Small payday loans – where to avail?

Small payday loans

Small payday loans

Take note of the time you can pay back so that there are no big bonuses. Short payday loan terms are characterized by short payment terms and relatively small payday loan amounts. Shorter time limits are mainly provided by mobile phones and electronic channels. That is why we have only used this payday loan service for a dozen years. SMS payday loans and quick payday loans are often identified, especially in the spoken language, but in fact, quick payday loans are not only sought by message, and many quick payday loan providers do not. Usually a payday loan is issued by bank transfer or cash.

The fast payday loan application is faster and more convenient than conventional bank payday loans. Initial application requires identification of the borrower with the lender, after which only its identification through e-channels (from the Internet) is sufficient, and within minutes the money is transferred to the customer’s bank account. In most cases, small amounts are not required to be secured by a suretyship or other collateral other than a fixed salary, which may or may not be required by a bank statement. A quick payday loan without leaving home is usually possible with an ID card .

As the borrower does not have the same level of confidence as a collateral with a collateral and a surety payday loan, the lender loses his risks with small borrowings, shorter maturities, high interest rates and surcharges. Without identification , as a rule, a quick payday loan cannot be taken because then a legally valid contract cannot be made and the borrower is therefore not obliged to repay the payday loan. The maturity of the payday loan is usually within a few months and the average interest rate for the year is 310-390%. Without an account statement and without a payroll certificate, you can also get a quick payday loan like a payment default. , Quick payday loan reviews offer several payday loan comparison portals that compare the convenience of high-speed payday loans and credit cost rates.

Payday loans without unsecured payday loans

Simple application and small amounts mean that the psychological impediment to borrowing is lower and some individuals do not consider the borrowing decision long enough. Credit institutions’ demands on the borrower’s financial situation are also lower than for larger payday loans. Often such a payday loan is not the right tool for solving monetary problems, because in the case of a small or insecure income, there is still a shortage of money next month. However, relatively high interest rates are added to the current costs compared to repayment and ordinary bank payday loans. Worse still is the situation when one payday loan is attempted to pay. In this situation, there is more benefit from contacting the debt counselor.

Much of the difficulties associated with the payday loans are due to the borrower being unable to repay the overdue payday loans on time. Often, interest on overdue payday loans is much higher than interest rates; in addition, high-speed payday loan companies add large amounts of additional charges against the borrower, resulting in a much steeper increase after the deadline than the customer expects. That is why, according to one study, the average claim of a lender is almost EUR 550, when the average payday loan is only EUR 300 – the difference is almost double.

Fast payday loans without identification

Some quick payday loan companies make accounting techniques that are harmful to the customer and are not explained in the payday loan agreement, for example, the portion of the interest on the payday loan is taken into account until it is fully repaid, even if the borrower has already paid off part of the payday loan.

There are also quick payday loans companies that are in the same group as collection companies, which makes it a common owner there is less interest in timely repayment of payday loans. Such a company can allow itself to issue more risky quick payday loans and a larger number of troubled customers because some of the losses will be recovered through collection. Such a business model does not promote an adequate assessment of a person’s creditworthiness.

In the first years when small payday loans entered the market , there were cases of payday loan abuse, because the identification of the companies was lean. It was particularly easy to abuse SMS payday loans, which were originally concluded without actually identifying the borrower – so it was possible to take a payday loan from a foreign mobile to its bank account and leave the payday loan back to the mobile owner. Due to the proliferation of such activities, legislation has now been tightened and every client of a high-speed payday loan company must physically identify themselves.

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