Even a small renovation can be more expensive than planned. Since beauty repairs are most urgent and can rarely wait, interim financing often has to be used. Low-priced mini-credits often offer much better than an overdraft on the current account.
If smaller renovations are to be made in the house or apartment, residents often waste no thought on financing. However, smaller renovations can not always be financed from the current budget. Too often, the costs add up to more than initially thought.
Even if z. For example, if paintwork is carried out in-house, colors and utensils must be purchased. If additional details are changed at the facility and smaller accessories are purchased new, the renovation costs next to a weekend lifetime also often a four-figure amount. Who can not finance this immediately from the current revenue, should look for a cheap financing.
Of course, the credit line can be easily “misused” at the house bank as a renovation loan . However, this is not recommended for four reasons. First, the interest rates on such loans are usually very high. Second, there is no scheduled repayment, which entices a significant portion of borrowers to permanently use the dispo.
Third, a (permanently) overdrawn current account leads to a deterioration in personal creditworthiness. This is especially true if the account has been overdrawn beyond what was agreed with the bank. Such a “tolerated overdraft” can make loan approvals impossible because banks look in their application for bank statements. In addition, account holders must expect at any time that the bank will not allow further dispositions. B. Direct debits not redeemed.
Fourth, a credit line serves as the last emergency reserve. If the credit for renovations is exhausted, this emergency liquidity is no longer available. This can be uncomfortable if z. B. on weekends a locksmith is needed or medication must be paid.
A small loan for repairs to the house and / or the apartment is therefore in many cases better suited to cover short-term renovation expenses. The loans typically have a maturity of 30-60 days and are repaid in 1-3 installments. The cheapest loans are at a bullet rate. The interest rates are then often below those of credit facilities. Further costs do not apply if extras such as installment payment is waived.
A mini loan has a fixed repayment date and therefore does not change the structure of the private finances. The providers of the loans have established themselves in a competitive niche and focus their products above all on a quick payout and an uncomplicated application route.
Loans can be largely requested on screen – vendors with videoident and digital signature do not need to go to the post office or print out. The application usually takes only a few minutes. Immediately thereafter the result is fixed and borrowers know whether the mini loan is credited to the own account the next day or not. With many providers, day-like payouts are also possible: an advantage if Friday afternoon renovation plans are forged.
Since there are now quite a few providers of short-term loans, a comparison before borrowing is recommended. In addition to the interest rate, consumers should also take into account the acceptance criteria and, if necessary, the costs for optional additional services such as: B. Consider express payments.
Consumers without negative characteristics and with fixed income can expect a commitment. Low earners and interested parties with negative features may also be successful with individual providers.