A payday loan gives you clarity, you know exactly what you can expect in advance. When you take out a payday loan or personal credit, you will be paid a fixed amount once. You can borrow this amount at a fixed interest rate and a fixed term. From the moment you take out the loan you know exactly how long you have to pay and how high this amount is. Subsequent to borrowing or early repayment of the loan is not possible without a fine for a payday loan. If you are unsure whether you are satisfied with the one-off amount, or if you want to repay extra in between, you should opt for a revolving credit.
Why a payday loan?
The reasons for a payday loan can be different. You may have to incur unexpected expenses such as a new car, boiler, washing machine or imac. If you do not have any savings, a personal credit offers the solution. You take out the loan, purchase the new car and pay it off in a few months or years. The costs are spread over this period, so that you do not have to bear the costs in one go.
You can also think of other reasons for taking out a payday loan. For example, the renovation of the kitchen or bathroom, the financing of a wedding or the purchase of that boat that has always wanted. The money does not always have to be borrowed to absorb an expense. You can also choose to purchase that kitchen without saving for it and settling the payment over an agreed period.
Duration and interest
The term and interest are always fixed with a payday loan. When taking out the credit you have the choice. Do you want to repay a high amount per month over a short period? Or do you want to repay a lower amount over a longer period. Both options are possible. This is the advantage of a payday loan. It can be tailored to your personal circumstances. Do you have a high income but still need money immediately? Then you can choose to pay off the loan in 12 to 24 months.
A payday loan or a revolving credit?
With a payday loan, the interim repayment in most cases is accompanied by a fine. In addition, repaid amounts cannot be withdrawn. Would you prefer a loan where you can repay in the meantime and re-take repaid amounts? Then it is good to consider a revolving credit. In contrast to a payday loan, this is possible with a revolving credit. With a revolving credit you have the freedom to withdraw and pay money. On the other hand, the term and the interest are not fixed. This means that your monthly payments, as opposed to a payday loan, can vary.
Take out a payday loan
You can take out a payday loan in many ways. You can go to the bank and apply for a loan. There is also the possibility to compare different providers online and request a free quote. Whatever you do, always be well-informed about the costs of a payday loan.