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Payday Loans UK: Payday Loans Instant
Having something to tide you over the next month is important especially when your debt is piling up or you’re falling short on cash. Luckily, this is possible when you have access to payday loans. The unsecured loan is a popular option for borrowers who are employed and are in quick need of cash.
Because of the many lenders present in the market nowadays, the loan options have become more considerate and flexible. Normally, those who have no regular source of income or have poor credit remark are rejected but now, they can have the money they need in less than an hour. Payday loans are lenient with its requirements and as long as you can provide a source of income or an alternative fund, you may become qualified. However, before you involve yourself with a payday loan, you need to know a few things first. Also known as cash advance, the loan is famous for its expensive interest rate. Failing to understand this alone may put you into a more serious financial trouble.
To start with, a payday loan is a short-term loan that provides a modest amount. It quickly answers small, immediate concerns, however; it is not helpful for long-term financial goals. By nature, it is quick approval, provided that the borrower can complete the requirements. Most of the time, it will only require filling out and submitting an online application form. Once the form is submitted, the lender will release an instant, stating whether you’ve been approved or not. Upon approval, the money will be sent to you directly via bank transfer. A successful application is a signal for the lender to deliver your fund right away.
The quick release also means fast repayment; basically, it is settled on the borrower’s next payday or within two weeks. Meanwhile, some loan providers may allow you to choose any day that suits you.
When To Call A Payday Loans Direct Lender
Looking for a payday lender is not complicated; however, you should only deal with them when it’s really necessary. There’s no specific reason or purpose required when borrowing the loan and it can be used by individuals who are trapped in a medical emergency or an unexpected bill. You have no limitations and you can use it on anything you have in mind as long as it is legal.
Like other types of loan, a payday loans direct lender may require you to meet their basic preconditions such as the age ( you must be 18 years of age or above), a UK residency, a source of regular income, and a working bank account.
A payday loan sounds too good to be true so it’s always best to learn more about it. A payday loan carries a high-interest rate and it won’t be too long until you found out how expensive it is. It doesn’t conduct any credit check and the only way for the lender to reduce the risk is to apply exorbitant fees. Therefore, before you apply for a loan, be sure to find out the various charges it has such as default fees, late fees, etc. and if it’s worth repaying.
Comparing payday loans is one way of getting an affordable interest rate; however, it should not be the only concern you have. There are other factors that should be taken into consideration such as an access its customer service 24/7, terms and conditions, and the overall company itself.
Applying For Payday Loans Bad Credit
Whether you have a bad credit remark or have no credit history at all, applying for the loan is easy. But remember, having a good credit score is more advantageous. You can get a lower interest rate and a bigger loan amount. The application is simple and all you have to do is meet the lender’s basic criteria. This means being at the right age, having a source of income, and possessing a bank account. Some lenders may consider people on benefits as long as they can provide a proof of alternative fund. If you have a special case, you need to take enough time doing a research to find an appropriate lender; otherwise, you may seek for professional assistance.
Benefits And Drawbacks Of Payday Loans No Guarantor
No matter how small or big an emergency case is, the last thing it wants is to wait. There’s no room for sluggish financial assistance, thus a payday loan is beneficial. Payday loans are known for its fast and easy application process so you can have the money you need immediately. Rather than waiting for weeks to be approved, the lender can provide the loan on the same day you’ve applied. The con, however, is the huge interest rate. Those who have borrowed more than what they can afford end up in big trouble. They are likely to be trapped in the vicious cycle of debt and it’s hard to come out of it. Therefore, before you borrow money, be sure to find out the exact amount you need and don’t go over it. Shop and compare lenders to know who offers the best deal.
Do Payday Loans Need Guarantor?
A payday loan is unsecured, so there’s no need to offer collateral nor a guarantor to secure the loan. The only security it has, perhaps, is the borrower’s proof of income. This is one of the things that hold the lender’s trust aside from the contract.
The absence of the collateral and a guarantor contributes to the speed of the application process. Only the personal and financial information is needed to be verified, thus the lender can release their decision. Another advantage is that you’re not putting any risk to your properties or any relationship in case of default. However, you should know the consequence of failing to repay the loan on time or not repaying it at all. Your credit score will decrease and as a result, creating a new line of credit is difficult.
Representative example: £400 borrowed for 90 days.
Total amount repayable is £561.92 in 3 monthly instalments of £187.31.
Interest charged is £161.92, interest rate 161.9% (variable)