Installment loans online vs. cash loans – advantages and disadvantages of borrowing online
Everyone more or less knows what a traditional cash loan is, because almost everyone these days has already had the opportunity to use it. It is the most popular and most frequently chosen form of borrowing money, because from the bank. But not the only one! For a long time now, the following have been competing with typical cash loans payday loans. Quickness, simplicity and the possibility of taking a loan without leaving home compensate for the higher, although still decreasing, cost of chwilówki. What are the advantages of each option? Why you should consider an online loan? For once in your life it is really worth using it. In this way we will learn what they are about and learn how to take them, to be able to do it later without any problems and without wasting time on searching for the necessary information.
Payday loans vs. loans from the bank
Long-term online payday loans so in no way should they be called cash loans, although some do. These are loans granted by parabanks or loan companies, not by banks. Do not fall under the Banking Law. In this little battle between banks and lending institutions, the latter are doing really well. The speed of decision-making, minimum formalities convince more and more people to get non-bank loans.
With a choice of several different institutions that deal with the allocation of instant loans, it is best to apply just to the loan company and also most people do so. The very adjective appearing in its name indicates that such a company will specialize in loans, and sometimes specifically in momentary loans, or so-called “payday loans”. fast financing for small amounts and for a period of 30 days or longer – on instalments.
What you can take a momentary installment loan for?
Instant loans are used mostly for consumption purposes. At this point, few people are reaching for them to pay for treatment after an injury or to compensate for a loss that occurred due to a car accident. People are already insured against such situations. So they get the money to cover their losses from their insurers, and they reach for online instant loans more for their own needs, which are not essential life needs.
The loan is intended for:
- dream vacations abroad,
- a week’s stay at the seaside,
- improve your car or
- purchase of a modern smartphone.
Of course, no one is interested in what such a borrower does with the earned money (unlike loans, loans do not have to be purposeful). It can be used for any purpose and no one has anything to do with it.
Online instant loans are much less demanding than cash loans, because they do not force anyone to deal with difficult and time-consuming formalities. They can be obtained virtually immediately. The best way to do this is through the Internet.
How much you can borrow and for how long?
You may have already found yourself in such a situation, which forced you to look for additional money. You also guess that these were not exceptions at all and that you will have to face similar circumstances more than once. At such moments, time is often of the essence. You cannot afford to wait for a long time for a cash loan, so you have to look for alternative solutions for them, paying attention at least to increasingly popular online instant loans.
Often this most interesting issue for potential borrowers is how much money can be borrowed in a one off payday loan. You may now feel a little disappointed. For these will never be any particularly large amounts. It will not be up to 100 or 120 thousand zloty, as in the case of a bank. Loan companies such as. Wonga or Provident offer a maximum of 15 – 20 thousand PLN. This is also related to the fact that maximum period, for which they grant a commitment is usually 4-5 years.
Disadvantages of borrowing outside the bank
A instant loan, as it is often referred to, is indeed granted literally instantly, as within some fifteen minutes, but this is due precisely to the fact that it does not offer customers more money. Certainly within its framework You will never get such funds that would allow you to even put up a new house or renovation of an old apartment.
In practice it looks like a instant loan is a form of a very small loan. In general instant loans for 30 – 90 days They do not reach a value greater than a few thousand zlotys, and definitely more often are even smaller and allow people to borrow some few hundred zlotys. Sometimes, however, it is these amounts that are most helpful. You do not always need huge money to implement certain plans. So, if you are going to get five hundred or one thousand zlotys, check out online instant loans. And what if one of them turns out to be sufficient for you.