You never asked for a payday loan and you don’t know which of all the options you have online to stay with? You go from one web page to another and you can’t decide? What causes the balance to be pulled to one side or the other? In this article we will see what are the points to take into account when choosing your online payday loan on the spot.
What should I consider to choose my payday loan online?
To begin with, it is essential to see how much the loan house or the bank we work with can lend us. In relation to the money to be received, we must see if the interests are in accordance with the term in which the money is lent and how the refund will be.
But, let’s go slowly that in a few lines we already talk about amounts, interests, terms and return. These are the most important variables when defining what the loan we want will be.
So, let’s put ourselves in a situation: we have in view a place that is our trust, it gives us the money we need through an online payday loan on the spot.
Everything is great, but we recommend that you see how much they will charge you interest and in what way since it is not the same to return, for example, $ 5000 in two installments than doing it in 5, such data changes the perspective we have of Our daily economy. Determining how much the fees to pay will be and seeing the impact they will have is important to know whether or not we can afford the loan repayment.
What are the interests? How are they distributed in the loan?
The interest rate will tell us how much is the compensation or benefit that the person or financial entity expects for lending us money. In this sense, loan simulators will be very helpful, since we can see how much we will have to pay for interest and how much of that is, for example, an internal tax such as VAT.
Different interest rates apply to a loan, which is why it is important to understand and know what they are charging us when they mention the following acronyms:
- Annual Equivalent Rate (APR): It is a very financial term that is defined as the result of a mathematical formula that incorporates the nominal interest rate, commissions and the term of the operation. This rate applies to savings products as well as mortgage loans and consumption.
The APR includes two concepts that are the opening commission and the early cancellation fee.
- Annual Nominal Rate (TNA): This percentage allows you to calculate the profitability of the loan with different terms.
- Total Final Cost (CFT): This is the most complete index because it includes the TNA and all loan expenses. Therefore it is the best indicator of total expenditure when requesting a loan. In our country, financial institutions are required to show this rate.
At the time of requesting a loan we can find other fixed expenses beyond interest. This is why it is important to have clear and transparent communication with the lender so as not to have any inconvenience after having agreed to take the loan.
In addition to the interest rates to be paid
You must pay attention if the interest rate is fixed, variable or mixed. This means, in the first type (fixed interest), that the rate is always the same throughout the term of the loan.
In the second type, the rate is updated and its amount is reviewed in the terms established by the financial institution, therefore, the fees are subject to changes in interest rates. And finally, the mixed option is a set of the previous two.