Most of us know the big well-known credit companies like Good Finance. Both are large and well-known companies that often advertise their diverse products and services on radio and television.
It is no coincidence that these companies are very popular and have good prices and conditions for all loan offers. Many Germans have already received one or more cheap loans from large companies.
However, some challenges can arise if you have already reached your maximum credit balance with the well-known credit companies because you can only borrow more money from them when you have paid out a little more and renewed the credit balance.
In other words, you have reached your credit limit with the companies. What do you do?
When you have reached your maximum debt to the better-known companies, you have three options immediately:
- Wait until the term of your loan has shortened and you have used up the loan a little.
- Try to borrow money at your local bank or with friends and acquaintances.
- Apply to the many small unknown credit companies on the Internet.
If you’ve already reached your credit limit with large lenders, you can try applying to one of the small businesses you may not know yet. You can often borrow money here, even if you have used your maximum credit with other lenders.
There are many small alternative loan companies
Fortunately, the good news is that there are countless small loan companies that don’t advertise very much anywhere. You can see a large selection in the comparison list here on the page and you will also be shown in the large overview on the home page.
There are smaller companies than you ever expected, so you can find one of these banks to get a good loan at the right price.
There are many advantages to applying to alternative credit institutions. They often rate differently than the big banks, which means that getting approval can be easy, even if you already have a significant credit component. There is no connection or communication between the companies, so they do not know whether you have one or even several other loans to repay.
There are often less demanding requirements for smaller companies
The smaller lenders often have very different requirements for their applicants than large companies. This is mainly because they rate your customers differently and do not have nearly as many applications. Kind of like a local shop or other big chains.
Both providers can have advantages and disadvantages. Whether you choose a small loan company or one of the big, well-known loan providers depends on your finances and the amount of loan you want to take out today.
You can decide which solution is best for you by using our loan provider price comparison at the top of the page. There you will find both small and large loan providers and their prices.
Save money with small business loans
If you are one of the many Germans looking for small loans under 1000 USD, then there are good opportunities for you with small loan companies. There are several small providers that focus on offering attractive small loans to their customers, and often they can manage them more cheaply than the large companies whose customers need slightly more funding.
A small credit institution that specializes in small personal loans can, therefore, compete with the large ones and in many cases offer a lower price. A company that specializes in small loans can differentiate itself from its competitors by, among other things, offering a lower interest rate and cheaper administration than the large, well-established competitors.
The lower interest rates for small loans are due to a more specialized product, in which the offer has been optimized for small amounts and often shorter terms.
A company specializing in small loans can usually offer you a product that fits your situation better than a large bank with many different offers. However, this depends on several factors. There are also exceptions to the rule that smaller, more specialized providers perform better than large banks. It is also worth comparing the banks here, both online and offline.
What is the difference between small and large loans?
There is often a little confused about the concept of “small loans” and what is the difference between them and “big loans”?
No wonder, because it can be difficult for many to determine one or the other factor. There are some rules of thumb that can help you master the concepts and make it quicker and easier to find the right company if you need extra money in your account.
Small loans are most often defined as:
- A loan between 100 and 3,000 USD (loan amount)
- Often offered by one of the smaller credit companies and not by the major established financial institutions or banks
- Often the lesser-known credit companies offer that you can borrow money for free when you first apply for a loan with them
- Small loans are often short-term, which means that the term is shorter than for larger loans.
It is worth noting that you can also get a smaller loan from one of the big companies as well as from the lesser-known alternative loan providers
You can find these offers on the list at the top of this page.
New small loans are coming online all the time
If you are one of the many people who often use small loans to bridge their finances, there is good news for you. There have never been so many new, small and unknown lenders online. This development is a reaction of the market to consumer habits and increasing demand.
German customers now want quick small loans and not many of the large and complicated loans that were on the market a few years ago. The focus is on fast and cheap credit companies, which are usually smaller providers.
We want the money right away and want it paid out in less time. We would then like to take out a new small loan when money is needed again. The great interest of consumers in the smaller and lesser-known credit companies has opened up the German market for many brand new loans that specialize in short and fast loan offers.
The new companies are working to make it as quick and easy for you as a customer to take out a loan. Things like documentation and security requirements have been completely removed from the applications or can be submitted digitally. So you can get a mini or small loan online without any papers and annual accounts and you don’t have to be able to provide a house or a car as security.
Small loans are now very popular in Germany
If we look at what German consumers are currently looking for online, then these are providers who offer small loans in Germany, where the approval of loans is easy and the payment of the money is very fast. In particular, consumers have drawn attention to quick small loans and more and more are coming onto the market every day.
This is particularly related to the widespread use of mobile phones and the Internet when we have to deal with money matters. This allows you to quickly get a small loan directly from the screen. You can even do it so quickly from your cell phone that many people are now taking out the ever-smaller loans directly on a shopping spree or on vacation.
There are no longer any waiting times or demanding paperwork to apply for loans at the lower end of the price range. This makes it a lot cheaper and faster to get your hands on a little more money.
With the change in the market, in which the smaller and faster providers, in particular, are enthusing most German customers for their products, we see a new market situation that has so far not been observed in private financing. Where there used to be a handful of websites that offered personal loans, the list of all German loans now includes an unprecedented number of different banks and financial service providers that have optimized their product for the online world.
It has never been cheaper to be a credit customer and we assume a trend that always attracts customers. The loans are getting lower, which leads to more short-term loans per consumer. This can be seen against the background that many Germans do not need very high amounts, but increasingly smaller amounts. The market follows customer demand and this is clearly evident in the digital financial markets, where the transition to the Internet, unlike local banks, is extremely fast.
In particular, people who want to borrow small amounts are very happy to go online in search of the best provider for their needs. Taking smaller amounts instead of large amounts makes it easier for many people to take care of their finances.
It is nice to be able to repay the debt in a short time and to have completed the process. It is especially easy now where there are so many small loan providers to choose from and you can get an answer to your loan application immediately.
The trend is increasing that we borrow money from small credit companies now and then and pay it back over a short period of time. This way we don’t have to plan far into the future and can live more freely in the present.
Now that interest rates are as low as they have ever been, it makes a lot more sense to find the money online when we need it and not have to spend years planning your finances. So you can afford anything whenever you want.
The small free loan offers are particularly popular with Germans and offer a unique opportunity to get the money you need without incurring high interest or fees. As long as you need a small amount, the free small loans are an obvious option that many are not familiar with.