Payday loans and creditworthiness

Payday loans generally avoid calculating credit scores because of the very flexible law on borrowing money. Credit scoring is most often used by banks and relates to the scoring that the computer system calculates. Based on this data, the bank either grants credit to the customer or not.

If the non-bank company lends money, it is rare that the payday loan application is rejected. It is true that there will always be companies where it is more difficult to receive payday pay. But in this industry, due to the constant struggle for a new customer, the acceptance of applications is at a high level.

Payday loans with creditworthiness

Payday loans with creditworthiness

One of the most important elements of applying for the instant payday loan is to carefully read the documentation that we will sign. In the case of non-banking companies, it contains all information regarding fees related to interest, insurance and other costs. Other costs usually specify what maximum financial penalties may apply if the payday loan is not repaid on time.

It is worth mentioning that for many new customers, non-bank companies use promotional offers related to free loans. A free loan is nothing but an offer of payday loans which is exempt from interest. In the case of free payday loans, basic fees often associated with the operating costs of loan companies apply. However, it often also happens that companies give up these costs at the price of acquiring new customers to their database.

If you are interested in the current ranking of payday loans

If you are interested in the current ranking of payday loans

Check our current list where you can find all the best non-bank companies in Poland. The ranking is successively updated and contains the best financial proposals in this industry.

When choosing offers of payday loans, remember about the most important thing, i.e. repayment of the liability. Evaluate your financial capabilities to assess the ability to borrow cash. The payday payday payment can be made after 30 days and depends on the offer in which the contract was written.

If you think that you would like to spread the loan amount in installments, you can use the option of online loans in installments. Then you can apply for a higher amount, however, with this financial proposal usually free payday loans are not available.

Where can you get loans without creditworthiness?

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

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?

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?

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.

Why is it worth analyzing various offers before completing the loan application?

The transfer of financial matters to the virtual world and constantly evolving technologies provide a greater choice of loan for every consumer. Thanks to this, we have influence over what financial products we reach for and when we do it. The most popular and verified offers are included in the online ranking of payday loans . Why is it worth analyzing various offers before completing the loan application? What offers should get your attention?

Choosing a loan company

Choosing a loan company

Filling out the loan application does not prejudge its granting. A negative decision does not have to mean the end of the world. Perhaps we have overestimated our possibilities. However, you cannot immediately apply for a loan from the same loan company. Loan institutions usually accept confirmations only after 14 or 30 days. For this reason, the decision to choose a specific offer should be considered. There are more lenders in the non-banking sector. The offers of many of them are attractive because they are aimed at attracting customers.  

Online loans – what offer should you choose?

Online loans - what offer should you choose?

The most favorable loan offers are at the top of the ranking. Loans up to USD 3,000 can be obtained from leaders. In addition to the leaders of the ranking, it is also worth analyzing the other proposals. It may turn out that loans for 30 days will not be able to fill our hole in the budget and it will be necessary to reach for a higher amount divided into installments convenient for repayment. In some cases time is important, in others not necessarily. If you urgently need cash, choose loans with a short payday. Waiting for the whole day can cause you additional problems.

Offer for new customers

Offers for new customers deserve attention, because often behind them are free payday loans. By checking the payday rankings, find out which lender grants such loans. As a new customer you can get a loan:

  • as proof
  • without an income certificate,
  • on account or with pickup at the post office,
  • without adding costs and with free interest.

In some cases, you may be required to make a transfer for data verification. We can get a symbolic dollar or a penny back to the account. In addition, repaying the loan on time, you will only pay back as much as you borrowed.

Offer for regular customers

Offer for regular customers

People who have already paid back payday loans at a given loan company can reach for another one from the same lender. Most likely, such an offer awaits them. They can also reach for the current payday ranking and choose another company. Remember that the next payday payday may be higher. If you want to implement larger plans, it may be beneficial to use the offer for regular customers.

First interest-free loan – what you should know?

There are many interesting loan offers on the market. Companies are constantly fighting for the favor of customers, offering them increasingly attractive and profitable offers. The first interest-free loan is very popular.

