Monthly Archives: July 2019

Characteristics of fast loans without payroll

When we talk about loans without payroll I have to start talking about what is meant by this type of financial product .

It is an unavoidable step because non-payroll loans can create a lot of confusion. Many people think that such a loan is a loan that anyone can access, with very light conditions and poor payment guarantees. And the reality is that this is not so.

What is a loan without payroll?

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A loan without payroll is a credit, in which, as the name of the product indicates, you will not be asked to have a payroll so that they can grant you the loan. That is, a payroll by the loan applicant is not necessary as a guarantee of the operation.

However, all loans, even those that are referred to as payroll loans, will require you, as a requirement to be granted, to have monthly recurring income, whether or not they are a payroll.

Therefore, be very clear that if you want to access financing you will need to prove that you have income, either a payroll or another type, but you can forget about getting the credit you request.

Now that you know what a non-payroll loan is, I will analyze them with a little more depth so that you know them better and decide, if you are looking for financing, if it is a financial product that covers your needs or not.

Loan without payroll. Another name for Quick Loans

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In reality, payroll loans work as if they were fast loans or credits .

These fast loans are characterized by offering not very high amounts of financing , around € 3,000 maximum. There is even a type of fast credits, such as mini-credits, which do not usually exceed € 500.

In addition, these quick loans are a product that is requested to be returned also in a few months or even, in the case of mini-credits, in days.

Traditional fast loans have a classic repayment system , based on the application of certain interests on the requested amount.

Although there are variations for mini-credits, to which due to their low amount and few days of return a fixed fee of money is applied on the requested amount and the agreed time period .

In the latter type of credits, if the return time is exceeded, a penalty for late payment is quite high.

It is essential that before requesting a fast credit you are sure that you can return the money in the agreed term, because the penalties and commissions for late payment are very high, multiplying in a short time the total amount of money that you must return and being able to get into important financial problems.

An example of fast loan without payroll

An example of fast loan without payroll

 

As you can better understand how it works and not have any doubts about this type of financial products, you can see an example of a quick loan without payroll. I am going to present an example with a mini-loan, which may be the type of credit you should know the most for having the highest penalties for late payment.

A quick loan without a usual payroll would be a loan for a financing of € 300, with a monthly payment of € 15 and repaid in 30 days.

You can find different conditions depending on various factors:

  • Of the money you finally request.
  • From the company that issues the credit.
  • Whether or not it is your first credit in that entity.

In addition to these conditions, they will also ask you to meet a series of requirements, these two being the most important and usual:

  • Demonstrable recurring income.
  • Not be registered in debt delinquency records.

In any case, there are credit institutions that make exceptions and with a maximum amount of money requested and even if you are in a delinquent registry they can grant you the credit you have requested. This happens when the amount of money you ask for is very small, never exceeding € 1,000 .

And of course, these credit institutions that grant such loans with so few requirements and conditions are never traditional banks.

Also do not forget if you are thinking of asking for a loan of this type that the interest rates or the monthly fee you are going to pay is very high. It is quite likely that you end up returning between 3 and 4 times more than the amount you requested .

How can you hire a loan without payroll

Hiring a loan without a payroll is a fairly quick process since not much documentation is necessary and everything can be sent by email, thus expediting the hiring process.

What documentation are you asked to take out a loan without payroll? Normally these documents are personal:

  • ID or residence card.
  • Justification of recurring income. It can be a payroll if you work for someone else or proof of social security payment if you are self-employed.

And basic banking documentation:

  • A document where the account number is indicated where the money is going to be entered and from where the payments are going to be made for its return.

Once the credit institution verifies that the documentation is correct, it accepts or denies the credit. This does not take more than an hour from the receipt of all the necessary documentation.

If your credit application is approved, you will receive the money in your account in one day and even in a few hours, if the account you indicated at the time of hiring is in the same bank of the money source account, since a transfer of money would be made and within the accounts of the same bank it is immediate.

In addition, to speed up this process, all credit institutions that offer these loans without payroll operate using the Internet, so hiring a loan through their website is much more convenient and faster than otherwise.

Sometimes, to solve doubts or expedite some processes you also have the option of a telephone service , although it is not usually necessary.

In any case, the entire process, that is, request, hiring, acceptance or denial of the operation and receipt of money is always much faster than applying for a loan in a traditional bank.

Is it advisable to take out a loan without payroll?

Is it advisable to take out a loan without payroll?

 

One aspect that you have to have from the beginning is that all financial products are recommended or not, depending on the use you give them and whether or not they cover your financial needs .

Therefore the answer is yes, they are recommended … as long as you use it well and cover your financial needs.

And what is a good use of a loan without payroll? Well, use it to cover a specific unforeseen expense that you cannot pay otherwise. Not to go on vacation, buy a car or motorcycle or buy an smartphone.

