What are payday loans?
Payday loans are micro loans that can be provided by private equity firms or banks. Usually their amount is low and ranges from PLN 50 to several thousand. The short repayment time is characteristic of this product. Most often it is about 30 days. However, popular payday loans are associated with high fees. Why? The companies that provide them must insure themselves against default. Especially when it comes to payday loans without BIK.
What is BIK?
BIK is a Credit Information Bureau. It was founded by the Polish Bank Association and private banks. The purpose of such an institution is to collect information on the credit history of bank customers, credit unions and sometimes also non-bank loan companies. BIK collects and provides data on repaid and repaid liabilities to various financial institutions. These liabilities are understood as loans, credit cards, limits, loans and loan guarantees. The information obtained from BIK is analyzed, for example by banks, in order to learn about the credit history. This affects the granting or rejection of a credit or loan application. Do the payday loans appear in BIK? It all depends on the company, some provide information on this type of loan, others do not.
Many non-bank institutions, the so-called parabanks, offer payday loans without BIK, i.e. without checking whether someone has paid or repays liabilities, and this has its pros and cons.
Payday loans without BIK – pros and cons
Not checking your credit history has its pros and cons. For some people, the information contained in BIK may make it difficult to obtain a loan. This happens when there is negative information in the database regarding, for example, delays in repayment of previous or current liabilities. When choosing a payday loan without BIK, you don’t have to worry about your shameful credit history. Some non-bank companies that offer loans do not check the data in the Credit Information Bureau and they grant the decision to grant financial assistance on the spot. This can be both a disadvantage and an advantage. The speed of getting the loan is definitely a plus, while the fact that the payday loan can be taken by someone who cannot afford it, which will generate debts, is a minus.
Fast payday loans without BIK are also burdened with high costs. If the parabanks do not look into the credit history, it means that they protect themselves to a large extent against problems related to delay or non-repayment of liabilities.
Payday loans without verification can also be simply lower than loans that check the history of previous or current repayments. The Credit Information Bureau collects both negative and positive data. The latter can have a significant impact on reducing the cost of payday loans and increasing the amount borrowed.
Chwilówki without BIK – for whom?
Persons with negative credit history usually decide on payday loans without BIK. It may even apply to loans taken out a few years ago for the purchase of home appliances. If there are any problems with repayment, they have certainly been noted. Then, of course, it’s harder to get a bank loan or a loan from institutions that check your credit history. So if the information in BIK about our obligations is not perfect, then it is worth reaching for such payday loans, of course being sure that there will be something to pay them back within a certain period.
Requirements for receiving payday pay without BIK are not too high. Actually, it is enough to be 18 years old to be able to apply for such a loan. Income documents are not always required, which is why even unemployed people can reach for such payday loans.
It is dangerous that payday loans become loans without BIK for the indebted. This can lead to an increase in debts, which will continue to increase due to the high cost of such financial products. If you get loans one after the other, consider consolidating payday loans. It consists of adding up the obligations and determining the installments that will be payable by the person.
Payday loans without BIK and without KRD
Not only in BIK information about contracted and unpaid liabilities appears. There is also KRD, or the National Debt Register, which institutions such as banks or other private capital companies eagerly reach for. Entry into the KRD may also prevent you from receiving a loan because it is proof that the person has debts and it is not known if he will be able to repay the new liabilities since he has not yet settled the current ones. Of course, in this case you can find parabanks that offer payday loans without BIK, KRD and certificates. However, they are very risky and can lead to the phenomenon called the spiral of debt. It involves taking new payday loans without BIK just to pay off earlier payments.
Payday loans without BIK – where to look for them?
There are a lot of advertisements on TV and the Internet that encourage you to take payday loans without BIK and KRD in specific parabanks. However, it is worth using tools such as payday comparers, from which you can find out specific information about the offer in a given institution. After entering the amount and repayment period, there will be proposals for various non-bank private loans without BIK and KRD. Their cost, APRC and the total amount to be repaid will also be visible. Instant payday loans without BIK can be taken almost immediately, the procedure of taking a loan usually takes about a few minutes, a minimum of formalities is required, usually a document confirming identity, e.g. an identity card, is sufficient.
High costs of payday loans
Loans without checking in KRD and BIK are burdened with considerable costs and it is not only about high interest rates or commissions. There are other fees that may arise when paying off obligations. This may be the cost of extending the repayment deadline or the cost of sending notifications on the repayment reminder. Some companies even charge PLN 100 for sending an SMS with a payment reminder. If you don’t settle your obligations, you’ll have to take into account such costs as collection or court fees. Therefore, before making a decision on payday loan without BIK, you should read the contract carefully and familiarize yourself with the detailed costs of these services.