We often find ourselves in situations where we need a loan, but not of any kind, but the best one: the cheapest one and the one with the least negative impact on us. That is, a cheap payday loan, without commissions, without links and that can be carried out instantly, online.
What does APR mean and why is it important for payday loans?
The amount that we borrow from an entity, we must return it in a specific term, with an added interest rate, the APR (Annual Equivalent Rate), which indicates the cost we must pay. This interest rate is calculated according to the term, commissions, and expenses of operation.
What is the best payday loan in recent years?
To find out which is the best payday loan in recent years, we took into account the most important data taken from an analysis of cheap loans, and even the cheapest ones of this year, from last year. It is also necessary to take into consideration the different purposes of the loans and the conditions of each one. As a general rule, they all coincide in the following points:
- Very few establish a specific purpose.
- From 7% APR.
- Minimum financing from $ 300 to $ 6,000 and maximum financing ranging from $ 60,000 to $ 90,000, depending on the purpose and the entity. With the exception of loans for studies, which are up to $ 18,000 in the case of master’s degrees.
- The minimum terms from 24 months and the maximum terms range from 60 to 96 months.
- No bonding or additional insurance.
- No commission or amortization for early cancellation.
However, some establish maximum funding of up to $ 40,000. In addition to an opening commission of 12% included in the APR, despite lacking commission in case of amortization.
Others, mark as a requirement, be a new customer or the fact of not appearing on ASNEF lists and establish the possibility of carrying out the entire loan process online.
In the case of some entities, they are dedicated to a very specific product: the car. These entities usually finance up to 10,000 euros in a maximum period of 120 months, without commissions, without links but with the requirement that the car must not exceed 10 years old.
Taking into account all the above, the best payday loan would be the most economical, the one with the least commissions and additional expenses present, the speed with which it is carried out, the advantages and the needs it covers.
Is there really any improvement in loans currently?
Yes, of course, there is. We can find cheap loans online, that is, online and improvements in this last year, taking into account the cheaper payday loans of 2019, due to the continuous change in society and, therefore, in the economy. Financial institutions, therefore, must adjust to the situation and improve their offers to attract new customers or keep those who are already with them.
The truth is that the improvements are not usually novel but practical, within what they can offer, of course. That is, lower the interest on loans. In fact, the cheapest payday loan currently charges 0% TIN (TIN is the fixed amount the bank receives). It is basically an interest-free loan.
This, without a doubt, is a quite big advance, since the best payday loans of 2016 were maximum applications of up to 40,000 euros to be repaid within 7 years and the practical mini-loan (of up to 100 euros, to be repaid in 30 days). In just three years, the possibility of requesting a loan has not only improved but has been fully adapted to current needs.