Payday Loan: All You Need To Know
A fast payday loan is often requested due to financial emergencies (such as health problems or costly repairs to your car), by having a simpler process and allowing the customer to have the desired amount in a short time . Get to know everything about this type of credit.
What is a Quick payday loan?
A fast payday loan is a personal payday loan that appreciates how quickly the client can get the financing they want. Most of the time the order is made online and the financial institution gives a response to the consumer within 48 hours.
In addition to speed, a fast payday loan is distinguished by not being obligatory for the client to change banks to have access to the desired amount.
As in another type of credit agreement between a financial institution and an individual, in a fast payday loan the customer agrees with the bank as to the payment term, with an interest rate associated with the payday loan value that will determine the total cost of the payday loan. ( MTIC ) and the monthly installment payable.
What are the characteristics of a fast payday loan?
There are a few things to consider before applying for a fast payday loan because the attributes of these payday loans vary from one institution to another.
1. Amount of funding
Several financial institutions offer a minimum amount of credit of 500 euros and, for the maximum, this can reach 75 thousand euros. However, for a fast payday loan the maximum amount may be lower since it is a financing without collateral, without guarantor and without the need to provide evidence of its purpose.
2. Payment term
In any payday loan there are minimum and maximum limits of duration of the payment. The minimum usually varies between 12 and 24 months, while the maximum can reach 96 months (8 years).
Note that the longer the payday loan lasts, the lower the benefits, but the shorter the duration, the more you save, since you pay less interest. The ideal will be to understand what your effort rate will be with different payment terms to choose the one that best suits your financial capacity.
3. Financing process
Not all processes for obtaining a fast payday loan are the same. There are institutions that allow you to have 100% credit online , but in others it is necessary to send the documentation in paper, by mail.
That is why it is important that you compare all the institutions and realize which ones hold the best fast credit option for you.
4. Warranties required
Generally, a fast payday loan in Portugal does not require collateral, such as, for example, a guarantor , which makes the process simpler and faster than normal.
However, and as with any other credit, if the client does not have a good track record of paying off other prior payday loans, the financial institution may require a co-owner or even some additional collateral.
5. Interest rate
The interest rate associated with the fast payday loan will influence the total cost of credit: the higher it is, the more interest it will pay, and thus the greater the total debt.
As a rule, the interest rate presented by financial institutions is the Annual Nominal Rate (TAN), but we advise you to analyze the various solutions through the APR (Annual Effective Annual Rate), since the latter covers all costs associated with the financing.
6. Commissions associated with credit
The Stamp Duty , the contract commission and the processing fee are some of the costs that must be taken into account in payday loans in general and also in a fast payday loan in Portugal.
If at the time of entering into the agreement you think you may be able to repay the payday loan ahead of time, pay attention to the full advance repayment fee. If it exists, opt for a fast payday loan that does not have this additional cost.
7. Documents required
In order to be eligible for a fast payday loan, the consumer must be between 18 and 65 years of age. The documents required to join the credit are:
- Proof of identity (Identity Card and Tax Identification Number or Citizen Card);
- Proof of Income, such as your maturity receipts;
- Proof of address (for example, an invoice for the water or telecommunications package );
- Bank information with its IBAN to receive the requested amount and pay the monthly installments.
How to choose a fast payday loan?
You should consider all the features listed above in order to choose the financing that is right for you. Pay particular attention to the interest rate, the total cost of credit and, of course, the monthly installment that you will pay. You can simulate, in one place, all the institutions in the market and realize which of the credits best suits your needs:
Compare financing solutions
It is true that it is important to look at all financial institutions, but that is not why you should not ask for a mockery of your bank. By already having a banking relationship with a certain entity, you may be able to obtain more competitive financing. Some banks also have, for their current clients, the possibility of requesting a fast payday loan online without needing to deliver documents.