There may come a time when you’re struggling to manage your money – maybe you’re working a low-paid job, or your bills have increased. This can be exacerbated if you’re faced with an emergency expense. Thankfully, there are ways that you can benefit from additional finances, from online lenders that are flexible and cater for a range of credit scores and histories. Read on to find out more…
What are payday loans?
Payday loans are short term loans that can help you to cover the cost of an emergency if you do not have the funds to pay for it. Typically, you will pay your loan back at the end of the month when you get paid. There are also short-term loans, which can be used to help you when you need cash in an emergency, and they tend to be paid back over a shorter period of time – anywhere from 3 months to a year. These loans are offered by online lenders and often come with a higher interest rate. They are more accessible for a range of people, even if you have a bad credit history, or your credit score is not up to scratch, as they base their decisions on affordability. You should always make sure you can afford the finance you’re applying for before you make your final decision.
Where can you find a payday loan?
Lenders that offer payday loans are based online, which means all you have to do is search for payday loans and find a lender that is most suited to you. Of course, it helps to find out a bit more about the company before you decide and think about whether what they have to offer is going to meet your needs. With such a range of lenders online, it can be to know where to start, but we’ll look at a few factors to help you choose in the next few points.
Do you meet the criteria?
Each lender has specific criteria that you will have to meet to benefit from one of their loans. This can vary with each company, but some of the most common criteria you may need to have is a steady income – your lender may ask for proof of this to determine affordability. You may also need to provide proof that you are over 18 and may also ask to look at bank statements to help with their decision. Make sure you provide proof when asked so that you can benefit from a quick and seamless application process.
How much do you need to borrow?
Think about the amount of money you really need to borrow and look for lenders that offer the best interest and repayment rates. It’s important that you don’t apply for more than you need, because you will be paying interest on these funds unnecessarily. You should also ensure that there are no hidden fees. If there are, make sure that you can afford the fees stated. This can help you to compare lenders and get the best deal.
Can you make the repayments?
Repayments are the most important factor to think about when applying for a payday loan. You need to make sure that you can afford to pay back the amount you agree with your lender each month, otherwise, you risk defaulting and falling into further financial difficulty. You can compare repayment conditions with various lenders to make sure you’re applying for a loan that’s affordable for you, so you can benefit without having to worry.
Think about reputation
The reputation of your chosen payday loan lender is so important. You should check that they are operating legally, by looking for evidence that they are registered with the FCA. You should also read reviews from other customers, as this will give you a great idea of which companies you should avoid. Look for lenders that can provide high-quality customer service, and a smooth, informative application process.