Advantages of online loans – Is it worth taking payday loans?

Advantages of online loans – is it worth taking payday loans? When faced with deciding on choosing a loan, we usually choose one of two ways: a bank loan or an online loan. As a result of many myths that have grown up in the latter in recent years, in most cases we decide to go to the bank: only 3% of Poles admit to using parabanks.

The other 97% do not seem to realize that in many cases they are a much better solution! And although we will not get a mortgage in a company of this type, we will be able to finance a car thanks to its services, and it’s not that cheap.

So when is it worth getting to know in-depth the services of companies offering online loans and payday loans and what are the most important arguments supporting the thesis that it is sometimes worth turning to them instead of classically going to the bank?

A quick online loan as an alternative to a credit card

Almost half of Poles already have it in their portfolio – and just as many of them would like to free themselves from it, but do not give themselves an installment with the repayment of the liability. I am talking about a credit card – a tool that can be very helpful and allow us to build positive credit history at BIK, but constant access to it is associated with the risk of spending too much cash. This is due to one simple rule – as long as the limit is available, we delude ourselves that we will manage somehow within the grace period.

However, minor financial problems are enough and we are already forced to spread the repayment over two months, but still using the card after some time leads to a situation where the limit is almost exhausted and the minimum repayment amount is a decent burden on our budget.

It is in a situation where we lacked cash for a few days, non-bank payday loans are recommended. Their name comes from the specificity of such loans: they are usually granted for 30 days. An absolute novelty on the market is payday loans that can be divided into two installments paid at a 30-day interval.

In addition to the fact that they do not tempt us like the mentioned card, they have one more advantage that results directly from the offer of many, but not all, companies offering online loans. To gain the trust of customers, they offer completely new free payday loans, thanks to which we are obliged to return only the amount that we have borrowed. It is by far the best alternative to a credit card, completely non-binding and, above all, free of any costs.

Freelancer and student are also a man!

Self-employed people know the problem that appears when talking to a bank employee when applying for a loan. It is not so bad if we have our business activity: it is enough to provide tons of documentation.

These include, among others, revenue and expense ledgers, often from the last 12 or even 24 months, certificates from the Tax Office on the income for the previous year, certificates from the Social Insurance Institution on payment of arrears … the list could go on and on. Nevertheless, it is possible to obtain a loan or credit card.

What is the situation if our own business is simply unprofitable for us and we work under a contract of mandate or for a specific task? After all, the vast majority of freelancers: graphic designers, translators, and musicians, especially at the beginning of their professional career, do not achieve such high income as to also cope with paying ZUS every month (the amount of the contribution this year jumped up again and amounts to over PLN 1,100 monthly).

In this case, the contracts for specific work and orders are completely useless – it is very rare for a bank to grant us a loan. This only happens when we have been working this way for a long time and achieve a high income.

Loan companies meet the needs of such people – for them, our type of contract does not matter. Unless we get a loan as proof, we can be sure that by presenting contracts – orders and for a specific work, we will easily get money even for a longer period.

This is an excellent solution, especially if we have to invest in the development of our workshop – usually, they are not staggering amounts, but banks will hardly ever help us.

Speed, convenience, and money immediately on the account

These are the most important advantages of non – bank loans if we get into sudden trouble, even in the middle of the night. The entire loan granting process – from setting up an account to transferring money to our account – is completely online, all we need is a computer with Internet access and an ID card.

If we are applying for more money, it may be a good idea to send employment data in the form, but not all companies require it. If we are under time pressure, it is good to look for a company that has its account in our bank – then the entire procedure to receive the money, inclusive, will only take a dozen or so minutes.

Carol Gilmore

Carol Gilmore