In a context where purchasing power is falling, financing personal projects becomes more complicated. Banks lend less easily and the risks of over-indebtedness should not be overlooked. However, many households are taking the step of payday loans to meet their need for cash, but also to carry out a project requiring funds. It is to date the best solution to carry out your desires and develop personally. But in concrete terms, what does personal credit mean? What are its ins and outs? All the answers in this article.
A credit designed for everyday expenses
Unlike some other credits, the payday loan is not used for any particular purchase. You can therefore contract it for whatever reason that motivates you, which is absolutely impossible in the case of a car loan for example. This is one of the only differences between these two types of loans.
Otherwise, the terms are generally fairly standard: reimbursement by monthly payments, rates varying with the duration and the amount requested, credit insurance possible… Nothing very exotic. Note, however, that the costs linked to this credit are more easily negotiable, in particular with regard to insurance and handling fees.
Credit less accessible than before?
Consumer protection laws have been reviewed in recent years. Henceforth, lending institutions have the obligation to check the creditworthiness of the client. Training of sellers, consultation of the credit reimbursement incident file, request for additional information. The consumer is also better supported in this process.
Finally, note that for a request exceeding 3000 $ , you will have to provide supporting documents, in particular salary and proof of address. The time when organizations lent their eyes closed is well and truly over, and that’s good.
You can use a payday loan for just about anything: debt consolidation, medical expenses, moving costs, home improvement projects, a car or your wedding. When you’re approved for a payday loan, you receive a lump sum of cash to spend however you’d like with no restrictions from the lender.
It’s very difficult to get an unsecured payday loan with a credit score under 550 on your own, without the help of a co-signer whose credit score is higher. Even the loans with the most lenient approval standards require a credit score of 585.