Overdrafts often look more attractive to anyone in financial need. They offer low interest rates when covering the amount every month. What is overdraft – this is a way to withdraw from your account even when it is zero. Usually, you get your salary on this account. For the unpaid amount, you pay interest when the statutory period expires. Characterized with variable percentages charged on the unpaid amount Monthly and / or annual fees, one-off creation feeThis may be a more cost-effective way to borrow even from using a credit card.
Unlike overdrafts, Payday Loans are characterized by higher interest rates. These are quick credits for small amounts that you have to reimburse when receiving your monthly wage. The grant procedure is quick and simple. In some cases, you can apply online You pay a maximum of 20% foundation fee + 4% monthly fee for loans below 2000 dollars. Maximum opening fee of $ 400 + 48% for loans between $ 2,001 – $ 5,000. Usually, the $ 100 fee is between $ 10 and $ 30.
In some banks, however, due to the lack of statutory regulation, the overdraft has higher interest rates and fees than Payday Loans. The customers of this loan often fall into difficult financial situations from which they can not go out.
As a conclusion, we can say that you must choose the correct way of crediting according to your needs and repayment options. Read carefully and look at all interest and charges, calculate them. Make sure which is the best option for us just as interest and fees, but also as a period of return of money, consistent with your monthly income. Look for information and reviews on the Internet.