Apply for a payday loan | What to watch out for?

Where to apply for a payday loan?

Where to apply for a personal loan?

Every now and then it seems that applying for a loan is the easiest thing you can do nowadays. If you cannot pay for the device, if you do not have a credit card – which is actually no more or less than a variable revolving credit – and if you cannot beg the desired amount from family members, just go to the bank according to the advertisements. With the current interest rate, the obligatory warning on that type of product (pay attention to borrowing costs money) is no more than a nice sentence for many people. In most cases, those 4 to 5 percent can be survived.

Fixed income

Fixed income

You need a number of things for an application. No matter how low the interest rate is and how much producers want it to be, it should be made as easy as possible for clients to get money, banks always want reasonable assurance that they will get the money back. That is why you as an applicant must demonstrate that you are able to meet your obligations. This is traditionally the easiest when you have a permanent appointment with an employer, because then this employer has already indicated that he intends to pay you until you get an income from elsewhere (due to a change of work or retirement) to pay. This is extremely debatable at the present time, with all bankruptcies and reorganisations, but it still works.

Fortunately, self-employed people without employees, freelancers and entrepreneurs can now also go to many banks by submitting an average of their income over the past three years. It is then expected – although it is by no means certain – that this income will at least continue or improve on an equal footing during the term of the loan. On the basis of this, it can even be argued that it is even more certain for the bank that they will get their investment back. One of the two things is necessary, otherwise you do not have to start an application. The absolute basic income – the social assistance benefit – is not considered suitable by any authority, because this amount is set at the absolute subsistence minimum in the Netherlands. After deducting fixed costs and living costs, there is not enough of this amount left to pay loans.

Creditworthy

Creditworthy

If you choose another lender on the internet than a flash credit, the next step in the process is often a review at the BKR. Flash loans are often small loans, the provider of which often takes a percentage of the loss into account when concluding and fixing the interest rate, because customers can no longer pay back. These desks are shooting up like mushrooms, so they do not suffer excessive losses. However, they often cannot place too many eggs in one basket, which means they will not lend large amounts in this way.

The Credit Registration Office in Tiel is notified by all lenders of payment arrears on loans. As soon as you fail to meet all your loan payment obligations – mortgage, personal or through the mail order company – for a few months, the providers of your loan will register you and depending on how much your payment arrears or how much outstanding debts you will get from the BKR a code. People with many outstanding debts and high payment arrears are thus protected against themselves and cannot take out any more loans. This, of course, also works as a protection against large losses for lenders.

Since 2000, mobile telephone providers have had their own system for keeping track of their payment arrears. They also reported their defaulters to the BKR, which could lead to the situation that a young person, who was accidentally confronted by very small errors with a very high telephone bill, suddenly could no longer get a loan. Fortunately, this is divorced.

Roadmap

If you can submit a reasonable income and have no registration with the BKR – this will remain valid for 5 years – you start the next step-by-step plan to get the right loan.

First of all, you determine why you need the loan. People who only want to have extra money at their disposal to be able to overcome all eventualities at all possible times usually opt for a revolving credit. This is a pot of money that is set aside for you at your money lender and which you can use if necessary. If you do that, you will repay the withdrawn money in one go or in installments. As mentioned, the best known form of this is the credit card, so if you often need small amounts of extra money, which you can repay in a short period of time, that’s a good choice. You can find such a credit on the internet or at your own bank, but it is advisable to request various quotes.

If it concerns a large expense that you will not repeat in the short term, such as a boat or solar panels, you better opt for a payday loan. For this, too, different quotes are necessary, because you have to look for the best combination between low interest rates and good conditions. For many of us, searching for a good adviser is not a superfluous luxury. The chance that it will recoup its own costs for you is very high.

Finally you sign the contract. Please note, however, that you are not immediately confronted with major penalties at a time when your obligations are just as difficult to maintain. Of course you will have to pay back the borrowed money in all cases, but most lenders still want to take into account a few months that you cannot pay for a while before they register with the BKR and send a bailiff on your neck.

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