If you need money in a hurry then it is easy to panic and
not really think clearly about how you are going to get it. It is wise to try
as hard as you can to stay calm and collected and analyse all of your options
so that you can find the one that will be the best one for you. A payday loan
could be the right option for you, but it is wise to understand exactly how it
works before you commit to it.
How fast can a payday loan be arranged?
How quickly a payday loan can be arranged will depend on several factors. Some lenders will be quicker than others and by investigating them you should be able to find out which are the quick ones and which take longer. You may have to contact their customer services to get exact details though as the time it takes may vary depend on different factors. It will also depend on how quickly you get the information they need sent over to them. However, most payday loans will be able to be set up within a few hours. Once you have sent the application it will not take very long at all to set up. Some lenders are even open 24/7 so you can get money outside of business hours. This means that if you need money in a hurry this could be a better option than any other type of loan.
How does repayment work?
It is worth making sure that you understand about the repayment of the loan. The loans are quite different to many regular ones as not only are they arranged quickly, but they have to be repaid quickly. This can be great for those people that like to clear their debt really quickly. They will be happy to be able to get it paid off and be free of the debt within a short time period. The loan is repaid on the day that you are paid and so it will only last for a few weeks. The full sum owed has to be paid on your payday, so this includes both amount that you borrowed and the interest and charges due on it. This means that it is important that you check to make sure that your pay check is enough to cover the cost of the loan and that you will also be able to manage all of your other expense as well.
Will I qualify?
You may wonder whether you will actually qualify for the loan. If you apply and then find out that you cannot take one out, then you could waste precious time when you could be applying for other things. However, with a payday loan you will find that most applicants will be accepted. You will not need to fill many criteria in order to qualify. For example, they will not do a credit check and so that means that you will be able to qualify even if you have a poor credit record. This is different to a lot of loans where they will be looking for a good credit score before they allow you to borrow from them. A payday lender will also not look at your income and so as long as you have a regular income and so will be able to repay the loan, they will be happy. This means that you do not have to worry about being turned down due to your income. The only other main criteria is that you need to have a checking account, which most people do have.
Is it right for me?
If you need a loan really quickly then a payday loan could be the answer for you. You will find that you will not have to make much of an effort to apply and therefore you will be able to go through this process quickly. The Lenders will also be quick in processing your application and you may get the money before a few hours have passed. This means that if you need the money quickly then this could really help you. You will need to make sure that you compare lenders though as they vary in how long they will take to get the money that you need. They will vary in price and you will need to see which looks to be the best value for money for you. You should be able to find out before you apply, how quickly they will be able to get the money that you need to you.
There are very few other lenders that would be able to get you money that quickly. Unless you already have something arranged, such as with a credit card or overdraft, then there is unlikely that you will find a loan that you can organise that quickly.
A payday loan is a type of loan which many people find very
convenient. It is quite different to many other loan types but many people will
worry about trying to apply for it if they have a poor credit score. However,
this is not something that you need to be concerned about with a payday loan.
Credit score and payday loans
A payday loan is unique in that the lender will not do a credit check. This means that it does not matter what your credit score is as you will be approved for the loan without a check being done. There will be other things that are checked, but not very much and so it is very likely that you will be approved. There will be an age check as minors cannot borrow money and you will need to prove that you are a UK resident. You will also have to have a regular income and a checking account. These are things that most people have and so it is very unlikely that anyone will be turned down for a loan of this type. This means that it is a loan that is suitable for a lot of people. It is important to note that if you have a good credit score then this will not eliminate you form being able to have a payday loan, as with no credit check taking place, it means that anyone can apply. If you do have a good credit score, then you will be more likely to get other loans offered to you, but you may find that you prefer the payday loan anyway. It has a lot of features which are different to other loans which can make it more appealing to some people.
Other features of payday loans
There are other things that make a payday loan stand out form others. One of the other main ones, apart from not doing a credit check, is that they are very quick to arrange. In some cases, it can take just a few hours to get the money that you need. This means that if you need money in an emergency, then you will be able to get it very quickly with a loan like this. With other loans it can take days or even weeks to get approval for a loan and by then it might be too late for you to be able to use the money.
A payday loan is also very short term. You will be expected
to repay the loan when you next get paid. This is done by setting up a direct
debit for the full amount owed to go out on your pay day. So as soon as pay
check appears in your checking account, you will be able to repay the loan.
This being done automatically means that you do not have to remember and
therefore takes the stress out of it. You will need to make sure that there
will be enough money to repay the loan. You need to consider whether you pay
will be enough to cover the loan and any other direct debits that will go out
on that day. You will also need to make sure that you can manage for the rest
of the month when you have that money missing from your account. You should be
able to work this out and come up with a plan where you can budget and spend a
minimum amount so that you can afford things.
Paying the loan back quickly means that you will not have
the loan for very long. This can be really great, especially for those people
that do not like being in debt. It can feel like a long burden to have to keep
making monthly repayments and so to be free of this and just make one payment
and get the loan over and done with can be a great relief.
How to choose whether to get a payday loan
It is important to make sure that you are aware of how payday loans work and then you will be able to make an informed decision as to whether it is something that you want to take on. There are lots of loans that you might be able to choose form although if you have a poor credit record then your choice will be much more limited, as it will be if you need the money really quickly. It is good to find out the cost and consider whether the repayment schedule will suit you. Once you have done lots of research you will have enough information to decide whether this type of loan will suit you and your needs. It may take time to look up all of the information that you need but it will be worth it. If you make the right decision then you have a positive borrowing experience that will suit your needs well. If you do not pick the right one then you could have a negative experience that you regret.