Difference between financing and payday loan

Several times people think that financing and Payday loan are synonymous, however, are different financial services that financial institutions offer to consumers.

We will explain the differences between the two services to help you understand which scenario is right for you.

What is Payday Financing and Loan?

What is Payday Financing and Loan?

Payday loan is a financial service with a contract between the client and a financial institution, which the client receives a value granted by the institution that must be returned within a determined interest period. The use of the money does not have a specific destination, that is, the client uses the money in the way that he wishes. The bank may or may not ask the client for some guarantee to grant the loan.

Financing is also a financial service with a contract between client and a financial institution, however, the amount awarded has a specific destination (which is in the contract), for example, the acquisition of a property or a vehicle. Usually the bank asks for a guarantee to grant a financing, for example, fiduciary alienation or mortgage.

What are the differences between financing and Payday loan?

What are the differences between financing and Payday loan?

We have seen that financing and Payday loan are distinct services and with different utilities for consumers. In addition, there are more differences between them.

The time for payment can also vary greatly according to the amount granted by the bank.

Normally, the amount of the financing is much higher than the loan, influencing the interest rates charged. The interest rates charged are different, this difference is due to the difference in values, and also by the guarantee that the client offers to the bank, where normally there is no guarantee in the loan and in financing something is required as collateral.

The banks carry out a credit analysis of the applicant to decide whether to grant the money to the person. Usually, because it has a higher value, the financing can be a little more bureaucratic to get, since the loan varies greatly with value and risk. Remembering that in both each bank it defines whether or not it concedes according to its internal rules.

Financing or Payday loan?

Financing or Payday loan?

To find out what service you need, whether it’s a Payday loan or financing, put your goal on paper and do a financial planning.

  • What is the amount required
  • What do you want to buy with the
  • What is the need for credit (short, medium or long term)
  • How long can you pay the installments (according to your monthly income)

Analyze well the CET, Cost Effective Total of the credit that will be granted, including all related charges.

Financing

We can say that financing is good when you plan to buy a high value asset, such as a car or an apartment.

Financing offers the good conditions for this need through a lower interest rate, and longer payment time.

You have to be willing to offer something as collateral, and face more bureaucracy with various documentation to fulfill the request.

Payday loan

The Payday loan is ideal for quick cash needs moments to use the way you want, it can be for payment of debts, purchase of something desired, vacation, etc.

In more traditional banks, there is a bureaucracy to be able to take the money into account, such as having an active bank account, documents and proof of loan application.

There are already more innovative institutions offering Payday loan online, which is no bureaucracy, and you can carry out the entire application online and without any document or voucher.

We hope that we help you understand the difference between financing and Payday loan, and also to decide which you need to meet your financial need.

Is it possible to save money with payday loan?

 

 A payday loan can be a great tool to help finance your next big purchase, home remodeling, business expansion, a new car or anything else that might require some extra money.

payday loans may vary in category, but generally have a shorter term than other credit services. They can even help you save money when you consolidate a number of other loans into one, thus lowering your interest rates and simplifying your payments.

You can also avoid spending more money than you need over the duration of the loan by following these 5 easy money saving tips:

1. Plan wisely

1. Plan wisely

Research your investment well before you even apply for a loan. Investigate different sources for your purchase, create a budget and keep it!

When you confirm how much you think your final loan amount will be, use a payday loan calculator online to find out what the installment values ​​are and fit into your current budget.

2. Optimize Your Payday Loan

2. Optimize Your ayday Loan

Your payday loan has many different variables, from the amount, interest rate, with or without guarantee and term. You need to find the right combination of all these factors to ensure that you get the best payday loan available to you.

The best way to do this is usually to use a payday loan comparison to make sure that you are getting the perfect deal. Currently, with online payday loan options, this task has been very smooth.

3. Be prepared

3. Be prepared

Once you have done your research, find out how much you can afford on installments, compare payday loans and decide for a financial one, put together all of your paperwork. The different payday loan providers need different things, some documents that you need to collect may include:

  • Counter-checks of recent months;
  • Bank account information;
  • Confirmation of current employment;
  • Copies of your identity.

