Information how to apply for a payday loan
Why apply for a payday loan? If you are looking for a loan where you know in advance exactly where you stand, then that is the payday loan. Unlike with the Revolving credit, the terms, interest and duration of the loan are set in advance. So you know exactly how long you will take to repay the payday loan, how much you spend monthly repaying the loan and how much interest you will pay on the loan during the term of the payday loan.
All these points of security are the opposite of the revolving credit. With this loan you have a variable interest rate during the term of the loan and the term of the loan is not fixed. With the payday loan you can borrow money as a private person.
Loan for small expenses
Many consumers find the pre-determined security a pleasant feeling when it comes to borrowing money. They know exactly where they stand. However, the degree of flexibility with the payday loan is less than with the Revolving credit. For example, you pay a higher interest rate on the loan amount, you cannot repay without penalty, and you can no longer withdraw the repaid credit. On the other hand, you know exactly in advance where you stand and interim changes in interest rates will not apply to you. You have taken out the loan at a fixed interest rate.
Features of the payday loan
● You know exactly where you stand in advance
Because all agreements have been made and recorded with you in advance, you know exactly where you stand with the payday loan in advance, as is not the case with the revolving credit.
● Fixed interest
You determine the interest rate of the payday loan during the entire term. The current interest rate that applies at that time and is offered to you by the lender is the interest that you will pay on the loan. This interest is fixed and will not rise or fall.
● A fixed duration
The term of the loan is also agreed in advance. You know in advance exactly how long you will take about the loan to pay back and how much the loan will ultimately cost you during the term. These are also characteristics that are directly opposed to the conditions of the revolving credit.
● Fine for repayment
Unlike with the Revolving credit, you can not pay off with a payday loan. Because the terms and conditions of the payday loan offer more security and a more attractive interest rate as with the revolving credit, you pay a fine if you want to pay off the loan earlier. If you want more freedom in the loan, it is advisable to take out a revolving credit.
So always be well informed about the conditions of a loan and which one best suits your spending objective and wishes. There are major differences in the forms of borrowing money. You can obtain the necessary information from the credit providers listed below. They assist you and give advice on which loan is best for you. We can never provide advice on behalf of these lenders.
Applying for a payday loan: benefits
Do you want to request a payday loan, or are you curious about the benefits compared to other forms of credit? It is wise to compare these with each other, because you ensure that you can make a good choice and it is possible to take out a loan that matches your wishes.
The payday loan is a consumer credit, just like the revolving credit that you can take out. That does not alter the fact that there are important differences. The payday loan is a lot clearer and more transparent, but on the other hand it is also less flexible. In that regard, you can choose from the two loans yourself, or you have the option of requesting advice from your bank. Of course we will gladly help you on your way here with your choice, among other things by offering more explanation about the payday loan that you can request.
Clarity about the costs
The payday loan ensures clarity about the costs, so that you will not be faced with any surprises. Instead, you ensure that you are well aware of the total costs of the loan. Start from the APR, the Annual Cost Percentage. This is generally slightly higher than the interest that you pay per year. That has to do with the fact that you have to pay the interest monthly. This makes borrowing money just a little more expensive, something that you can see at the JKP.
The payday loan is also completely transparent over the term, since you make agreements about this with the bank in advance. How long will the loan run and what amount do you pay off each month to ensure that you can go through life credit-free again? You map out the complete payday loan, with which you ensure that you are not confronted with surprises. Are you looking for clarity? Then it is a good idea to perform a loan simulation for this loan form, so that you know where you stand.
The payday loan is suitable for doing a one-off expense. That has to do with the way in which the bank will provide the loans. The bank ensures that you have the option to make a purchase, which you can then repay over the term of the loan. This ensures borrowing money as we all know it. You borrow a certain amount, then take the time to save for it afterwards. You ensure that you can spread the costs, while you can immediately enjoy your purchase.
This means that the payday loan can be borrowed well for the purchase of a new car, or perhaps a nice kitchen. These are matters where you can estimate in advance what they will cost, making it possible to spread the costs. Get out of the car including all options that you wish to use, or complete the picture for the kitchen. Do you want to finance part or perhaps the entire purchase? Then with the payday loan you ensure that you have the money at your disposal.
An additional advantage of applying for a payday loan is the often competitive interest. This is mainly due to the fact that you can offer the bank a high degree of clarity about what you will do with the money. It is not possible to spend this on a vacation or other expenses. Instead, you agree on a goal with the bank, which means that they have the option, among other things, of estimating the residual value. For example, do you opt for a new car? Then the bank will run a smaller risk and you will notice that in the interest you pay.
In addition, you can make clear agreements about the interest, since it will be fixed. Are you taking out a loan with a term of 4 years and you pay an interest of 7%? Then you pay that interest during the first year, but also in the second, third and fourth year. This will not change, not even when the economy is improving strongly and overall interest rates are showing huge spikes. There is no uncertainty, so the payday loan is a very stable and safe choice if you want to borrow money.
Applying for a payday loan – Online simulation
You can of course make an online calculation of the payday loan. You can use this, among other things, to determine what the credit will cost. That is very interesting knowledge, for example to find out whether you can continue to pay the costs now and in a few years. What does the loan cost you in interest and how much do you have to transfer as repayment? You can determine the monthly costs based on these elements. Check whether you can bear the costs of the payday loan and whether it is wise to take out this for the purchase that you want to make.
In addition, with the online calculation of your payday loan, make sure that you get a good picture of the course over time. Will the costs decrease, or will they, on the other hand, absorb them the longer you use them? Try to estimate the developments and combine them with the developments of your income that you expect. You can then check whether you can also pay the costs of the payday loan in the future and whether borrowing money is a good choice at the moment.