Before hiring a personal payday loan you usually look at two aspects mainly. One of them is the interest rate you are going to pay and the other is the commissions associated with the personal payday loan.
However, there is a third aspect that has such an influence on the final costs of the loan but is often left aside. They are the products linked to the personal payday loan .
And these products can make a personal payday loan more expensive, even in certain cases more than the interest rate or commissions.
In addition, this increase in the expenses and costs of the loan caused by the linked products does not appear in the APR but you will notice it in your pocket and you should always keep it in mind when choosing the best personal payday loan to contract.
Search for personal payday loans without related products
personal payday loans without the need to hire other products have another added advantage in addition to being cheaper and it will take less time to hire them.
By not needing to hire more products you will need to go to the bank less times and less paperwork which means that you have the money you request in your account in a smaller amount of time.
Types of products linked to a personal payday loan
There are several types of products that can ask you to hire with the loan, the most common are:
– Address the payroll and / or receipts : It is quite common if you apply for the person loan at a bank that asks you to domicile the payroll or some receipts.
Before you must study if you are going to lose important advantages and services by stopping domicile the payroll in the current entity to change it and the same with the receipts.
You also have to take good care that the new account where your salary is domiciled does not have commissions, if so, this will increase the cost of your personal payday loan.
– Credit cards : It is also a fairly common product if you want to take out the personal payday loan in a bank.
Most commonly, they ask you to hire a credit card, since debit cards do not give financial entities much benefit.
Here the key is to look carefully at the annual fee of the card and if you are required to make a minimum of purchases with it, and if in case you do not reach that minimum what penalty you would suffer.
– Insurance : It is the product linked to a more common personal payday loan, both for banks and for other types of financing entities.
The most traditional are life insurance and payment protection insurance. We will see each of them with a little more attention because their influence on the total expenses caused by the personal payday loan is quite high.
Life insurance : Entities usually ask you to take out life insurance when the amount you are requesting for the loan is relatively high.
The good thing about insurance is that in case of death, the insurance company is responsible for paying the remainder of the loan. The bad part is that the loan is quite expensive.
The cost of life insurance depends on many factors, the main ones being the age, profession and health status of the insurance holder. It usually costs about € 500 per year, the most common.
Payment protection insurance : This type of insurance does pay the loan installments if you cannot, either due to unemployment or temporary disability.
It is very important that you read all the conditions of this type of insurance well since for the insurance you are covered by unemployment or disability they must meet certain conditions. Normally the price of payment protection insurance is lower than life insurance, in most cases about € 300.
When you are interested in products linked to a personal payday loan
Sometimes the related products may interest you to hire them since they reduce the final interest rate of the loan and this discount compensates the expenses added by their hiring.
You may also be interested in hiring them because at that time you are also looking for that type of financial product. If you want to hire a credit card, it can be very good to hire it along with the personal payday loan and thus improve the conditions of the latter.
Or hire a financial product that gives you peace of mind, such as payment protection insurance, with which you will be calmer if you lose your job because it will cover your fees.
The same happens if you have a family with life insurance, which in these cases may be a well recommended option.
Finally, in relation to insurance, the insurance offered by banks is usually more expensive than average, so you may be more interested in hiring them directly from the insurer.
A clue that can indicate when you are facing a related product that interests you is when the entity offers it to you but it is not mandatory to hire it. In these cases, study your hiring because it may be a good idea.
This is not the case in all cases, so keep being careful and making numbers before deciding on a personal or other loan.
As you can see, it is not always black or white, but depending on your needs and economic and family situation, you may be interested in hiring a product linked to the personal payday loan.
Luckily at Good Finance we give you all the information you need regarding any personal payday loan you want to contract.
Both in the comparative tables and in the blog you have a lot of information and do not forget the chat that we put at your disposal from where we try to answer your questions as quickly and efficiently as possible so that you know if you are interested or not to contract a personal payday loan with products linked.
With all these tools we are sure that you can take out the personal payday loan that best suits your work, personal, economic and family situation without causing you great damages to your pocket and providing you with the extra money you need.