Oberon does not require any documents at the time of its request by the site, with the aim of debureaucratizing and expediting the process.

Before signing the loan, be sure to read all the letters of the agreement, and if you do not understand something do not be ashamed to ask! Once the payday loan is approved, use the money for the defined goal as soon as possible. Otherwise, you might end up spending it with things that were not your priority.

4. Automate your payments

4. Automate your payments

Some payday loans often have penalties for non-payment or late payments and this is the last thing you need when your money is tight!

Set up an account debit for payments on your installments. You can even schedule the debt on the day you receive your salary so you know that there will always be enough funds to cover the amount.

5. Forward payments

5. Forward payments

All payday loans allow you to repay the loan amount back before the agreed date. If you pay in advance, you will pay less in interest and this may even help your credit score.

Is it Worth Taking a Payday Loan? | What to Watch out for Loans?

CREDIT

kredyty czy warto brac

Credit is colloquially speaking borrowing money from a bank or non-bank institution. It should be remembered that these institutions do not do it charity. Banks and non-bank institutions sell money for money. Taking a loan, we ‘re really buying money. Buying PLN 1000, however, we do not give the same amount, but more. We must pay not only a percentage of the loan, but also for its service to the institution from which we buy money.

GROWING DEBT

GROWING DEBT

Often people who fall into debt do not have one big loan on their account, eg for a house or flat. Everything starts innocently from one small loan . It turns out that in an instant we can have things for which we would have to work for many months. That is why it is so appealing. In addition, we did not put in any effort or work. If we once succeeded, why not try again. Thanks to the fact that we easily meet our next cravings, we start to addicted to it. However, if two installments were not a problem, it may soon turn out that the next ones are too heavy for us. So what to do to avoid falling into the band of credits.

WHEN CREDIT IS NOT NECESSARY

WHEN CREDIT IS NOT NECESSARY

Before taking any credit, you should consider whether the item you want to buy is really needed. A large amount of shopping is the desire to have new and better things, just because we want to have them. In cases when it turns out that these are only our dreams, and do not need to, start by thinking about how you can get money in a different way so that you do not take credit . if the loan is not high, there are many other options. Maybe, for example, you should abstain from buying and save money to buy a new computer. If we care about the time, let’s think about whether we do not have unnecessary things and equipment at home that are waiting to be removed. It’s a good time to try and sell it. We can also look for an additional source of income, if only for the time when we will not be able to raise funds for a new computer. We can also try overtime at work. So you see that there are many possibilities. All you need to do is look for it. However, if you still want to take a loan, the next step must be to analyze your finances. First of all, you must know if you will be able to pay the loan installments. If it’s all right, if you should not have a red light on you, you simply can not afford it.

INSTALLMENTS 0%

INSTALLMENTS 0%

In addition to credit, many stores also offer the option to purchase items in installments. These are 0% installments, i.e. we only pay the cost of the purchased item. However, the hook is all kinds of extras such as loan insurance. When shopping for a few thousand, you certainly do not have to insure the loan . Often, shops inform that such insurance is required or does not mention that you can give up from it and add it to the invoice. So, before going to this type of purchase, it is worth getting acquainted not only with new technological innovations, but also with your cost possibilities.

It’s not so difficult to take a loan . Problems begin only when we have to start paying it back. Even more, the problem is when we do not have to pay for subsequent loan installments. So always analyze whether we need it. If so, will our finances allow us to pay monthly installments. Before going for another loan, it is also worth paying back the previous one first. Only in this way will we not get into debts that we will not be able to pay back.

How to pay off the payday loan installments fast?

When it comes to repaying your payday loan , there are some simple ways for you to get it out faster, which, in turn, can reduce the total amount you pay after all.

The first step is to do your financial planning. This is important so that you do not end up committing your income, instead of improving it. After that, we separate some other tips that can help you pay the installments of the payday loan before. Keep up with us and get started right now!

