What is the best rate for a consumer credit / payday loan?
Payday Loans grew by 0.4% in 2017 and are the most requested financing product by the people in establishments specializing in consumer loans. Here are some tips for understanding this category of consumer credit.
Understand what a Payday Loan is
Accounting for 33% of consumer loans issued in the country, Payday Loans are very popular because they allow individuals to obtain credit without having to give reasons to the lending institution. This Payday Loan is also called “unrestricted loan” or “unrestricted credit” because it is not designated as having to cover a specific expense, unlike other consumer loans such as car, motorcycle or work loans.
Concretely, an individual contracting a Payday Loan will have at their disposal a sum which can range from 500 to 75,000 $ which they can spend as they wish. Its repayment must be made at constant monthly payments payable between 1 and 5 years.
Know and Compare Current Payday Loan Rates
Like most borrowing rates, interest rates on Payday Loans reached very low levels at the end of 2017. In January 2018, it was thus possible to negotiate an unrestricted consumer loan of $ 3,000 out of 12 month at a rate of 1%. In the case of a need for a higher sum, a Payday Loan of $ 7,000 over 3 years had a minimum interest rate of 2.40%. As for a loan above $ 15,000 that we would like to repay in the longer term, over 60 months, its minimum interest rate was only 2.90% in January 2018.
Compare Payday Loan rates
If an individual does not need to give the reason for his expenses when applying for a Payday Loan, he must still be certain of his creditworthiness. Like all other loans, the Payday Loan is a credit which commits its subscriber, who will have to repay it under pain of risking big (registration in the File of Credit Incidents to Individuals, legal proceedings).
It is therefore a question of not putting oneself in danger with an overpriced credit. To find the best borrowing rates, consumers can compare different credit offers using the Annual Effective Annual Rate (APR), which is the best benchmark for comparison.