We are offered cheap loans in all media. The payday loan is one of the most widely used types of credit. If you look at the many advantages, it is not surprising.
Advantages of a payday loan
Can be used individually
No matter whether a new kitchen, a chic car, a new TV, a vacation trip or the debt rescheduling of an existing loan, the payday loan is not tied to a fixed purchase. It can therefore be used to finance all requests.
Can be planned
In contrast to overdraft or a credit card , payday loans have a fixed repayment schedule. As a borrower, you know exactly how long you have to pay what amount. This reduces the risk of over-indebtedness and your finances remain predictable and clear.
Interest rate safe
The interest rate agreed when the contract was concluded remains constant throughout the term of the loan. Even if capital market interest rates go up, keep your low interest rates.
If you want to fulfill a wish, now is the right time. You can currently benefit from the so-called low interest phase. Depending on the loan amount, term and provider, private loans are available at an APR of around 2% pa
Unlike many other types of credit, most payday loans require no more than a regular monthly income and a good credit rating. There is therefore no need to provide any further collateral, such as a guarantee or a mortgage.
Many credit institutions offer their customers risk insurance or residual debt insurance to take out.
Should you become unemployed or incapable of work or die during the term, this would pay part or all of your loan . However, this is usually only an option and not a must.
With payday loans you can make a special repayment or even an early payment at any time. Before taking out the loan , however, find out whether the institute requires prepayment penalty for this case.
So if you are looking for a precisely planned but flexible loan to meet your needs, you should opt for the payday loan.