We all find ourselves in need of a little extra money at times.
Sometimes, you’ll be approaching the end of the month and have a sudden car repair to pay for. Other times, you might have budgeted incorrectly the month before, and forgotten about a crucial bill that’s sitting on your desk and keeping you awake at night.
While anyone can benefit from the convenience and simplicity of a short-term loan, students are usually the people most in need of fast, flexible cash.
Studying is an expensive business, and there are months where some academics find themselves struggling to get by from one month to the next. Unfortunately, traditional loan providers are generally very wary of students. After all, when you’re learning, you don’t always have time to earn a full-time income too.
However, quick and easy loans could make it easier for people in education to get the money they need to pay for emergencies, while they’re waiting for the next lot of income to arrive.
A payday loan is a form of unsecured, short-term cash advance.
With payday loans, you can borrow small amounts of money (sometimes up to £5,000) for a short period of time (usually under 6 months). Some providers will request for the money that you borrow to be paid back all at once at the end of the month – when you receive your next lot of income. Other companies allow customers to pay their loan back in smaller installments over a series of weeks or months.
Because payday loans are unsecured, people don’t have to put up collateral like a house or car to get them. It’s also possible to apply for payday loans when you don’t have a guarantor to bail you out of difficult situations too.
If your life as a student also means that you don’t have the best credit history, or that your credit file is relatively thin, this won’t necessarily stop you from getting a payday loan. There are plenty of specialist student providers that understand the unique challenges that academics face when they’re trying to take out a loan. This means that you can still get a cash advance, regardless of your credit score.
Payday loans are different to regular loans because they’re only available for small amounts of cash, and short amounts of time. Some providers can even offer student loans that are completely free of any excess fees. This means that you don’t have to pay any transaction costs to get your money. All you need to do is apply, and pay back what you owe, along with interest accrued.
Payday loans for students usually also come with smaller interest rates than typical payday loans. This makes them a more affordable lending option for people amid learning. After all, many providers know that you won’t necessarily have a full-time job that you can use to make your repayments.
While the eligibility requirements for payday loans designed for students differs from one provider to the next, you’ll often find that applying is quite easy. The most obvious eligibility demand is that you need to be a student to get the deal. Additionally, you’ll have to be a citizen of the UK, and you must be over the age of 18 to apply.
Crucially, most providers of short-term student loans will require that you have some sort of income that you can rely on each month. This doesn’t necessarily mean that you need a full-time job. However, it would be irresponsible for any lender to give you money if they couldn’t see that you had a method through which you could pay the cash back.
Payday loans for students work in a very similar way to any other kind of payday loan. Most providers will allow you to apply for the money that you need online. Usually, this means answering a few basic questions about how much you want to borrow, and how long you’d like your lending period to last. If you don’t want to pay back everything that you owe at once, then you’ll need to find a provider that’s willing to take staggered repayments.
When applying for a payday loan, you’ll be asked to give some basic details. For instance, you might have to give the name of the school that you attend, and your address. You will also need to offer an insight into how much money you make each month. Although your payday loan provider will check your credit history, they’ll also be looking at your regular income to ensure that you can afford the money that you’re applying for.
Most providers will know that students don’t always have the best credit score. As such, they’ll be interested in the proof that highlights your ability to make repayments on time right now. Make sure that all the information you include on your application is as accurate as possible. You don’t want to be rejected from your loan just because you made a simple mistake.
As mentioned above, the eligibility requirements for student payday loans can differ depending on who you apply for the money with. That’s one of the reasons why it’s such a good idea to make sure that you compare your borrowing options before you submit your applications.
Some loan providers will require you to be in full-time employment while you’re learning if you want to get the best deals. Other companies will be happy to accept students in part-time jobs, or those receiving some kind of student finance too.
The more boxes you tick on a company’s payday loan eligibility form, the quicker you’ll receive approval for your loan. If you fail to provide all the information a company needs, then they may need to follow up with you multiple times.
On the plus side, when you are finished with your applications, it shouldn’t take long to get a response from a payday loan provider. Most of these companies are capable of getting back to applicants quite quickly. You could even find that you’re approved and that you have your money within 24 hours of your application.
Although payday loans have had a controversial reputation in the past, the truth is that they’re just the same as any kind of cash advance. These loans are fully regulated by the financial conduct authority, which means that there’s a cap on how much you can pay in terms of interest and other fees. What’s more, payday loans come with a range of benefits that can be quite appealing to students who need money quickly. For instance:
What’s more, because you borrow money and pay it back quickly, you won’t have to think constantly about your repayments over a series of months. You can get yourself out of debt quickly, and you may even see a boost in your credit score too.
There are various situations in which a student might find themselves in need of money quickly. A payday loan specifically designed for students can give you access to the cash you need rapidly, without any awkward forms or conversations to worry about. Whenever you have an emergency to deal with, these loans are there to offer convenience and support.
What’s more, as more students struggle to make ends meet, there’s an increasing number of providers out there that can offer loans specifically for those in education. You don’t necessarily need to be in full-time employment to apply either. All you need to do is tell the provider about your student status and explain how much money you want to borrow.
A comparison website will help you to find the money that you need from a provider you can trust. You may even be able to cut down the amount of interest that you need to pay and eliminate any unnecessary fees just by spending some extra time searching for the ideal loan options.
See what you’re eligible for in terms of student payday loans today.