We have already got used to the fact that most loan companies grant free payday loans and if we have not used the services of a specific company yet, we can count on all costs being written off. Although very beneficial, however, such loans are subject to certain restrictions, especially when it comes to the amount of the loan granted, and a new customer can rarely count on a full amount loan. Interestingly, the policy of gradually increasing the loan applies not only to payday loans, but also installment loans. The assumption is that in order to borrow really high amounts, you should focus on longer cooperation with one non-bank institution.
Why don’t I get the full amount in my first loan?
A new customer is unknown to the loan company. It has not yet been tested in practice, and the lending institution cannot carry out a full projection of debt repayment and risk analysis – it simply does not have enough data. Not wanting to get rid of potential customers, but at the same time wanting to reduce potential losses, he decides to grant a lower, “test” amount. In return, it offers a free payday loan, the main purpose of which is to familiarize the client with loans, get him to return and take another paid loan. On the other hand, compensation for the costs incurred will be the option of borrowing a larger amount.
However, company policy varies. Some institutions will borrow the full amount the first time, others the second time, and some of them – only the fifth or sixth time!
Where can I borrow the full amount already in the first loan?
The full amount of the loan with a payday loan is extremely rare, actually the only payday loan company that shows full confidence in its customers is Fast Cash, where you can borrow up to 6,000 USD and give back within 60 days. The reward for regular customers is not a higher loan amount but a longer repayment period of 65 days.
Much more often the full amount in the first loan relates to installment loans, which, unfortunately, are always paid (possibly, some companies may write off costs on the first installment). It should be remembered, however, that such high loan amounts are not granted simply because they are available. The applicant’s creditworthiness is of utmost importance and the final loan amount depends on it.
Non-payment of the loan cancels the chance for another one
This obviously applies to a situation in which the borrower would like to take another loan in the same company. It is not forbidden to apply to another non-bank institution and there is a probability that the loan will be granted there. Loans without BIK or loans for indebted people have been operating on the market for a long time, which you can count on those in arrears with repayment in other companies. It may not be a reasonable solution, but often borrowers see it as the only way out of the situation.
Most loan companies, however, assume that one unpaid loan causes problems with paying off another. Failure to grant another loan therefore protects against the debt spiral and supports the borrower’s responsible attitude. On the other hand, non-bank institutions limit the risk of losing more cash.