Why do I have to do a payday loan simulation?
Do you plan to apply for a loan, for example to buy a new car, start renovations in your home or go on vacation? However, you must understand that getting a credit is not free. In fact, the borrowed amount is added with different costs depending on the type of loan and the repayment period. For example, borrowing an X amount and repaying it over 60 months will cost more than 30 months. But it goes without saying that you will have a higher monthly charge in the short term. Doing a ready simulation is essential in order to choose the one that suits you best. The key is to balance a short-term loan with monthly payments.
What are the benefits of using a comparison site?
It is usually easy to perform a ready simulation. You do not even need to take out your calculator because the majority of banks allow you to simulate a credit application directly on their site, via their loan simulator. Of course, you can always go to the bank in person to ask questions. On the other hand, in order to be able to make the best decision, you will have to go to different banks to see which one offers the product that best suits you. However, if you decide to compare all loans manually, and want to change the amount or duration of borrowing, you will have to start all your calculations again, from the beginning. Hence the importance of using a comparison tool.
Thanks to OneTopNotch, you can easily make a payday loan simulation. And yes, on the same page, you can see which banks are the most advantageous for the desired amount and what are the conditions of granting. In addition, it is possible to change the search criteria very easily using the filters provided for this purpose: the results will be updated immediately.
How to use the loan simulator?
If you wish, you can quickly make a ready simulation on the dedicated page of our site. Once on this page, you just have to click on the orange button “Simulate and compare all loans”. If you want to get more information on what a loan is and how to apply for it, you can scroll down. You will then see the section dedicated to explanations. You can also consult our loan guide that you will find here. After clicking on the orange button “Simulate and compare all loans”, you are redirected to the results page, where you will find the various loans in just a few seconds. Below each option, different information is given.
Thus, you will see under “Product” the name of the supplier as well as the type of loan. Under “Total Refund” appears the total amount you will have to pay, including interest. “APR” means “annual percentage rate of charge”. This section includes interest rates and other ancillary costs. Finally, under the “Refund” tab, you will see how much you will pay each month. On the left side of the page, you will find other types of credits, such as the, renovation credit or the energy loan. This is also where you can adjust the repayment term as well as the loan amount. You can also select certain financial institutions if you have preferences. Each time we edit, our comparison tool does the math for you, so you do not have to worry about anything. Thanks to this, your ready simulation is done in no time.
Let’s take a concrete example (as an indication): a € 20,000 car loan to be repaid over 60 months. By performing a simulation on OneTopNotch, you will see that the most interesting APR is 1.29%. The sum to be paid, including interest, is finally 20.659 €, with monthly payments of 344 €. Now let’s go back to the same example, using the highest interest rate: the total repayment will then be € 24,706, with monthly payments of € 412. By performing a simulation ready in advance, you can save up to around € 4,000. This shows the importance of using a loan simulator.
How much can I borrow?
The minimum that can be borrowed is 200 €. However, the number of banks offering this possibility is very limited. Indeed, most financial institutions set this minimum at € 1,000. But the amounts, whether minimum or maximum, vary from bank to bank. It is therefore advisable to make a loan simulation of a higher and lower amount than the one you want in order to see if the interest rate is not more advantageous. In this way, you could save by borrowing a slightly lower amount.
It is also possible that a significantly higher loan has a lower interest rate. The maximum loan amount indicated is € 150,000. But, just like the minimum amount, it is subject to variation. On the other hand, few financial institutions grant such sums. Moreover, they do not provide a loan to everyone, and the higher the amount requested, the more difficult it will be to convince them. You will need to prove that you are able to repay the entire amount borrowed. Hence the interest of using a payday loan simulation tool, which will make your job easier. If however this option is not the most judicious considering your financial situation, consider willingly credit without bank.
Remember to evaluate your repayment capacity before applying for a loan. To better plan your monthly charges, feel free to download our free excel file below: Download our planner We help you manage your budget
Are there differences in loan calculation?
All credits are calculated in the same way, whether you are looking for a payday loan, a car loan, an energy loan or other. Everything can be compared, especially on a loan simulator. On the other hand, you must keep in mind that the interest rates of certain types of loans can be much higher than those of a standard payday loan.
How accurate is the completed loan simulation?
Interest rates charged by banks are generally standard. They give you a good idea of what you can expect. By using a loan simulator, you will see the corresponding interest rates. On the other hand, if you go to the bank, you will get a rate adapted to your profile (credit rating, spending behavior, other loans in progress, …).
Are some costs not included in the simulation ready?
The APR must contain all the costs and includes, in particular, the application fees related to your loan. This is the reason why it is heavily used by financial institutions. It is therefore wise to give special importance to this percentage by making a payday loan simulation, not just the interest rate. According to the law, it is strictly forbidden to calculate additional costs higher than this rate. If you obtain figures higher than the APR, you can report it to the FPS Economy via this link.
Can I simulate other financial products?
You can do much more than compare loans. Indeed, thanks to OneTopNotch, you can not only use our payday loan simulation tool, but you also have an overview on the credit cards of the different suppliers. Do not hesitate to go to the page dedicated to credit cards.