Payday loans are instant loans that are provided by so-called parabanks. Currently, such companies can be found in virtually every city. They are very popular, among others, because the formalities that must be completed when taking payday loans are really small. Therefore, the question arises as to what documents are needed to make it possible to take a payday loan at all.
Identity card is a document that is always required
Only selected lenders require a certificate of employment and income. It is usually the case that people who take out payday loans do not need to provide any documents other than an identity document. This significantly reduces the procedure for applying for a loan, and at the same time makes it available to those who do not work legally.
Some loan companies expect a client to provide a bank statement covering the last few months. Such an extract is an alternative to the traditional income statement. The statement confirms that we receive regular payments to the account. It also shows how high our monthly expenses are.
A significant proportion of people who have decided to pay for the payday loan is looking for a loan which will be granted only upon presentation of an ID card. As it turns out, among the so-called parabanks there is no shortage of companies that borrow money by presenting only an ID document. This document confirms personal data and citizenship, i.e. the information that is needed to grant the loan. It should be added that today more and more companies allow the possibility of granting loans via the Internet. In this case, you don’t even have to appear in the branch to present your ID. Just scan it and then send it by email.
Where did I get a loan without a contract?
When we talk about payday loans, we must not forget that in their case the credit decision is taken almost immediately. Most parabanks that grant this type of loan make a credit decision within a maximum of one hour. As a result, a person in need of money gets it very quickly.
Payday loans have a large number of supporters. This is no wonder when we look at the advantages that such quick loans have. Let’s see why it is worth betting on payday loans and in what respects it exceeds traditional bank loans.
Payday loans are formalities that are kept to a minimum and must be completed. As a result, borrowing money does not require spending a huge amount of time to gather documents, fill out extensive applications, etc. Everything is done really quickly and efficiently, which is a great advantage of this type of loans.
In the vast majority of cases, parabanks that provide payday loans do not expect the person interested in borrowing money to present a certificate of employment and earnings. This makes payday loans available to people working illegally or employed under so-called junk contracts. For banks that grant loans, this simplified procedure is not an option at all. Therefore, many people do not have the slightest chance of getting a loan, despite the fact that there would be no problems with its repayment.
At Which Bank The Cheapest Loan?
Late repayment is an element of payday pay, which can really give us a headache. Everyone who is considering taking a payday loan should be aware that not paying installments on time is a necessity to pay considerable interest. As a result, we will refund a much larger amount to the parabank than the one we decided to borrow. For this reason, it is important for payday loans to ensure that each installment is repaid on the date agreed when signing the contract. This will avoid significant additional costs.
Chwilówki are so-called quick loans, whose popularity is increasing every year. More and more people who cannot count on getting a bank loan borrow money in the so-called parabank. Chwilówki have a lot of advantages that translate into the fact that they are so popular. However, it should be remembered that extreme caution is recommended with them. Otherwise, it is very easy to fall into a spiral of debt, from which it is not so easy to get out. What to watch out for when you pay for payday pay?
Although parabanks already provide the option of so-called credit holidays, it is a solution that will cost us a lot. You must pay for postponing the repayment date. As a result, the loan becomes more expensive again. What’s more, the parabank may of course refuse to grant us credit holidays.
The biggest disadvantage of payday loans is, above all, high interest rates. APRC, i.e. the total annual interest rate is much higher in their case than in the case of traditional bank loans. What does this mean for the borrower? We need to return the amount definitely greater to the parabank than the one we decided to borrow. Therefore, it is so important to be more prudent when determining the amount you intend to borrow. We must seriously consider whether we will be able to pay it back.