What is a payday loan? This loan form can also be shortened with ‘PL’. This loan is a form of consumer credit. This means that the financing can also be requested by consumers. The most important characteristic of the payday loan is that everything is certain. This allows you to adjust the duration of the loan to the possible economic life or depreciation of the object to be financed (for example a car). What is certain? The loan amount is always recorded in advance (this cannot be changed in the meantime). In addition, the duration and the interest rate are also fixed.
This means that you know in advance how much money you must repay each month: You have a fixed monthly charge (this is also known as a monthly installment). The monthly installments consist of both an interest component and a piece of repayment.
What should you use this loan for?
People usually apply for the payday loan in order to finance larger purchases. The payday loan is popular as a car loan. But this loan is also taken out for renovations to houses, renovations or for making houses more sustainable (such as the purchase of solar panels, heat pumps, etc.). What is important with this form of borrowing is that, if possible, you opt for a shorter loan term than the life of the object.
It is clear that the fixed nature of the payday loan can also be an immediate benefit if you opt for this loan! So you always know what you are signing for and therefore where you stand. For some other consumer loans – such as the revolving credit – this is not the case.
We place advertisements on our website from providers that use favorable interest rates. We also keep the current interest rates so that you can compare the offer well with each other. However, the interest rate does not tell everything. For example, you may be more expensive with provider X that uses a low interest rate than with provider Y, which uses a higher rate. How is that possible? For example, with some lenders you are also required to take out insurance. And with some providers you pay a higher fine if you do not meet your payment obligations. So pay close attention to the conditions of a loan and do not focus solely on the interest rates.