Where to get a loan with bad credit?
Do you have an unexpected release that you couldn’t count on in advance? You need money urgently, but you don’t know where to create it? In these cases, it does not matter if you have a small emergency reserve, but we know that this is not always possible. The payday loan with bad credit offers a solution in these situations. We followed up on what terms.
Those who do not meet one of the conditions do not have access to the bank loan. These are the most common reasons for rejection:
- Your pay is not high enough: if you apply for a loan, you have to prove that you have a regular monthly net income. If this amount does not reach the expected minimum, you probably won’t get a loan.
- Documents submitted are inadequate: the bank may refuse your credit application even if you are unable to present the documents required for the application.
How does a pawn loan work?
Applying for a mortgage is actually a swap where you exchange one or more valuables for money for a specified period of time, which you can get in cash or by referring to your current account – as convenient for you. In short, you can expect the following to visit a pawnshop in the hope of a mortgage:
- You bring the jewelry or the article to the pawnshop for which you would like to pick up the loan.
- An appraiser examines the object and makes an offer at the end of the estimate.
- If you accept the offer, clarify the terms and the mortgage will pay you the loan. You will receive a token that you must keep until the end of the term.
- If you repay the loan by the end of the term under the terms of the contract, you will receive a receipt and return the item given to the pledge.
So it seems very simple, but the process is more complex and there are details of the agreement that if you do not pay attention, the pawnshop may cost you, and in the worst case you may even lose your pledge.
You have to pay for these costs with the Payday
As in the case of personal loans, the most important indicator for comparing the cost of credit is the APR, ie the full rate of interest, which shows the percentage of the total loan amount as a percentage of the total loan amount. THM includes handling costs and interest.
The cost of a mortgage depends primarily on the length of time you take the loan. This is usually 1-3 months, but there are pawnshops that lend for longer, up to half a year. The APR is on average between 30 and 40 percent, depending on the maturity of the Payday the amount of loan taken.
Be sure to pay attention to the longer the term, the higher the management cost. After the maturity, pawnshops usually provide a grace period of one or two months, but if you change your mortgage during this period, you will also have to pay extra for the delay.
It is best to avoid this, as late payment and late payment will even throw up the price of a smaller loan. If you slip out of the deadline, the default interest rate may exceed 20 percent, which means additional costs. You will also have to pay a handling surcharge of 3% on the first day of the grace period from the first day of the grace period until the seventh day of the grace period. And if you slip out of the established grace period (usually 1-2 months, depending on the maturity), the pawnshop can sell the pledged value of the payday reference to a breach of contract.
There is also the possibility of prolonged, that is, extending the term if you think you will not be able to pay for time, but it will cost you more.