Early Repayment of Online Short-Term Loans: Pros & Cons

Microcredit is a quick and short term payday loan. This is the best way to get money, if you urgently need them. How to be smarter than an MFO? Of course, going ahead of payments schedule.  

What are “pros”?

  • Unlike bank borrowings, payday loans can be repaid ahead of time without major formalities. Moreover, the earlier a client downsizes his debt, the more he saves. According to the MFO terms interest is calculated on the days of using loans funds. And even if you have specified the maximum term in the contract, no one forbids you to fulfill credit obligations ahead of time.
  • The actual amount of the return is always figured out in the personal account online. Also, this information can be clarified by the support service, which works around the clock.
  • Online loans are very convenient and even profitable if you quickly pay off your debts.
  • Unlike banks, where a loan is specifically issued for at least six months, Internet vendors works on the system of daily interest calculation. In fact, the longer you do not pay, the more profitable the organization. In any case, through the courts or collectors, the lender will return your money.

Some words about “cons”

  • Many believe that they themselves are able to calculate the correct amount. Do not forget: the lender must deal with the calculation. If you decide to fulfill your loan obligations prematurely, before making a transaction, contact the helpline and find out how much money you need to pay.
  • When you transfer money, be sure to check if the online loan has been closed. This can be done using a personal account or a call to an MFO representative.
  • Be attentive! On the Internet you can find a lot of stories about how a customer who decided to repay a loan quicker did not pay extra pennies. According to the contract, the lender charges penalties in the form of increased interest on the entire body of the loan, regardless of the size of the unpaid balance.
  • Won’t it be too much? Specify in advance a percent of commission you need to make to the recipient came all the money if you pay through platforms of the third parties.
  • You may miss terms. To be sure of a quick receipt of funds by the lender, study the procedure. Because the delay means the new interest and fines, about which you will not know.

To avoid problems, accurately monitor your personal account on the MFO website. So you can be sure the payment will not hang somewhere, and the company will immediately see the fulfillment of loan obligations on your part and close the debt.

However, use this type of financial help only when you are 100% sure that you will cope with it.

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