Late repayment is an element of payday pay, which can really give us a headache. Everyone who decides to pay for it should know that not paying the installments on time is really high interest. As a result, we will refund a much larger amount to the parabank than the one we decided to borrow. For this reason, it is important for payday loans to ensure that each installment is repaid on the date agreed when signing the contract. This will avoid really big extra costs.
Although parabanks already provide the option of so-called credit holidays, it is a solution that will cost us a lot. For deferring the repayment date of subsequent installments, one should pay. As a result, the loan becomes more expensive again. What’s more, the parabank may of course refuse to grant us such assistance in paying off the debt.
The biggest disadvantage of payday loans
Above all, a very high interest rate. The total annual interest rate is much higher than for classic bank loans. What does this mean for the borrower? To the parabank you have to give back a much larger amount than the one we borrowed. Therefore, it is so important to approach the amount of money borrowed wisely. You should seriously think about whether we can pay off the debt.
Payday loans are so-called quick loans, whose popularity is constantly increasing. More and more people who cannot count on receiving a bank loan are borrowing money in a so-called parabank. Payday have a lot of advantages that translate into the fact that they are so popular. However, it should be remembered that extreme caution is recommended with them. Otherwise, it is very easy to fall into a debt loop, from which it can be very difficult to get out. What to watch out for if you decide to take a payday loan?
Loans without loans, big and krd
Parabanks use verification not only using an identity document and bank transfer, but also a special application. You must log in to your bank account to confirm your identity. The application will download all the data it needs. Lots of people will ask here if this solution is safe. It should be emphasized that such applications have very extensive security. Therefore, you do not have to worry about getting confidential information to unauthorized persons.
Loan companies generally verify the identity of their clients using the identity card provided by them. The loan application must include the series and ID number. It is often necessary to make a photocopy of a document, which is then attached to the application. If we take out a loan via the Internet, we must provide a scan of your ID card. However, this can be done via email.
Verification by bank transfer – This method of verification is perfect for payday loans. The person who submits the application is required to perform the verification transfer. Importantly, this transfer must be made from an account that we own. It serves to confirm our identity. So if it is made from another person’s account, it will not be accepted. The lender will only start processing the application once the transfer we have made has credited his account. No transfer means no chance for a loan.
Everyone who has to borrow money would like the loan decision to be taken right away. Meanwhile, the borrower must be patient. In the case of parabanks dealing with the provision of so-called payday loans, everything is done very quickly. Let’s see what lenders use to verify customers.
Where to find a loan for the indebted?
Payday loans are a great solution for those in need of money, but at the same time who have no chance that the bank will grant them a loan. Payday loans are associated – and this is the right association – with a quick credit decision and formalities limited to a minimum. However, the question arises as to what loan companies are able to accept when it comes to potential client income.
When going to the bank for a loan, we can be sure that the certificate of earnings is among the required documents. In the case of payday loans provided by parabanks, this is not so obvious. The vast majority of loan companies do not expect their clients to present an income certificate. This is an excellent solution because it gives a chance for a loan to those who work black or have a junk contract and are not able to document all their income. No need to provide such a certificate is also a great time saver.
The vast majority of lenders do not expect a certificate confirming the amount of income generated. The only document you need to grant a payday payday is your ID card. On the other hand, there are often questions about monthly revenues in the payday loan application. When completing such an application, you really need to think carefully about all the sources of income that occur in our case. It is not only about the remuneration for work, but also the profit obtained from renting an apartment or maintenance received monthly. However, it is not worth including information that is not true in the application. You have to remember that the money lent to us must be given back sometime. If the amount we intend to borrow seems too high, we must take into account that the parabank may expect to document its income. Often, however, it is enough to provide an account statement for the last few months.