Surely each of us will sometimes find ourselves in a situation where there is a need for extra money. In this case, of course, the only option is to apply for a loan and almost always the unsecured payday loan is chosen as the loan form. Indeed, unsecured payday loans are available in several locations and are also offered by all domestic banks.
An unsecured payday loan is, of course, more expensive in terms of interest than a secured loan, but not everyone has enough collateral for a loan and many do not want to ask their relatives or friends for a loan. However, an unsecured payday loan is an easy way to get money in your account as soon as you need it most.
Unsecured payday loan from a bank or finance company?
All domestic banks currently offer unsecured payday loans to their customers. Applying for an unsecured payday loan from a bank is really easy and all you have to do is log in to your bank’s online service, choose the loan amount and submit a loan application to the bank. However, banks always check the applicant’s income information and can often offer a smaller loan amount if the bank does not consider the income of the client to be high enough.
An unsecured payday loan from your own bank is often cheaper than through another bank or financial company. Banks’ loan application process is usually a little longer than that of a finance company, which often gets a loan through the day.
If you need an unsecured payday loan, we at Pohjola-Norden strongly recommend that you first apply for it at your bank’s online service, as it is usually cheaper and with better loan terms.
Flexicurity is often a better option than a small quick loan
An instant or quick loan is a handy way to get a small amount of money in your account right away, but it may not be the best option if you need more money. In instant loans, interest rates are usually high and can cause financial problems if they are used more than once a year.
Almost invariably, a bank or finance company’s flexible credit account is the better option. You can open a flexible credit account whenever you like, and you will not be charged if you do not withdraw from your account. The cost and interest on the loan will not start running until you make the first withdrawal from your flexible credit account. Also, the interest does not apply to the entire loan amount, but the costs consist of the amount withdrawn.
The drawn down Flexible Loan will be repaid in accordance with the agreement and may be used to make additional withdrawals to your bank account whenever you need it. A flexible credit account works in virtually the same way as a credit card.
Comparison of unsecured payday loans is important
No matter how much money you need, you should definitely compare the options available before applying for a loan. There are currently dozens of different credit institutions , and interest rates and charges on loans vary widely between companies. For a thousand dollar loan, the difference can be as much as several hundred dollars over a one-year loan period, so a comparison is indeed necessary, even for a small amount of money.
When comparing loans, you should focus especially on the actual annual interest rate of the loan. Many lenders report the actual annual interest rate on their website. Often, however, the annual interest rate for a loan is customer-specific, and the actual annual interest rate can only be seen on the loan offer received. However, the actual annual interest rate for a loan may look higher the shorter the loan period, and for a long loan period the annual interest rate seems low.
A secured loan is always the best in terms of interest
In the case of a large loan amount, it is always a good idea to take it as a secured loan. The loan may be secured by, for example, a car, motorcycle, boat, apartment, summer cottage or other property that is eligible for the loan.
In secured loans, the interest rate is lower because the collateral acts as a pledge to the lender. The risk of a secured loan is, of course, that if the insolvency comes as a surprise, the collateral will be forfeited to the lender.