A payday loan is exactly what it says: an installment loan to finance a personal project. It is therefore different from a car or housing loan, because you then use your house or car as collateral. It is also not a revolving credit, because payday loans are tied to a repayment term and they cannot be renewed. You can use the money for everything, for example for a trip, a new bedroom, furniture, your wedding party, decorate your new office, etc. It is therefore a simple form of credit that you normally do not have to give a guarantee for. Because one provider differs from another, it is important to find the cheapest.
You could also start your own business with this type of loan.
If a bank did not want to finance you in the past, you can now do this yourself. You may be short of cash in the coming months, or you may have to pay a few large bills. payday loans can help with this and are easy to take out. To get the loan you usually have to have a permanent job. The provider asks for your income and expenses to determine whether you can pay off the loan monthly. It is also checked whether you have any other credits outstanding. The loan amount can never be more than 40% of your income, because you must also be able to live on. It is important that for payday loans the APR (the interest plus the borrowing costs) is somewhat higher. Once your payday loan is approved, the amount will be deposited into your bank account.
Some banks want you to open an account for your loan.
Others do not ask that, and in that case the money is taken from an existing account on a monthly basis by direct debit. Because the interest, term and payment amount are fixed, you know exactly where you stand from the start. Sometimes the APR is lower for a slightly higher amount and higher for a slightly lower amount. That sounds strange, but it has to do with the JKP disk; just like our personal taxes. So do your homework or read on.
To make it even easier for you, we have made a list of the cheapest credit providers. This way you can quickly see who suits you best: the cheapest of course. By clicking on the various money providers you will be redirected to their website and you can use their simulation tool to find out what your monthly payment will be. This way you can compare the various credit providers and find the cheapest payday loan; that is usually the provider with the lowest APR. If you enter a ‘marginal amount’ during a simulation, also try a simulation that is slightly higher to see if the APR is falling (and vice versa); then you would just save money by borrowing something more. So look for your best payday loan and take advantage of it. It is now easier than ever.