In a short time, payday loans have become a very convenient financing alternative for being cheaper payday loans . This type of interest-free credit is aimed at new customers , and consists of returning the same amount that the company has lent you, without interest (0 APR). Of course, as long as you respect the return period.
Payday loans are intended, among other things, to help you build a credit history with a direct lender , if you pay on time.
You can get from 300 for free, since normally, loans of this type only offer limited amounts that do not exceed 1,000 euros. It is a marketing and sales strategy that many financial entities implement to increase their client portfolio.
What are payday loans for?
Payday loans are intended to cover unforeseen events or emergencies in which we need immediate liquidity, in addition to having time against us. For example, if it's a health emergency, traffic ticket, or car repair, you probably need to act as quickly as possible to avoid prolonging the problem . In these cases, collecting documentation and carrying out banking procedures for several weeks is not an option.
Similarly, these loans can also help us pay for consumer goods or services such as a trip and even some tuition without any interest , as long as they are small payday loans or small sums of money.
Free Loans for Youth and Unemployed
Normally, when we request a loan from the bank, it is mandatory to present a direct debit payslip. However, the reality is that there are a lot of people who also require financing, but find themselves in irregular employment situations, such as students, the unemployed, the self-employed, retirees or workers with temporary contracts .
In this case, it is possible to access loans without payroll and without interest at 0%, as long as you prove some proof or source of regular income that does not necessarily have to come from a work payroll, having alternatives such as:
Unemployment benefit .
Characteristics of payday loans
The offers of the best online payday loans without interest, in the Spanish territory, are increasing. Why? Take a look at its main features :
They are online loans aimed exclusively at new clients in the financial institution.
They tend to be more attractive to people who are going to ask for a loan for the first time time (young people and students, above all).
The average amount ranges from 300 euros to 1,000 euros . However, direct lenders with more attractive conditions are constantly emerging.
Their terms can range from 30 days to 3 months.
They do not generate interest or commissions if you return the money within the agreed term from the beginning. Otherwise, you will have to face additional expenses. Therefore, you must read the small print of the contract .
Although the interest rate is 0, the costs for late payment of installments are usually higher than other types of loans.
They do not request, in general, to be on the payroll or to present an endorsement or guarantee .
Apply to Payday Loans without Endorsement or Guarantee
The best thing about payday online loans is that their requirements are very basic. Normally they do not even request a justification of what you will use your loan for. They also offer payday loans without collateral , that is, they do not require the figure of a guarantor that is part of the contract or the provision of a guarantee in case of default.
This facility is granted by the lending financial institutions because in a fast credit without interest, small amounts are normally handled. In addition, these companies have the fact that you must attach proof of frequent income. In this way, they do not assume a great risk of non-payment.
How do payday loans work?
The operation of payday loans is very simple:
You choose the amount you want , from 300 euros to an amount that does not usually exceed 1000 euros.
set the term for the refund , which usually does not exceed 31 days.
Keep in mind that the process is completely online . This means that you can apply for payday loans online from the comfort of your home or office in a couple of minutes. You must have a mobile or computer.
And if you meet all the requirements and conditions in a short time you will have the requested money. You would only have to return it within the stipulated period . For example, if you request a loan of 1,000 dollars on April 30, you will have to repay the same 1,000 euros on May 30.
TIN and APR How to identify a completely free loan?
You can run into financial entities that disguise the conditions of their free loans to make them more attractive. However, you should always read very carefully what they offer you in the interest rate section:
TIN ( Nominal Interest Rate ) : is the general interest of the loan.
APR ( Annual Equivalent Rate ) : it is the total cost of the loan. Which includes all possible charges and prorated as a percentage.
There are financial institutions that offer quick loans with 0% TIN . This means that the first loan will be interest-free. But it will not be exempt from additional expenses and costs.
So for it to be a free first loan in its entirety, you must specify a 0% APR . This is the true payday loan.
Why is no interest paid on the First Loan?
Surely you are wondering if all this fast loans without interest is as they paint it or is it simple advertising. The truth is that it is common to ask, what does the company gain if the loan is free? The answer is simple; New customers.
