If you are thinking about taking out any sort of loan then it is really important to make sure that you understand exactly how it works. This is because you need to be sure that the loan will suit you and the only way to do this is to know that it will work well for you. Therefore, if you only know a little about the loan, you are taking a risk by taking it out. This means that you should make sure that you know a lot about it. With payday loans you may be less familiar with the loan type anyway. This is because they are fairly new and not issued by traditional lenders. Therefore, it is important to have an understanding of their main features, particularly those that are different to more traditional loans.
No Credit Check
With a payday loan, it will not matter if you have a good or bad credit report. Although a credit check has to be done, the lender will not look at your credit history and use it to judge whether they will lend to you. They will lend to anyone regardless of their credit history. This is something that is very different to traditional loans, where your credit history will be carefully studied and you will be unlikely to get a loan at all if you do not have a good credit score. As payday lenders are taking on quite a risk by not using your credit history to judge you, they will only want to lend you a small amount of money. This means that you are going to only be able to borrow between £100 and £1,000 with this sort of loan. A first time borrower, is also likely to not be able to borrow so much as a lender will want to build up some trust with them first. They will want to make sure that they can trust them before they let them have a lot of money. This means that they will possibly only lend a few hundred pounds to start with and then lend more once that has been successfully repaid on time.
Quick to Arrange
A payday loan can be a lot quicker to arrange than more traditional loans. It is designed to help people out when they need money in an emergency and this means that the lenders realise that being able to get money quickly is important. This is why some lenders are able to send money within a few hours of someone applying and others will lend money outside of normal banking hours. If you need money quickly, you will need to check with the lender to find out how long they are likely to take though as this will vary as some might take a few days and will not be available outside of normal banking hours. This might be okay for you, it depends how urgently you need the money.
Payday loans are also repaid in full, in one repayment. They are paid on the next day that you get paid, which means that you only hold the loan for a few weeks or possibly even just a few days. They are therefore very short term and great for anyone who does not like to be in debt for very long. This can be great, but it does mean that you will need to be very careful to check that you have enough money to make the repayment and also check that you will have enough money to pay for everything else that you need as well.
If you do not have a job then you might think that there are no loan options available to you. However, you may find that there are some loans which you can still take out. Traditional lenders will probably not be interested in lending you any money, but you could find that you will be able to get some loans from other lenders such as from those who offer guarantor loans. They will decide on who to lend to using different conditions than other lenders and therefore it is something which you should look into more.
How do the Lenders Judge You?
It is good to understand how guarantor loans work. The lender will not look at your credit record, but they will ask that you nominate a guarantor who will have a good credit record. The guarantor will need to cover any repayments that you will not be able to pay. This means that they do not mind if they are taking on a high risk by lending you money as they have a guarantor to make the payments for you. This will mean that you will be able to take this loan on regardless of your credit record. The lenders will check a few of your details though. They will want to check that you live in the UK, have a UK bank account and are over the age of 18. They may also want to see that you have a regular income.
Will This Loan Work for You?
This loan can work for a lot of people but you will need to check that it is right for you and your personal borrowing needs.
You will need to make sure that you can find a guarantor. It is no good applying until you have found someone who is willing to be your guarantor. You will need someone that has a good credit report and is willing to help you out like this and so it may not be easy to be able to find the right person. You will need them on board before you can sign up.
These loans tend to be for between £1,000 and £10,000 so they will only be of use to you if the amount of money that you need to borrow fits between these amounts. If you need more, then you may just have to wait before you get a loan. If you need less, then you might find that a payday loan might be better for them as these lend up to £1,000. The payday loans do need a repayment in one instalment though and this might be a bit tricky if you are unemployed so an instalment loan could be better as there are several payments to make it easier to manage.
You need to make sure that you are aware of how much you are going to have to repay and that you will be able to afford to repay it. It is a good idea to have a close look at your bank statements to see whether you are likely to be able to afford the repayments. Just because you have a guarantor who can pay it for you, you do not want to have to rely on them to do this. It can be much better if you pay it for yourself. Obviously, if you do not have a job, then this could be difficult, but you may be able to manage this out of your benefits. You may also be able to find ways to generate a bit more money if you need it, perhaps by doing some temping or freelance work, some online work, selling things you own and no longer need or things like this. It is good to investigate your options.
If you want to take out a no credit check loan, then it is important to compare the different lenders so that you can be sure that you find the best one. There are many out there and it is a good idea to make sure that you know where you might want to compare them. It is a good idea to make yourself a list of factors that you feel are important in a no credit check loan. There are some ideas below that you might like to consider, but you may have other ideas of your own as well so think about those too.
The cost of the lender is something that is likely to be a big factor for many borrowers. This is great, because you do not want to pay more than you need to. However, it is wise to be very careful when you are comparing costs. For example, some people might use a comparison website but not all lenders will be on there and so there might be cheaper ones around. Also, comparison websites may just list the lenders which pay them the highest commission on the leads that they generate. It is also worth being aware that lenders might compare interest rates and this might not be the best way to compare them. There will be other things that you will need to think about as well as interest when you are looking at the cost. Some lenders will also have fees that they charge as well as the interest and you need to make sure that you take those into account as well. These might be quite high and could make quite a difference when you are comparing them.
