Quick payday loans are currently very popular. It is a product that is considered to be a redemption by some, mixed with mud by others. However, the facts are that hundreds of thousands of Poles now use payday loans. One of the leading companies, Vivus, broke its record in 2013 by granting payday loans to over 200,000 customers, which is due to the promotion “the first loan for free”. The only fee for using the loan was $ 0.01, for the verification of personal data needed to sign the contract.
How to take a loan online?
Many companies that offer payday loans are already online. To use the online loan, you must register on the site, providing your real details. Sometimes, employer details are also necessary. Data verification usually involves transferring a small amount to the lender’s account, so that if the information about the sender of the transfer overlaps with the previously provided, the company knows that it can grant such a person a loan. Of course, provided that the verification in the BIK, BIK or KRD databases is also successful. If there is no information about the customer’s debt, the verification process is completed as positive, and the cash lands on the customer’s account – the same from which the verification transfer was sent. This is how the contract is signed and we become clients of the parabank. The only question is – for how long?
What are the real costs of payday loans?
If we get a promotion for a loan for free, we won’t actually pay any fees, unless we pay the payday payday within the given deadline. Usually the delay fee will be as much as we would pay for a payday loan without promotion. So if we borrow, e.g. $ 1000, for 30 days, then our costs range from $ 140 to 300. We borrow 1000 USD, after a month we have to give back 1140-1300 USD.
However, if we are one month late, we must add the fees for prompts, i.e. reminders for repayment, usually costing $ 50, sent 3-5 times – i.e. we have an additional $ 250 to the above amount. Added to this is penalty interest equal to 4 times the interest rate on the NBP lombard loan, as well as the fee for initiating the debt collection process – usually $ 100. In the worst case, we may have to cover the costs of a lawsuit, which we will automatically lose.
If we sum up all of the above additions, it may turn out that we will pay your loan up to $ 1,700, which gives the loan company a very good income in a short time. Perhaps this is why the number of loan companies, parabanks, is growing at such a rate. Currently, there are over a hundred of them in Poland, some are large networks, others operate only locally, others via the Internet. Before choosing an online loan, it is worth considering and using comparison websites such as this one. They let you choose a favorable offer and find out about all additional costs.
If we already have to take advantage of a quick loan online, let’s think about whether we will definitely be able to return the money borrowed on time. Otherwise, not only expenses, but also an entry in BIK, BIG, KRD, ERIF, and sometimes also debt collection and a lawsuit await us.