Payday Loan: Everything You Need to Know About One of the Most Popular Loans
Life is full of surprises, and this saying is even more true for your finances. At any time in your day-to-day situation, you may need more money than you can make from one moment to another, and even if your family and friends can’t help you quickly, the trouble may be one or two. You don’t have to go far for examples: you may spend too much on vacation anytime, but you suddenly need money at home for an unexpected medical treatment. It can also be uncomfortable when the long-awaited World Cup is broadcast and television goes down. Need a new kitchen appliance, maybe a new car? Most families do not have enough in the box office.
A bank loan, including a payday loan, can provide a bridging solution to just such situations. But how does this type of credit product differ from a home loan or a credit card, for example? Well, there is ample reason for this type of loan to be one of the most popular among Hungarian households, according to central bank statistics. We’ve put together the most important information about a payday loan to decide if you really need it.
Anything you want?
There are several types of payday loans available on the market today that you can borrow for different types of loan, but the most popular and most frequently requested is a free-to-use payday loan. Free use means that the bank does not ask. You can spend the loan on anything, you do not need to report it to the credit institution. If you need a new cell phone, you buy it, you buy a car (and as opposed to leasing car loans, you own the car here).
A payday loan is also an ideal tool for redeeming a loan: a typical mistake is to run out of credit card spending and not be able to repay the debt at the end of the grace period, but then you can pay interest. However, credit card interest rates are 38-40 percent, while you can take out a payday loan to pay off your credit card debt at around 10 percent, thus getting away with paying hundreds of thousands more.
Your apartment will stay with you
Are you afraid of taking the house if you can’t pay? This is not the case with payday loans, which is why many people choose this solution when they suddenly need money.
The overwhelming majority of payday loans require no real estate cover or own funds. For the bank, your regular income is a guarantee of repayment, nothing else is needed.
It’s fast and easy
Because of the above, it’s quick to administer things: while a home loan, for example, can take weeks, and even months, for credit assessment, valuation, and disbursement, you just need to verify that you regularly receive income on a payday loan. In our calculator you can also find an offer where you don’t even need it.
Really just a temporary shortage of money?
The amount you can borrow as a payday loan depends on the size of your income and your credit rating, as you can’t swim in it either. Generally speaking, payday loans can be taken for between $ 500,000 and seven million, with maturities of up to 84 months.
As with other credit products, we can prepay for a payday loan if you want to pay off the maturity sooner. And if you have a problem with monthly repayments, some credit institutions can also provide weekly repayments.