Find ways to generate extra income

Find ways to generate extra income

Getting a source of extra income is the best way to be able to repay the payday loan installments faster. Even if you sell products with a small profit, in sum this can make a difference.

While small amounts like $ 20 here or $ 12 do not look like much, they definitely help. If you have a little extra work that pays over $ 100 a month, put that toward the payday loan. Over a year, it will be an extra $ 1,200.

Make bi-weekly payments

Make biweekly payments

Send half the payments to your lender every two weeks instead of the regular monthly payment. This will help you:

  • Accumulate less interest, because your payments will be applied more frequently;
  • You will have an extra payment because there are 52 weeks a year, which equals 26 annual payments (or an extra).

But it is worth to make sure before and discuss this with your lender before making bi-weekly payments, to make sure that you will have advantages according to your contract.

Rent your payments

Rent your payments

Just like making biweekly payments, you do not need a lot of extra cash to reduce a few months of your payday loan. If you are working on a tight budget, see if you can create a little extra space per month to increase your repayment of the payday loan installments.

Rounding the value, for example, is a great way to pay a little more, without spending too much. Instead of paying that broken amount of $ 163.20 monthly, you can pay $ 170, $ 180 or even $ 200 a month. Throughout the year, this could make a big difference.

Make an extra payment

Make an extra payment

You will pay debts more quickly by adding an extra monthly payment each year. If your monthly payment is $ 240, then pay an extra of the same amount for some time during the year. You can use the money of the 13th or another extra that you receive.

If you are like most people, it can be difficult to perform the extra payment. An alternative is to spread the extra payment throughout the year. Divide your monthly payment into 12 and add this amount to each monthly payment. Your payment of $ 240 will become a payment of $ 260 (240 divided by 12 equals 20, 240 plus 20 equals 260).

Benefits of paying installments of the payday loan early

The bottom line is that paying off your payday loan or credit card debt in advance will save you money on interest and will shorten the overall term of the payday loan. Imagine what you could do with your money saved: investing for retirement, making home improvements or paying off other debts.

There are many benefits to paying off your payday loans early , but one of the biggest is less stress and less risk because you will be free from your lender!

Unemployed Credit ▷ How to Get Payday Loans| Jan. 2018

People who are unemployed for a long period of time have only the social benefits paid to them in terms of income. However, this does not constitute income in the sense of general credit conditions, which makes it very difficult for the unemployed to get help in the form of a loan in the event of financial problems. Especially since the monthly paid social allowance is often just enough for the maintenance of livelihood. A loan offer via the house bank falls directly away in this case.

contents

  • Borrowing despite unemployment
  • As unemployed get a loan
  • When is borrowing useful?
  • Find the optimal offer

 

Borrowing despite unemployment

 

Borrowing despite unemployment

A number of credit providers on the Internet still offers appropriate financing offers that are suitable for the unemployed. Under the term credit for the unemployed , even people without a job can procure new liquid funds. Here, the loans can also be handled schufaneutral what just unemployed and their credit rating is not unimportant. You can find detailed information here .

 

As Unemployed get a Loan

 

As unemployed get a loan

 

Unlike in the case of the principal bank, where the customer’s solvency first and foremost counts, it is the case with an unemployment loan that the collateral must be provided in the form of guarantees, real estate or even by a co-applicant. The creditworthiness can therefore also be achieved by a co-applicant (spouse, relatives, etc.) has a sufficient income.

 

When is borrowing useful?

When is borrowing useful?

It is important for the unemployed borrower that you should not take a loan at all costs, even if you are currently in a financially volatile situation. Because a loan must be repaid in the long term, which means that the monthly installments must be made over this period and your own income must endure this burden permanently.

 

Find the optimal offer

Find the optimal offer

Anyone who is sure that they want to apply for a loan despite being unemployed should first compare a few offers and then decide on the right offer with the optimal conditions.

