Once upon a time, payday loans were associated with very low amounts. It was standard to borrow up to several hundred zlotys for the first time. Over time, more loan institutions appeared on the market, which attracted more and more customers with attractive offers. Due to this (and also because of the society getting richer), the available loan amounts reached a high level quite quickly – today the largest payday loan on the market is $ 8,000. However, do such payday loans make sense and are they safe for borrowers?
Where do we get the highest payday pay?
The company providing very high first payday loans places great trust in the borrower – he does not yet know what to expect from him and whether he will really pay back the loan, especially in such a large amount. It looks different when the client has already borrowed money, has been verified in credit and business registers, and his general financial situation is known. This means less risk for the loan company but also for such a borrower.
As you can see, two companies: Freezl and Fast cash do not make a difference in the amount of new and regular customers. Both can borrow the same amount, except that a longer repayment period is available to regular customers. So there is no problem to get up to 6000 dollars the first time.
Is high payday payday safe?
From a formal point of view – yes. Companies that grant such high amounts the first time are definitely not companies that grant loans to debtors or people without creditworthiness (except for BorrowUp). They secure themselves by checking the customer’s credit history and their installment repayment capacity. At the outset, therefore, those borrowers who cannot really afford to repay such a loan will be eliminated. Remember, however, that lending companies, unlike banks, are counting on their credit standing a bit exaggerated, so it will not always be the case that a borrower who has passed the credit check may sleep peacefully and not worry that the loan will not be repaid. In the case of a $ 8,000 payday loan, you really need high creditworthiness and high earnings to pay off payday pay off, even if you deduct maintenance costs and fixed monthly expenses.
What are the risks of taking a large payday payday loan?
- In case of problems it’s hard to borrow money from someone. A large group of people in the event of a problem with the payment of payday pay turns to family, friends or both at once to collect the amount needed. 6000 zlotys to collect can be problematic, even if many people agree to a friendly loan.
- Paying the payday loan with a second payday loan will be difficult. This is of course a solution that we do not approve of, but we also know that many people are tempted by this option to give themselves some time to repay the loan. In the case of such a large amount, the only way out of the goat situation is to take a few other payday loans. If it succeeds at all, several payday loans are not a good solution at once, and the borrower opens his way to a spiral of debt. An installment loan can help, but in this case, please note that our account will already have a significant burden of creditworthiness, which may affect the fact that the loan will not be granted.
- A large payday loan also means high costs. The more money we borrow, the higher the commission will be, the more that such amounts are usually incurred for a longer than usual period. This also applies to free payday pay, which if not paid on time will cost the customer exactly as payable payday payable. Refinancing or extending the repayment period will also be costly. So there is not only the risk that we will not be able to give the money back on time, but also that due to non-payment this amount will soar even more.
Alternative solution – payday installment
Facilitating repayment for such high loan amounts is to use the services of a company that offers a longer repayment period, i.e. 45 or 60 days. If this period is insufficient, it is better for your own safety to think about installment loans, even for a period of 12 months (for a comparison of the costs of the largest companies, see the article ’12-month loan’). For those who prefer longer commitments but less on a monthly budget, loans with a repayment period of 24 or even 36 months will be beneficial. Which companies can be checked in the current installment loan ranking.
A large payday loan is a big responsibility
The above statement can be treated as triviality and banality, but it should be repeated until the problems related to non-repayment are not trivial. Quite the opposite – the consequences are very serious. Payday loans, as the name suggests, are given for a while, and it can be difficult to donate large sums in a short period of time.