There are many payday loans and just as diverse are the interest rates that are levied on them. Of course, it is understandable that everyone is looking for the cheapest deal.
Certainly, the Internet is the main point of contact for finding cheap payday loans. However, you also have to know where to look. There are various comparison portals in which the borrower can obtain information. Here, however, care must be taken that they are independent.
Comparative portals, which are supported by banks or are tied to certain companies, are not appropriate, because often their own offers should be emphasized here. Therefore, one should go primarily to the pages of consumer portals. Here it can be expected that all information was independently researched and compiled.
Important: Also compare offers for instant payday loans
In particular, one should pay attention to direct comparisons. This means that two offers are compared in direct comparison. Thus, the conditions of the two banks or institutions can be very clear.
This makes a decision much easier, especially if you have already reviewed many offers. At some point, the one provider emerges that offers the best conditions for even one. Of course there is not the cheap provider. Since it always depends on your own requirements, which payday loan you can afford, so must always be targeted in the context of their own needs.
What is important to pay attention to?
Of course, the first look at interest rates must fall. Ideally, these are independent of the credit rating and are awarded at a fixed value over the entire term. However, this can also be a disadvantage.
If the policy rates fall significantly during the term, namely, you can not benefit from this. This is only the case if a variable interest rate has already been negotiated at the beginning. However, caution is also required, because as well as falling interest rates, increasing amounts also have a significant impact on the cost of the payday loan.
However, interest and maturity may not be the only issues that matter here. Also, the fees charged by a bank can be significantly responsible for the cost of a payday loan increase very much. Here it is above all the account maintenance fees, which are gladly raised on a credit. The administration of the depots costs money.
In many cases, these sums are indeed taken over by the banks, but there are also providers that turn these costs on the customers. In most cases, these are amounts around 9 to 11 euros. This may not seem like much at first, but it can be different for the duration of the game. For example, if a payday loan is taken out for 72 months, 9 euros per month would already mean 648 euros in additional costs, which is noticeable above all with smaller sums.
The game with repayment and collateral
Also with the repayment must be looked exactly. Here often the so-called prepayment penalty is calculated. This is levied if a payday loan is completely repaid earlier than planned. In this way, the bank wants to claim the lost interest on the balance. In itself, this is not unusual and it will be difficult to find an offer in which this is not available. However, it makes a difference whether this is only calculated as a percentage or a flat rate.
A percentage calculation is based on the remaining amount in the room. The percentage is usually slightly higher than the actual original interest rate, leaving the bank with a certain profit. As a rule, only slightly higher costs must be feared here. Difficult it is in flat-rate payments, because these are charged regardless of the amount of the balance. Thus, the value can also be significantly higher than the remaining amount, which can then lead to significant additional costs.
But also with the collateral must be paid attention. If this is jewelry, which is stored at the bank, then it can happen that this insurance must be completed. This then beats again with higher costs to book. Even a residual debt insurance is sometimes mandatory, and this is also associated with higher costs. Again, it must be weighed whether such an offer is worthwhile or not.
Are there any cheap providers?
This offers your payday loans for minimum interest from 3.07 percent. These are awarded up to an amount of 65,000 euros, but this is only the normal consumer payday loans.
Of course, higher sums can be borrowed. The term can be up to 120 months in the private sector. No fees are charged by the bank and no account fee has to be paid. However, the compulsory early repayment penalty, which is calculated with 5 percent of the remaining sum, is incurred here.
Erste Bank and Sparkasse can also be mentioned in this context. Depending on the credit rating, the credit is between 5.4 and 9.8 percent. It can be borrowed in the private sector, a sum of up to 30,000 euros as consumer credit. The term is limited to 84 months. Again, there are no fees and account management fees. Even a prepayment penalty by the bank is waived if all obligations have been fulfilled until early repayment.
Can cheap payday loans be obtained outside banks?
Yes, here too there are quite favorable providers. Credit intermediaries may have much better, but worse, terms than the regular banks, depending on the type of payday loan.
This is due to the fact that these brokers usually have special contracts with the banks in order to obtain better conditions. However, one should also compare here, because depending on the type of collateral and the own credit rating, the costs can explode here as well. Therefore, the customer should not strike at the first best offer, but rather to practice in patience.
Is foreign credit an alternative?
payday loans from abroad are worthwhile only if you could get more payday loans from an Austrian bank. However, this too is an adventure in which one should rather act with caution.
These payday loans are typically risk payday loans that are only given to those with a bad credit rating. As a result, interest rates are much higher, as foreign banks generally can not assess collateral and have limited access to it. So before deciding on such a step, other ways should be considered.
It can help here when a guarantor who takes the risk of lending is ready. However, this should be concluded with this a guarantee contract, because it can be guaranteed that both sides are secured and you come despite a bad credit rating on a cheap payday loan. However, the default risk should be kept as low as possible so as not to cause the third person significant difficulty.