Personal payday loan – Compare the loans now
Are you thinking about taking out a personal payday loan? This is one of the consumer credits, which you can use to finance, for example, a new car, a kitchen or another large purchase. Here we first explain what the personal payday loan is, so that you can determine, for example, whether it is the right form of financing for you. Among other things, we discuss the term and the interest rate of the personal payday loan, also in comparison with the revolving credit that you can take out. You can also read about various applications of personal credit and the conditions that the purpose must meet. Determine on this basis whether it is wise in your case to take out a personal payday loan, or whether it is better to use another form of credit.
In any case, you have the option of taking out the personal payday loan online, which means that you fortunately do not have to go out. Instead, it is enough to compare the different options online and find out what you want to use. Calculate the costs online and determine whether it fits your budget, and then apply for a personal payday loan from the bank and let them decide whether you can bear the loan.
What is a personal payday loan?
First of all, it is of course important to find out what a personal payday loan actually is. Why is the loan called ‘personal’, for example? The name of the credit has been chosen somewhat strangely, since each credit is personally registered and this credit therefore does not differ. Where it comes from is the way in which it is possible to tailor the personal payday loan in its entirety to your personal wishes. Do you have a specific goal to which you want to spend the money and do you need that money in 1x? Then you can take out a personal payday loan for this.
The personal payday loan is a form of consumer credit, which means that you can use the money for consumption. Consumption is different from making an investment. In general, you choose to buy something that quickly becomes less valuable, so that you will have to pay off the credit on your own, it is not possible to sell the purchase for more money at a later time and thus pay off the credit. unload. In addition, the personal payday loan ensures, for example, a fixed term and a fixed interest rate during that term, so that you use a clear form of borrowing money. So ambiguities are not common with the personal payday loan and that is probably one of the reasons that explains why it is a much taken out type of loan. However, the loan is probably not always the most convenient loan, because if you are in a situation where it is not easy to estimate the costs to be incurred in advance, then the personal payday loan is of course not ideal. After all, with this loan you have to indicate exactly what is needed and of course you do not want to borrow too much because of higher costs, but on the other hand you do not want to be short of money. Then you need to check whether the personal payday loan is such a suitable loan for your situation.
The personal payday loan is the well-known counterpart to the revolving credit, which we will tell you more about below. Read more about the various possible applications, to find out whether the personal payday loan is what you need when you need money.
Fixed term and interest rate
When you take out a personal payday loan, you can at least count on a great deal of clarity. Do you want to know in advance exactly how much time you need to repay the loan and what the final costs will be? The moment you take out a personal payday loan with the bank, you agree a certain term in advance. For example, suppose you currently need $ 5,000, you can agree with the bank that you want to repay this money in 5 years. If you use linear repayment of your personal payday loan, you can repay an amount of $ 1,000 every year, so that you will be completely off the debt again after 5 years. Of course you can choose other forms of repayment, such as an annuity. In that case, you repay more and more, while on the other hand you will pay less interest on a monthly basis. The sum of the interest and repayment remains the same, just like the interest rate that you pay over the entire term. You will see that a personal payday loan never leads to the cheapest loan, for the simple reason that its interest rate can never match that of, for example, car financing.
Both the term of the personal payday loan and the interest rate that you pay are fixed. Do you now want to borrow an amount of $ 5,000 and is this possible at an interest rate of 6% per year? Then you will also pay this interest next year, just like at the last moment as soon as you want to pay off the last amount. In that respect, you know perfectly well with a personal payday loan, even when the market interest rate fluctuates in the meantime. A personal payday loan can be used for anything and everything. However, if you already know exactly what you want to dedicate your loan to, a more specific loan may yield additional benefits. Consider, for example, the green loan for investments in environmentally friendly matters, which will be cheaper than the personal payday loan as standard. Just like the green loan, this will also apply to car financing, for example.
Use of the personal payday loan
You can use the personal payday loan for a number of different applications. We give you some examples here, so that you can get an idea of what you can use the personal payday loan for. In fact, it could be anything that comes to mind that you want to use the loan for, but of course borrowing money is an expensive hobby and so the goal should be important enough to make you collapse here. Certainly a personal payday loan is usually often accompanied by a not too low interest rate, which means that you should not rush into this. In any case, you can get some ideas for which a personal payday loan can be used. Note that certain other loans are also provided according to the construction of a personal payday loan, but therefore do not yet have that name and are committed to a specific purpose.
For example, do you plan to buy a new car? Then you can use a car loan, which is actually a specific form of a personal payday loan. In addition, you can, for example, purchase a new kitchen by using a personal payday loan, which gives you the opportunity to book a holiday or buy other equipment for the home. In that respect, you can go multiple ways with a personal payday loan. The bank does not pay attention to the purchase you make, but looks purely at the income you earn in order to bear the costs of the personal payday loan.
If you want to think about a purpose of the personal payday loan, it is wise to check whether you have to spend the expenditure in 1x, to use the period behind it to repay the money. Do you already know exactly what amount you need to make the purchase and will you spend that money in 1x? Then it is wise to use a personal payday loan. If the amount is not completely clear yet, or you can spread the costs, you can look at the revolving credit instead. If you need money quickly, these loans are actually not the most suitable, because the procedure will take several working days. In most cases, however, there is little else to do but show some patience.
A revolving credit works differently than a personal payday loan, it is the most famous counterpart of consumer credit. If you do not yet know how high the costs will be or if you have to pay partial amounts at different times, you can use the revolving credit. The repayments you make can be taken up again, so that there is less firmness and clarity. The interest rate on a revolving credit will also be variable, which can cause costs to rise or fall, depending on developments in market interest rates.
In that respect, the personal payday loan is very different from the revolving credit, although you can use both forms of a loan to make consumer purchases. Think carefully about the clarity you want and the stability you want, for example with regard to the interest rate. Do you want to know in advance as clearly as possible what you can count on in the coming years? Then it is probably wise in your case to use a personal payday loan. On the other hand, do you wish to have a little more money available for a period of time to be able to make the expenses you want? In that case, you may prefer to take out a revolving credit.
Take out personal payday loan online
In any case, you can simply take out the personal payday loan online, there is no need to go out. In any case, make sure you make a good comparison of this form of consumer credit online. Take a good look at the personal payday loan from the various lenders and pay attention to the interest rate you pay there, but also to the term, for example. After all, if you are going to borrow money, a good relationship between both the interest rate and the term is very important and that is no different with this type of loan. This is also the easiest to view online, because you have the loan simulation for this. You can use this very handy in personal payday loans, because it shows exactly the relationship between the interest rate and the term of the loan. A loan with a shorter duration can possibly yield a cheap loan, where a loan with a longer duration will actually cost you more. Take a good look at this, because the ultimate goal is probably to minimize the costs and for this you will really have to have a low interest rate.
It is the combination of the interest rate and the term that determines how high the costs for borrowing money will be. The longer the loan runs, the higher the costs will be. On the other hand, a higher interest rate also leads to higher costs. In that respect, it is wise to keep the interest rate as low as possible and not to borrow the money for too long. On the other hand, make sure you use the personal payday loan to spread the costs over a long enough period. If you only wanted to take out the personal payday loan for a few months, you might have been better off saving a little longer, to finance the purchase yourself. Compare the various lenders online and take out the personal payday loan that suits you best, for example to finally buy that beautiful new car or kitchen. In any case, always calculate the costs of the personal payday loan well and check whether this fits within your current budget. Is this the case? Then you have, as it were, the opportunity to save afterwards and to enjoy your purchase now.