And of course you cannot make continued use of this type of products, that’s why the “PUNCTUAL unforeseen expense”. If unforeseen expenses start to be habitual you will have to analyze your expenses, cut those that are not essential and start saving and create an emergency fund.

So do not think of using these products happily because they are very expensive, only surpassed by credit cards.

If you hire loans without payroll frequently in a short time you will be drowned by debts and with few options to get out of them.

conclusion

Finally, and as a summary, I will briefly comment on the main advantages and disadvantages of a loan without payroll.

The advantages of a fast loan without payroll are:

  • Simpler conditions and requirements for hiring.
  • You receive the money very quickly.
  • Hiring is very easy, using the internet.

And the disadvantages:

  • Expensive financial product.
  • Only to request small quantities.
  • In case of default, very high penalties.

I hope I helped you to know more about these types of financial products. As always, if you have any questions or problems you have the comments at your disposal.

Misconceptions About Credit Cards

Credit cards have been a common form of payment for a long time, but some consumers still have skepticism about credit cards, mainly due to fear of indebtedness.

 

Did you think you know credit cards?

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There are usually two reasons for this: either you know someone who has a lot of credit card debt, or you don’t know how credit cards work.

Here are 10 common misconceptions about credit cards:

1. Credit card means more debt

1. Credit card means more debt

The credit card is not meant to live in debt. If you pay the invoice in full by the due date, you will not have to pay interest on the credit. If you do not pay off your entire credit card debt but only part of it, you will have to pay interest on your credit until you pay the balance.

If you are afraid of over-indebtedness, you can set a credit and usage limit for the card according to your income so that you do not overuse your credit card.

2. Choosing a credit card is difficult

If you do not know which card will work best for you, you can compare different card options and choose the one that best suits your credit card. If you travel a lot, you might want to get a credit card. On the other hand, if you want to focus your purchase on a particular store, consider a store earning a bonus card.

In our comparison it is easy to compare different cards. You’ll also see all card costs and search criteria:

3. The credit card interest rate is too high, so you should not use the credit

3. The credit card interest rate is too high, so you should not use the credit

Credit cards have an average 30-day non-interest payment period. As mentioned earlier, if you pay the invoice in full by the due date, you will not have to pay interest on the credit. Payment cards (such as American Express and Diners Club) must always pay off the invoice in full each month, so there is no interest.

4. Credit card debt is common

There are three typical reasons for indebtedness:

  • Forgetting credit card bill payment
  • Exceeding credit line
  • Don’t keep up or follow your own spending

If you use the card carefully, keep track of your own expenses, and remember to pay off your bill by the due date, you won’t have to worry about getting in debt.

5. Paying the invoice by the due date is easy to forget

5. Paying the invoice by the due date is easy to forget

Almost all banks can easily and conveniently pay for your credit card bill through online banking and track your card spending. For example, you can schedule a payment to your credit account in advance if you are afraid of forgetting to pay the invoice by the due date.

6. A debit card is a better and more secure option than a credit card

Vice versa. Paying with a credit card has more advantages than paying with a credit card, in addition to the non-interest payment period. Credit cards often include Payment Security and Product Security, which compensates for losses in the event of misuse or, for example, the purchase of a defective product. Bankcards, on the other hand, do not include these benefits.

Credit cards also offer bonuses such as points that credit cards do not. For example, with a St1 credit card, you get a payment benefit of 0.5% for each purchase, and a payment benefit of 2% for St1 and Shell stations.

7. If I get a credit card, I need to open a new bank account for the card

7. If I get a credit card, I need to open a new bank account for the card

This is not always a requirement. Some payment and credit card issuers offer cards without opening a bank account, and you can pay your credit card bill from your current bank account. For example, Diners Club and American Express are payment cards that do not require you to open a new bank account.

Cards have an average 30-day non-interest payment period and you can pay the invoice directly from your account.

8. Credit Cards Have a Lot of Hidden Costs

When applying for a credit card, you should be aware of the terms and charges associated with the card. Carefully read the small print of the agreement and find out any additional charges (such as annual fees or monthly account fees).

In our credit card comparison, you can easily compare the annual fees of different cards with other charges and benefits.

9. Credit Card Scams Are Common

If you are careful with the use of your card and keep your card and key figures safe, the risk of credit card fraud is extremely low. However, if you notice an abuse on your card, contact your bank / credit card provider immediately and report it.

Your credit card company or bank can block the card and possibly refund you if fraud is discovered. With a debit card, things are not that easy.

10. I’m afraid I’ll use too much credit if I get a credit card

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This is completely up to you. If you are afraid of using your credit card too much, you can choose a lower credit line, for example, which is less than your income. You can also leave your credit card between them, as you don’t always have to carry it with you.

In some situations, such as traveling abroad, a credit card is particularly useful!