4 Reasons to Get a Payday Loan
Personal lending causes mixed feelings in most people. Some are scared to death, others take it without so much criteria, others are still ashamed of being in this situation and do not want to ask for help.
The truth is that personal credit should not be the first option, but it exists to help you in specific situations such as exchanging an expensive debt for a cheaper one, investing in your business, paying for an unforeseen event and making a dream come true. Still, caution is needed. Understand what to take into account in each of these circumstances.
Exchange an expensive debt for a cheaper one
The overdraft and revolving credit card are two very attractive options due to their easy access, but they can cause a lot of headaches due to your interest rate. In the last month, the average credit card rate was 12.3%, while the overdraft rate fell by the Cream Bank and cannot exceed 8% per month.
If you are already involved in one of these modalities, the Payday Loan can be a good way out, because with it you can get a much lower rate. Depending on the modality and your credit score, you can reach 2% interest per month, for example.
The idea is quite simple: take a loan for the amount you owe on your card or overdraft or any other debt by negotiating lower interest rates. Finally, pay your debt and stay with this new debt only. So you save the interest difference.
Invest in your business
When undertaking some aspects, they are very important: strategic planning, monitoring and data analysis are some of them. Therefore, deciding when to inject more money into your company or to incur debt must go through these aspects. Some questions can help you during this process.
- Is this an opportunity that makes sense for the moment of the company?
- How much will this money impact on improving your product/service?
- Do you have cash flow to handle the payment of the installments?
- How can you reduce company expenses during payment ?
- When do you expect to recover that money?
Your answers to these questions will give good parameters for deciding whether this is the right time for the loan. If you are not yet an entrepreneur but want to get your dream off the ground, you need to take a step back and assess whether your business idea solves a real problem, if there is a market for it and if you are able to take it forward.
Payday Loan helps to pay for any unforeseen
There are situations that you really cannot predict: a burst pipe, a car crash, a health problem, for example. When something like this happens, it is common to despair. But, panic is never a good advisor, especially when taking out a Payday Loan. First, analyze how emergency the case is and if there is no other way to get the money (one idea is to sell old objects or even redeem FGTS).
If you understand that the loan is the best option, take some precautions. The ideal is not to take the first offer that comes up without evaluating others. Always search for fees by checking if the financial institution is showing you the total fees, taxes and insurance that will be charged. A good way to do this is by calculating the total amount that will be paid to the institution. Also assess if the payment terms are in accordance with your financial reality and what mechanisms each offer has for negotiations and adjustments that are necessary.
Make a dream come true with a Payday Loan
Would this be the right time for the trip you have been planning for years, the course that will boost your career, or the purchase of the car your friend is selling? The answer in general is: it depends. Especially if in order to accomplish any of these things you will need to take out a personal credit. The first question you need to ask is: is this opportunity that I have at hand unique? Then, think about how long it will pay you back, how much it takes and how long you will be able to pay off the loan without overcommitting your income.
If you find that you can wait to get that sleep, there are some good options. You can save a little every month to get the necessary amount or try to make extra money to make your dreams come true without leaving debts waiting for you at home. If it is a unique opportunity that you consider essential at the moment, the loan can really be a good option.
That’s it: time to borrow
Have you thought about all the aspects presented and decided that it is time to get a loan? So, I have a checklist for you:
- Perform simulations in at least three financial institutions on the internet
- Always compare the total fees that will be charged
- Choose the payment method, remembering that the more installments, the more interest
- Have proof of income and identification documents in hand
- Wait for the company’s credit analysis and check your account.
There are some options in Good Lenders for you. When you connect your account, the app can better understand your routine with your money and thus search for products that have more to do with your profile. Loans are no different. You perform a simulation and receive the best proposals for you.
Credit partners take this payment history into account when defining the loan rate and the amount of the installment. In 83% of the cases, Good Lenders partners offer better conditions than the users’ home bank. How about taking a look and see what offers are waiting for you there?