What is a personal payday loan?

Opinion about personal payday loan

Opinion about personal loan

It is a term used wrongly and through, sometimes by the bankers themselves. And yes, we hear a lot of people qualify for example a car loan, personal payday loan. They are mistaken, the term “personal payday loan” relates to a very specific type of credit that we will develop below.

To be more clear, Capital Lender can schematize by saying that a personal payday loan is somehow an unrestricted loan.

  • An earmarked loan is intended to finance the purchase of a good or service determined in advance, therefore supporting documents (invoice and / or estimate) will be required. As for example in the case of a car / motorcycle loan or a work loan.
  • While a person the loan is a loan granted without any proof of purchase is required.

Difference of personal payday loan to consumer loan

Difference of personal loan to consumer loan

Personal and restricted loans are both consumer loans granted by a credit institution to an individual. In general, personal payday loan rates are higher than those of other consumer loans, probably because the credit companies consider that they take more risk by lending without knowing what the money will be used for?

Therefore :

  • If you want to acquire a good or service that you can justify using an invoice, go to a conventional consumer credit.
  • If the reason for the need is not justifiable, ask for a personal payday loan. The most common reason for someone to apply for this type of credit is the repayment of a personal debt or the urgent need for cash.

Please note: When we talk about debt repayment it is personal debt. If you wish to settle one or more loans to an organization, it is better to move towards a loan buyout.

Some important details:

  • The amount granted depends on the lending organizations.
  • Beware of application fees, they can vary considerably from one credit company to another.
  • The lending institution will examine your situation (household resources, outstanding loans, etc.).
  • It may also make it necessary to obtain borrower insurance.

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