As a financial comparator that we are, we always insist on the importance of valuing the different market alternatives before opting for one financial product or another. Thus, we ensure that the choice is more accurate. Now, what aspect should we look at to make a correct diagnosis? In this article we try to discover what would be the ideal personal payday loan, the one that would dominate the rest without fissures.
What characteristics does the best personal payday loan have to have?
Logically, the perfect credit will be one that has no interest or commissions, that is, that is 0% APR and, therefore, has no cost. Assuming that this is difficult to achieve, we will review different costs and characteristics that tend to increase the price of the loan or make it less attractive.
Obviously, it’s the first thing that comes to mind. According to a recent study, the minimum average TIN of personal payday loans (calculated by analyzing the lowest interest that each credit allows access) was 7.14%.
Therefore, we must try to get our loan below that figure. And if we want to curl the curl, we must bear in mind that in that investigation no offer was found below 4.95% TIN. Of course, there may be special promotions of each entity for products or specific times that suppose an extra reduction in the interest rates of personal payday loans and improve those conditions.
They are another important aspect of the credits and basically we find two types:
- Opening or study commission : if it exists, it usually represents a percentage of the amount requested. In the aforementioned report, the average cost was 0.97% of total credit.
- Commission for early cancellation: in the event of wanting to return the personal payday loan before the agreed term, there are entities that charge a commission because, by returning the money early, they stop earning interest. It is a way to penalize our breach of contract and recover some money than they had anticipated.
Here the conclusion is simple. Ideally, the chosen loan does not include any of these two commissions. This, luckily, occurs in quite a few cases.
Another key aspect is simplicity. There are lenders who, in order to offer financing, ask in exchange for the hiring of related services; such as life insurance or account opening. These, in addition to increasing the cost of the loan, are cumbersome, since they involve procedures that we often prefer to avoid.
And seen these three key aspects, who fulfills these premises? Part of a TIN of 6.95%, it has no opening, study or early amortization fees and does not require the contracting of related products. With it, we can request from 4,000 to 60,000 euros to satisfy any of our wishes.
Be careful, we must adapt the chosen loan to our needs
During this article we have been commenting on the ideal characteristics of a personal payday loan. However, we must bear in mind that, depending on our profile and the type of credit we need, we must resort to one financial alternative or another. This occurs because, in reality, there is no perfect loan, but one more adapted to our situation at all times.