The amount spent on summer vacation is optimally funded by the amount saved for this purpose, but this is not always the case. According to Eurostat data for 2015, the majority of Hungarian families have problems with a major unexpected expense, such as a costly health problem or the need to replace a larger household appliance. We have explored your options for staying away this year for reasons other than financial.
Payday loan for vacation? If there is nothing else, it can be a solution
A payday loan is probably the best option if you are looking for a quick and easy way to finance your vacation. Many banks can claim it online, so it can take a few minutes to complete and if the bank finds it right, it can be paid out in as little as 2 days. Since the payday loan is secured by income, you must present your employer with a regular income statement when applying, so existing equity and real estate coverage is not a requirement.
During the credit rating process, the bank conducts an income check, checks the Central Credit Information System to see if you are on the negative list of debtors, and then offers you a loan. This offer includes the amount you can withdraw, at what interest and for what term.
You either accept or reject this offer. You can expect a good deal if you have a high net income. There’s a simple reason for this: Higher earnings make it easier to manage your installment payment, meaning your bank can lend you a lot more credit because you are more likely to be able to pay your installment on a regular basis.
What to look out for when you want a payday loan vacation?
The bank may decide not to grant you a loan, for one of the following reasons:
- if you are already on the Central Credit Information System (KHR) negative debtor list. This may be the case if you have a credit debt, fraudulent use of a credit card or credit card, or if you have provided false information when entering into a contract for any financial product (bank account, credit, etc.). The system distinguishes between live and closed omissions. In order to get out of the negative list, you have to settle any arrears (you can do this, but you can do so as collateral or guarantors), or if the contract in question is rescheduled or otherwise settled by mutual agreement. Defaults closed with execution are visible in the system for 1 year from the date of fulfillment, and defaults closed with loss or agreement for 5 years from the closing.
- if you do not have regular primary income, salary (what you are looking for as an employee, entrepreneur, retired or foreign worker),
- if your employment contract is for a fixed term (with no prospect of renewal), or if it is for a shorter period than the term of the loan,
- if you are spending too much or borrowing too high on your certified net income.
It can be an advantage and an expedition if you are a client of the bank you are looking for a loan from for a longer period of time, as you can easily assess your financial situation based on the costs and revenues in your checking account. As a result, a decision is made more quickly on the possible disbursement of the payday loan.
You spend the free payday loan on whatever you want
payday loans are the most popular hit product on the market, and banks signed new payday loan agreements worth HUF 128.5 billion in the first four months of the year, an increase of 58 percent compared to the previous year.
Compared to fixed-term loans, the benefit of a free-to-use payday loan is less administration and paperwork when applying, as the cover is not secured by the real estate and there is no definition as to what you can spend the amount claimed for. This is a risk for the bank, which makes the loan more expensive.