Each of us knows quick loans and everyone knows what they are more or less about. Cheap payday loans
are gaining popularity due to the minimum of formalities and the ability to quickly raise money. Check what are cheap payday loans
and you will understand their advantages and disadvantages. Each borrower would like to borrow money as cheaply as possible. Ideally, we could give back as much money as we originally borrowed, but in that case, the existence of loan companies would be pointless. Loan companies want and need to earn, otherwise they would not be able to afford to stay in the market. No loan company works for charity and the client must be aware of this. How much you actually have to pay for a payday loan depends not only on the conditions set in a specific company, i.e. the interest rate and additional costs, but also on what payday loan you choose, how much you will borrow and for how long. Such payday loans are difficult to describe in terms of a definition. Simply put, these are loans whose costs are as low as possible.
Payday loans for free
Loan companies meet the expectations of their potential customers and also offer free payday loans
. Such payday loans are granted only on specific terms. In many loan companies, you can take your first free loan up to a certain amount. This is to bring you closer to the company's offer, to show you that borrowing is simple and to get you as a customer. Free payday loans
are usually granted up to $ 1,000, but such a loan can only be obtained by the customer who takes a payday loan in a given company for the first time. The second and each subsequent loan are already payable, and the final cost of these loans depends on the amount borrowed and the repayment date. The higher the amount and the longer the payment period, the higher the cost of the loan.
Free payday loans
Interest on cheap payday loans
The cost of the loan is primarily influenced by its interest rate. The interest rate on the payday loan
tells us a lot about the amount that we will eventually pay for the loan. Before the introduction of the anti-usury act, loan companies could set any interest rates and often these " cheap payday loans
" bore the hallmarks of usury. It was certainly not a cheap payday loan
. Customers paid multiple times the amounts they borrowed and fell into a debt loop. The purpose of the anti-usury law was to limit these abuses and introduce a clear tariff for quick loans. The Civil Code and the Anti-usury Act assume that the cost of the loan may not be higher than 25% of the amount borrowed. The code also specifies the maximum amount of interest. This amount is calculated by multiplying 2 by the NBP reference rate and adding 3.5% according to the formula - 2 x (reference rate x 3.5%). With the current reference rate of 1.5%, the maximum interest rate on a loan is 10% of the amount borrowed. The interest rate on credits and loans may not exceed 10%.
The cost of a cheap payday loan
The anti-usury act also specifies the amount of additional costs. Additional costs may not exceed 25% of the total loan amount and may not exceed 30% of the loan amount on an annual basis. In addition, the costs of payday loans via the Internet
cannot exceed 100% of the loan value, if the loan is granted for several years.
Taking into account these assumptions, you need to verify the payday offer in terms of interest rate, interest and total cost. The latest payday loans
are very cheap, because the growing competition on the loan market forces companies to lower costs in order to attract new customers and keep the existing ones. The cost of payday loans
is lower and lower not due to these legal arrangements, but due to competition between companies. This is very good news for customers, because cheap payday loans
have become real.
Currently, it is practically impossible to take out a loan that will put you in debt without your knowledge. Each client knows perfectly well how much he will pay at the end, and if a given client cannot afford to pay off the loan on time in one installment, he may pay attention to the installment payday
offer. Such cheap payday loans
concern higher amounts and are granted for a longer period, and at the same time are also more precisely verified in terms of the applicants' solvency and cheaper than loans paid in one installment. For some of these payday loans, the costs are comparable to the costs of a bank loan.
In order to check which cheap payday loans
are actually the best, it is worth following the online payday ranking
. The offer of loan companies is constantly changing and new companies appear on the market, so the ranking from six months or a year ago is completely out of date. It is best to check the ranking of payday loans every time you want to take out a loan.
The borrower, by signing loan agreements for cheap payday loans
, takes responsibility for timely repayment. If he is unable to pay off the debt on time, he should contact the loan company to extend the repayment date or take advantage of the loan refinancing option.
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.