Payday Cash Loans – Differences and Profitability
Cash dispensers and cash loans can be useful in different situations. Which financial product turns out to be better depends primarily on the current need, the purpose of obtaining additional cash, interest rate and repayment date. We check how the payday loans differ from cash loans!
Displays and Credits – How do they Differ?
The contemporary financial market is very varied, but also complicated. Institutions that can provide various types of loans are rapidly arriving. However, not everyone knows that these institutions can differ radically from each other.
Banks, which have been functioning in the history of mankind in principle since the late Middle Ages, are obviously the most well-known.
The cash loan in the bank is characterized by security, but also difficult accessibility, because before granting the loan, the banks check the financial credibility of the client in many systems (database of the Polish Bank Association, Bank Credit Information Database, etc.). On this basis, a decision is made whether the customer can get a loan or not, and what will be the interest rate on a possible cash loan.
Banks are an alternative to banks, which specialize in the so-called short-term loans, i.e. short-term loans. The advantage of payday loans is that it is much easier to get them, and our credit history most often does not affect the potential interest rate.
What’s more, some companies practice rewarding the first customer with the option of a free loan – a great example of this are payday loans online.
What to choose: a Break or a Bank Loan?
A loan or credit should be relatively convenient in terms of the procedure for downloading them. We check the advantages of payday loans, and to what extent bank cash loans are more beneficial.
Advantages of payday loans (short-term loans):
- lack of accurate customer verification in terms of credit history;
- less formalities;
- cash available in up to 15 minutes;
- attractive promotions (eg the first loan up to a certain amount is completely free);
- easy accessibility for people who work on the basis of commissioned or tasked contracts.
Advantages of cash loans:
- depending on the bank’s offer, they may have lower commissions for granting the loan;
- they are available in several times larger amounts – up to PLN 200,000;
- in the case of extending the loan repayment date, a lower interest rate is usually obtained;
- there is certainty that the bank will not start withdrawing its contracts due to bankruptcy.