10 rules for taking payday loans
June 29, 2019
Use only proven companies
There are many companies on the market that are not entirely honest with customers. When we need cash quickly, we often don’t notice certain warning signals. And this is a big mistake! At such times, we are most susceptible to fraudsters. Let’s use proven, well-known companies in the rankings. porfel is here to help, because the companies that are in our rankings are checked by us, both in terms of transparency and integrity of the loan agreement, as well as the stability and solvency of the company.
Do not deposit any money before receiving the loan
Some loan companies demand a certain amount of money to be paid for future payday loans. We strongly advise against. Usually, after paying money, the company finds various reasons not to pay the loan. The reasons may be lack of capacity, lack of security or the obligation to present several guarantors. Of course, such companies do not want to return the money later, explaining that it was intended for the cost of verification. This is a lawful procedure, the money paid is treated as a down payment, and the contract is structured to protect the loan company.
Repay loans on time
On the market you can find both free loans or payday loans online, which we will repay in the same amount we received, as well as various types of promotions, information about which can be found at porfel. The condition of favorable conditions is the timely settlement of the loan, in case of delays, the daily interest is often several times higher than during the regular loan period. In addition, there are costs of reminders and reminders, not to mention the debt recovery procedure. It is often profitable to take another payday loan to pay off the previous payday. However, remember not to fall into the so-called debt spiral, i.e. taking larger and more expensive loans.
Do not avoid contacting the loan company
A common mistake of customers, both banks and non-bank institutions, is to avoid contact with the company. Often, when there are problems with repayment, we do not answer the phone and do not answer letters, and this is a big mistake. The company wants us to pay back payday loan and understands that we have no money. That is why calling usually has some solutions for us, e.g. extending the payday payday by another period, spreading the loan into installments or even sometimes canceling part of the interest. Often, such solutions involve paying part of the capital or interest, but it is better than going to court or entering on the list of debtors.
Provide real details during registration
Some of us, in order to protect ourselves against debt collection, may come up with the idea to provide a false PESEL number, name, ID number or mobile phone number. It doesn’t make much sense. Loan companies have access to many databases in which systems verify us, providing false data will prevent us from getting payday loans online, and may also block some of our data that we provided correctly, and when we want to take payday pay honestly, we will not be able to do it because of blocking, for example, our IP as a suspected fraud.
Borrow prudent amounts
It’s easy to take the maximum loan amount and get into trouble later. The main thing is to take such an amount that will allow us to meet our needs, and later we will be able to pay it back. Let’s take as much as we need for the period we need to get money.
Pay off the loan sooner if you can
Early repayment of payday loans is always a good solution, if of course we have money for it. The costs of payday loans, even the cheap ones, are considerable (we skip free payday loans here). We have to pay interest for each day. Early repayment of payday loans allows us to save on them, and additionally increases our credibility, thanks to which we can easily get another quick loan in the future for a larger amount.
Check the amount to be repaid
We can often come across a loan offer with no interest or commission. Let’s not imply these slogans, often lending companies and banks hide this cost under a different title. This is e.g. insurance, an administrative fee or a preparation fee. This does not mean that these fees are bad, they often bring added value (e.g. life insurance). It is important that the repayment amount / installment suits us, because it is the loan price indicator. Often, an interest-free loan can be more expensive than an interest-bearing loan.
Receiving cash at home is a bad solution, take cash to your account
Some companies offer home money delivery, a solution that seems comfortable at first glance may cost you dearly. This option can double the cost of the loan, and in addition, the agent who provided us the amount becomes our debt collector. This solution with lower capacity is sometimes obligatory, then it is worth looking for another solution.
Don’t be afraid of payday loans!
Payday loans and non-bank loans are nothing terrible if we follow the above rules. It happens that such loans are our only chance. Although loan companies are not under the control of the Polish Financial Supervision Authority (there are plans to make them), they are under the jurisdiction of Polish law and under the watchful eye of UOKiK. The lending sector has recently been on the fork of various regulators and their contracts, the offer and costs are often more transparent than those of banks.