A whole range of reasons can lead to the desire for a loan. A discount campaign in the electrical market can lead to the need for some cash very quickly. The own current account has slipped into the red numbers and the lending rates are cheaper than the fees for the overdrawn account management. In some cases, the loan amount is used for a renovation or for the purchase of a new car. Nobody has to shy away from applying for a loan.
Everybody can get into the situation, urgently needing money. This can be due to an invoice that needs to be settled, but also a planned house construction or a new car can often not be financed completely from own capital. Nowadays, taking out a loan is no longer a problem – especially online, this is particularly convenient.
Apply for a payday loan online – what you should know
Applying for a loan online has many advantages: while in your area you could only contact the branch network of the local banks for a loan, the choice of banks on the Internet is obviously much higher . In this way you have the opportunity to select the best deals, so that the loan is not too expensive a matter – it is important to compare before.
The biggest difference between a loan with a branch bank and an online payday loan is clearly the price: Although there are often the same loan products for banks that are both represented on the Internet, as well as a branch network, the conditions are not uncommon in the network much cheaper . This is particularly evident when looking at interest rates. The branch bank certainly offers the advantage of a personal consultation, but also banks on the Internet usually offer customer service – be it by phone, by e-mail or by post.
Thus it turns out: An online payday loan can save a lot of money.
In terms of benefits, an online payday loan is the same as a normal loan. The agreed loan amount is paid out to his account after a successful application to the borrower – who then pays back the repayment installments monthly.
Many advantages for customers: This is how the application for an online payday loan expires
Applying for a loan is almost the same for a online payday loan as it is for a bank branch loan. However, all forms are filled out on the website and then sent electronically to the bank. It is important, of course, to provide all data truthfully and completely, otherwise there may be legal difficulties afterwards. Also, the online payday loan requires a credit check to get the loan granted. Because, of course, online banks have an interest in getting their money back – so it must be ensured that the borrower is also solvent, because he has a regular income. In the case of a positive examination, the applicant will usually receive a decision within a few days and will shortly thereafter receive the desired loan amount as a payment to the account.
Interest rate, payout, account, comparisons & Co. – what should customers pay attention to when applying?
Basically, it is particularly important for an online payday loan to pay attention to the seriousness of a bank. Find out in advance for verified providers and do not get involved in expensive processing fees – these are not required at many banks and fall, if at all, only when the loan amount has been granted. A good indication of seriousness are test seals such as the Stiftung Warentest. It is also advisable, before concluding a loan agreement, to carry out a comprehensive comparison of various providers in order to find the cheapest offer. Both the interest rate and the payment method to the account as well as the term and other conditions play a major role.
Smart to take a loan – Step 1
Of course, the comparison comes before the actual application. This can be done very quickly and comfortably by means of a loan calculator and a few button presses. Such a credit calculator can be found on www.oesterreich-kreditrechner.at . However, it is indispensable to assess your own credit rating roughly and honestly . For this the following questions have to be answered individually.
- What other debts still exist?
- Have loans been delayed in the past paid back?
- Which monthly, fixed income can be proven?
- Which monthly expenses are related to income (rent, alimony, etc.)?
- What assets are available to existing debts (condominium, land, etc.)?
If there is a plus sign in front of a large number of replies, then the credit rating should be rated as good and the advertised low interest rates should be within the possible range. If the situation looks rather bad, the borrower should rather look for offers with credit-independent interest rates.
Key information for the loan application – step 2
Some questions are guaranteed by the direct bank . Some of them are easy to answer and others can be prepared by the applicant accordingly. The top direct banks are no longer processing fees and so the requested amount is paid without a reduction. So it does not have to be applied for a slightly higher sum, as with many a house bank, in order to finally receive the desired amount for the financing. Furthermore, the monthly installments or the term should be planned carefully. Here again some important questions help, so that the credit can be taken up with sufficient preparation.
- What is the monthly salary?
- How much can be saved in terms of monthly expenses?
- What amount has been saved monthly so far?
- Which financial cushion must be planned for additional expenses (refrigerator, washing machine, etc.)?
Honest answering these questions should lead to the ideal repayment rate. According to this amount, the term for the loan must be adjusted. The personal details do not require any preparation, but the most important documents should be available so that certain information does not have to be corrected afterwards. If there is less salary on the pay slips than was first asserted, then this creates a dubious impression. The following documents are absolutely indispensable:
- Proof of identity (identity card, passport or driver’s license)
- Proof of residence (registration form etc.)
- Proof of income (salary statements for the last 3 months)
- Proof of additional information (real estate assets, additional income, etc.)
The contact is made – step 3
Once the online forms have been sent, the review process begins on the bank’s side. In most cases, a bank advisor will contact you to discuss issues that are not settled. The actual confirmation or loan commitment can then come via SMS or e-mail. It may happen that the interest rates are set slightly higher or additional documents have to be sent. But with that, the loan application is actually done and the loan amount can be added to the desired purpose.
Small differences in the loan application
We have now outlined the steps for taking out a installment loan or instant loan from a direct bank. There may be slight differences with other financial institutions. For example, online lenders usually rely on ratings from external agencies to assess their creditworthiness. No documents have to be submitted to your own house bank, as all data is already known. The approval usually takes a little longer, because the four-eyes principle applies.
The loan application for the self-employed can usually only be done through the house bank. Unless the possibility of peer-to-peer loans is used. There, identical documents must be submitted as in the application described above. The difference is that the loan is tendered on a kind of “bulletin board” and private investors can respond to this general credit request. So, the response time varies considerably and there must be some more self-marketing operated while receiving to get a loan from individuals.
In the main features, however, each application for credit will follow the pattern presented, and the debtor should always ask himself the questions he has asked in order to prepare himself well for this step and the conversation with banks or private individuals. Then nothing should stand in the way of the hoped-for funding blessing.