If you want to take out a payday loan but don’t want to pay too much interest on it, you should look specifically for a payday loan with a low interest rate. Banks generally determine the conditions for their credit products themselves and can use a certain amount of leeway here.
As a result, the various banks do not offer payday loans at a uniform interest rate. On the contrary, the payday loan interest and the other conditions often differ significantly. Prospective customers should therefore not access the first available payday loan offer, but first make a payday loan comparison. A payday loan comparison can be used to find a payday loan with a low interest rate.
This is how prospective creditors secure low interest rates
Interested parties wishing to take advantage of a low interest rate payday loan should compare the different payday loan offers on the market. A credit comparison can be carried out at any time free of charge on the Internet. For this purpose, prospective creditors visit a comparison portal, indicate their credit request and within a few seconds a list of current payday loan offers is displayed. In such a comparison, the payday loan offer with the cheapest interest is usually listed at the top.
In addition to the interest, prospective creditors should also pay attention to other conditions such as the possibility of special repayment and any processing fees that may arise when making a payday loan comparison. Since the interest is not assigned by the banks according to a uniform principle, there are still a few things to consider.
How are interest rates set at all?
Borrowers should know that banks lend in different ways. The payday loan interest can depend, for example, on the creditworthiness or the term. At some banks, payday loans are also granted at a fixed interest rate that applies to all customers, regardless of the credit rating and the chosen term. If interest rates depend on the creditworthiness, prospective borrowers with a very good credit rating have the best chance of low interest rates.
In the case of term-dependent payday loans, the amount of the interest depends on the chosen term. Basically, even if a payday loan offer stands out in a payday loan comparison due to particularly favorable conditions, it does not have to mean that prospective creditors also receive this payday loan at the advertised interest rate. The prospective customer must first meet the bank’s requirements in order to be considered as a borrower. In addition, various factors can influence the interest rate.
If you want to compare a payday loan with a credit-related interest rate with other payday loan offers, you should definitely get a personal offer. You can only find out your own interest rate through a personal offer. However, the bank should prepare the offer without leaving an entry about the payday loan request with Credit Bureau. Because such a request can already negatively influence the scoring value and worsen the chances of a good interest rate with other credit providers.
Online offers are usually cheaper
If you want to take out a payday loan with a low interest rate, you should know that online banks usually offer their payday loans on more favorable terms than branch banks. Due to their consistent cost policy, online banks can offer many products and payday loans at a lower price.