Quick cash loans, the so-called payday loans, are still an interesting alternative to cash loans when it comes to raising funds for individuals. Although they are not the cheapest options for raising capital, they are still very popular. Mainly due to their easy availability and low requirements for the creditworthiness of borrowers. Loans without creditworthiness constitute quite a large part of the loan market and are offered by all major players in this market. What requirements should be met when applying for such a loan? What is its cost? What to watch out for so that you don’t get fooled? We invite you to the rest of the article.
Loans without creditworthiness – Requirements
When applying for a loan without creditworthiness, we should first of all prepare our personal data. Residence address, number and ID card number. We will have to confirm this data by performing a verification transfer from a bank account created on the same data that we provide when completing the application. Thanks to this, the loan company will be sure that we provided real data when submitting the loan application. We will also have to declare our income. What is their source and average monthly amount. On this basis, company analysts will be able to assess whether or not having sufficient creditworthiness we will be able to repay the loan.
How much do such loans cost?
Unfortunately, most often such loans are quite expensive. Loan companies must somehow compensate for the risk they take on when granting loans to people without creditworthiness. Therefore, the cost of such loans expressed in the APRC (Annual Real Interest Rate) can be up to several thousand percent compared to a maximum of several dozen percent in the case of bank loans. Interestingly, most loan companies offer special promotions to new customers. Under them, the first loan is always free, as long as we pay it back on time. For example, when borrowing USD 1000 for 30 days, we will have to pay exactly the same amount. Costs can only increase if we exceed the agreed repayment date.
What to look for when taking a loan?
When completing the loan application on the lender’s website, we should primarily check the ratings and opinions about a given company circulating on the internet. It is worth checking if the website is secured with an appropriate SSL certificate (padlock next to the website address in the browser). This will give us confidence that all the data we send is properly secured. Of course, the cost of the loan is also important. From our perspective, the less we have to pay for providing it, the better . There are both short-term loans and installment loans for a longer period of time.