Many times in life we have all come across things that we really want or really need but just don’t have the cash to get it.
A payday loan gives you the opportunity to get some extra money within hours. The application process is online and very easy. You just have to fill out an online form, prove that you have an active bank account, a regular income and to show some form of identification. The lender will probably perform no or just a very small credit check and will also consider people with a bad credit history.
If you are accepted you will receive the money within the same day. The range of money lend is usually less than half of your monthly wage. A good way to think about payday loans is to think of them as an advanced salary rather than just credit, this way you will have it in your head to pay back the money straight away.
As a payday loan is an unsecured loan you don’t have the fear of losing any collateral. However, this means that the interest rates tend to be higher. Because of this you really have to try to pay back the loan as soon as possible.
There are thousands of offers on the internet and you have to take your time to find the one which suits you best.
There are a huge variety of loans available so it can be hard to choose exactly which one will be best for you. The advantage of payday loans is that they are available to people with bad credit. However, this means that they can be expensive. Normally when you apply for a loan the bank or lender will perform a fairly stringent credit check which will ensure that you are able to pay back the money you borrow. With a payday loan the credit check tends not to be so thorough which means that payday loan lenders will lend to people with bad credit. Payday loan companies tend not to lend large amounts of money which means that you are likely to be able to borrow up to a limited amount of £1000.
Payday loans are unsecured loans which means that you do not need to provide an asset as security for the collateral of the loan. This is advantageous in that you will never be risking your home in order to borrow money. However, the catch with payday loan is that they are expensive in comparison to normal bank loans. The representative APR on some payday loans can work out at more than 16,000% so it is important to work out exactly how much a particular payday loan will cost you before you apply.
If you are getting a payday loan makes sure that you shop around. Payday loans are financial products and should be taken seriously. The rates of interest on payday loans will vary so it is worth making sure that you are opting for the best loan. Depending on your credit rating you may not be eligible for all payday loans as their criterion is often different. The periods of time which it is possible to borrow over can also vary so it is worth making sure that you keep your borrowing to a minimum both financially and time wise as this is likely to help you save money.
Once you have found a few companies which offer good rates then you should work out exactly how much a loan with each company will cost. Make sure that you factor in any other charges which exist such as administration charges etc. Ideally there should be no extra charges other than the interest you pay on the loan but some companies do have fees which can sometimes come as a surprise. Make sure that you pay the loan back on time as roll over charges are really expensive and the interest on the loan could easily get out of hand.
Critics of the payday loan industry complain that payday lenders are a plague upon those at the bottom of society who are in need and most likely to be taken advantage of. However, at a time where loans are difficult to come by and any blight on your credit history will mean rejection from a bank there are few alternatives to the creditors who can provide loans for people with bad credit. Some members of Parliament are currently claiming that one way to avoid borrowers falling into spiralling debt would be to prevent lenders from allowing loans to roll over month after month when debts fail to be paid. Labour MP Adrian Bailey has stated that the payday loans industry is “opaque and poorly regulated” and this is held to be the general consensus among both the opposition and many in government. However, there are also those in government who believe that more regulation may drive those who are most desperate into the arms of illegal loan sharks who cannot be regulated.
Payday Loans vary in amount between £50 to £1000 and will often be expected to be repaid within seven to thirty days or before your next payday. Payday Loan Lenders will often implement little or no credit checks during their application process, meaning that people from all credit backgrounds will qualify for this type of loan. Typically the main requirement from Payday Loan Lenders being that the borrower is employed in order to ensure that they will be able to make the next repayment.
On the outset Payday Loans look like an extremely desirable product, why is it therefore that they are increasingly facing bad coverage from the press? The main reason that Payday Loans are receiving poor attention is due to their high interest rates. It is argued by Payday Loan Lenders that the interest rates on their loans are higher due to the short term nature of the product and the higher risk they are taking out by lending to individuals with less than perfect credit histories. Payday Loans are less regulated than other financial products and it is for this reason that people are taking such an issue with it. If there was tighter regulation on this type of loan than it would reduce the risk of people with poor credit being exploited by Payday Loan Lenders.
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Choosing a payday loan can be difficult and there are so few loans for people with bad credit available.There is so much bad press surrounding payday loans and this is because they are seen to charge the highest rates of interest on their loans to the people who can least afford it. If you are taking out a payday loan it is likely that you have a bad credit rating and you are desperately in need of a fast cash solution. There are very few companies which can offer small cash loans in such a small period of time. Instant loans fill this gap but in order to be able to do so they have to be able to lend to people and perform only the most basic of credit checks. This means that payday loan lenders take on a considerable risk when lending to those with bad credit and this makes the loans more expensive. However, there is no doubt that some of these companies are more expensive than others. If you are getting a payday loan make sure that you compare different companies as rates of interest will vary considerably.
Before you get a payday loan work out exactly how much you need to borrow and make sure that it is as little as possible. These quick loans are expensive so you want to keep costs down. Next choose a variety of lenders and work out how much you will have to pay back on what you borrow with each one. Once you have worked out which is the cheapest that is probably the best lender to go with. However, make sure that you read the terms and conditions of each loan thoroughly. There are often hidden fees and charges which are only made clear in the terms and conditions. Make sure that you pay the loan back on time. Payday loan companies often charge expensive penalty fees for loans which are not paid back in time. It is also important not to let the loan roll over into another month. The interest will only increase and no matter how appealing the lender may make it sound rolling over payday loans is an easy way to get yourself into a spiral of payday debt.
Are you struggling to make ends meet? If you are in this situation and finding enough money to either pay bills or make repayments on other loans then a payday loan can help you. Whether you need a little extra cash for either paying bills, household expenditure or finally going on that much needed holiday, a payday loan is a quick, easy and hassle-free way of getting that money you urgently need. A payday loan is a cash advance loan where you borrow money against your next month’s income. This type of loan is particularly helpful and becoming increasingly popular as more and more people find themselves facing financial difficulties. One of the most advantageous aspects of such a loan is that many payday loan companies do not consider credit history so even if you have a poor credit rating then it is still likely that you will approved for a loan.
It is important to recognise the downsides involved with payday loans. For example payday loan companies or brokers often have a maximal permissible amount of money you can borrow usually up to £1000 and in some cases this may not be enough to cover your expenses. Additionally if you want to ensure that your credit status isn’t affected by taking out a payday loan then you must make sure that you keep on top of your loan repayments and in turn this will keep you more financially stable. It is advised that you consider all the aspects of a payday loan and the benefits and disadvantages involved before committing to a payday loan.
Payday loans offer a short term loans for people with bad creditYou need some money and your next payday is still a long time away? Whether you need the money to pay bills or you just need a little bit of extra money for your holiday, you should think about taking about a payday loan.
It is a straight forward process and you will get the money during a few hours. Generally anyone over 18 years old can apply for a payday loan. You only need to have proof that you have a regular income and a bank account. All you need to do is fill in an online form. You get the approval within a few minutes and you will receive the money the same day.
The average range for payday loans is a small amount and you usually pay back the loan within one month. Don’t be afraid of applying for a payday loan if you have a bad credit rating as the lenders will only perform a minimal credit check and it is very likely that you will be accepted even with a bad credit history.
There are many offers on the internet which differ in range, repayment period and interest rate. As there are thousands of offers it is very helpful to take a look at comparison websites as they have already compared the advantages and disadvantages of the different lenders.
You need to pay attention especially to the interest rates as they tend to be higher on payday loans.