5 terms you need to know before you take a quick payday loan
In order to be able to evaluate a payday loan as best as possible, you need to control a number of different concepts. This applies, for example, to APR, credit costs, maturity and more. If you are not quite sure of these concepts, you can get a closer look at this guide.
OPEN – Annual percentage rate
One of the most important concepts to know when taking a quick payday loan is the annual percentage rate – or APR that is the abbreviation. The APR shows you the cost of the payday loan as a percentage. The smart thing about looking at the ÅOP is that you do not only see the interest rate here, but all the costs of the quick payday loan. Everything as a creation fee, administration fee and so on is included in the ÅOP.
Credit costs, like APR, are a tremendously important rate to look at before taking a quick payday loan. Credit costs are basically the same as APR, you just don’t get a percentage for the cost but instead a fixed amount. Credit costs are also not calculated annually but instead of the entire payday loan period. By looking at the credit costs, you know black on white, how much money from the repayment goes solely to interest and fees. Therefore, this figure is extremely important to look at when you need to find the cheapest payday loan.
If you want to know how much money you have to pay back in total, then it is the rate of repayment you need to look at. The repayment is a good point of departure if you collect offers for several different payday loans at the same amount. If you want to borrow 20,000 and get offers from 3 providers, you can look at the repayment to see who offers you the best quick payday loan.
The maturity of a payday loan is the entire period during which the payday loan runs. The maturity of a single payday loan can be anything from a few months up to 7-8 years. The maturity is very important when you need to apply for a payday loan. It affects the cost of the payday loan. The longer the maturity the more interest and fees you have to pay. However, you must be aware that a shorter maturity also means higher monthly repayments.
RKI & Debtor Register
When you fill out an application for a quick payday loan, you will most often say that you must not be registered in the RKI or in the Debtor Register. RKI and Debtor The register is 2 debtor registers, where you can be registered if you have not paid your bills. If you are in one of the registers, then you will not be able to borrow money in that place. If you are not registered, you can simply complete your application. There are a few providers in Denmark who offer quick payday loans despite the RKI . This type of borrower is marketed by most providers under the name “guarantee payday loan”.