a second applicant to get a better interest rate. The monthly burden can also be regulated by the duration of the loan. Depending on the amount of the required or required loan amount, the possible terms should also be considered in comparison.
What to do with negative private credit?
A bad private credit is not always the end of a loan approval. A first step can be obtaining a self-report to get an overview of the current status of your own private credit. This can be done free of charge once a year. The score deposited in the private credit provides the banks with information about the creditworthiness of the applicant. Now it can be worked on to improve the score (the self-report can provide evidence for this) or it will be elected shorter-term solutions.
A good way to obtain a lightning loan despite bad private credit is in any case the naming of a guarantor or second applicant. This may also be a help for the loan commitment for the self-employed or in the case of ALG I and HARTZ IV. However, the second applicant or guarantor should be able to prove that the credit has a positive effect.
If no guarantor or additional applicant for the lightning loan without proof of income is available, sufficient collateral is a good alternative. Property ownership is often accepted by banks as collateral provided they are of sufficient value and not already encumbered.
Current figures and interest rate developments
- Variable interest rates
The credit market is fast moving and keeps coming up with new offers. The currently low interest rate additionally ensures particularly favorable interest rates, making the offers of the banks even more attractive. The benefits of the low interest rates are also evident in lightning loans, where actual interest rates can vary widely depending on the provider and specifications, as in the rest of the market.
- Flexible offers
The facts speak for themselves regardless of the pure interest rates for themselves: providers for lightning loans are always more successful. The more flexible the offer is designed, the greater the success. This, in turn, also benefits the applicant, since versatility and flexibility combined with a carefully conducted comparison can be used to find a suitable offer and thus a quick solution.
- High demand
Demand and supply for lightning loans are large. But who compares and takes a closer look at particularly good offers, can find a solid and, above all, short-term loan solution. How much the comparison is worthwhile shows in the flexible design of the various offers. From staggered terms and interest rates to particularly flexible and, above all, extremely short-term offers, anything is possible. The success and the rising application numbers of the past years underline the functioning system of the lightning loans without proof of income.