The wrong choice of the payday loan amount is probably the most common mistake in financing. Who thinks that one decides for an excessive amount is wrong – often the payday loan amount is selected too low. In the end, two reasons are responsible for this: Either the creditworthiness of the customer for a higher payday loan amount is not sufficient (not even if the term is extended) or the borrower speculates. But not only the awarding of lesser amounts of credit is a problem. Many borrowers apply for too large sums of money – they are granted on the basis of creditworthiness – and are thrown off track by financial irregularities. The classic problems with repayment are the sudden lack of income due to unemployment, unexpectedly high purchases and expenses or lower payouts for home savings or fixed-term accounts. After all, sometimes things are different than you think … or hopes. So taking a payday loan requires a lot of consideration. You should be clear about which bank you choose, which payday loans are offered, what term you choose and what amount you can represent yourself so as not to experience even a nasty surprise.
Which mistakes can happen?
The best case is the relatively short account overdraft – the famous dispo at the bank. Even if the borrower suffers additional costs here in the form of excessive interest, he finds relatively quickly back on track. It gets uncomfortable when the borrower has to make a payday loan adjustment or rescheduling . Here, any processing fees are incurred again or the borrower must submit new collateral. Thus, the credit is not only expensive, but it also causes an immense paperwork. In the worst case, the bank even terminates the payday loan, pays the outstanding sum and does not provide any new financing. However, this is an exceptional situation and means that the borrower has actually overestimated himself – with his payday loan amount – and that the banks intervene. What is important is that you take out a payday loan that has such a repayment, so you are not immediately thrown off track when extraordinary or unexpected financial changes occur.
Important are personal securities. This can be a time deposit account, a savings account or even a home savings contract such as insurance. Also, you should always make sure that the account is covered, usually by a regular income. Who knows that he has a financial overhead in the next few months, should already include this in the credit calculation. But one should not just think about the negative aspects. Often comes – unexpected – money into the house. A small inheritance, the proceeds of a property or a higher sum in the home savings contract. Who knows – it does not always have to be negative. When choosing the amount of credit, several factors must therefore be taken into account. Of course, caution is required; Nobody wants to get into the predicament and can no longer afford the monthly repayment. For this reason, it is also important to consider before and when the contract is signed, when and how the payday loan can be repaid. So you should calculate as accurately as possible or have it calculated, which is the most appropriate option for you to take out a payday loan. Another tip: when lending costs again and again costs that you do not think in advance. These additional charges must also be included in the bill. It is important that the costs incurred are clarified in advance; Here the bank adviser must present a statement, so that the borrower knows, which additional burdens come to him. Classic ancillary costs include processing fees, which often amount to up to 3.5 percent of the payday loan amount. But also brokerage fees, fees for lawyers and notaries and other costs for securities must be considered.
Credit calculator help in calculating the payday loan amount
Before the borrower deals with the amount of the payday loan and the repayment term, it should think about it and think about it. Credit needs arise over the longer term rather than the next morning. That’s why it’s important to take some time and weigh the different priorities. If the borrower feels that he has too little information or feels ill advised, it is also possible that he will seek a second opinion. In advance, it is advisable anyway, if you catch up on different payday loan offers with the same amount of credit. This presents a comparison to the borrower, which brings the banks the cheapest and most attractive terms. An overview of this is also provided by so-called credit calculators, which are available free of charge on the Internet.
payday loan amount – the alternative to the bank
It must be made as a set of considerations, calculations are made and one should be aware of its repayment options. Applying for a payday loan from the bank is usually an enormous obstacle, because the remark is often another problem that can get in the way of the borrower. If the remark score is low, banks often decide against the payday loan seeker. Of course, the frustration is great. Meanwhile, the peer-to-peer has established itself. This model creates the possibility that private to private payday loans. We offers a profitable platform that grants payday loans even if the remark score is moderate. Here, borrowers and lenders are brought together in the online credit marketplace, with acting as an intermediary. The borrower has the chance to publish his payday loan on the platform with his own chosen payday loan amount of 1000 to 50.000 Euro. Investors then have the opportunity to look at the projects and invest in their investment amount. Thus, the borrower has the option on a payday loan, even with low remark score and their own choice of payday loan amount and the investor the chance of profitable returns averaging 5.0% – virtually a win-win situation.