On this page we present what a Personal Payday loan is. The purpose is to create knowledge of Personal Payday loans and provide an overview of the different loan options. We explain, among other things, what you can use a Personal Payday loan to and what costs you can expect in connection with the loan.
Therefore, if you are considering applying for a Personal Payday loan, or just want to get more information on the subject, you have come to the right place. We will guide you through this to find the cheapest Personal Payday loan.
What is a Personal Payday loan
A Personal Payday loan is a loan that you can use for private consumption. With a Personal Payday loan it is only you who decides what money is to be spent on. At Hazel Motes you have the opportunity to obtain non-binding offers from 7 different banks on Personal Payday loans, so you can easily and quickly find the best loan on the market. Our customers save on average more than DKK 12,500 when they compare loans through our platform.
On this page you can read more about how to find and choose the best Personal Payday loan on the market.
A Personal Payday loan falls under the category of unsecured loans and many are also referred to as private loans. With these loans, there is no requirement as to what the money is to be consumed on and the bank therefore does not receive security for the loan in the form of an asset.
This is different from, for example, some car loans and home loans, which, conversely, are secured loans where collateral is provided for the loan in the form of a car or a home. For secured loans, you can typically achieve a lower interest rate, as the banks or mortgage-credit institutes have a lower risk for these loans.
At Hazel Motes you can obtain non-binding offers for Personal Payday loans from 7 reputable banks and easily and quickly find that Personal Payday loan. All you have to do is fill out a single application, and Hazel Motes manages the rest for you. You just pick the Personal Payday loan that suits you best.
What can you borrow for a Personal Payday loan?
The short answer to this question is: just what you want. In the case of Personal Payday loans, there is no requirement for what the money is to be used for.
Therefore, a Personal Payday loan can also vary greatly in size. Typically, one refers to loans between DKK 5,000 and DKK 500,000 as being a Personal Payday loan. The amount of the amount may indicate what the money will ultimately be used for. Personal Payday loans ranging from DKK 5,000 to DKK 50,000 are used by many in, for example, travel, new furniture or possibly a wedding.
On the other hand, larger Personal Payday loans of between DKK 100,000 and up to DKK 500,000 are often used, among other things, for the purchase of a colony garden house, the purchase of a motorcycle or for renovating its home. But as I said, no demands are made on what the money is spent on.
Loans with a lower amount, or short repayment period, are termed the opposite as a quick loan.
Get more flexibility with a Personal Payday loan
Although one often gets a higher interest rate on Personal Payday loans compared to secured loans such as car loans and mortgages, then there are also a number of advantages to taking a Personal Payday loan.
The big advantage is that you get a greater degree of flexibility. If you are going to invest in a new car, you can only finance 80% of your purchase price via a secured car loan.
But with a Personal Payday loan, you can borrow the entire car’s value. This way you can get your new car faster.
The maturity of a Personal Payday loan is typically from 1 to 10 years – depending on the amount of the loan. However, you always have the opportunity to settle the debt ahead of time if you suddenly have the opportunity to do so. By redeeming the debt faster, you save money as you pay interest and fees for fewer months.
How to find the best Personal Payday loan
As with all other goods and services, you should always look for the best Personal Payday loan for your needs. When choosing which Personal Payday loan is cheapest, there are several things you need to be aware of.
The price of a loan will always be calculated based on your financial situation. This is also called your credit rating.
When a bank has to lend you money, it always takes its starting point in your personal finances when it comes to determining what conditions your loan should have. In addition, the bank also uses the credit rating to assess whether it is sound to borrow money.
When the bank makes a credit assessment, it looks at, among other things, your income, your fixed expenses, any debt items and your disposable amount. Based on this information, the bank assesses how much you can borrow and on what terms. For example, if you have a lot of expenses and high consumption, the bank will most likely consider that there is not enough air in your economy to pay off a Personal Payday loan. Conversely, if you have a healthy economy, the bank would like to lend you the money and certainly also at a good interest rate.
But in addition to these personal aspects, there are also a number of general things that you need to be aware of when comparing the price of a loan.
- Interest rates
- Formation costs
- Any fees
- The maturity of the loan
The first parameter to be aware of when comparing the price of a Personal Payday loan is the interest rate. The interest rate indicates how much of your total loan amount is attributed annually or monthly to your loan.
Depending on how large a loan you have admitted, small reductions in the interest rate can mean an extra price or more savings of many thousands of dollars. Therefore, it is very important to compare interest rates on individual Personal Payday loans.