Payday loans and installment loans

Payday loans and installment loans

Free payday loans are popular and common. However, surprise for many people are interest-free installment loans. Such a system allows borrowing a larger sum of money than in competing companies. By borrowing, for example, 15,000 for a specified period and number of installments, they can be returned after 30 days for free, without any additional fees or interest. Thanks to rankings of free payday loans and installment loans, you can quickly find the most convenient offers. Such combinations save a significant amount of time. In addition, you can read all the most important information and terms of the offers.

What to check and what to look for when choosing a free loan?

What to check and what to look for when choosing a free loan?

Loans are extremely popular. It is worth comparing all the most attractive offers and not make decisions rashly or too quickly. When analyzing different combinations, it is good to first of all pay attention to some of the most important issues. The maximum amount of free loan is valid. It is known that the offer is usually very limited and is only extended when using further services. You must be careful not to accidentally indicate too much amount than it is possible, because then it will no longer be free and you will have to cover additional costs and interest.

An extremely important issue is also the possible repayment date. You have to decide on real conditions. Sometimes customers borrow a given amount, but they know that they will most likely not be able to pay it back on time. This is one big mistake, because in case of late payment, the additional financial obligations can turn out to be quite large, which makes such activities unprofitable. It is also worth checking carefully when the borrowed money is due, for example, to be sure that it will take place after the payment and not during the period associated with larger expenses, such as holidays or a long weekend.

Loans are a desirable solution that is most often chosen by clients of non-bank institutions. It is completely safe and does not require too complex formalities. However, it is worth deciding on proven companies that enjoy good opinions and trust of customers. Free loans are beneficial for both parties. In this way, the lender encourages consumers to take advantage of their other offers in the future and cooperate with the company for a long time.

Long-term loans – is it worth getting interested in this product?

In each of our lives there are times when we want to realize the plans or dreams that we postpone from year to year. However, earnings do not always allow us to save freely. Long-term loans are then a great way to finally realize your dreams while not burdening your monthly budget with too much installments.

What are long-term loans?

What are long-term loans?

Having the need to use external financing, we cannot always apply for a loan for a short period like a month or two for technical reasons. We prefer to spread the loan over a longer period so that the monthly installment does not overburden our budget. Regardless of our plans or current needs, long-term loan offers will be an attractive option for everyone.

These types of financial products have a payment term of 1 to 60 months due to the loan we choose to choose. In this case, the contract has detailed information about what amount of the monthly installment we are required to pay and what is the date of payment, to which the borrower must pay the installment.

Interest on loans for longer periods strictly dependent on the offer of the credit company whose offer we use. It often happens that as new customers we have the opportunity to take advantage of preferential conditions that allow us to incur lower costs than for customers already using the services of a given company.

What are the conditions for using long-term loans?

What are the conditions for using long-term loans?

The conditions for using this type of product do not differ much from other loan products. The process of applying for this type of products is also possible via laptops, smartphones and tablets. When applying for a loan, the borrower is required to provide all required contact details and personal data such as personal identification number, date of birth, and ID card number. In addition, it is also important to correctly fill in your earnings and employment information. It is very rare for loan companies to request a certificate of employment or income statement as part of their confirmation. As part of verification, loan companies may use other forms of confirmation of earnings and employment. One way is to ask the employer to provide details of whether the person is actually employed in the place provided. The second, more and more frequent way of verifying income is the use of independent, secure software by companies that easily scans the applicant’s bank account to confirm whether the monthly impact on the account is consistent with information on the income from the loan application.

The waiting time for decisions is also very short in these types of loans. Sometimes even an hour is enough for the loan amount to reach our bank account.

What are the benefits of using long-term loans?

What are the benefits of using long-term loans?

Long-term loans are a great way to finance your dream trip, save your current budget or pay off other short-term obligations. Regardless of the purpose of the loan, we can be sure that thanks to the longer repayment period we will be able to freely manage our finances without having to worry that we will spend all of our monthly income on repayment. The process of applying for such a loan is very simple and quick. We do not have to leave the house and complete many formalities. All you need is internet access and an ID card, and the application will not be difficult even for people who have not had previous contact with applying for an online loan.

Tax deduction of credit interest: how does it work?

