We all get in a bit of a bind financially every now and then. Unexpected expenses can crop up and if you’re not prepared the consequences can be quite disastrous.
Something as simple as a bounced cheque or direct debit can be enough to tip those of us already financially stretched over the edge. When something like this happens it doesn’t stop here. Not only do have to think about paying whatever has bounced but you will also probably have picked up charges from both your bank and the company that you owe the money to.
One solution could be to use a credit card – this however has its drawbacks; for one thing the interest rate and for another you are tempted to spend and repay over the long term which in itself may bring on more financial stress.
Payday loans are quick, easy and simple – if used correctly and responsibly. The idea is that you make an application (no credit checks), when approved the money will hit your account in most cases on the same day and you repay when you get paid.
Yes, Payday loans can be expensive in terms of interest rate which can be around 1200% APR. This may be well worth it for people who find themselves in difficulty in the short term and who can afford to repay it when they get paid.
So how do you find a UK same day loan lender?
That part is easy. There are many companies with whom you can apply online very quickly. The only details you will need to divulge are often only name, address, date of birth and you will probably need to send over copies of payslips and bank statements. This is so to prove that you are employed and that the date you say you will be able to repay is correct.
As has been mentioned before, in most cases the money will be in your bank account the same day (dependent on payment method) and you are free to use it however you wish. This is not a good option for those spendaholics out there. Cash loans should not be taken on lightly and are recommended only for those who genuinely need money in the short term and who can afford to repay it on the date agreed.
*It should be noted that failure to do this can result in charges and a rise in the interest rate charged.
What do people use them for
When faced with difficult financial circumstances such as medical emergencies, house bills, etc., then you can either choose to borrow money from a family member, a close friend or even a bank. But, where these avenues of finance do not exist or are not suitable then a short term lender may be your next best option.
The loans are small, short term loans which are covered by a borrower’s payday. They are designed to be fast and easy with many modern cash advance businesses utilising on line applications to process loans. This ensures anonymity and discreetness in regards to your financial matters.
Online applications are completely paperless and require very few personal details. As a borrower you will be asked for basic information such as proof of name and residence and verification of employment etc. Once you submit the required details the application is normally processed in a matter of hours.
This allows you to have access to the loaned amount within 24 hours although some payday lenders may take up to 3 days to process your loan depending on the payment method you selected for the loan. It is therefore important to consider the above factors while making your selection of payday lender, to ensure fast and efficient access to your loan.
Lenders have different limits set on the amounts they can afford to loan, per borrower. These amounts can range from £100 to £1500. While making your selection of payday lender you should first confirm the limits they have set to ensure that they can meet your financial needs suitably. Different lenders also have different methods for repayments such as a standing order, direct debit, or a post dated cheque left with them at the point of the application. You should confirm the method(s) used by your prospective lender, and make sure that you are able to comply with their instructions.
The fees charged for loans are often flat rates, which makes them easy to compute and manage. For example, the average rate charged by most UK payday lenders is £10 for every £ 100 borrowed. These fees can vary from one lender to another and since most payday lenders are listed on the internet you should be able to make a quick and easy comparison between the different rates offered by the lenders. For this reason an online application can make a big difference in terms of cost management for your loan.
Lenders are obligated to be licensed by the FCA – Financial Conduct Authority. This ensures that they are governed to operate with the best quality standards in service provision. For this reason, make sure you confirm that your prospective provider has a Customer Credit License. In this way you will have an avenue to which you can direct your complaints if you experience any issues with your payday lender.
UK payday loans are a best solution for someone looking to borrow money in the short term due to their discreet nature and easy online applications.