For which types of projects to take out a payday loan ? Should I opt for a payday loan or another type of loan?
The credit universe has many loan formulas. Some of them meet very specific needs, like real estate loans; others, on the contrary, are very free, like payday loans.
In the case of a payday loan, a lending agency lends money to a borrower who will dispose of it as he wishes, without having to justify his expenses. A payday loan is a flexible and effective solution to finance your new sofa, your laptop or the repair of your car … You use borrowed money as you want. And why not pay for a trip or finance a wedding ?
Payday loan or revolving credit?
Why take out a payday loan rather than a revolving loan? Both allow you to freely dispose of borrowed money whenever you want. The fundamental difference is in the circumstances in which you use the loan.
In the case of revolving credit, your cash reserve is available at any time in case of unexpected or unexpected project. In the case of the payday loan, it is most often a project prepared as a trip or the purchase of a salon. This all-theoretical difference varies according to the profile of each.
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Payday loan or auto loan?
Can the payday loan be used to buy a vehicle? Of course. Once the amount borrowed is paid into your account, you decide how to use it. Nothing prevents you from financing the purchase of a car with your loan.
For the acquisition of a new vehicle, however, the auto loan is preferable because repayment terms are generally longer, which reduces the amount of monthly payments. Then, the car loan can be legally linked to the contract of sale of the vehicle purchased. Your loan repayments begin only upon receipt of the car by the dealer. This is particularly important when delivery times become long …
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Payday loan or mortgage?
Let’s be clear: the amount of a payday loan rarely covers the cost of acquiring real estate, the maximum loan amount for a payday loan is 8,000 euros.
To buy a house, an apartment, a land, it is better to turn to the mortgage. Its duration, its rate and its amount are much more adapted. On the other hand, it is possible, and this often happens, that a mortgage is followed by the signing of a payday loan to finance a move, furniture or some work.