Payday loans – how not to be fooled?
It is getting harder and harder to obtain a bank loan, and this situation is eagerly used by parabank institutions. How?
Accusing the market of convenient and quick loans and payday loans “without BIK” . Before taking such a loan, you should definitely know what to do not to be fooled !
By way of introduction, short general information about payday loans
Payday loans or, if you prefer, loans for proof , are … loans most often granted by the so-called parabanks – financial institutions engaged in borrowing money at a certain percentage.
They are characterized primarily by:
SPEED – often no more than a few hours pass from the time you submit your application to withdraw money
CONVENIENCE – a company employee delivers money to us in cash or it is transferred to a bank account
HIGH COSTS – payday loans are expensive, and this “expensive” consists of considerable interest and additional costs.
However, these costs can be reduced – you just need to know how.
We choose payday loan!
I am sure that people could save a lot on payday loans if they only spent a few hours choosing the right offer. It is not so that every payday loan is a necessary evil, and every company wants to “suck” the last penny from us. As in every industry there are better and worse companies. It’s important to choose the better ones.
That is cheaper.
In the 21st century, only the internet is sufficient to compare the offer of parabank institutions. The network will find all the necessary information that will allow us to choose the cheapest loan.
Where? Preferably on forums and loan portals, where – in addition to dry information – I will also read the opinions of former or current customers of individual companies. And they will tell us a lot more about the company than a propaganda leaflet.
The APRC will tell you the truth
When comparing payday loans, it is hardly worth looking at their interest rate, as it is usually only a small part of the total costs (other costs are hidden). The Real Annual Interest Rate will be a much better indicator. APRC is the total annual cost of the loan, taking into account all its “official” and “unofficial” costs. Equally important, in every advertisement for payday loans or other loans, the loan company MUST provide APRC! Usually a small print, so look carefully.
We give up additional fees
Good Finance is characterized, among others, by the fact that it is full of additional services and fees. For housekeeping, for examining an application, for signing a contract, for paying money, and so on. However, some of them can be abandoned and it is worth doing to reduce the cost of payday pay.
The best example is home service, i.e. regular visits of a company employee to our home in order to receive further installments from us. This is certainly convenient, but the lender no longer says that each such visit costs – usually 50 to 100 zlotys. By resigning from it and deciding to withdraw and repay money via a bank account, we easily save several hundred nice zlotys!
Payday loans do not have to be expensive at all . All you need is reason and access to the internet to significantly reduce the total cost of a loan for proof and make it a tolerable expense.