6 Disadvantages of Using Kredivo for Online Credit
Many are interested in online credit services without a credit card such as Kredivo. But do you know what are the disadvantages of using Kredivo? If not, let’s read our review below. Of course, this will be a reference for those of you who want to use one of the services of the well-known fintech.
Most people don’t try to get to know more about the service they will use, most of them just use it without knowing what the terms and regulations are.
Even though if you want to read, everything is in the attached terms and conditions before we press the agree button on the application.
As long as you can immediately get money quickly and most importantly without using a credit card or deposit, then it is immediately disbursed.
In fact, if we read it again, we will know what are the limits, risks and how to use kredivo services that are safe and do not plunge us into ongoing debt.
Here are 6 Disadvantages of Using Kredivo for Online Installment
The most detrimental thing is the higher interest rates. Then there are late payments or fines.
Here we have summarized what are the disadvantages of using Kredivo that you need to know:
1. Huge Interest Rates
When we apply for a loan from a fintech company, of course the first thing that comes to mind is that we first see the interest rate that will be charged to the user.
The interest rate charged by kredivo is also higher if we compare it with us applying for credit to the bank.
With high interest rates, of course, our burden or debt will also be greater. That is, the total loan and the interest will be calculated and added up, that’s what we have to pay.
But if you think about it, this is quite reasonable when we use online credit services without a credit card like Kredivo, which have high interest rates.
- First, because the application process does not need to provide a DP (Down Payment) and also does not incur administrative fees.
- Both users do not need to provide any guarantee or collateral.
- The requirements to apply for credit online are very easy.
Who is not tempted by sharing these conveniences? Moreover, the limit offered is quite large?
Wow, you can always buy new things using a nyisil method, surely most people will think like that.
And the kredivo are certainly not stupid, in order to avoid credit that is given “lost”, the service uses a safe step from this risk, namely by making higher interest rates, that’s one of them.
Are the interest rates that apply to each online credit service the same?
Of course not, on each service platform, of course it is different and regarding the submission requirements, it is certainly different.
And “usually” those with easy activation requirements also have higher interest rates.
Kredivo’s interest rate per month is 2.6% and per year is 46.22 – 53.36%. Of course this is bigger than if you take credit offline. For more details, you can check here.
2. Short Repayment Period
The credit repayment period is relatively short because the maximum is only one year or 12 months.
The options are 3, 6, 9 or 12 months. No 24 month option.
This makes users only able to buy goods that are not too expensive, and indeed kredivo targets their services for customers like this.
In fact, if we look at the goods in the Indonesian marketplace, many also have a price of millions, tens to hundreds of millions.
And when we only have a grace period of 1 year, it is very unlikely to use kredivo as a credit service.
3. Penalized for late payment
One other way to avoid bad credit. Actually, this is the same as if we take credit to financial institutions such as cooperatives or installments in villages, if we pay late, we will be subject to fines, right?
And usually this late fee or fine generally has a rate of around 3% per month.
With the enactment of these fines, make sure we always have sufficient funds to be paid every month.
In fact, if we arrive late, we ourselves will lose because the amount to be paid is getting bigger and bigger.
4. Available for Certain Regions in Indonesia
Kredivo credit services are only available for customers who are domiciled in big cities in Indonesia.
They limit it, this service cannot be used for users in remote areas, this is related to the difficulty of the billing process to be carried out.
5. Have a Field Team
Did you know that Kredivo has a field team or what is commonly known as DC (Debt Collector) who is ready to collect at any time if you do not pay on the exact date specified?
In fact, according to some customer experiences, this team often goes directly to the customer’s house and doesn’t hesitate to directly collect it.
Before that, there will usually be advance notification via SMS or WhatsApp. You can read more about this experience here.
6. Temptation to Shopping
The temptation to get the things we dream of in installments is very dangerous.
Especially for those of us who get regular income every month, of course we will think “it’s better to pay in installments, right on the 1st tomorrow we get paid and every month we continue to get paid”.
Well, what if at any time we do not have income? For example, as in yesterday’s case, many were laid off from big companies because of the Corona virus case, of course this was very sudden and the workers didn’t expect it before, right?
Therefore, it is better to save the money first, or invest. If later it has been collected and enough to buy the desired item, then take it and buy it.
Then How?
No one forbids you to use Kredivo’s online credit service, try to find loans to relatives or friends that don’t pay interest.
Because for those who are Muslim, of course they already know that this credit system is usury, and the sin is the same as if we commit adultery with our own mother.
Not to mention there are things that are unexpected, such as the need for large amounts of funds, for example, if you are sick or have an accident, you will certainly feel difficult things such as having to pay installments and also pay for a hospital which is quite expensive.
There are others who use installments to buy items that have a reduced price such as electronic devices, and I give an example of the most common being smartphones.
We can see that every year and even every month the price of the smartphone we buy will continue to fall.
This is because new products continue to be released from the smartphone, so be wise in using a smartphone and don’t be easily tempted by new products that are usually issued every month.
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So my advice is that you should avoid this type of online loan so that we don’t continue to be in the world of debt that makes us addicted to doing it. Let’s learn to manage our money for a better future.
