Personal Payday Loan: All You Need To Know About One Of The Most Popular Loans

Life is full of surprises, and this is also true for your finances. You can have a situation in your everyday life when you need more money than you can create from one moment to another, and even if your family and friends can’t help you quickly, one to two may be worse.

You don’t have to go far for the examples: at any time you spend too much on vacation, but you need money at home for unexpected medical treatment. It is also uncomfortable when the television is ruined when the long-awaited World Cup is broadcast. A new kitchen tool or a new car? Most families do not have enough money in one of them.

It is precisely in such situations that a bank loan, including a personal payday loan, can provide a bridging solution. But how does this type of credit product differ from a home loan or a credit card? Well, there is plenty of reason for the fact that this type of loan is one of the most popular among Hungarian households, according to central bank statistics. We’ve collected the most important information about a personal payday loan to decide if you really need it?

Money, what do you want?

Money, what do you want?

There are several types of personal payday loans available on the market today that you can pick up for other credit purposes, but the most popular and most often demanded personal payday loan is. Free use means the bank doesn’t ask. You can spend the loan on anything you do not need to report to the credit institution. If you need a new mobile phone you buy it if you own a car, then (and in contrast to the leasing type of car loan, here you can own the car).

An ideal tool is a personal payday loan for loan redemption: a typical mistake is that we pass through credit card spending, and we cannot repay the debt at the end of the grace period, but then we can pay interest. However, credit card interest rates are 38-40 percent, while a personal payday loan from which you make a credit card debt can be raised up to 10 percent, busting you out of paying hundreds of thousands.

Your apartment will stay with you

Your apartment will stay with you

Are you afraid to take the house if you can’t pay? This is not the case with personal payday loans, which is why many people choose this solution when they need money. For the overwhelming majority of personal payday loans, there is no need for real estate cover or self-financing. For the bank, your regular income is a guarantee of repayment, and there is no need for it.

Fast and easy

Fast and easy

Because of the above, light administration is fast: for example, for a home loan, it may take weeks, even months, for credit assessment, valuation and disbursement, but for a personal payday loan you only need to verify that you regularly receive income on your account. In our calculator you can also find an offer that is not needed.

Is it really just a temporary lack of money?

The amount you can take up as a personal payday loan depends on the size of your income and the credit score, because you can’t swim here either. Generally speaking, the amount of personal payday loans that can be taken is between 500,000 and seven million forints, and the maturity does not exceed 84 months.

As with other credit products, we can prepay for a personal payday loan if you want to expire sooner. If monthly repayment is a problem, some credit institutions also have the option of repaying on a weekly basis.

Are you a bad debtor, but need money?

Are you a bad debtor, but need money?

personal payday loan can be a solution for you! If you are on the negative debtor list of the Central Credit Information System, banks do not want to hear about 99 percent of the cases that they are lending to you and rejecting your application. 

Sounds very good, but how much does it cost?

Sounds very good, but how much does it cost?

One of the most important aspects of borrowing is how much it will cost you to repay. By browsing through the market’s offers, we can quickly conclude that you can borrow up to 10 percent interest rate (of course, it is also worthwhile to thoroughly examine the Total Loan Rate Indicator (THM), as it includes all the costs incurred with interest, giving you a complete picture credit).

The low interest rate environment, borrowing and competition have recently prompted banks to work with lower interest margins, which is also true for personal payday loans, so you can really finance your goals compared to the past.

Watch out for action to pay less

Watch out for action to pay less

Just because of the inter-bank competition, you can get rid of the additional discounts on the otherwise low interest rates. Most credit institutions are willing to let go about 1-2 percent if you park your money with them, so you will get your income on the bank account created by the creditor bank.

In addition, it is good to keep in mind how banks are thinking: the higher your earnings, the better your credit conditions, the higher your income, the more chance you are of not having to pay off your credit and succeeding in repaying the loan. You are at a lower risk for the bank, which is why you can borrow it at a lower price.

What do I need to apply?

If you believe that this credit construction is indeed a way to help you balance your financial situation, you will need the following to claim:

  • ID card
  • address card
  • employer income certificate

In addition, in some cases, the bank may ask for additional documents, so you should read the credit product announcement on the bank’s website or at the bank branch, which contains all the terms, fees and details.

The bank will compile the offer for you based on your income and credit rating, which you can use. Don’t you want to wait at the branch? There is no need for this today. Several credit institutions offer their clients an online personal payday loan, where the application and the credit assessment takes almost minutes, and within a few hours the amount of the loan on the current account is not raised by the computer.

A personal payday loan can therefore be a flexible, temporary solution to your unexpected financial challenges. If you make a well-informed decision consciously, it can be an effective help in your finances.

The first step in doing this is by using our calculator to assess the banks’ bids and rank them according to your needs. Remember, with a well-designed choice, you can save up to hundreds of thousands, but more importantly, you can sleep comfortably.

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