No matter how carefully you plan your finances, or how much work you put into your regular budgeting routine, it’s challenging to prepare for everything that might happen in your life. Unexpected bills can appear out of nowhere, leaving you scrambling to find the cash you need to avoid additional problems.
While payday loans have struggled with a poor reputation in the past, the Financial Conduct Authority now regulates all payday lenders, to ensure that customers in need of quick cash are protected when they apply for a cash advance.
With a payday loan, you can quickly access the money that you need, without having to worry about things like long waiting times, complicated application processes, and more. Some payday loan providers are even willing to give loans to people with a poor credit history. This means that no matter what your situation might be, there should be an online loan out there that’s right for you.
Today, most payday loan providers exist online. That means that there’s no physical branch or office to visit when you want to discuss borrowing money. Instead, you fill out a basic application form on the lender’s website, and they’ll let you know whether you’ve been approved as quickly as possible, using either a text or email alert.
Payday loans are a form of short-term loan that is usually unsecured. This means that you don’t need to put any assets at risk to earn your cash advance. Additionally, when you choose a payday loan provider, you may not need the support of a guarantor to get the best deal either.
Although payday loans are an excellent way to borrow money, there are still a handful of unregulated lenders out there. It’s important to remember that when you’re searching for finance, you should never trust a lender that claims they can guarantee you a loan. It’s also important to stay away from any payday loan providers who don’t conduct a credit check.
Credit checks are required by the Financial Conduct Authority to ensure that borrowers can reasonably afford the money that they’re taking out.
A lot of people assume that because payday loans are generally used for emergencies, they won’t be able to compare their options and look for a better deal. However, that isn’t the case. There are plenty of payday loan brands out there, and they all have different benefits and deals to offer, depending on your situation.
There are many different things that you’ll need to consider when looking at your payday loan options. For instance, you might want to check the reputation of the organisation by reading the reviews left by other customers. You may also want to check out the eligibility requirements for the loan, and whether your provider can offer you cash if you have bad credit and no guarantor.
One of the most common things you’ll use when taking out 12 month loans is the representative APR. The term “APR” refers to Annual Percentage Rate, and it’s a number that can give you an interest in the amount of interest and fees you’ll pay.
Crucially, APR can be confusing in a payday loan, because it shows you what the loan would cost if you take it out for an entire year. Since most payday loans are designed for a few weeks or months at most, APRs can make a loan seem much more expensive than they are.
While it’s true that interest rates on short-term loans can be more significant than they are with other cash advance products, it’s important not to get scared off by high APR numbers.
Payday loans might not be the right lending option for everyone. For instance, if you want to build a new kitchen, then you probably won’t be able to borrow enough money with a payday loan or find the cash fast enough to pay your loan off on time. Similarly, if you’re looking for car finance, you’re better of dealing with a specialist lender.
However, if what you need from a loan provider is access to money quickly, without a complicated application process, then a Payday loan could be just what you need. This kind of cash advance gives you access to money usually within 24 hours or less.
Additionally, because you pay back the money that you borrow quickly (usually within a month), there’s less of a risk that you’ll end up with a problem that prevents you from paying your loan off on time. On the other hand, when you take out a personal loan that extends over several months or years, there’s no guarantee that a change in your employment or issues with your finances won’t stop you from seeing problems with your budget.
Most payday loan companies make it incredibly easy to apply for the money you need. Usually, you’ll only need to prove that you’re over the age of 18 and that you’re a registered UK citizen to start your application. To be approved for your loan, you’ll also need to show your provider that you have a regular source of income you can use to pay your loan back, and you’ll have to provide them with details of a valid bank account.
Some payday loan providers will ask for additional information when you’re filling out your application. For instance, they may need a telephone number or email address so that they can get in touch with you.
However, usually, the application is a very straightforward process that takes about ten minutes or less to complete. What’s more, since it’s available online, you won’t need to wait for an agent to be available to discuss your needs with you in person.
Once you’ve successfully applied for your loan, most providers will be able to get back to you with a decision on whether you’ve been approved for credit within a couple of hours. Some competitive brands even promise that they can give decisions in ten minutes or less. There are also plenty of companies out there that can speed up the amount of time it takes to get the money you ask for into your bank account. The average payday loan provider will be able to give you your cash within 24 hours or less.
Just like any other financial product, the best way to make sure that you’re getting the most out of your payday loan is to compare your options. There are many different lenders on the market today, including those that specialise in people with bad credit.
When you’re looking at the options available to you, remember to check the overall amount that you need to repay, including the fees for transactions, and any late fees your provider might charge. You’ll also need to consider other things too, such as:
It’s also worth reviewing whether the loan provider you’re looking at offers any benefits of extras to first-time loan users.
The easiest way to compare loan providers is to use a comparison website. These companies show a list of information about each of the lenders that are capable of offering the amount of money you need in your area. Usually, you’ll be able to conduct like-for-like comparisons using these websites. That means that you can check things like representative APR, interest rates and more, on loans with the same amount of money, and the same term rules.
Some comparison sites won’t show all of the payday loans available, as companies sometimes have partnerships with specific organisations. Check multiple sites if you want a more comprehensive overview of your options.
Remember, you can also consider comparing payday loans to other loan options too. For instance, if you want to borrow a larger amount of money, it might be easier to get a line of credit or a more robust personal loan.