It is really important to make sure that you are completely aware of how much the repayments should be and when you will be expected to make them. This is because you need to make sure that you will be able to afford them. You might find that many lenders will only want you to make the one repayment and this is on the next day that you get paid. You will therefore need to be confident that you will be able to make that amount of money in that time frame. However, you may feel like you need to repay in instalments so that it will be easier for you to manage the repayments. This can be better for a lot of people, particularly if they borrow a large amount of money. However, if you repay in more instalments it will take you longer to repay and this will cost you more money. It could be worth paying a bit more though because it will mean that you will be able to manage the repayments easier. This could mean that you will be more likely to be able to make the repayments and it could also mean that you will avoid paying the extra charges that you get if you miss a repayment.
It is important to a lot of people that the lender they choose provides them with good customer service. They will want to make sure that if they need help with anything that they get the help that they need. They will want to know that they will get a quick response as well as helpful and polite one. You may be able to find out more by looking at reviews of the lender but it can be better if you contact the customer service department yourself and see what sort of response you get as a result.
If you have a hobby and you want to buy new things for it, then you may consider whether you should borrow the money in order to pay for it. It can be a good idea to look into the pros and cons of doing this so that you can be sure that you are making the right decision with regards to the way that you are choosing to fun your hobby.
The main advantage with using a loan of any sort is that you will be able to get hold of the money pretty quickly. You can apply and get the money pretty fast. If you had to save up the money or wait until you next get paid then you will have to normally wait for longer before you have the money available. With short term loan you will often find that it can be quicker to arrange compared with many other types of loans. If you already have a credit card or overdraft arranged then these will obviously be fast for access to the money. However, if you need to organise one of these or another type of loan then it can take some time to do so. However, some short term loans can be arranged in just a few hours so you will get the money very quickly. Our hobbies can be extremely important to us. They can help us to wind down after work, focus our attention so we forget about stress and bring us a lot of pleasure either alone or with our family. This means that making sure that we have everything we need to do our hobby, whether that is buying art or craft materials, paying for classes or other equipment can be really important to help us to do them.
You will always have to pay for a loan and therefore when you buy an item using money form a loan, you will find that it will be more expensive compared with buying it with money you already have or saving up for it. Sometimes this will be worthwhile and sometimes it will not and you will need to judge whether you think that it is something that you will be happy to pay for or whether you think that it will be better to wait until you can afford the things without having to borrow money. Being able to get the money really quickly can be a bit of a disadvantage if you are not careful though. This is because you could find that you will make a quick decision to get the money and maybe not think about it carefully. When you are borrowing money, it is always a good idea to make sure that you carefully think about whether you are doing the right thing. Consider the cost of the loan, whether you will be able to manage the repayments and generally whether you feel that it will offer you good value for money. If we find that we struggle to repay the loan then it could be a source of stress. This could mean that we will end up not being able to enjoy our hobbies so much or really needing them to get rid of the stress. Think about whether this might happen for you and if you will find that it is not worth the loan because of this.
So, there is not really an easy answer to this question. You will need to think about what is important to you and whether you feel that you are justified in taking out the loan. Consider the cost and contrast that with the pleasure you will get form the money and decide whether you feel that it will give you good value for money.
Are Short Term Loans Fast to Arrange?
There are all sorts of questions that you might have about short term loans, if you have not used them before. Many people know that they are often used in emergencies so they might wonder if they are fast to arrange. It is worth knowing a bit more detail about the way that they work so that you can answer this question for yourself or know what to look into when you are choosing between lenders.
How Does Application Work?
With most short term loans the application will be online. You will be able to apply directly through the website of the lender which should be straightforward to find and to do. The application forms are designed to be really easy to work through so that they will not take you too long and they will not ask unnecessary questions or things that are too difficult to answer. There may also sometimes be the option of applying over the telephone which means that you will not even have to complete the form yourself which could be easier for some people than completing the form themselves.
How are Applications Accessed?
With a short term loan, even if it is guaranteed there will not be a lot of assessment done. There will be a few conditions that you will need to fulfil though. Firstly, you will need to be over the age of eighteen and you will need to have a UK address and bank account. You will also need a regular income. The lender will check for these things and they will also need you to send in ID to prove that you are who you say you are and you live where you say you live. This should not take very long at all. There will be no need for them to check your credit score and decide whether they want to lend to you base don this, which helps to speed things up as well.
How Soon is Money Given?
The amount of time it takes between you sending your application and then getting the money that you asked for will vary depending on the lender. Some lenders may take up to a few days but some may take just a few hours. This could make a significant difference and so it is a good idea to make sure that you check this before you apply if you need the money really quickly. The lender may say on their website how quickly you are able to get the money but you should check with them. If you are a first time borrower, for example, they may do extra checks and it could take longer or you might find that they are quicker at certain times. You will also find that some will be able to provide money outside of normal banking hours and others will not so that means that if you need money at these times, it could mean that you will get it much sooner with certain lenders than others. However, they will generally always be quicker than more traditional lenders.
Can it be Speeded up?
It is not normally possible to speed things up, but you may slow things down. If you do not fill in the application form properly or you do not send all of the information that is required then you will not get the application processed quickly as they will have to come back to you. Also, if you enquire about the application while it is being processed you may actually slow it down as you will take up someone’s time while they are looking into it for you.