Fast Payday Loans

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If you need emergency cash, you will want it quickly - Why fast payday loans are sometimes required

 

There can be times when people need money and they need it quickly. There can be a range of reasons for this, people can poorly budget their finances for a certain time period or people can just simply overspend. I can’t stress enough how important it is for people to successfully manage their financial budget and make their repayments on time as agreed with the lender. Some bills are clearly more important to pay than other such as council tax or mortgage repayments however all debts if owed should be settled as failure to make the repayments can have severe negative consequences for that person. If people need some form of loan they have to realise that there are many different types out there in the financial market place. There are short term loans such as 1 month payday loans where people borrow a small amount and then repay the debt on their next payday plus any interest accrued on the loan, people can also potentially take out instalment loans and then repay over a set amount of payments until the total balance is settled. In this article I am going to focus on the payday loan product and why some people may consider taking out a loan of this nature when looking to borrow cash.

One of the main benefits for why people may choose payday loans could be down to the fact of how efficiently they can be sorted out and paid to the customer making their applications. Most of the applications are done online nowadays and if accepted they can be paid to the customer that very same day of them applying. However, in some cases people can be paid out into their bank accounts within just a few minutes after they get approve. This provides a great service for any customer who needs money quick, perfect for someone for example, if they have a large unexpected bill suddenly arrive and this they have not budgeted for, they now know that they can make the repayment as they have the funds available. Having a loan funded the very same day of the application being made is probably the biggest benefit of what the fast payday loan offer. There can be scenarios with this product and other forms of lending when the person applying may be asked to provide forms of documentation in order for the loan to be processed further. Some of these can include a driving license or a passport for identification reasons, a possible bank statement or utility bill for address conformation or maybe a payslip may be asked for to provide work information. Once these are sent to the lender and then further verified the loan can be processed so people may still be paid out the same day of the application. It is entirely up to the lender whether or not they request documentation but if they do it is up for that person to send this in as soon as they can. If they do not send it in then the application will probably just be declined. If documents are asked for and provided the application could still get declined for other reasons.

There can be times when people who are looking to aquire loans and they have poor credit. It is here a payday loan can be of assistance to this group of people. If people have struggled with managing money in the past or if they have had loans but not successfully repaid them on previous dates they will find that they now have a poor credit score. This as a result can lead to them finding it harder to gain credit in the future or making it more expensive to get received. A payday loan will almost certainly be underwiten using your credit file, however the lender may view certain items with greater or less importance than a major bank or building society for example. This way people can still be offered a payday loan even if they have a poor credit score. This is good for people who have found finance hard to come by recently, they know they can still get the finance required. Once any loan has been taken out it must be repaid. Loaning to customers in these situations does always provide a risk element to the lender and  that is why borrowing a payday loan can be expensive as the interest rates are high and they reflect the risk factor of lending to these certain borrowers.

Fast payday loans and why they are important to certain Consumers

If anyone is looking at taking out a loan of any kind they have to understand a few things. They have to know that there are a range of different types of finance that people can take out on a daily basis, people can apply for payday loans that will be typically repaid in a single monthly period, instalment loans are also available where a customer takes out a loan (possibly for larger amounts) but then repays the debt over a number of months that is mutually agreed between lender and borrower. A customer will also need to think whether or not they definitely need the loan and then know what they realistically need to borrow from the lender. There are so many different financial companies that lend money and they have a large range of customers that they can help on a regular basis with the services and benefits they can offer to then customers. In this article written below I am going to explain about what fast payday loans can offer to the consumers and why so many different people use products of this nature when borrowing money.

People looking at taking out a payday loan normally need the money reasonably quickly as the emergency that has prompted the need is not going away and may be getting worse. Most of the applications for payday loans are completed online within just 15 minutes and then if the application is then approved the customers will be paid the very same day of the application getting completed. In some cases with the product when they get approved some people may receive their money into the chosen bank account within just a few minutes. The funding time is always a very important element on any emergency loan and it can vary on the lender chosen but normally a fast payday loan can nearly always be paid out the very same day. In some cases however certain customers may have to provide forms of documentation in order to get the loan application processed further and once this is completed and only then will the loan be paid. Some of these documents that a customer will have to provide as soon as possible can include a driving license or a passport for identification purposes, a possible bank statement or utility bill for address details (a driving license can also show this) or a possible bank statement (again) or possibly payslip to provide work information confirmation. A contact on the work number can also be used frequently to determine a customer is in employment where they have stated. Once this has been requested a loan cannot be funded unless it is sent to the lender in question and it can normally be actioned through post, via email or texting the relevant information in. This is normally one of the final checks so once done the loan can then possibly be processed.