 

 

Security Tips When Applying for Payday Loan

Online payday loan is an innovative service that is gaining a lot of popularity in Brazil. This service can help people looking for credit quickly and without bureaucracy.

Because it is something new, many customers may have questions about the service, and for lack of information they may fall into some pitfalls of malicious people, further damaging the financial situation.

This post aims to inform you about how to find a payday loan safely, and that really helps you to solve your financial problems.

How to make sure that this is a secured loan?

How to make sure that this is a secured loan?

Online payday loan is a quick and debureaucratic way of getting money into account, generating a good experience for consumers seeking this financial help in order to solve a problem.

It is important to find a secured loan that will only bring benefits with your hiring. Check out some safety tips for applying for payday loan online:

  • Check if the site is reliable, with easy navigation and good information structure for the user;
  • Find out if the company has complaints on the Internet (on sites such as the Reclame Here or in the companies’ own social networks);
  • Check the existence and veracity of the company’s CNPJ;
  • Analyze if the addresses and phones on the site are valid (be wary when there are only cell numbers);
  • Find out if the banks the company says are representative are even partners;
  • The financial institution DOES NOT request any payment for the release of the credit;

With this, you get yourself cared for to ensure a secure and dependable payday loan.

How do companies care about security?

Companies like care a lot about their customers’ data security.

To avoid possible fraud attempts, the company can use various tools and behavioral analysis of the users, for example: geolocation, time of the user to request the loan, IP, among other information.

In addition to using external databases such as the SPC, Serasa and Boa Vista, they help analyze the credit score of the applicant.

A very important tool for the safety of everyone is based on the bank details that the customer must inform in form. With this data, we can verify if the CPF registered in the site is the same of the bank account, thus, we guarantee that the money goes to the right person. In this way, we have been able to avoid possible frauds of people using another person’s CPF to request a loan, which could harm another person.

Having security at the time of applying for credit is very important for you to achieve an improvement in financial health. Now that you know that appreciates your security, you can apply for an online loan on the site!

How Can I Pay The Payday Loan?

Making a payday loan online to consolidate debts and get rid of debt is a valid option. But after using the money to pay off credit card debt and other bills, you need to think: how can I repay the payday loan? After all, after clearing your doubts, this is the only obstacle between you and financial independence, and you have to plan to get there.

Below are some of the best methods to pay off your loan as fast as possible and see yourself totally debt free! Keep reading and learn from us.

1. Make bi-weekly payments

1. Make bi-weekly payments

Send half the payments to your lender every two weeks instead of the regular monthly payment. This will help you with three things:

  • Less accrued interest because your payments will be applied more often;
  • Each year of the loan you will pay an extra installment. That’s because we have 52 weeks a year, which equates to 26 payments every two weeks. So in a year, you would be paying the equivalent of 13 installments, instead of only 12;
  • Doing this during the loan period will reduce the time it takes you to take it off.

Be sure to discuss this with your lender before making bi-weekly payments to ensure that you have the appropriate discounts and reduced interest rates.

2. Round Your Payments On Your payday Loan

2. Round Your Payments On Your payday Loan

Rounding up your payments is an easy way to pay extra without even losing the funds. Just like making bi-weekly payments, you do not need a lot of extra cash to hit a few months after the term of your loan.

For example, if your automatic payment is $ 264.12, you can choose to round to $ 300, which is an extra $ 35.88 per month. After 12 months, this will represent an additional $ 430.56 (or almost two additional payments).

You could even go one step further and beat your payments by $ 50 or $ 100 a month. Over time, this amounts to a significant amount, which will help you save money on interest and shorten the term of your loan.

3. Look for ways to get extra income

3. Look for ways to get extra income

Anyone who has extra spare time can find on the internet several ways to make extra income. Whether selling things you no longer use, for those who have a car, making extra bucks may be what was needed to take out the payday loan faster.

Although at first the extra income appears in small amounts and does not seem to help much, they will definitely add up over the year and could make a big difference in paying off your debt.

