Compared to other types of consumer loan, the peculiarity of the payday loan is that it is not tied to a specific purchase. This payday loan makes it possible to finance many personal projects and the use of the funds does not generally have to be justified.
Also payday loan is often used to finance:
The payday loan is therefore useful for many projects. However, it can not in any case be used to finance all or part of a real estate project or a professional project. Other types of financing are better suited to these issues.
Let’s move on to what is a good payday loan . At us we believe that a good payday loan must have:
The rates of payday loan offers evolve over time according to several elements (for more information, see the sheet: ” Interest rates: why such differences in rates between offers of consumer loan? “).
And besides, it is not always the same loan agencies that offer the best rates. The peloton of the most competitive loan agencies in terms of rates is renewed very frequently and to know what are the best rates of the moment, it is necessary to use a loan comparator .
Be that as it may, a competitive rate remains the first criterion to evaluate in order to find a good payday loan. And to do this, we must compare the APR (annual percentage rate), which includes all costs related to a payday loan offer (interest, fees …). The APR is always present on the payday loan simulations, on the advertisements as well as on the contracts.
Another element to take into account: borrower insurance. It is optional but highly recommended since it covers borrowers against certain risks such as illness or incapacity for work. The cost of the borrower insurance is not included in the APR. It is expressed through the TAEA (effective annual rate of insurance), which compares the offers in terms of cost insurance borrowers.
A competitive rate is necessary but not enough to identify a good payday loan. As for any purchase, we must evaluate the value for money of the offer! And in terms of payday loan, several elements can appreciate the quality but we want to draw attention to 2 of them:
The adaptability of a payday loan is its ability to adapt over time to changes in the personal and budgetary situation of the borrower. To assess this criterion it is necessary to check the following with the loan institution:
Do you want to compare the rates AND flexibility of payday loan offers at a glance?
With the us loan comparator it’s simple: for each offer, beyond the rate, we indicate if the change of monthly payment or the postponement are possible.