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4 ways to choose your payday loan – Installment loan.

For financing purposes, taking out a loan from a financial institution has become a must in France. In addition to the known conventional loans, the payday loan is an increasingly popular form of financial credit. Whether it is renovating at home or financing a professional project, consumer credit has become the solution to remedy a cash flow concern.

Distinguish between conventional credit and payday loan

Distinguish between conventional credit and personal loan

Before taking out a payday loan, it is important to understand the mechanism of this type of financing. Unlike conventional loans, this type of loan is not allocated to a defined project. In other words, it does not require any proof and can be taken out in order to meet any unforeseen or significant expense. In other words, consumer credit can be taken out as well to pay medical expenses, prepare for a wedding or to finance your studies. Excluding real estate, this type of loan is granted for various types of projects and purchases.

A project, a payday loan

A project, a personal loan

It is therefore important to choose your payday loan according to your project. In concrete terms, you must define your repayment needs and capacities in advance. Then, it should be noted that to benefit from additional cash, the choice will have to be made between the revolving credit, that is to say a sum made available with possibility of restocking; the depreciable allocated loan requiring proof of purchase and the unrestricted loan, authorizing the contractor to use the amount granted without specific declaration. Depending on the project to be financed, the conditions for granting consumer loans differ.

Pay special attention to the APR

Pay special attention to the APR

Even if in general the payday loan offers remain very attractive, it is always recommended to take the time to analyze the APR. The overall effective annualized rate effectively represents the real cost of the loan to be contracted. It includes administration fees, nominal rate, as well as insurance. Whichever formula you choose, the APR is an effective tool for defining the most attractive loan offer. It is therefore the reference rate allowing you to estimate the real cost of the loan, noting that it is often the “call rate” that is highlighted and not the APR.

Make the competition play

Make the competition play

Obviously, as attractive as a payday loan offer is, it is always recommended to play the competition. Concretely, making a comparison of different payday loan offers allows you to find the credit that will best meet your needs and expectations. For an efficient and quick comparison, it is recommended to carry out a credit simulation with different lending organizations. This approach is free and allows you to concretely visualize your consumer credit, with the monthly payments, the interest rate and the duration of the loan. This will make it easier to decide on the best formula.

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