So-called payday loans have been constantly popular in Poland for years. These are quick, convenient loans without many formalities that repel us from using the services of banks or completely prevent it. It would seem that taking out payday loans is a great solution, but for a reason so many people have problems paying them back on time. Therefore, should we decide on this type of loan? What are their pros and cons? bureauboth.com has details
Is a loan possible without bank formalities?
We have got used to the fact that when applying for a bank loan we will have to provide a number of documents, including a certificate of our income. In addition, the bank will also verify our credit history in various economic information bureaus – primarily in BIK and KRD. For this reason, people with poor credit standing or those who care about time cannot count on the help of the bank in the case of a traditional loan. However, there is another solution for the latter group. If we have adequate creditworthiness, so our application will probably be considered positive, but we do not want to wait long, we may be interested in a PIT loan . It is granted only for a few months of the year, while completing tax returns for the previous year. Then we can get a PIT loan based on just such a declaration, saving ourselves a lot of time and nerves.
Advantages and disadvantages of non-bank loans
Non-bank institutions offer loans quickly and without unnecessary formalities. Often the borrower does not work well in economic bases, nor is the income certificate obtained from the employer required – a statement from the client himself is sufficient. Thanks to this, payday loans can be obtained online and enjoy obtaining the desired funds very quickly. Depending on our bank and the offer of a particular loan company, it is even possible to get payday loans on weekends. All this sounds great, but you must also consider the disadvantages of such a solution. The convenience of payday loans is associated with their high cost.
Commissions, interest, additional fees – all this will significantly increase the total cost of the loan. Additionally, any delay in paying installments will result in high interest and penalties. It may turn out that we will start taking more payday loans to lose the previous ones and we will fall into a loop of payday loans, from which it is difficult to get out. Therefore, this type of loan should be taken with caution and only in reputable loan companies. Many of them offer the first loan for free, so it is worth using the services of the same company all the time, but always different – provided that they are all trustworthy.
Lack of formalities for non-bank loans can be a salvation for people who care about time or have poor credit standing. However, it is worth remembering that they are comfortable, but not cheap.