If you have ever gone through financial difficulties, you must have experienced a good pile of stress and nerves. Especially, when the required amount of money is rather a small one and still not available from personal financial resources. What do you do when you need money here and right now? Is it possible to get them without all the kinds of bank queues and loan checks? Yes, it is, and the answer to this dilemma lies with a payday loan.
If you have never heard about this concept before, here are a few explanatory things for you to get it better. Payday loans or payday loans are special financial tools which are lent by private lenders at a relatively high interest rate and for a rather short period of time in the amounts up to $500. The primary idea underlying the very term is that a borrower will repay the taken out money as soon as his or her paycheck comes. Therefore, they are usually given for periods of up to 30 days or one calendar month.
Ways To Save Money at Payday Borrowing
When it comes to the mechanism of payday lending, it becomes clear that borrowing money on this basis regularly is not the best thing to do. Here is why. Usually, private lenders charge interest of $15-$20 for every $100 taken out. If you calculate this in terms of the annual interest rate, this one would be as high as 400%. Therefore, you may have a feeling that these programs are created for ad-hoc crediting only, however, this is not quite true.
In order to improve the lending conditions for their customers, moneylenders have come with various loyalty programmes. The basic two concepts of these are presented below:
- interest rate decreases: one of the most basic though efficient approaches for a loyalty program is to let people borrow under lower interest rates than they used to. Let us say, you as a borrower tend to have the same problem with the paycheck delay or financial planning each month and manage to repay payday loans just on time. This will definitely encourage your lender to give you certain benefits when it comes to each next borrowing.
- loyalty cards issuing: another option to ensure customer loyalty is to provide him or her with a special card which makes each taking out process easy to conduct. By means of these cards you automatically get a number of advantages when contacting the lender for the next amount of money.
To wrap things up, the financial industry is trying its best to satisfy the various needs of customers, especially when it comes to short-term loans and payday loans. In order to increase loyalty, lenders even create special multilayered programmes by means of which one can get a significant discount for the next borrowing. This is not only convenient for both parties but also makes it easier for borrowers to repay the loans.