What are the additional expenses generated by a personal payday loan?

Personal payday loans are one of the tools that can be used when extra money is needed. Both financial and banks offer them, but each entity has a different interest rate, so not everyone will end up paying the same.

It is necessary to know exactly what the costs will be

It is necessary to know exactly what the costs will be

Before applying for one of these loans, it is necessary to know exactly what the costs will be, in order to avoid surprises in the future.

Many think that it is only the interest rate, but the truth is that there are some extra costs that apply to the credits and that increase the amount that must be returned to the financial institution.

Life insurance, unemployment insurance, commissions, maintenance

Life insurance, unemployment insurance, commissions, maintenance

These additional expenses may include the following: life insurance, unemployment insurance, commissions, maintenance, among others. 

The exact charges will depend on the entity you hire, since each handles a different policy. That is, while one may include life insurance and collect maintenance, another bank may charge only unemployment insurance and disbursement fees.

To know exactly what the real cost of a loan will be

To know exactly what the real cost of a loan will be

To know exactly what the real cost of a loan will be, it is necessary to ask for the TCEA, the Annual Effective Cost Rate, since in addition to the interest rate (TEA), it includes all the additional ones mentioned.

If you are thinking of applying for a personal payday loan to meet any of your goals, before doing so, compare at least three options, to ensure you get the best alternative. To do so, you can turn to websites.

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