To meet the needs of their clients, non-bank lenders are constantly expanding the range of services offered, modernizing products and making borrowing money even easier. If you are looking for a traditional payday loan in a modern form, reach for … pre-paid loan.
If you want to reach for a non-bank loan, you can choose from short-term payday loans or installment loans. Depending on your needs and preferences, you can receive additional funds by bank transfer, collect them at the headquarters of the loan company, at the bank or at the post office. A payday loan is a modern solution that combines the advantages of the most popular non-bank loans.
What is payday loans?
Payday loans are a type of non-bank installment loan. Unlike the traditional “installment”, you do not receive money by transfer or cash, but in the form of a prepaid payment card. The credit card is no different from the one attached to your bank account.
With its help you withdraw money from ATMs in the country and abroad, you will also pay for purchases in online and stationary stores. However, this card is not associated in any way with your personal account. A special technical account was created to support it. By transferring money to it, you will pay the debt.
Importantly, after examining your repayment capacity, the lender will grant you a certain limit. By using the card you will be able to use it completely or use only part of the funds allocated. The lender will charge additional costs on the amount used. When you reach for a pre-paid loan, you will only pay for the money that you will spend in practice.
How to apply for a pre-paid loan?
The procedure for applying for a pre-paid loan does not differ much in the process of applying for a traditional installment plan. To discuss it thoroughly, we will use a specific example. It will be a Good Finance company, offering the Thirteen Charter.
Who can reach for it?
A loan on the Thirteen cards can be obtained by a person who:
• is between 22 and 70 years old,
• has Polish citizenship and lives in Poland,
• has full legal capacity,
• receives a positive assessment of creditworthiness,
• concludes a loan agreement,
• has the ability to repay liabilities that arise as a result of taking out a loan at Good Finance SA,
• at the time of applying for a loan, no cash arrears towards Good Finance SA
To get a loan on the Thirteen Card, go to the lender’s website and then specify the limit and interest period you prefer. Then complete and send the lender a short request. To borrow money, all you need is your ID card, your own bank account and a mobile number. The lender does not require any additional documents, certificates or bank statements. Decisions about the amount of the available limit are made only on the basis of the information contained in the application.
How much does the card loan cost?
The cost you have to cover depends on how much money you use. If you use USD 1000 within the available limit, paying it back after 60 days, the total cost of the loan will be USD 66 and the APRC will be 87%. If after 60 days you repay the debt of USD 1,500, the fee will be USD 99.
If you use 3,000 USD and repay the debt after 180 days, the costs of borrowing money will be:
• 198 USD in 1 month,
• USD 198 in the second month,
• USD 198 in the third month,
• USD 198 in the fourth month,
• USD 198 in the fifth month,
• USD 198 in the sixth month.
When reaching for a pre-paid loan, you should also be aware of the additional costs. You will pay USD 5 for each withdrawal of cash from an ATM (regardless of the amount). Checking the account balance at an ATM you will pay USD 1.5.
How to pay back
You can repay the loan by transferring a specified amount to the account specified by the lender. Remember that the amount of interest is calculated based on the funds used. If your debt is 1000 USD, paying only part of it reduces the tax base and reduces costs.
Pre-paid loan – for whom?
A pre-paid loan is a great solution for people who want to borrow money and use it in a discreet way. The prepaid card is no different from the one issued by banks. When paying for purchases and withdrawing money from an ATM, no one will realize that you are using your funds instead of yours.
This form of borrowing money will also appeal to those who are unable to accurately assess the amount they will need, e.g. for renovation. When refreshing the apartment, it may happen that you will need to buy an additional can of paint or a few meters of wallpaper. The limit of funds available to the borrower will, therefore, allow additional expenses to be financed, without the need for another loan.
Consequences of late repayment
To eliminate long-term, unpleasant consequences, it is worth ensuring timely repayment of the loan on the card. As in the case of an installment loan, the delay may result in charging fees for the delay, termination of the contract and starting the debt recovery procedure. In extreme cases, the case may be transferred to court and enforcement proceedings. And this is associated not only with additional costs but also with a huge dose of stress.