You have a nice project in mind but do not know how to finance it? Why not turn to payday loan? Filled with benefits, this type of consumer credit helps you finance your dreams, without breaking the bank. Check out our tips for getting a cheap Payday loan.
Payday loan, what is it?
In France, the Payday loan is a type of consumer credit. Its characteristic is that it does not finance a particular project, but that its purchaser can finance what he wants, without justifying his purchases. It is therefore an unallocated loan. The Payday loan is a credit agreement contracted between a borrower and a financial institution over a period of time: usually from a few months to a maximum of five years.
What does the Payday loan finance?
It is not intended to finance a specific purchase but to enable the borrower to meet all expenses concerning both unspecified consumer goods and services such as expenses following family events, medical expenses, study fees, taxes, renovation costs, travel, etc. In practice, the funds are paid into the account of the borrower who disposes of them as he wishes.
However, different Payday loans exist depending on the needs of the borrower: Payday loan for work, Payday loan leisure, Payday loan auto or Payday loan cash. It will be essential to discuss projects with his advisor so that the latter directs you to the Payday loan most suited to your needs.
Payday loan: what the law says
The law protects the borrower. The rate applied for a Payday loan is higher than an assigned loan obtained in a bank but lower than for a loan taken out at a point of sale (intended for the purchase of a good or a service, also called “Installment Purchase Financing” or “Affected Loan”). Beware however, the rules of acceptance are often stricter, the borrower does not have to justify the destination of the borrowed money. Up to € 75,000, this type of loan is subject to the code of consumption and allows in particular a prepayment without fees, unlike the mortgage (penalty of 3% maximum).
Get a cheap Payday loan
Unlike other credits, you do not need to mount a concrete file to access a Payday loan. So, you can finance your purchases, your unforeseen events, your projects, and even your trips without having to justify the purpose of your loan application. Thanks to the arrival of the internet, getting a Payday loan today is easy. The Internet makes it possible to reduce the operating cost of companies and therefore to offer products that are always cheaper. This is particularly the case for Payday credit agencies that offer highly attractive loans to finance your projects.
But beware, it is nevertheless essential to compare the offers to obtain a cheap Payday loan. Competition has prompted lenders to offer a low call rate for Payday loans. Especially as compared to revolving credits or earmarked credits, the interest rate of a cheap Payday loan remains more advantageous, at least in most cases.
With a cheap Payday loan, there is no bad surprise. Since the interest rate is fixed, your monthly payments stay the same throughout the loan. In addition, the repayment term is known in advance. Some financial organizations even propose to their clients to defer one or two monthly installments a year in case of a hard blow. On the other hand, it is also possible to pay off your Payday loan if the finances allow it.
Compare to get a cheap Payday loan
The watchword you’ll understand is: compare. Many lenders have online comparison tools that are non-binding. Some sites even directly display Payday loan comparison charts and rank the most active names in the Payday loan market.
And do not forget that as soon as you meet the conditions for granting a Payday loan, you can play the competition between different financial organizations. You can then send your application to different banks to receive several loan offers and choose the most competitive.
The contractual offer of the bank must contain the amount of the credit, the fixed or variable interest rate, the cost of insurance, the constant or flexible maturities and the filing fee. This offer remains valid for a period of 30 days during which a lender can not revert to the loan terms it offers. The law then proposes a period of two weeks so that the borrower can think about the offer.