Each year, many borrowers forget to deduct the interest on their personal credit from their tax return. How does this deduction work and what documents should I request? Our explanations.

 

Explanations

credit interest

When signing a private credit agreement, the borrower agrees to reimburse the financial institution each month a fixed amount which depends on the amount borrowed, the duration of the loan, and the interest rate. interest practiced. However, this amount is broken down into two distinct parts:

  • The repayment of the loan itself.
  • Interest paid.

If the breakdown is not indicated on the invoices, it is nevertheless important, because the total interest paid during the year can be deducted from his taxable income when declaring taxes. In some cases, this deduction can result in a significant reduction in taxes payable.

 

Do you have to declare your loan?

Do you have to declare your loan?

Taxpayers are legally under no obligation to declare their loan. However, it is strongly recommended to do so, because this declaration saves on your taxes!

 

How to do it?

credit interest

Normally, the financial institution that granted the loan automatically sends the interest certificate in January. It will then suffice to deduct this interest when declaring taxes, and to attach a copy of this certificate for the taxman. If you forget the bank, it is entirely possible to claim this certificate, normally free of charge.

 

Other deductions

Other deductions

Legally, it is possible to deduct from your taxes all interest paid as a result of a debt. This includes, among other things, the following:

  • Credit cards: the institutions providing the credit cards do not usually send a certificate automatically. It is therefore up to consumers to request proof of the interest paid during the fiscal year concerned.
  • mortgages
  • Credit vehicles

 

Leasing costs

Leasing costs

If leasing is sometimes equated – wrongly – with a form of borrowing, you should know that leasing costs are not tax deductible. For more information on the differences between credit and leasing, Lifecredit offers a full explanation with a comparison of the two services.

 

How much can we save?

save money

The tax paid being subject to a scale, everything will depend on the situation of each. For example, a loan of 20,000 dollars over 24 months can represent, during the first year of repayment, interest paid greater than 1,200 dollars! Based on a deduction of 1’200 dollars, and with a tax rate of 10%, this represents a saving of 120 dollars!

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Loans without creditworthiness: a myth and a lure for customers?

 

Creditworthiness is a feature examined in every client applying for a loan to a bank or for a loan to a non-bank company. It consists in assessing whether the client has sufficient liquidity to repay the commitment without any problems. The lack of such ability practically excludes the possibility of obtaining money, but … not always. Loans without creditworthiness have appeared on the market, which can be a godsend for people rejected by banks.

Loans without creditworthiness – but there are hooks

Loans without creditworthiness - but there are hooks

More precisely: a higher interest rate or higher commission for a company that provides loans to people without creditworthiness. If the standard interest rate ranges, for example, between ten and fifteen percent (not including APY) for ordinary payday loans, it will be even twice as high here. Calculated as final costs, there may be quite a big difference ranging from several hundred to even several thousand dollars.

Extreme loan terms

Loans - a rescue for debtors

When comparing loans without creditworthiness to cash loans (payday loans), without BIK or ID cards, it’s easy to spot the basic common features, but above all the differences. Applicants for such a loan must be aware that although they are in a poor financial situation they have a chance to get it, it is still not always the case. Loan companies set their own terms and conditions for these benefits, and they are usually very strict. For example, in most companies you must be not 18 but 21 years old and less than 65-70. Others do not provide benefits to people who have no income, while others require the borrower to appear with at least one resident. It is worth to read carefully the conditions that must be met; thanks to this it will be known in which companies one has a chance to get a loan and which will immediately reject the application.

Loans – a rescue for debtors

Loans - a rescue for debtors

Despite the sometimes harsh loan terms, it’s still one of the easiest, fastest ways to get the money you need. That is why loans without creditworthiness are very popular especially in two social groups. The first is people between 25-35 years of age who need money, eg to repay purchased RTV equipment, finance home expenses, or travel abroad. The other are debtors who use loans mainly to pay off their existing liabilities, so as not to fall into further penalty interest and not increase their debt. Debtors have a good chance of obtaining a loan both without creditworthiness and at zero income, although the price of such a benefit is a correspondingly higher interest rate. For this reason, although this form of loans tempts with easy accessibility and minimal formalities, one should really think carefully before signing the contract.