Anyone who borrows money almost always chooses a payday loan. A sample of 4,500 applications shows that payday loans are by far the most popular form of loan, with more than 80%.
Financial experts consider this choice of the consumer as a good development. Borrowing money is almost always best done with a payday loan. Your interest and monthly payments are fixed and you know exactly how long you are going to pay. In addition, you are not tempted to withdraw money again, as this is simply not possible. It gives peace and security.
Are credits continuously written off?
Lenders also seem to have a preference for payday loans. In December, Lite Lending stopped offering credits on the website. This type of loan can still be requested by phone, but the maximum amount is limited to 15,000 euros. “We want revolving credit to be used only by customers who want flexibility for a short period of time. For other spending purposes and for larger credit amounts, we offer fixed rate and interest rate loans. It’s very safe, “said a Lite Lending spokesperson.
When entering the market, the lender Cream Bank even chose to offer only a payday loan. Mike Verbeek, Commercial Director of Cream Bank, says: “We are here to help our customers facilitate a large purchase or a project. But we are not there to facilitate the current account deficit. He also says that when people need money again, it is better to take out a payday loan than to withdraw a new revolving credit. With a new payday loan, there is a test moment: “We check again if the new loan corresponds to someone’s situation, so that he does not have financial problems”.
Good Lenders Credit also only offers a payday loan, because it is the most suitable form of loan for predetermined loan objectives and provides the consumer with certainty as to costs and when the loan has been repaid.
Lower interest rate on payday loans
In terms of interest costs, a payday loan is also the smartest option right now. The interest rate on a payday loan is currently lower than that of a revolving loan. “Although the differences in interest charges are minimal, we assume that you repay the revolving credit each month and no longer withdraw it. If you are tempted to withdraw your revolving credit, the costs quickly increase much more than that of a payday loan. “