Applying for a payday loan is very easy today. Thanks to the web comparators, in fact, you have the opportunity to view different solutions in a few seconds. In these cases it is essential to compare payday loans. But how do you do it? What are the elements to consider? These are just some of the questions we will answer during our study.
How to find the best loan
When it comes to having to apply for a loan, it is essential to be clear what our needs and possibilities are. Before you can compare multiple payday loan quotes, you need to analyze your needs.
What are we talking about? For example, those who wish to purchase an appliance can take advantage of a finalized loan, which can be taken out directly at the point of sale where they wish to make the purchase.
In this case, the commercial body acts as an intermediary between supply and demand. In other words, although the loan is taken out in the store to lend the money it is a bank or financial. This is therefore the subject with which the private individual gets into debt.
Instead, the question is different for those who need liquidity. In this case, in fact, it will be necessary to take out a payday loan, which allows the beneficiary to spend the money obtained as he wishes without being tied to the purchase of a particular good or service.
Once defined what our needs are, it will be possible to use an online comparator in order to find all the loans that meet our needs. And at this point how to find the best loan?
To compare the quotes of the best payday loans, you must firstly consider the monthly installment which must be in line with our repayment capabilities. Once this condition has been ascertained, we move on to the comparison of the rates.
In this regard it is necessary to make a clarification, which proves to be very useful when it comes to comparing payday loans.
The interest rate of loans affects two values: the Tan and the Taeg. The first is the Nominal Annual Rate and refers to the pure interest rate or exclusively to the sums that the debtor must repay to the bank or financial institution as interest accrued on the capital granted.
Tan is therefore the percentage value that allows to calculate, in relation to the amount of the sum granted and the duration of the loan, the exact amount of the interest portion. However, this amount will not have to be repaid in one go but, we remind you, it will be spread for the entire duration of the amortization plan.
Let’s move on to the Taeg. This is the Global Effective Annual Rate, also known as the Synthetic Cost Indicator. It is the value expressed as a percentage which indicates the total cost of the payday loan on an annual basis.
The Taeg therefore includes the Tan to which all the ancillary costs of the loan are added. In other words, the Taeg includes all the following costs, if foreseen by the contract.
- Preliminary investigation costs;
- costs of collection of the installment;
- installment management costs;
- expenses for periodic communications;
- stamp duties applied on every communication that the bank sends to the customer;
- stamp duty applied on the contract.
The additional expenses
However, it is necessary to make a clarification. Optional ancillary costs associated with payday loans are not included in the calculation of the Taeg. What is it about? The list of these costs includes state stamps, interest on late payments, notary fees and costs deriving from any non-compulsory credit coverage insurance.
Before taking out a loan or a loan, therefore, it is also essential to evaluate the possible presence of all these elements and the impact they have on the cost of the loan.
In other words, when you go to compare different payday loans and you want to calculate the amount of financing, you must take into account both the Tan and the Taeg and all the optional expenses.
What are the most affordable loans of 2017
In summary, to put payday loans in the right way there are specific tricks. The most important is to check the APR. In fact, as we have seen, this item summarizes all the costs of the loan and allows you to get a clear idea of the actual convenience of the product in a few seconds.
Given this necessary premise, it is useful to go into detail on some of the most interesting solutions, starting with the small Social Institute loan ex Government Agency. This product, dedicated to those who need to access a limited amount, is reserved for members of the Unified Management of credit and social benefits for both workers and retirees.
The maximum amount that can be requested is equal to eight months’ salary (for pensioners the limit of the fifth transferable applies instead). The rate, fixed for the entire duration of the amortization plan, is 4.25%.
The repayment can last from 12 to 48 months and, in the event of the death of the beneficiary, the Entity does not proceed to recover the residual debt. We also remind you that in addition to the interest applied to the loan, the borrower must also meet the administration costs, which are equal to 0.5% of the loan amount.
The loan application must be submitted electronically. Public employees must contact the Administration they belong to, while online request systems are available for pensioners which can be used independently.
How flexible payday loans work
When it comes to comparing payday loans, flexible solutions should also be considered. What is it about? Loans that, after the regular payment of a certain number of installments, allow you to change the amount of the monthly economic commitment, as well as to move a repayment to the end of the plan.
A loan that meets these criteria is the Fine Bank product, which allows access to an amount between $ 3,000 and $ 30,000. The repayment plan, however, ranges from 12 to 84 months.
The customer has the option to skip the payment of the installment, moving it to the end of the plan, up to a maximum of three times during the term of the loan. There is also the Reduce Installment option, which can be requested up to twice during the amortization plan.