If you’ve ever considered applying for a short-term loan to help you reach your next payday, then you’ve thought about applying for a payday loan advance.
These forms of cash advance are designed to give you a little extra cash so that you can get by in emergency situations. For instance, if your car was to break down, or you received an unexpected bill in the post, a payday loan would ensure that you had enough money to tide you over until your next lot of wages arrived.
Since many UK citizens today struggle to make ends meet each month, payday loans have become an increasingly popular way to deal with the unexpected expenses that might come your way. However, there’s still a lot of confusion out there about what these kinds of advances can do, and how they work.
The first thing you need to know is that a cash advance, a payday loan, and a short term loan are all the same things. They’re an easy way to borrow a small amount of money quickly when you need to pay for an emergency.
Designed to be both convenient and simple, these loan options are easy to apply for – many of which have a process that can be completed entirely online. On top of that, payday loans are a form of unsecured lending. This simply means that you’re not putting any of your valuable possessions at risk as collateral for your loan.
When you apply for a payday loan, the process is very similar to requesting any kind of cash advance. You let your lender know how much you want to borrow, and how long you would like to borrow the money for. However, some companies in the payday environment will expect you to pay back any money that you owe on your next payday, in one single repayment. With that in mind, you should always check on your repayment options carefully.
You’ll also need to check if the credit provider you’re considering has any unusual requirements regarding eligibility. Some businesses will ask you for guarantors, while others will need a good credit rating.
There are many different kinds of loan on the financial market today. Many of which have their own specific purpose. For instance, a mortgage is there to help you buy a house, while a car loan is designed to give you the money you need for a new vehicle.
Payday loans are intended specifically for emergency situations when you need cash fast, and you don’t have any additional savings to tap into. The “emergency” that you use your payday advance for can be anything from an unexpected utility bill to a home repair. Most loan providers won’t ask you to provide all the reasoning for your loan at once, so you don’t have to worry about meeting any unusual criteria.
Crucially, payday loans are usually for a small amount of money, and they only last for a short period. That means that this form of lending isn’t ideal for any big expenses, like when you want cash towards a vacation or a new kitchen. Additionally, an online loan from a payday provider will usually require your bank account to be in reasonably good standing. If you have a poor credit history or a difficult relationship with your bank, then you will need to address this before making your application. Fortunately, some providers will still support people with bad credit scores.
As mentioned above, payday loans aren’t intended for large amounts of money. The most common request for a payday loan usually falls around £500. However, some providers will offer anywhere between £50 and £3,000.
As with most loan products, there are various things that can affect your chances of getting the amount of money that you need. For instance, some providers are simply more comfortable providing larger amounts of money with a payday loan. Comparing your options will help you to find the lender that’s suitable for you.
Additionally, it’s easier to borrow larger amounts of money, even for short-term loans, when you have a good credit score. If you need more than a couple of thousands pounds through your payday loan provider, then you might need to seek out an alternative form of assistance.
One of the most important things you’ll need when applying for a payday loan is a regular source of income. Whether you’re dealing with a lender that places a lot of weight on credit reports or not, you’ll need to show that you’ll be able to pay back the money you borrow on your next payday. If you don’t have a job or a source of income, then you won’t be approved – regardless of how good your credit history might be.
The other eligibility requirements that your provider considers will differ depending on the company you choose to borrow from. Some businesses are far more lenient than others when it comes to things like credit scores. However, keep in mind that all providers should check your credit history before approving your request. Even bad credit providers must check your credit rating according to the regulations of the Financial Conduct Authority.
Other things you’ll need to successfully get a cash advance include:
Checking on the eligibility requirements of any lender before you begin your application is a good way to boost your chances of getting the money that you need.
Before the Financial Conduct Authority introduced rules and restrictions into the payday loan environment, these cash advances had a complicated reputation. However, today, they’re just as safe as any other form of loan. As long as you know how to budget your money accordingly and pay your loan back on time, you shouldn’t have any problem with a payday loan.
Cash advances online come with a range of benefits that you can’t get from any other loan. For instance:
Keep in mind that if you do want to get a good deal without a guarantor and you don’t have the best credit rating, you might need to apply for your cash advance with a specialist. There are companies out there that deliver payday advances specifically to people with a less than perfect credit history. Consider your situation carefully before you start comparing providers.
One of the biggest things that consumers worry about when they’re getting any form of loan or cash advance is what will happen to their credit rating. The good news is that if you pay the money that you borrow back on time, a payday loan can be a boon to your credit score. For instance, you won’t have to worry about budgeting money aside every month for a couple of years. You get to make sure that you’re out of debt as quickly as possible.
With a standard loan, anything might happen in the couple of years that you’re paying back what you owe. You could lose your job or have additional expenses to pay. The faster you get rid of your loan, the fewer chances you have of missing a repayment or facing a financial issue.
When chosen with care and caution, payday loans are quick, convenient and even beneficial to your future finances. Just make sure that you compare your options carefully to ensure you get the right loan.