What steps are needed when choosing the best payday loan conditions?
Very often there is a situation when money is urgently needed, and a pretty decent amount. In the presence of such funds there, they can not earn, and borrow from relatives is not always possible.
Only one way out – to issue a payday loan
Of course, every borrower is trying to find the most favorable lending terms, nobody wants to overpay. Even sitting at home, it is possible to apply for a payday loan online. There are payday loan companies that do not require any certificates. But the big minus of such organizations is a high annual percentage, and the desired amount may be significantly less. More reliable are the large banks, whose credit conditions can be assessed on their official websites and choose the most suitable for you.
The profitability of the bank offer depends on the following points:
- Interest rate is the main factor that borrowers look at. The smaller it is, the better.
- The presence of guarantors at the conclusion of the contract. Sometimes they are not easy to find.
- payday loan amount and maturity. A large payday loan is wiser to take for a short time. It depends on the client’s income. Most people find it easier and more painless to make contributions in small amounts over 3-5 years.
- The speed of execution of the contract. If you need money urgently, you should pay attention to this item.
- Payment methods. There are no problems with monthly installments now. At your service are branches of credit companies, terminals, online banks.
- payday loan insurance carries an additional burden on the purse of the applicant. Some banks take out insurance without even notifying the customer. Remember, you have the full right to decline the offer of this service.
- Early repayment is unprofitable for creditors, so do not forget to inquire about this section. At the moment, the civil code allows you to pay with the bank before the deadline without penalties and commissions.
- A down payment on a consumer payday loan, as a rule, is not paid, but is mandatory when buying an apartment or buying a car. The larger the installment amount, the lower the interest rate on the payday loan.
- List of documents that are needed for registration of the contract. In most cases, the list is limited to a passport and income certificate. Employment and financial stability of the borrower has a favorable impression on the bank, increasing the chance to get the necessary money at an acceptable percentage. By the way, if a financial institution is not particularly interested in your solvency, be prepared for tough credit conditions.
Do not hesitate to ask for a contract for careful examination, especially do not skip the text printed in small print. It is worth considering if there is a point where the banker has the right to revise the amount of interest charges. Permanent registration, official income, long work experience, not stained credit history – all this “calms” the bank, giving a reason to conclude an agreement with the client on more favorable terms.