4. Make an extra payment

4. Make an extra payment

If you do not have the cash flow to commit to bi-weekly payments, you can get the same result by making an extra payment each year. Use the money from an income tax refund or the 13th salary to help pay off your payday loan faster.

Or you can split your monthly payment into 12 and add this amount to all future payments. For example, you can split the amount of your installment from $ 264.12 to 12 and add the result ($ 22.01) to each payment. Each payment would be increased to R $ 286.13, equaling one extra payment per year.

Paying off your payday loan in advance will save you money on interest and shorten the overall loan term. Imagine what you could do with your extra money: saving for retirement, making home improvements or maybe a trip.

There are many benefits to paying off your loans early, but one of the biggest is less stress and less risk! So choose your strategy and get started right now!

 

Unemployed – No Money – Apply for Personal Payday Loan

 

Suddenly unemployed. The news that you are being dismissed, or that the employment contract is not renewed, is devastating.

Many people then fall into a deep emotional hole, are full of self-doubt and plagued by existential fears. Often they do not come out of this low on their own and want to be out of shame from anyone, not even friends and family, help.

But exactly this behavior is wrong. You can not just give up, you have to get up and look ahead. In the beginning, of course, it is right and good to give in to the disappointment and get rid of all the pent-up stuff.

But then you have to draw new courage and strength for something new from that same bitterness and accept that you are now “unemployed”.

To help you survive this situation as unscathed as possible, you should adhere to the following advice:

 

Forget about your self-doubts

Forget about your self-doubts

 

 

Because it is precisely during the economic crisis that employees are dismissed not because of failures but because the financial burden on the employer was no longer sustainable. The procedure is generally based on the so-called “social selection principle”: First, those who are least financially responsible for the family and therefore considered to be more independent are dismissed. Employees who, due to their age or disability, are considered as “difficult to place” for new work, are at first spared in this social selection. It may not even be your personal fault that you have been fired.

Apart from mental rehabilitation, the financial and formal reorganization as well as the job search also play an important role.

Important in the job search is an innovative application management. These include, above all, creativity and initiative. Have the courage to start something new, different and lose the fear of the unknown. You should also lower your expectations and expectations. There are no jobs like sand and even if the pay and the conditions do not suit you optimally: A job is better than no job.

For financial and formal organization in unemployment, there are clear rules and guidelines. These should and must be strictly adhered to. Once you learn that you will be fired, you should contact the employment office. In other words, whose employment contract expires and is not renewed should report three months before the contract expires. Otherwise you have to report within 3 days after notice of termination at the employment office. Compliance with these deadlines is very important for several reasons. On the one hand, you are unemployed from the first day on which you are no longer employed and paid and from this day you have the right to financial support. If you have applied for it in time, it will be paid from this day. There are no retroactive payments. Secondly, if the deadline is not met, sanctions will be imposed in the form of non-payment of support. In the first 12 months you have the right to the “unemployment benefit I”. Anyone who owns private wealth or whose partner is a high earner does not receive financial support from the state. For Unemployment Benefit I, single persons receive 60% of their previous flat-rate net earnings, while unemployed persons with under-age children receive 67%. The former employer must certify the merit in writing. Another condition for entitlement to unemployment benefit I is that you have been insured for at least 12 months within two years of unemployment and have therefore paid unemployment insurance contributions. At the end of the 12 months unemployment benefit I, the payment of unemployment benefit II, better known as Hartz IV begins. Only in exceptional cases and for unemployed persons over 55 years the unemployment benefit I continues to be paid. You have to apply for the unemployment benefit I at the employment agency. There one must show identity card or passport, the social security number, the employment contract and the letter of termination or the temporary employment contract. Also all insurance contributions are taken over in unemployment by the employment office.

Be aware of what it means financially to be unemployed: you will have to do without much, especially in the leisure sector, and severely limit your household expenses. Your credit rating also declines: Banks do not grant loans to the unemployed.

In general, with sudden unemployment: keep a cool head, rethink and actively go looking for a job.

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