We are over the first half of the year, so everyone can rest for a few days away from stressful everyday life. It is not too late to plan a holiday, as the weather is still good, far from the end of summer. However, if the vacation is burdensome for the family coffers, the question arises: how much and most of all what to travel? We have followed up on how to enjoy your late summer vacation without the risk of over-indebtedness.
We choose fewer domestic holidays, and the number of travelers has decreased by about two thirds in the last 10 years. In parallel, the amount spent on domestic holidays has increased, and in 2017 we spend an average of 5500 forints a day if we choose a holiday resort in Hungary.
Personal Payday loan for vacation? If there is no other, it can be a solution
A Personal Payday loan is perhaps the best option if you are looking for a quick and easy solution to finance your vacation. There are several banks available online, so the procedure can be completed in a few minutes, and if the bank finds everything right, the disbursement can take place within 2 days. Since the coverage of Personal Payday loans is covered by income, you will need to present your employer with a regular income statement on your application, and there is no condition for your existing equity and property coverage.
Loans for free use are more expensive than fixed-use loans, as banks are at greater risk of lending in this form because they do not know exactly what the customer is spending on the loan, but you can even borrow up to 6.9 percent THM. . Because the application process is short, it only takes a few days or even a solution to finance a spontaneous holiday.
Are you thinking about Personal Payday loans? Use the Personal Payday Loan Calculator and choose the best offer for you! The calculator shows the differences between the total repayable fees for the loans.
To apply for a Personal Payday loan, you will need:
- valid Hungarian identity card or passport or driving license
- home address card with permanent address in Hungary
- up to 30 days employer income certificate
- last 3 months of bank statement showing you are getting regular income.
- previous month’s utility bills and phone bill with payment certificate, for your own name and address
If you are an entrepreneur, you will need additional documents:
- business license
- NAV certificate of last full closed business year (some banks ask for two years)
- a declaration from NAV on proof of non-payment
- public utility invoice certificates
You will need the following documents as a pensioner:
- identity card, driving license or passport
- Notification of the Pension Fund Directorate in the current year or retirement statement (not older than 12 months) or pensioner certificate
- last name paid utility bill and phone bill
If they do, you can start the loan application at the selected financial institution. If you want faster and more convenient administration of Personal Payday and paper-based methods, several banks have already made online borrowing available online. In addition to its net interface, CIB also has its own application through which a Personal Payday loan can be claimed since March last 7 minutes. They are not the only ones who favor their online clients: OTP is currently encouraging interest rates on online loan applications. The popularity of the product is demonstrated by further developments. The service will also be available for those whose payment is not on an OTP account.
In the course of the credit rating, the bank performs the income test, checks in the Central Credit Information System whether you are on the negative debtor list, and then offers you a loan offer. This offer includes the amount you can raise, the interest rate and the maturity. You accept this offer or not. You can expect a favorable offer if you have a high net income. There is a simple reason for this: it is easier to recoup the installment from the higher earnings, ie the bank can borrow more safely because you are more likely to pay the installment on a regular basis.
What to pay attention to if you want to take a Personal Payday loan on holiday?
The bank may decide not to borrow you, the reasons may be:
- if you already appear on the Central Credit Information System (KHR) negative debtor list. This may occur if you have a credit debt, abuse of a credit card or credit card, or if you have provided false information when entering into a financial product (bank account, credit, etc.). The system distinguishes between living and closed failures. In order to get out of the negative list, you have to compensate for any arrears (you can do this, but it is possible by means of collateral or guarantor) or if the contract in question is rescheduled or otherwise settled by common agreement without loss description. Default-ended defaults are 1 year from the date of the performance, the defaults closed by the loss or agreement are visible in the system for 5 years.
- if you do not have a regular primary income, your salary (which you are looking for as an employee, entrepreneur, pensioner or foreign worker),
- if your employment contract is for a definite period of time (and does not have any prospect of renewal) or if it is shorter than the term of the loan,
- if you spend too much on your verified net income or want to raise your loan amount too high.
It can be an advantage and speed up the process if you have been a customer of the bank you want to buy for a long time, as you can easily measure your financial position based on the expense and revenue on your current account. For this reason, the decision is also made more quickly on the possible disbursement of the Personal Payday loan.
You use the free-to-use Personal Payday loan for what you want
The Personal Payday loan is the most popular hit product on the market, and banks signed new Personal 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 tied-up loans, the benefit of a free-use Personal Payday loan is less administration and paperwork as the application is not secured by the property and it is not determined what you can spend on the requested amount. This poses a risk to the bank, which makes it more expensive to construct a loan. Compared to recent years, it is cheaper to obtain Personal Payday loans, due to the low central bank base rate – up to 6.9 percent THM. Only for comparison: In 2011, you could claim a Personal Payday loan at an average of 31 percent THM.
As you spend less on vacation, usually a few hundred thousand forints – unless you plan to travel around the world – you should try to get a shorter term with a repayment that you can pay back comfortably. Thus, there is no risk of slipping with the repayment installment in case of a larger unexpected release.