No matter how careful you are with your cash, almost everyone will be surprised by an unexpected expense or bill at some point during their lives. You might find that you suddenly have an unpredictable vet expense to pay for, or that you need to shell out extra cash for issues found with your car during an MOT. Some people even need an emergency loan to help them pay to replace their oven, dish washer, or washing machine.
Payday loans, or “same day” loans are fast-paced, short-term lending solutions designed to help you overcome those unpredictable moments in your life when you don’t have enough cash to handle an emergency. With urgent loans, you can dip into the money that you need from a reputable lender, and pay it back within a month, getting in and out of debt as quickly as possible.
A good payday loan can protect you from bigger financial and legal problems in the long-term, and they’re often easier to apply for than traditional cash advances too.
Emergency loans are usually the term used to refer to short term loans. These are short-term instant loans that give you money quickly and expect you to pay back what you owe as fast as possible. Unlike standard personal loans and lines of credit, emergency loans usually offer limited amounts of cash, for shorter periods.
For instance, you might be able to borrow a maximum of £3,000 from a payday loan provider if you’re lucky, but the average borrowing amount is around £500.
While most loans allow you to pay back what you borrow, plus interest over a series of months or years, most payday loans will be repaid all at once on your next payday – hence their name. There are some providers that allow you to pay what you owe in installments. However, this process can be more expensive in the long-term, as it means you pay extra interest.
Payday loans or emergency loans are designed for people who need cash urgently but don’t have any prior savings accounts that they can dip into when disaster strikes. If you find yourself in a sudden problem, then payday loans can help you to deal with that issue quickly and effectively, so you can move on with life as normal. These are usually highly flexible too.
For instance, with a payday loan, you shouldn’t have to explain to your lender why you’re borrowing money. On the other hand, if you’re taking out a car loan, you’ll need to prove that you’re using it for a car, and so on.
Urgent loans can also be an ideal option for people who have a poor credit history. Because short-term loan providers are only giving you money for a short period, and they’re only offering smaller amounts of cash, you should be able to apply with a less than perfect credit score, and still, get a pretty good response from most providers.
On the other hand, many high-street banks and conventional lenders are reluctant to give any money to customers who have had issues with their repayments in the past. Not only that, but personal loans can take a lot longer to get into your bank account than an emergency loan.
Intended for when you need money urgently and can’t afford to wait weeks for a response to your application, emergency loans are delivered quickly. Most providers will be able to give you an answer on whether you’ve been approved for a loan within a couple of hours. Additionally, payday loan companies can deliver the cash that you’re asking for into your account within about 24 hours or less.
With an emergency loan, you apply for the amount of cash you need to borrow and agree to pay it back within a specified period. Usually, your provider will ask you to set up a payment arrangement to ensure that you meet with your repayment obligations on time.
Payday loans are supposed to be flexible. After all, what you classify as an emergency might not be the same as what stands out as an emergency to your friends and family. This means that you should have to provide a reason for your loan when filling your application. However, some of the most common reasons to take out urgent loans include:
One fantastic thing about payday loans is that it doesn’t take a lot to be approved. Most people searching for quick short-term loan products in the UK will be able to get an urgent loan when they need one. All you need to do is make sure that you have evidence that you’re over the age of 18 before you apply, and that you can prove you’re a resident of the UK. It’s also important to make sure that you receive a regular paycheck.
Having a regular monthly income will show your loan provider that you have money you can use to pay back your loan. This is important as many providers consider your affordability state rather than your credit history when deciding whether you’re eligible to borrow cash.
Most loan providers will also need you to have a valid bank account that money can be paid into. For instance, if you’re in bad standing with your bank and you’ve gone over your overdraft limit, then you might not be able to access the benefits of a payday loan. You will also need an email address or a telephone number that your loan provider can use to contact you with questions about your application, or details about your loan.
One common reason that people apply for emergency payday loans, rather than trying to get cash through conventional means, is that they don’t have the best credit history. It’s difficult to get any form of support from a typical bank or building society if you don’t have a good credit report.
The good news is that there are providers out there who are still willing to give payday loans to people with bad credit. Usually, you’ll need to work with a specialist, and you may need to pay slightly more in interest. However, you should be able to access the cash you need in an emergency from a payday provider.
Importantly, while there are many credit providers out there that consider other factors besides your credit score when choosing whether or not to give you a loan, there are no regulated companies on the market who can offer a loan without a credit check.
If you find a company providing emergency loans without credit checks, it’s best to avoid these businesses at all costs. The Financial Conduct Authority that’s responsible for regulating the loans in the UK requires all approved companies to look into their customer’s credit history before giving them any money. A business that claims that they can avoid this step is not approved by the FCA, and therefore may be dangerous to work with.
Often, if you want to borrow money fast in a traditional loan world, and you don’t have the best credit history, you’ll need to be willing to compromise by offering security. This means that you put an asset like your car or house up as collateral in case you’re not able to repay the loan. However, most loan providers in the urgent loan area don’t request any security at all.
You should be able to apply for the money that you need without a guarantor, and without security to offer. However, it’s essential to make sure that you read about the provider you’re considering carefully before you agree to take out a loan.
Some companies have different requirements and guidelines in place, so it’s a good idea to know what you’re working with before you send in your application.
When you turn to payday loans to help you deal with urgent financial problems, it’s essential to do your research. Depending on your repayment capacity and your financial history, the amount of money that you can borrow might differ. Additionally, comparing loan providers will help you to track down the best deals for your loan, by looking at things like:
Remember, although you’re applying for your loan to deal with an emergency, it’s always a good idea to take a little extra time to make sure that you’re not paying over the odds for your cash advance. Comparing your loan doesn’t take long, but it can save you a lot of cash.