Taking out a payday loan
, even if it is to be for a small amount, is always a logistical challenge. The decision must be carefully considered, because it has consequences in the form of a specific obligation. Rush can be a bad advisor, so it's best to compare the offers of various loans and only then choose the one that is on the most favorable terms. When submitting a loan application, however, you need to be aware of several things, for example, what will the total cost be
or how to calculate the interest rate on payday loans
. Our comparison engine
" contains a ranking of payday loans online
, which is worth taking a closer look
at and subject to careful analysis. Fortunately, in the age of the Internet, we will find a whole range of guides
that will help us choose the best offer and freely go through the verification process. However, remember to always check the credibility of a given company, read the contract carefully
, and not sign documents that are incomprehensible to us. These are the basics of safe borrowing. The website www.knf.gov.pl
contains a list of entities subject to financial supervision, and in the "warnings" tab there is a list of companies suspected of conducting illegal activity.
The total cost of the loan
According to BIK data, only 8% of Poles using payday loans in non-bank loan companies know what the actual annual interest rate is
. As a rule, we do not realize how much it will actually cost us to take a loan
, meanwhile, it is worth knowing the subject, because these are usually not small amounts. The total cost of the loan
includes not only the sum borrowed with interest, but also commissions
and additional fees
. The commission is a non-returnable one-time fee related to a specific activity (e.g. commission for preparing a contract). Payday loans without BIK
- granted without customer verification in the Credit Information Bureau, carry a considerable risk on the lender's side. So he may ask us to take out insurance, e.g. in case of job loss. Additional fees include a 1 $ registration fee, costs of reminders and reminders, or postponing the repayment date. In order for lenders not to charge the exorbitant costs of payday loans
, the Anti-usury Act
imposed certain restrictions. The interest rate on payday loans
may not exceed 4 times the NBP lombard rate. We mean the so-called nominal interest
, not the APRC of actual payday loans
, which includes all fees and commissions related to the loan. In this respect, consumer protection
also takes place, as the act states that non-interest loan costs
may not exceed 25% of its value and additionally 30% per year. Moreover, in the case of a loan granted for several years, the costs may not exceed 100% of its value. The lender is obliged to inform us about all costs each time and we should definitely demand it.
The best free payday loans
Representative example - the interest rate on the selected loan
When deciding on the services of a specific loan company, it is worth summarizing all the costs
that we will definitely incur. This is what the representative loan examples
on the lenders' websites serve for this purpose. Their purpose is to provide the borrower with reliable information on the total costs of a given loan
. So let's follow the amount of fees on an example offer. Assuming that we borrow $ 2,000 for 30 days (and this is not our first payday loan with this lender), we will refund exactly $ 2,500 after the loan period. The fixed interest rate is 10% per annum, and the total cost of the payday loan is $ 500. This amount includes: commission ($ 483.56) and interest on principal ($ 16.44). APRC
, or Actual Annual Interest Rate,
is 1410.3%. The APRC is so high
because it is calculated for the entire year, despite the fact that the loan is short-term. You have to be aware that the amount of $ 2,500 was calculated for the liability repaid on time. Especially young and new customers should remember to take
payday loans from 18 years
. If we are late with the return of the payday loan, we must take into account an increase in its costs. It is worth following the information on the lender's website and reading the company's regulations, so as not to be surprised when the repayment date is approaching.
APR 0% - are you sure I will not pay anything?
Many loan companies tempt consumers to take out a loan for free
. New customers who trust the company are to pay back exactly as much as they borrowed. Usually, new clients are lent small amounts of up to $ 1,000. The loan period is then 30 days. There are no fees and commissions
, and the loan does not bear interest. Of course, from the lender's point of view, this is not a profitable venture at a given moment, but it is a kind of investment that may pay off in the future if the company gains a regular customer
. The subsequent loans are already payable according to the tariffs of each lender. Payday loans for free are
easy to find in our " islandcrisis.net
comparison engine, just use the appropriate filter. There are many offers, so it is worth carefully reviewing them and reading the regulations of the company you are going to choose. This way, we will make sure that we will pay nothing
for our loan. Of course, the loan can only be free
if we pay it back within the prescribed period. If we exceed this deadline, the payday loan will certainly cost us more, even if its APR is 0%
. It is not without reason that we often hear in TV commercials: " Return the loan within 30 days and its total cost will be $ 0
". However, not everyone will notice this subtle condition in the multitude of information. Reliable knowledge about quick loans will protect us from surprise and disappointment.
Payday loans with APR = 0%
Calculate the interest rate on payday loans
Each average consumer is able to calculate the
costs associated with taking a loan. This is achieved by appropriate tools that are currently available online, e.g. numerous payday calculators
. A good calculator works in many ways, which means that it calculates: APRC, penalty interest, costs of possible delays and verification at credit reference offices. The calculator should be in a transparent form and contain columns that include all types of fees that are usually requested by the lender. The first thing we need to do is carefully read the terms of granting a given loan and information on its repayment conditions. The lender is obliged to inform the applicant of the total cost related to the loan
. The consumer must know the interest rate on the payday loan
and additional fees
. The exception is the situation of delay in repayment - then companies add the costs of calls, reminders
. These costs cannot be predetermined as they depend on customer behavior. A reliable loan cost calculator
can be found at www.zanim-podpiszesz.pl
. We enter the following data: the amount of the loan, commission, insurance and other fees agreed in advance. We also choose the date of launching the loan, the installment amount, the total number and frequency of installments. The system will calculate how much the total additional fees will be, how much APRC and how much we will actually refund the lender.
Watch the action spot "Check before you sign"
The social action is co-organized by seven public institutions: the Bank Guarantee Fund, the Polish Financial Supervision Authority, the Ministry of Finance, the Ministry of Justice, the National Bank of Poland, the Police and the Office of Competition and Consumer Protection.
Magdalena Mazur Twitter
She graduated from the University of Economics. She specializes in credits, loans and payday loans that can be applied for online. He knows the rules of online offers and is happy to write about them so that anyone interested in taking payday loans online knows what to look for.