Today's payday loan is significantly more attractive than comparable offers from just a dozen or so years ago. The amounts we can borrow are clearly higher than in the past, while the repayment period is considerably longer and the security of the entire transaction has improved significantly.
What Does an Online Payday Loan Look Like in 2018?
If we take a closer look at the payday loan offers available on the market by consulting the data source, we will find providers offering online payday loans of up to PLN 5,000–8,000, with repayment periods of more than 120 days.
The process of granting this type of loan has been greatly simplified. The entire procedure involves visiting the website of a given lending company and completing a short form. If the lender has no objections, the money may reach our account within just a dozen or so minutes of the loan being approved.
The high availability of modern payday loans is undoubtedly a significant advantage from the customer's perspective, especially when combined with increasingly attractive terms, such as lower interest rates than in the past, promotions for new customers and loyalty programs for returning borrowers, as well as longer repayment periods.
How to Take Out a Payday Loan Without Stress or Risk?
At the very beginning, it would be worth determining two basic factors as precisely as possible: the amount of money we will need and our financial capacity.
For example, if we need exactly PLN 3,000 to buy a television, there is no point in increasing the loan amount simply because that option is available.
We should calculate exactly how much money we will be able to repay and within what time. If, for example, we anticipate possible difficulties repaying the payday loan within 30 days, it would be a good idea to look for an offer with a longer repayment period.
In all these calculations, we should be guided by cool judgment and focus on the bare figures, without giving in to emotions or the so-called “shopping frenzy” (I’ll buy a few extra things, and as for repaying the obligation, “it’ll somehow work out”). Emotions and money do not go hand in hand, and such a combination often ends badly.
Safety First
The next stage of preparation before taking out a payday loan is to carefully review the offer of the lending company. If we are satisfied with a somewhat smaller amount, we should primarily look for interest-free offers for new customers, meaning offers that require no repayment of interest or fees. This way, we can borrow for free, reducing the total cost of the transaction to zero.
The next step is, of course, verifying the lender. In the case of the largest entities operating on the Polish market, we can be sure that we are dealing with a reliable and professional company. However, if we do not know our potential lender, it is worth checking it. How can this be done? The Register of Lending Companies will be particularly helpful. Another additional stage of verification is checking the KNF warning list. This database includes all financial institutions considered unreliable or potentially risky for customers. Such entities should definitely be avoided.
A Credit Line for the Undecided
What should we do if, for example, we are unable to determine precisely how much money we will need or which repayment period would be most suitable for us?
In such a case, a so-called credit line may be an interesting solution. In terms of how it works, this service resembles a bank overdraft limit.
For example, we receive a credit limit of PLN 4,000, but we do not have to use all the money at once. Importantly, interest is charged only on the amount we actually use, while the limit is renewed as the borrower repays it. This form of payday loan may therefore be an ideal solution, for example, during a holiday trip, when what would often be useful is not a sum of money paid out in advance, but the knowledge that cash is available if needed.