5 things you should know before applying for payday loans

5 things you should know before applying for payday loans

Payday loans are one of the many types of loans that you can apply to a bank. These loans are usually general purpose loans that can be used for whatever you want. Payday loans are often more difficult to obtain and have strict qualification requirements. If you are thinking of applying for payday loans, here are some things you should know about them.

Requesting payday loans has no guarantee

Requesting personal loans has no guarantee

That means that a payday loan does not require you to use an asset as insurance. Therefore, if you do not pay a payday loan, the lender can not garnish anything from your property as payment for the loan. This is the main reason that payday loans are harder to get. The lender does not have any assets to take advantage of if he decides he can not afford the loan payments. Although the lender can not automatically seize your home or car, you can take other collection actions. This includes submitting reports of delay to credit agencies, hiring a collection agency or filing a lawsuit against you.

Payday loans have a fixed amount

Personal loans have a fixed amount

The amount of payday loans ranges between € 500 and € 50,000 and depends on your credit rating. The better your credit score, the more money you can borrow from a payday loan. Some banks have a very low limit on the amount of money you can borrow. For example, you may be able to borrow only a maximum of 10,000 Euros on a payday loan. You will be able to get larger amounts of loans from a bank that already has a relationship with you.

Payday loans usually have fixed interest rates.

Personal loans usually have fixed interest rates.

Interest rates are blocked and do not change during the life of the payday loan. Like the loan amount, the interest rates on payday loans are based on the credit rating and the usefulness of the loan money. The better your credit score, the lower the interest rate. Lower rates are ideal, since it means that you will pay a lower price for the money borrowed. Some payday loans come with variable interest rates that change periodically.

The personal repayment term loans.

The personal repayment term loans.

There is a period of time to pay a payday loan. The loan periods are expressed in months, for example, 12, 24, 36, 48 and 60. The longer repayment terms reduce the monthly payment of the loan, but it also means that you will pay more in interest than if you had a term of shorter amortization. The interest rate may also be linked to your payment period. For example, you may have a lower interest rate with shorter repayment terms. There may be a commission for the loan payment ahead of time.

Apply for payday loans

Apply for personal loans

It may be easier to apply for payday loans at a bank that you already have a bank account. The bank is probably going to want to know so that you are going to use the money and you can even get better or worse terms depending on the usefulness of the loan. As with any other loan, it is important to choose payday loans wisely and only borrow what you can afford to pay.

Now you can apply for payday loans in the entities that we show you in payday loans or request another type of loan such as mini- loans or fast loans online.

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