How to finance your projects with a personal payday loan?
You have a project in mind that you would like to achieve but you do not know how to finance? Be aware that the personal payday loan can help you finance all or part of your project. To subscribe with your bank or any other credit organization, the personal payday loan has many advantages. Zoom on this consumer credit!
1. Understand the personal payday loan.
The personal payday loan counts among the consumer credits. A consumer can apply to his bank or an external credit agency to finance a personal project. This credit application is said to be “unaffected” because the lending organization does not have to ask for proof of the use of the funds.
From the moment the financial institution grants this credit to consumption, the borrower uses it in the way he wishes. He can thus finance the purchase of a good, works, a ceremony, a trip or other.
Namely, to protect the borrower, the Consumer Code provides for a withdrawal period after signing the credit agreement. This period is 14 days.
2. The request for a personal payday loan
If the request for a personal payday loan can be made by any consumer, it nevertheless requires to collect and send various documents to the lending organization.
To put the odds on your side, you must provide a complete file. This must include:
- A copy of your ID.
- A proof of address can be a bill of water or electricity, a letter from the bank or any other administrative paper.
- A bank or postal identity card.
- For those receiving a salary, a copy of the last three bulletins.
- For self-employed and retired persons, a copy of the latest tax notices.
- For people with property, a copy of the property tax.
- For people who already have credits in progress, amortization tables.
Through these various documents, the lending agency will be able to study your application and analyze your creditworthiness and your ability to repay.
Note that before applying for consumer credit, it is important that you simulate this application online. There are many simulators that will help you know your ability to repay and therefore whether it is advisable or not to apply for a personal payday loan.
3. The annual percentage rate of charge.
The APR calculates the true cost of a personal payday loan in the form of an annualized percentage. The interest rate alone announced with your personal payday loan offer will not allow you to know the true cost of your credit. To know the total amount, other elements must enter into account.
The calculation of the annual percentage rate of charge thus takes into account:
- The nominal loan rate, which is the base rate for calculating interest.
- Borrower insurance contributions if you subscribe for one to protect yourself. (Note that the lender can not require you to buy this insurance because it is not mandatory).
- Application fee.
- You can calculate your APR thanks to the many simulators. For this you will need to fill in:
- The amount borrowed.
- The loan term that suits you best.
- The fixed annual lending rate.
- Borrower insurance if you have one.
- Application fee.
By calculating the APR of your personal payday loan via a simulator, you will get the fixed APR, the monthly payment, the monthly cost of your insurance, and the total amount of your loan. Thus, you will know if you are able to repay or not this credit.