There are people out there looking for finance that have a poor credit score and have had trouble obtaining money in the past due to this. If repayments are missed on loan agreements then it can affect the credit file in a negative way and that as a result makes the credit score worse. Most high street lenders such as major banks or building society’s will not be able to assist this range of customers as they will not meet their current lending criteria however a fast payday loan can still look to lend to these customers and give them the short term loan that they need.  A payday loan will still run a credit check but the criteria they are looking for may not be the same as as one completed by major lenders out there hence why they can select a much wider range of people to lend money to. Because payday loans can lend to customers that are a potential risk of repaying the loan they charge high interest rates when the loans are accepted and as a result with the amounts borrowed at times payday loans can be hard to repay. The interest on such a product can obviously vary depending on the lender used but it will be around £24.00 charged per £100.00 per 30 days.

 

A guide to fast payday loans

For many of us the need to borrow a small amount of money is a common one. There are times in life when an unexpected bill or expense presents itself and as a result the required funds are needed quickly. Take for example a broken washing machine, of course such an item is essential to everyday life and it is therefore understandable that the item will need replacing quickly. For some consumers the funds needed to make such a purchase are not always readily available and a small loan will need to be considered. This is where fast payday loans may be able to assist. These loans were introduced as a quick and convenient resource when a small amount of money is needed quickly. The application process is fully online based and this means the access is widely considered as flexible. It is important to remember as consumers that these loans are designed with a specific purpose and that is to be used as a short term resource and are not designed to be used in the same way as bank loans or credit cards. This type of borrowing has actually been available for a number of years but the product being offered is now very different to what was first offered by the lenders of fast payday loans.

The market as a whole was first introduced to consumers above 10 years ago when borrowing money on a small scale was a relatively new resource. Although there have been store fronts offering a similar resource for many years and of course the credit card providers and banks as mentioned above, the ability to borrow online is still comparatively new. Consumers were introduced to a resource whereby a small loan ranging from £100.00 to £500.00 could be accessed via an online application process. Many lenders offer their services on a 24 hour basis which means as a consumers we can apply for a loan at a time which suits us. The process of applying usually takes little longer than 15 minutes and it is the aim of the lenders to gather all the information they require through this application form. The application form is therefore likely to ask for all personal details such as name, date of birth and address, as well as employment information and bank account details. The basic personal information will be used to establish your credit reference file information, with your employment information being used as part of establishing if the requested loan is affordable. The banking information is obtained in order to facilitate the actual loan itself. In addition to this the lender will likley ask for information about your income and expenses. This is so they can do an affordability assessment to make sure the loan is affordable to you.

The type of product being offered as fast payday loans will vary from lender to lender but generally speaking there is now plenty of choice depending on the needs of the individual. As was outlined above it is important when considering this type of loan that the right reason for borrowing is present. Given the interest which is typically associated with this type of borrowing, it is important to use these loans for unexpected bills or expenses, with the aim of repaying the amount borrowed as quickly as possible, without being unaffordable. This means avoiding borrowing of this nature for ongoing costs, such as council tax or rent, providing this is the case there is likely to be a product which fits the need.

There are two main types of fast payday loans on offer with lenders, classic payday loans and the newer instalment based loans. In both cases lenders are likely to offer amounts starting from £50.00 and extending to £1000.00 in some cases. The classic payday loan is fast becoming a more outdated resource given the restrictive nature of the repayment options. These loans allow consumers to borrow the amount requested until their next employment pay date. At that time the total amount borrowed in including interest is repayable as a lump sum. Given that in these cases interest is usually billed at up to 24.00 per each £100.00 which is borrowed per 30 days, a £200.00 loan could mean a £248.00 repayment. The other type of loan fast becoming a more popular resource within the market is instalment based loans. These loans allow the customer to repay the amount borrowed over an agreed period of repayment. This could be 3 months, 6 months or even 12 months depending on what is most suitable. Such loans allow the customer to avoid having to commit to a lump sum repayment which is unrealistic and may cause further financial difficulties, instead instalments are flexible and better able to fit in with existing expenditure.

 

By Kieran Moulden