If you have a financial shortage and need money at very short notice, you should think about a payday loan. The employees of the respective financial institution decide very quickly whether this is granted and then the money is available to you accordingly fast. If this is the case, you will immediately receive the payday loan .
What exactly is a payday loan and how can it be obtained?
A payday loan is a small and readily available loan. The repayment period is relatively short and the application is usually less bureaucratic than other bonds. In addition, in the short or lightning loan, as it is often mentioned, the Schufa is not respected.
Nevertheless, some conditions have to be met to get between 100 and 12,000 euros. For example, the borrower must live in Germany and have an account there. In addition, he should regularly earn at least 600 euros per month and be already 18 years old. If there is a warrant against him, the mini-loan is usually not approved. The same applies in the event that his wage is impounded or he has reported insolvent.
When is the payday loan worthwhile?
A payday loan is worthwhile only if you have to bridge a shortage of payments at short notice. In addition, you should be able to repay it in whole or at least a large part in a short time. If this is not the case and you want a longer repayment period, you may want to consider another form of credit. With a normal loan , you usually have to pay substantial interest. However, since the loan amount for a payday loan is relatively small, these additional payments are also lower. For very small amounts of less than € 1,000, you hardly have to pay interest. However, there are often some additional offers in question, which can cause additional costs, such as:
- payment by installments
If you can not settle the loan at once, you can extend the repayment period with most providers, or pay off the loan amount in installments. Normally they have to pay the full amount after 30 days at the latest. In general, you have the option to extend this period. For some lenders, additional fees apply for installment payments.
- Express Edit / Flash Transfer
As a rule, you have the payday loan in your account after two to ten days. However, if you need the money faster, you can request express delivery for a fee. These will help you to process your application faster and make a quicker decision as to whether the loan will be approved or not.
- credit check
As already mentioned, a payday loan usually does not look like the applicant has a Schufa entry. For this, the credit institutions can make a so-called credit rating, through which you receive a credit rating. This will increase your chances of getting a loan. However, there are additional costs for this service. As a rule, you have to expect up to ten percent of the respective loan amount. Of course, if your application is rejected, you do not have to pay this fee. For some providers, the credit rating is free.
How is the payday loan different from a small loan?
The mini credit can quickly with a conventional small loan to be confused. Because there are quite a few similarities between the two forms, such as:
- Even with the small loan, the sum is low (500 euros to 2,000 euros)
- Both loans can be settled in a short period of time
- Installment is possible
- Both types can be applied for at the house bank