Offering a free first loan is a strategy used by financial institutions to attract new customers who may request more financing in the future . It really is a commercial tactic that users can benefit from by contracting their first loan for free.
Common uses of payday loans from direct lender
Considering that the amount of loan is small , it allows you to cover any last minute situation. Some common uses:
Breakdowns in the home.
Repairs in the car.
Payment of utility bills.
Gifts or special purchases.
So that you can obtain low amounts of, for example, loans of $150 or credits of somewhat higher amounts such as a credit of $600 or $1000 online without interest.
Loans without Interest - Is it possible?
The fact of being included in a list of defaulters may make us less eligible to receive financing. However, when it comes to a free loan, financial institutions may approve your application and grant you a quick loan. Currently there is a wide range of direct lenders, which has made these companies have to make their requirements and demands more flexible to adapt to the most common needs.
Normally, companies study in detail the financial profile of each person, in order to make a better decision. In this way, if you are in a delinquent file, we invite you to send your request in the same way, since beyond evaluating your credit history, they will be able to assess the level of your debt or your current income.
Steps to request a loan without interest online
The procedure to apply for a payday loan lasts a few minutes and can be summarized in the following steps:
Visit the direct lender's website : Go to the official website of the lender you have selected. You can consult the ranking of credits without any type of interest to make a comparison with the information.
Select amount and term : in the instant loan simulator you must choose the capital and term to pay. Consider your personal finances.
Online registration : make your electronic registration on the platform of the credit organization of your choice. Fill in the form with your personal data.
Data confirmation : you will receive a call or message from the direct lender to confirm your information. If you meet the requirements and your economic profile adapts to the conditions of the credit entity, you will receive immediate approval.
The receipt of the money varies according to the bank you have registered. It can be in minutes or in 48 hours. And, remember to use the lender's web simulator . It is the best way to determine the return period and, if there are any added charges or origination commission.
How to pay fast payday loans?
The term and conditions of the free loans vary depending on the entity you choose. As a general rule, considering that it is not a high amount, the free credit is usually returned in a single payment on the same date of the next month (30 days). But, you may have the opportunity to do it in installments.
As for the payment method , it can be an automatic debit from the linked card or account. Or a bank transfer to the banks managed by the financial institution where you will have to pay the monthly fee.
Early Repayment of a Payday Loan
It is logical to think that, if you have the opportunity to repay a debt, it is best to do it as soon as possible so as not to postpone it. However, when it comes to a free loan, we normally talk about small amounts of money and with terms from 30 days to a maximum of 3 months.
Repaying a free loan in advance would only reduce the term of your contract, but it would not allow you to save money, since there are no interests or commissions involved. On the contrary, they may apply a commission or penalty for this that is not worth assuming. It is best to pay interest-free financing following the agreed terms and monthly installments to the letter.
What happens if I can't pay my Payday Loan?
Everything has a solution! If your financial situation has become complicated and there is a possibility that you will not be able to pay a monthly installment on time, it is best to contact the Customer Service department of your lending company as soon as possible.
Normally, these companies will reach some type of negotiation with you, either by reducing your monthly fee, or by extending the payment term. The important thing is that you can notify in a timely manner so that you can enjoy a new agreement with better conditions and that it does not greatly affect your budget or your current financial situation.
Some people believe that fast loans without interest do not carry penalties for delay. For this reason, when they cannot pay a fee, they decide to miss the deadline and accumulate the debt. This is a big mistake! payday loans can cause problems if you do not make the payment on time.
Are payday loans reliable?
payday loans are safe as long as you go to a reliable entity, with digital security systems for the treatment of your personal and banking data, as well as favorable user opinions. It is important that you are over 18 years of age and that you read all the terms and conditions of the digital contract very well. Never sign an agreement you don't understand or accept offers that seem too good to be true.
With this type of interest-free financing there is nothing to worry about, since payday loans are safe because they are low amounts and short repayment terms . In addition, the loan is free as long as you make your payments on time and repay the entire amount within the established period. Otherwise, you may face penalties or interest for late payment.
As the sources of financing with payday loans are handled with a short repayment term, if you are not sure of being able to repay the money in the corresponding time, it is best to hire another type of financing; one that offers you a longer term to pay.