Various forms of short-term loans are used by a lot of people. This is understandable, because it is a relatively simple and cheap option to obtain financing in urgent and unforeseen cases. However, before deciding on a momentary loan, it is worth focusing on finding the most advantageous offer. We suggest how to do it.
What distinguishes payday loan from bank products?
Regardless of what we intend to buy, it is worth comparing the offers of many companies and finding the best one. The situation is identical in the case of loans. Instant loans are granted by non-banking companies, therefore their offers may differ significantly, as they are not subject to strict restrictions. Deciding on a momentary loan, regardless of whether it is our first contact with parabanks, or we have already dealt with this type of service, it is worth analyzing the available offers and not using the services of the first better company.
Before granting a loan, a bank subjects its potential customer to a thorough analysis, in terms of his or her creditworthiness, employment conditions or family situation. A bank will give you a loan, and you can even get one without checking your credit history with BIK. Thanks to this, access to additional funds is available to everyone, regardless of their financial situation. The problem arises here, because people who are in a difficult situation often succumb to advertisements or persuasions and decide to get a payday loan on unfavorable terms.
What should you pay attention to when choosing a payday loan?
The wide selection of both Polish and foreign companies offering short-term loans makes it not difficult to find an offer ideally suited to the needs and expectations of a particular customer with a bit of involvement. When choosing a momentary loan, first of all focus on the limit imposed by a given institution and the repayment period, since these two parameters seem to be the most important for a borrower.
The cost of a momentary loan depends on the RRSO, i.e. annual percentage rate of interest. Often this parameter is much higher in the case of instant loans than in loans. This is due to the short repayment term, as it is calculated on an annual basis rather than monthly or bi-monthly. The cost of extending the repayment of loans listed in the offer is also important, as it tells you how much it will cost to extend the repayment if the borrower fails to pay back the amount due by the date stated in the agreement. When choosing a loan, you should also pay attention to the types and costs of sending reminders, which are notifications about missed loan repayment deadlines.