A personal payday loan may be less flexible than a revolving credit, but you know exactly where you stand and you will never be faced with any surprises. If you would like certainty, choose a personal payday loan with a fixed interest rate. But there are more securities that make a personal payday loan by far the most reliable. There has been some fuss about the revolving credit lately, especially from the Mesterbank company. Read below what the consequences can be if you take out a credit recklessly. Later on the interest rate can change (get higher) and then your monthly payments will become unnecessarily high without having to pay off even 1 euro.
Where did it go wrong?
If you read the complaints about Mesterbank, you will see that things went wrong when the personal circumstances of the borrower changed. This was for various reasons, divorce, dismissal, payment arrears and so on. The lender often mistakenly assumed that the borrower posed a higher risk of non-repayment. Subsequently, the interest on the loan was raised considerably without those who had taken out the loan being able to transfer their credit elsewhere.
Fortunately, these people are now being helped by transferring the floating-rate credit with a variable interest rate to a personal payday loan with a much lower interest rate. Where in the past they paid a high interest rate that could also be increased at any time, they now went to a situation with a significantly lower interest rate that would not change anymore. There is now a stricter look at whether you are paying off your loan and not just paying the interest. Only paying interest will never get rid of it.
All lenders do it that way
Not all money lenders work according to these methods. If you go to more reputable lenders such as Nationale Nederlanden, you will not come across these practices. But the above story is an eye opener because it is important that you actually pay off your loan in addition to interest.
Personal Payday Loan with a fixed interest rate
Fortunately, these problems never occur with a personal payday loan, for a number of reasons. An interest rate is agreed when a loan is requested, it will NEVER change during the entire term. Another aspect is that when you pay off alongside interest ALWAYS you pay off your credit because it has a fixed end time. Another consideration to take into account when you choose a credit is the fact that once you have repaid installments you can no longer withdraw, again in contrast to the revolving credit.
So which credit is wise
Check for yourself what you need the money for and perhaps more importantly, whether you really want to take out a loan. If you just want an amount in case of emergencies and you don’t use it at all until then, the revolving credit comes into play. If you are going to make a large expense and immediately start using the credit in full, you can opt for security with a personal payday loan.