How to choose a payday loan
The payday loan can be a good servant, but also a bad man. Do you know how to recognize expensive, poor quality or even fraudulent credit? Before you sign up, make sure you really need the payday loan. Do you have sufficient reason? Good. We will advise you on what to watch and how to choose the best loan.
The payday loan is no excuse. And most of the time we approach it only when it is not really left. How to get to know the best offer?
Provider and loan type
Before you make money, consider whether you know the credit provider, not just from a television, magazine or leaflet at the stop. Avoid small and foreign companies . Banks may look frightening, but believe that you go much better with them.
A fully open and clear provider should be a condition through which the train does not run. If something doesn’t seem to be right, get in touch and don’t know the credit company. Anyone who offers a loan should be at least a list of providers from the CNB .
Also, get ready to ask why you need to borrow and don’t be afraid to go out with the truth. Maybe they’ll calculate a more advantageous special-purpose loan . You will have to show what you used the money for, but you will get better conditions in exchange. Do you rent a car or renovate? Try to play between special purpose loans first.
Interest and APR
Two identical loans, two equal interest, yet one is more expensive. As? Compare loans by annual percentage rate of charge (APR). It includes interest and all fees and expenses associated with drawing the loan. By law, the APR must always state the loan to give the client an idea of how much he will actually pay for the loan. Do not be tempted only by low interest, find the real APR and then compare the loans.
Who offers interesting bonuses?
Amount of installment and length of repayment
How much can you pay monthly? Do you pay too much for your installment? You can usually determine the installment amount and repayment period yourself. Be careful. A longer repayment period means a lower monthly payment and less risk in case you lose your main income.
Bonuses and sanctions
Penalties for late payment fee reminder, penalties for early repayment, fees, penalties etc. Read in detail, for what you are threatened with sanctions and fines and consider under what circumstances it can be met and that there is no danger that you will be during the repayment forced to break them.
Conversely, different bonuses that companies use to alert themselves may be a nice thing. For example, Česká spořitelna and Sberbank return high amounts to the client if they repay the debt properly and without delay. But do not let your honey be smeared around your mouth, consider whether your loan with a beneficial bonus actually pays off. At the same time, remember to retrieve all the information that applies to the bonus.
Verifying the client’s ability to repay the debt can significantly prolong the process of obtaining the loan. But it is necessary and no solid company can do without it . Do not be tempted by loans from non-banking companies that offer allegedly fast loans without proof of income. Credit risk is balanced by a high APR and excessive sanctions. Therefore, do not rush to choose a loan.