Under an express payday loan is first of all a normal installment payday loan to understand. The application for the installment payday loan is made to a bank and after the commitment the payday loan amount is paid out. Between a installment payday loan and an urgent payday loan lies the difference in the speed of payday loan processing.
Online banks use the computer-controlled automated test procedure for a quick credit, with which the creditworthiness of the customer can be determined in a few minutes. If the customer can meet the bank’s conditions, he will be sent an e-mail with the payday loan approval and then the payday loan will be paid. Thus, the payday loan seeker can dispose of his short-term payday loan on the next working day.
The prospects for an urgent payday loan
Anyone looking for an urgent payday loan for low-income earners must prove that they have a high income. This is often not possible for a low-income earner, so that the payday loan amount is often only a few hundred euros. If you need a larger payday loan amount, you need a second borrower or a guarantor. However, both persons must be solvent, ie the income must be above the attachment exemption limit.
For this, the must be clean and have a permanent job. In short, the persons must be solvent. For the second borrower, where the one is a low-income and the other has an acceptable income, then a payday loan application could be made with a higher payday loan amount. Thus, the bank has two debtors who hedge the payday loan.
Especially when applying for an urgent payday loan for low earners, the monthly budget should be checked in advance. For this purpose, the revenue can be compared to the expenditure. A favorable forecast shows, if then a balance remains. However, not only a revenue / expenditure plan is recommended, but the focus should also be on the rate.
The customer often pays the express payday loan for low-income earners for several years. A payday loan rate often reduces the monthly income immensely. Therefore, it is also important that the installment is adjusted to the income. A payday loan installment should remain affordable even in times of reduced income. Such situations can occur due to sudden unemployment or after a serious illness with long illness duration and subsequent occupational disability.
Similarly, the balance should not be fully used for a payday loan installment. It can always lead to a financial shortage and then the small financial buffer that comes from the balance, often a helpful solution. This approach is especially important for a low-income earner.
So that an urgent payday loan for low-income earners can be realized, a provider must first be found, which also offers an express credit. The payday loan application is simple, only the personal sum, the payday loan amount, the term, the income and any desired installments have to be entered. When that happens, the client sends the form to the lender. If the customer can fulfill the conditions set by the bank, the payday loan application is checked directly and the money is paid out at the same time.
Find the right provider
In general, a low-income payday loan will only be approved if the customer is able to meet all bank conditions. This includes the high enough income, the clean and the permanent employment. These are the three approval features that all banks demand. In general, there are not many payday loan offers for a low-income earner. There are branch banks offering credit starting at just 600 incomes, but they are very rare.
If you have to pay your rent, living expenses, utilities etc. with an income of 600 euros, then a payday loan installment into the monthly budget can fill a big gap. Therefore, a low-income earner to obtain an urgent payday loan for low income earners is usually granted with a guarantor or a second borrower.
In order to find the right payday loan provider, customers are often out of line with branch banks. Banks and savings banks have regulations that under no circumstances award a payday loan of around 10,000 euros to a low-income earner. The customer should know that banks usually charge higher interest rates for low-income payday loans. Banks are too risky and therefore charge a premium.
Since the differences between the individual banks are very large, a credit comparison is definitely worthwhile. This can be used on the Internet for free and easy. The customer then sees the conditions (for example how high the income must be) and also the conditions of the lender. With a credit comparison, the customer can then compare the individual offers. This is also important in view of the low earnings.
It is also important, it has already been briefly mentioned that the monthly installments are negotiated so that they remain affordable. Also should be taken in emergency payday loan for low-income earners only when really urgent need for money exists. A payday loan definitely reduces the income and that over the entire term of the payday loan.
Therefore, it may be advisable to give the payday loan a longer term. The payday loan will then be more expensive overall, the customer will later be debt-free, but for the risk of insolvency is banned.
If the customer has found a lender, he can make the payday loan application directly via the comparison. Almost all banks require credit documents such as salary slips and bank statements from the last three months, a copy of the employment contract or pension notice and a small budget bill.
The payday loan guarantee
In addition to a guarantor or second borrower, a residual debt insurance can increase the credit opportunities. This insurance occurs in the event of sudden unemployment or disability or death. However, these insurance policies are not cheap and often have no acceptable relationship between payday loan amount and insurance premiums.