Payday loan, yes or no? – possibilities and limits



In recent years, more and more lenders have discovered the payday loan. Previously described as a scam, today they are a welcome opportunity without too much effort to beat out the cheapest loan. Especially the high pressure of competition comes to the borrowers in terms of interest rates and special conditions.

All facts about the guide “Payday loans yes or no” at a glance:

  • High comparability of the conditions of online credit providers.
  • Lower interest rates and better special conditions thanks to competitive pressure among online providers.
  • High effort for person identification.
  • Payday loans are another option to get as low interest rates on their loan.

But what else is behind the offer for Payday loans? Our guide to online credit reveals it!

1. The benefits of an payday loan

The biggest benefit of online credit is its comparability . Countless loan providers are available here, all with their good terms trying to attract customers. In principle, although every private person in Germany can lend money, that these are reputable providers, one sees mostly the strict creditworthiness check. Even online lenders do not want to engage in unnecessary risk.

Although it is propagated by established credit providers again and again that they also support borrowers with negative Schufa entries, but they look closely, why the Schufa entry was negative. So they not only secure themselves, but also the borrowers.

Online credit providers are making possible what many house banks are not able to do: They allow special rates at low interest rates , such as special repayments and the suspension of installments. Here, many banks adorn themselves to the borrowers. Therefore, this is a very clear advantage of Payday loans.

However, it is also possible that borrowers have already penetrated as far as a bank adviser and, although he generally agrees to a loan application, he warned again urgently before some passages. This is enough for many people who are resistant to advice in order to obtain the services of online credit providers. True to the motto: At least nobody gets involved here !, they can request their loans here at the desired conditions and certainly save money thanks to the lower interest rates.

For many, life is already happening on the internet and on the computer. These people are not afraid of an payday loan. They move around the virtual world every day anyway and have learned to make important decisions with the help of the internet. Some even shy away from personal contact . These examples are extreme, but not so rare. People who have always been shy and want to avoid a personal banking consultation are happy to rely on the opportunities of online credit.

Payday loans offer the advantage that they bring a higher comparability of the conditions. Even for people who shy away from direct contact with the bank consultant online credit is a good alternative.

2. The disadvantages of an payday loan

Anonymity has its price. Of course, even payday loan providers can not afford to completely renounce customer service. It is, however, the case that it has to be clear where it should go. This is hardly possible without a personal conversation. Even on the phone, many trains of thought do not really get along with the other person. Here man has not yet managed to cheat the distance.

Anyone who thinks that Payday loans offer the opportunity for low interest rates to save even the entire bureaucracy, which is necessary for the degree at a bank, is wrong. An payday loan adds a bureaucratic obstacle: personal identification . While you just have to bring your identity card at the time you sign up for the credit agreement, this requires a lot of mail traffic for an payday loan agreement.

The simplest method is the postident procedure . Here you go together with the credit agreement, an identity card and an invoice with proof of address from the last three months to the post office, can confirm their own identity in writing and by stamp and can then simply send the contract. Credit institutes are thus protecting against corruption and money laundering.

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3. The payday loan as a last resort?

The payday loan can not be considered as a last resort. Most online vendors carry out the same credit checks as branch network lenders. Seriousness can not be measured by physical presence.

Certainly many online credit providers also offer loans that have been rejected by some banks. Here, however, one must also consider the proportionality . If you ask a credit at questionable credit rating at 20 banks , two banks will certainly find a way to grant the loan. However, no person will go to the trouble of representing 20 credit institutions with the same credit concept. Here it will come after the first, at the latest second cancellation already to fundamental revisions.

Not so with the payday loan . The inquiries are made quickly and the necessary documents are uploaded faster than processed again. There’s the chance of hitting one of the two credit providers who would grant the loan, of course, much higher. This has not necessarily something to do with lack of respectability of the providers, but with a different perspective. Sometimes it’s only trifles that make the difference between adding and denying the loan. If the weighting of the criteria is just a little bit different, the lender may come to a different conclusion.

After all, there is no recipe for judging people. They surprise you again and again why there can never be 100% credit security . The same is true in the other direction. Not everyone with a fixed-term contract will automatically become unemployed and insolvent afterwards. Which criteria can generally lead to a rejection of the contract can be found in the guide “What can be done if the loan has been rejected?”

4. The conclusion: Payday loans are an option

It should be noted that Payday loans, in defiance of their questionable reputation, are a successful alternative to expensive loans from banks with branch networks. They have their advantages as well as disadvantages . Payday loans are often stocked with cheaper interest rates . Due to the higher pressure of competition, they also meet the customer with special conditions regarding special repayment and Co.

Thanks to their creditworthiness check they protect themselves and the borrower from unrealistic loans. Even payday loan providers have no interest in ruining their customers. Disadvantages can be seen in the lack of customer contact , which seems to be the big advantage for some human strikes.

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