Credit in 24 hours – is there such a thing?
Actually, the credit market doesn’t think in short time frames. The repayment, for example, takes many years. But processing a loan application also usually takes a long time. There, the processors at the banks usually talk about working days, but it usually takes two weeks to know whether you are getting a loan or not and the payment has started. But there are always offers for a loan in 24 hours. However, they are offers with many pitfalls.
The loan in 24 hours: an instant loan
The credit in 24 hours is a so-called instant loan. These are loans that are to be disbursed particularly promptly in order to assist people in acute financial need situations. Most of them are emergencies. The downside of an instant loan is its interest: the faster a loan is paid out, the more risky it is for a bank because it cannot secure the loan in peace by checking the applicant’s creditworthiness. This increased risk with an instant loan is secured by higher interest rates.
The loan in 24 hours: disbursement or approval?
The most important question for a loan in 24 hours is whether the money will be paid out during this time or whether it will be approved. The financial institutions often only issue a preliminary approval within this period and only pay out the money after further processing, which often takes up to five working days. This can be confusing for the borrower because most people who hear that there is a loan in 24 hours assume that they have it in their account 24 hours after the application has been fully submitted.
The loan in 24 hours with a payout during that time
If you read about this form of loan online, you often hear that it is completely unrealistic. Only dubious providers would pay out in this short time. But that is not entirely true: even a disposition can be approved very quickly by your house bank. For a loan that is granted in just 24 hours, the amount of the loan (the lower, the better) and the relationship of trust that exists between the borrower and the bank are also important.
To put it simply: The deeper and more intense the relationship of trust is, the faster you can get a loan. It is clear, however, that creditworthiness and the entry in the protection association for general credit protection must be impeccable to get such loans.