Are Payday Loans A Good Idea?

There will come a time when you must take out a loan for your home, bills, or your family. If you need payday loans to get you through a financial emergency, it is essential that you do examine and choose the suitable one for you.

Payday loans have been popular and indispensable for quite sometime now. You can look at it in a positive light as these loans helped people who faced shortage of financial resources. But a few loan specialists can be evasive in their methods and this can leave you with a huge debt. You can use some tips that are applicable in eluding the traps of acquiring a loan.

The lender will have you go through an evaluation to ensure that your credit score will suffice and that you are creditworthy. In case of rejection, it will be recorded on your credit file and this black mark will be visible to future lenders.

Some lenders allow a soft search (informal enquiry) which is a better option without it going on your credit record.

Taking out a Payday loan

There are conditions to meet before obtaining a payday loan. Lenders can establish a lot of terms when issuing the loan. It is always good practice to negotiate the best terms possible with the lenders to avoid intricacies on reimbursements. People with bad credit can qualify for payday loans as the lenders tend to overlook the history of creditworthiness with this type of loan. There are several important aspects which most borrowers need to know before they get involved in the payday loans application. It is good to try to figure out how to make the repayments early on and if it’s feasible.

It is crucial to ask the lenders for a full disclosure regarding the terms and conditions of the loan. Subsequently, consider the payday loans repayment amount and period and see if it works for you.

Payday loans cost

Cost is one of the main concerns borrowers have with payday loans. What are the interest rates? How much will be charged? What if I can’t handle the repayments? Many lenders are transparent with their fee structures, outlining what you will and might be charged for when you make a deal with them. One of these lenders is Cigno Loans. The data below can give a clear idea of cost you might agree on.

Through loan application, Cigno can help you customise where exact costs can be given.

Once approved, Cigno can send you a service agreement with multiple options (you have a choice for the easiest option) on how you can make the repayments. There is no obligation to take the loan if you think it’s doesn’t fit. Nothing is hidden, no surprises, no catches, no worries!

The costs are broken down into 2 components:

  • The lender, Gold-Silver Standard Finance Pty Ltd’s (GSSF), cost.
  • Cigno’s charges as a service provider.

Gold-Silver Standard Finance Fees

Fee is calculated as a fixed, one-off non-interest charge equal to 5% of the loan amount.

Cigno Fees

Financial Supply Fee:

  • 1 payment loan – 35% of loan amount
  • 2 payment loan – 45% of loan amount
  • 3 payment loan – 60% of loan amount
  • 4 payment loan – 75% of loan amount

Account Keeping Fee — $5.95 per week

Same Day Deposit Fee – $16.00 (Optional)

Priority Transfer Fee – $16.00 (Optional)

Additional Fees — In the event of your loan deviating from its original contract, additional fees and charges may apply. For more information, please refer to Disclosures and Authorisations.

Extra charges and interest rates

For each type of a lender, you will get different terms and rates of interest. Some loan conditions in your agreement can cost you extra charges aside from your principal and interest. Administration fees and early repayment charges can be included in your contract so it is expedient to read all of the small print shown to you. Early repayment is always ideal so find a lender who won’t charge you for it.

Loan companies always advertise and market the interest rates in a representative way. Representative means that most borrowers are paying this rate, there is no low-rate guarantee to qualify for. Be aware of falling into this when looking for a loan.

Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.