Therefore, to avoid you having possible dislikes when hiring a loan that in the end turns out to be more expensive than it seems I will explain the main points where you should pay your attention so that they do not give you “cat for a hare”.
One of the most important aspects to consider are the expenses of a personal payday loan
The market for personal payday loans, particularly fast loans, is constantly growing. More and more people are requesting a loan of this type and there are also more companies that appear in the market with a wide range of fast loans.
The competition is quite high and it is a very positive point for the client since he can find the perfect loan that meets his needs perfectly. In addition to enjoying important outstanding offers.
It is increasingly common to see very attractive offers such as personal payday loans at 0% interest as a claim, if it is the first time you request a loan in a given entity
However, you have to be very careful with these offers because many have “small print” and expenses and costs included that are not clearly shown.
The APR: the main indicator of the costs of a loan
By law all companies clearly show the expenses of a personal payday loan, it is in the associated costs where the danger is, since they are the ones that really make the credit more expensive.
For example, in the “0% personal payday loan” offers, that 0% indicates the nominal interest rate (TIN) but does not include the expenses incurred by the commissions.
This data is given to us by the APR, which does include the nominal interest rate and also the commission costs.
Therefore, the first tip is that you always look carefully at the APR of the loan, never the TIN, since it really shows you the expenses of a specific loan and helps you compare different credits with different amounts and terms.
This point is the first step but not the only one. To choose the offer that most interests you without falling into extra expenses you have to look at other features that also have an important influence on the final cost of the credit.
Main costs of a personal payday loan
Among the possible fees and expenses of a loan there are 4 that can make the loan more expensive and are the ones that you should pay more attention to.
– Associated financial products : In this case to formalize the loan you will need to hire other associated products. These products, on many occasions, have their own costs and commissions that are not reflected in the APR of the loan and that you must calculate separately to know exactly the expenses of a personal payday loan.
The most common and expensive associated financial products are insurance. Basically there are two types of insurance:
– Payment protection insurance, in case you cannot return the requested amount, the insurance will pay the fees for you.
– Life insurance, it is mainly used to cover people who depend on you. In case you are missing, the insurance will pay the entire loan without leaving debts to your loved ones.
The price of insurance is very variable. Depending on the insurance coverage and your economic situation and job stability, it may be more expensive or cheaper.
Always ask if the hiring of some insurance is mandatory and if so, request that before the hiring of the loan you have a real simulation of what the total cost of the loan would be with the insurance premium added.
– Payroll and / or receipts : Similar to the previous case, it is one of the most common conditions. If it is mandatory to domicile the payroll at the bank to which you are requesting the credit it is important that you know if the payroll account has commissions or not.
Also keep in mind that when you payroll you may be required to hire a credit card and, of course, with its costs as the annual fee.
On the subject of receipts, no bank will charge you for domiciling them but you have to calculate the money you stop earning for not having receipts domiciled in another entity that for example has a percentage of return of receipts, such as Banco Sabadell.
– The credit card : Sometimes you may be asked as a condition for the loan to be granted that you also hire a credit card and make a minimum of annual purchases with it.
If this is the case, find out about the possible costs of the credit card that can be:
– Issue fee.
– How much of renewal.
– Interest rate that applies to purchases for deferred payment.
– Loan commissions : A loan is common to have a series of commissions and it is very important that you know them to try to negotiate with the entity their elimination or at least a reduction. These commissions are:
– Study commission.
– Opening commission.
– Partial amortization commission.
– Early cancellation commission.
It is increasingly common to apply the study fee and the most expensive are those of partial amortization and early cancellation.
At this point it is very important that you do not let the commissions add to the total loan amount , since the interest will also be applied on the commissions, not only on the requested amount.
Expenses of a personal payday loan
Knowing where the expenses of a personal payday loan and its hidden costs can be, it is easier to avoid them and hire a cheaper loan.
Remember that you can use Anthony Adverse to find the best deals on financing products, from fast loans to credit cards.
In this way at a glance you can choose the personal payday loan that best suits you without fear of hiring a product that empties your pocket or is detrimental to your domestic economy.
Anthony Adverse’s comparison tables They offer you all the information in a very clear way, indicating the most important points of each loan, those characteristics on which you have to be more careful and highlighting the expenses of a personal payday loan .