Online approval for a payday loan
Surely everyone has ever experienced a financial shortage, in which the money was not enough front and rear. In these situations, one does not necessarily want to sell the beloved car or the nice watch to get cash. In this respect, loans are available that are not always given out in a bad economic situation. do you need money right now? The following explains how a payday loan can help in difficult financial situations.
Online credit – not everyone gets it
In recent years, online loans have become increasingly established. A few years ago, however, a loan was only possible with a personal presentation at the bank. This has changed in the meantime. Many loans are even available by instant confirmation and bank transfer within a few hours. For this, some information must first be provided in an online form.
The lender also wants to receive various other information in addition to the personal information. This can include, for example, the income and the job situation.
In addition, many online banks are also interested in whether there are liabilities with other creditors. As a rule, it also asks what collateral the borrower has to offer. Here are in particular real estate and motor vehicles of great interest.
Filling out an online form usually takes only a few minutes. In addition, the lender usually wants to know what the loan should be used for. Common indications are, for example, the purchase of a motor vehicle or a modernization of the home furnishings. A promise or rejection will normally be made within 24 hours. It is important that the applicant does not give false information just to obtain a loan. Misrepresentations can have serious criminal consequences.
Therefore, it is advisable to make all statements with the best of conscience. The speed of an online loan is a clear advantage that is being used more and more. For the benefit of the borrower, all conditions can be adjusted individually. Thus, the term can be chosen freely and also in the choice of the loan amount, the applicant usually has no requirements.
The interest rate is then calculated according to the desired conditions. It is very important that the annual percentage rate is considered. Only this gives a useful explanation of how expensive the loan really is.
Beware of fees
For some online banks, there is an additional processing fee, which must be included. According to the duration then falls to the monthly rate. In any case, a credit comparison should be made comparing all credit institutions. In addition to the interest rate, other modalities of the contract may be interesting. Many lenders also offer the free option of special repayment. Here, in addition to the general monthly rate, larger sums can be paid.
The interest expense decreases accordingly. Borrowers who want to save money also have the option of distributing the loan over several people. In partnerships, two persons can thus be contractual partners with the bank. The risk of a loan default then usually drops, which is why the interest rate is lower. However, then both borrowers are fully liable – especially if a part becomes insolvent. Credit comparisons can best be made on online portals.
Over the Internet to the appropriate financing
The World-Wide-Web has mixed and sustainably changed a variety of industries. This also applies to the banking industry, which only a few years ago could only be successful if it had a corresponding branch business. This circumstance has changed dramatically in a very short time. In particular, in standardized business to which, among other things, the credit business counts, loans are increasingly sought online and awarded.
A big challenge for the banks, since the search is usually done via comparison portals and these sites access the offer of many banks in parallel. The customer can then opt for the optimal offer with just one click.
Creditworthiness and income
The conditions under which a loan can be taken are always the same across all credit institutions. This is primarily the credit rating meant. Because a bank only forgives a loan if it can assume that the loan can also be repaid. While one’s own house bank often used to know the customer personally, the borrower has to be checked in advance for an online loan.
In doing so, the borrower makes a number of statements about his income situation and other existing loans. He must then prove this accordingly. The documents can either be sent to the bank or uploaded directly to a portal. Based on the information provided, it is then determined whether the loan agreement comes about.
The borrower may assume that the majority of the loan agreements will be successfully completed.
Use of the credit
Depending on the type of loan, a loan may be earmarked. This applies, for example, for a mortgage loan or a car loan, which are now also awarded online. In both cases, the bank will demand a security – the house or the car. For consumer loans, the use of the loan but the customer is free. He can finance a holiday, replace the washing machine or even replace another loan. Thus, a consumer credit offers the maximum flexibility.
Interest rates as low as ever!
With so much competition on the Internet and the ECB’s low interest rate policy, interest rates are lower than ever. Not a pleasant situation for the banks, because one of the few ways to achieve profitable margins against the current interest rate environment is to grant loans. But if the consumer has the direct comparison online, he can go to the competition in one click.
Therefore, it is not uncommon that banks specializing in consumer credit often go shopping with absolute top conditions. Ideally, the borrower should take a closer look here.
Redeem more expensive credit with the help of a cheap loan from the internet
Anyone who has paid off a loan for years due to old custom often does not come up with the idea of worrying about debt rescheduling. But in fact worth the debt restructuring and can bring a noticeable relief for the budget.
For example, an interest difference between the old and the new loan of 2% with a remaining debt of EUR 1,000 brings a saving of EUR 20! Not much – at first glance. But if the loan runs for another four years, that means a saving of around 40 euros (1000 euros / 2 x 4 years). For the sake of simplicity, it has been assumed that the loan will be paid off continuously in the above example. The transfer fee is even more worthwhile if it replaces expensive postage. Here, the interest rate difference is fast 8% or more, so that here can quickly get three-digit euro amounts together!
Tips and tricks for loans over the internet
The search should always be done via a portal
Basically, the search should only be done via a portal in the network. These portals have access to a large number of offers and make them transparent. The borrower has the opportunity to use simple adjustment functions within the portal to determine the term or the amount of the loan. This will help you to find out quickly how these changes affect interest rates, and the borrower will find the optimal funding for them.
In addition, with online loans on the net, it should also be looked into whether they can be concluded directly via the portal.
Always compare conditions exactly
As mentioned earlier, lending for many banks is one of the few lucrative business opportunities. That’s why fighting conditions are often quoted. The borrower should look very carefully here. Because many of the offers are only valid if the loan amount is particularly low and at the same time the repayment takes place in a very short time.
As soon as one of the parameters is changed, the conditions change – and not infrequently very clearly. So, as often happens in life, a comparison makes sense not to overpay in the end.
Negative interest on a loan
Unbelievable but true – some banks offer loans where the repayment amount is lower than the original loan amount. But it is also important to look more closely. First, there are these offers really! But these are limited in their amount and duration. Therefore, it is not surprising that such a loan is given only up to a maximum amount of 1,000 euros and can only be found in connection with a repayment in one year.
The benefit of the bank lies with this offer in the address data. Because not infrequently you can sell the person who has taken a first loan after repayment a follow-up loan. And this is then no longer for a negative interest rate. Thus, the business has paid off for the bank and she gets a new borrower without much effort!
Study contracts carefully
Anyone who believes that loan agreements are always the same regardless of the bank, will have to have a better informed. In fact, the contracts are different – and in particular at a point that is crucial to the borrower! The early repayment of the loan. There are banks that allow unrestricted special repayments, others require a fee. Not infrequently, a special repayment is also completely excluded!
Anyone who knows in advance that he will repay the loan more quickly should pay close attention to the conditions in the contract. However, if the contract has already been signed and a special repayment is required, it is always advisable to call the bank in advance.
Fast credit – easy today
Just a few years ago, a loan application lasted several days to weeks. Reason was the non-existent possibility of quick legitimacy. In the past, therefore, the customer had to go to his post office and be legitimized by ID. These documents were then sent to the bank – ideally, the process took only three to four days.
Meanwhile, the majority of banks offer a so-called online legitimacy! This is easy on the laptop, tablet or even on the phone. If the legitimation is completed, the necessary documents can usually also be uploaded online and the loan can be paid out within a very short time.