The biggest disadvantage of payday loans is, above all, a very high interest rate. The total annual interest rate is much higher than for classic bank loans. What does this mean in practice? To the parabank you have to give back an amount definitely greater than the one we borrowed. Therefore, it is so important to decide more wisely about the amount you want to borrow. You should seriously think about whether we can handle the repayment.
Late repayment is an element of payday pay, which can really give us a headache. Everyone who decides to take a payday loan should remember that not paying the installments on time will incur high interest. As a result, we will refund a much larger amount to the parabank than the one we borrowed. For this reason, it is important for payday loans that each installment is repaid on the agreed date. This will avoid unnecessary additional costs.
Admittedly, parabanks already allow the so-called credit holidays, but such a solution is really expensive. The borrower must pay for postponing the repayment date. As a consequence, the loan becomes slightly more expensive. What’s more, the parabank may of course refuse to grant us credit holidays.
Fast loans are so-called instant loans, whose popularity is growing every year. More and more people who have no chance of getting a bank loan are deciding to borrow money in the so-called parabank. Fast loans have a lot of advantages that translate into the fact that they are so popular. Note, however, that caution should be exercised when applying them. Otherwise, you can quickly fall into a debt loop from which it is not so easy to get out. What to watch out for if you decide to take a payday loan?
In Which Bank To Take A Cash Loan?
The identity card is required by the loan companies not only because of the number and series that must appear on the loan agreement, but also because it is a document confirming the age of the person applying for a loan. It should be clearly stated that payday loans can only be granted to adults. So if you do not have an ID card, payday loan is a loan that we cannot use. Therefore, an ID card is an absolute basis.
If we do not have an ID card – be it due to losing it or waiting for a new one – unfortunately we will not be able to borrow money on the parabank. Parabanks accept only an ID card as an identity document. With only a driving license, we will not be able to prove that we are us. Moreover, it should be remembered that the ID card must be a valid document. So if it has expired, no one will lend us money.
Many people ask why an ID is needed to receive payday pay. It should be clearly stated that the loan agreement must include data such as the number and series of the ID card. Only then is the contract between the lender and the borrower valid. Meanwhile, on other documents – be it on the driving license or passport – in vain to look for information on the number and series of ID cards. Therefore, the lack of an ID card means that no parabank will decide to lend us money.
Payday loans are quick loans, the popularity of which is very high today. This results, among others, from a very shortened, simplified loan decision making procedure. Lots of people wonder if you can get a payday loan by presenting as an identity document not an ID card but a driving license.
Which bank is the easiest way to get a cash loan?
Among the loans that are very popular today, there are so-called payday loans. They are offered by parabanks, of which there are more every year. Few people realize that their offer is not only payday loans. Below we present what we can count on when deciding to borrow money from a parabank.
Obviously, payday loans, i.e. short-term loans, are the most popular non-bank financial product. Their name did not come from nowhere. They are given for a really short time. In general, the loan duration in their case ranges from a few to no more than sixty days. In the initial period of existence, non-bank companies offered loans to their clients for a short time as well as a very small amount – generally they did not amount to more than one thousand dollars.
Today the situation is definitely different. As for payday payday pay, it can currently amount to as much as six thousand dollars. The lowest amount you can borrow is fifty dollars in most parabanks. It is worth adding that a lot of parabanks attract their clients with a free first loan. What does it mean? No interest or commission is charged on the first loan. As a result, we will refund exactly the amount that the parabank lent us.
Parabanks are constantly expanding their offer. Currently, these are not only payday loans, but also installment loans granted for higher amounts and longer periods. It’s a great choice for people who need a much higher amount of money, and at the same time no bank will give them a loan. Such a loan may amount to even thirty thousand dollars. What loan period can be used? It depends of course on the lender, but even four years are involved. When choosing such a loan, you need to consider the possible costs associated with it.