8 Things About Payday Loans That Are Not True

There are actually quite a few things that lots of people get wrong when it comes to payday loans. If you are interested in acquiring this type of loan, you need to know all of the facts. You don’t want to make a final decision based on any misconceptions. These loans are wildly popular in the UK right now, but there is still a lot of misinformation that exists. When you take the time to learn these things, you can make a choice to match your needs perfectly.

  • You Need Good Credit to Get a Payday Loan

Some people believe that because private lenders run credit checks on applicants, you need a high score to get approved. The truth is that you can actually have quite a low score and still get the green light from many of these lenders. This is mostly a formality, though there are some things that can get you rejected. Certain lenders who see a bankruptcy or defaulted loan on a person’s credit history might not approve them. This largely depends on the lender though, as some are more understand than others.

  • The Interest Rates Make Payday Loans Unaffordable

You don’t have to pay a ridiculous interest rate if you are simply willing to spend some time doing research. It is important that you compare the rates that these lenders charge before making a decision either way. This will really help you with getting a rate that makes your loan affordable. The amount of interest you end up paying will depend on a few things, including your credit, the amount you borrower and the lender you choose. The more money you borrow, the more interest you will have to pay.

  • You Cannot Borrow Large Amounts

If you need to borrow a large sum of money in excess of £1,000, you can find numerous lenders that can potentially help you out. Not all of these lenders give out larger amounts, but with some research you can get your needs met. Just keep in mind that your borrowing ability will largely depend on your income. The reason that you have to put how much you make on your application is so the lender knows you can afford the loan.

  • Getting a Payday Loan Isn’t Safe

Getting a payday loan is actually very safe, especially if you go online to do it. The average private lender’s website is tightly encrypted to ensure complete security. This means that all of the information you submit is kept safe from malicious hackers.

  • The Application Process is Complicated

The process that you must go through to get a payday loan could not be simpler. You just fill out your application online and wait for a response from the lender. If you are approved, you will have to read over and agree to a document that contains all the loan terms. After that is done you will receive your money electronically. This process doesn’t take much time at all and cna be done entirely from home.

  • Private Lenders Are Not to be Trusted

The fact is that there are plenty of completely trustworthy private lenders that you can rely on to give you a fair deal on a payday loan. It is, however, still a good idea for you to look around and do your research. This way you will end up getting exactly what you need without any issues.

  • Self-Employed People Can’t get Approved

Each year thousands of entrepreneurs get approved for payday loans across the UK. It is definitely possible for you to obtain the funds you need if you have your own business. The process is essentially the same as it would be for anyone else. You will still need to provide the lender will proof of your revenue though.

  • Only People with Bad Credit Get Payday Loans

These days there are lots of people who are applying for payday loans, including those who have excellent credit. This is because these loans have something to offer for just about everyone. You don’t have to have a low score for this borrowing option to make sense. The more you look into these loans, the more obvious this will become.

Are you currently in a situation where you need to borrow a significant amount of money for any reason? If so, a payday loan can be of immense help. These loans have helped countless people in the UK, and they can do the same for you. If you have bills you need to pay, a wedding to finance or some other expense, this is an option to consider. It has a lot to offer that other loan options do not. If you are approved for one of these loans, you can get your money very quickly and easily.

Paying Back Your Payday Loan: Important Things to Consider

It is absolutely crucial that you pay back the payday loan you take out by the agreed upon date. There are lots of things to consider about this before you go ahead and submit an application online. When you take the time to think about these things, you will be able to get the money you need without any negative consequences later on. The worst thing you can do is to not take this seriously, because there is no chance of it ending well.

Figuring Out How Much You Need to Borrow

One of the best ways to ensure that you can pay back your loan on time is to first determine what amount you need to borrow. You should never go over this pre-determined amount, because it will only increase the likelihood of defaulting on the loan. It is very important that you do the math so that you can only take out what you need and not more.

Automatic Repayment

If you really want to pay back your loan on time, you should think about utilizing automatic repayment. The money you owe your lender will be taken from your direct account on the due date. Just make sure that you have the money in your account, because otherwise you will owe additional fees to your lender and bank. Automatic repayment gives you a simple way of repaying your loan on time that is very convenient.

Can You Pay Back a Payday Loan Late?

While it is usually possible to pay back a payday loan past the due date, you definitely want to avoid this altogether. Most of these lenders are willing to grant borrowers an extension of some kind. This could be only a day or two, and you shouldn’t count on getting a lot of extra time. When you are looking for the right lender, this is something you should find out. Ask each lender you are interested in about their policy on late payment. This way you will know what your options are like if you find yourself in this situation.

Late Fees

An overwhelming majority of private lenders that give out payday loans charge fees for those who are late paying back their loan. These fees can be fairly substantial, which is why it’s so important to pay back everything you owe on time. Again, you will need to find out what these fees will be like with each lender before making a decision. If you do end up having to pay it back late, you want to save as much money as possible. This information should be included in the loan contract the lender gives you to sign.

Getting a Good Interest Rate Helps

The lower the interest rate is on your payday loan, the better your chances are going to be of paying back what you owe on time. There are numerous things that you can do to minimize your rate, including shopping around for the best deal. You should make a point of going on various lenders’ sites to see what their rates are like. This is something that will vary quite a bit from lender to lender, which is why you need to do your research.

Effects on Your Credit

One of the many benefits of paying back your loan on time is that you should notice a significant improvement in your credit rating. This is one of the most effective ways to boost your overall score, so you will need to keep that in mind. If you don’t have very good credit right now, you will have to do what you can to change that as quickly as possible. Lots of people in the UK end up getting payday loans for this very reason. Failing to pay back your loan on time will only hurt your credit.

Get Your Loan Online

By getting your payday loan online, you will actually have an easier time with paying it back by the due date. This is because you will be able to make the payment without even leaving your home. These lenders accept electronic payments via credit and debit cards. You shouldn’t have any problems with doing this when the due date rolls around.

When you make paying back your loan a priority, you should be able to do so without any issues. You don’t want to make the mistake of putting this off, because it will only do a lot of damage to your finances and credit. If you really want to get the loan you need without any complications, you have to consider this information. It will help you to avoid all sorts of problems that can be quite costly in a variety of ways. Remember to find a flexible lender, as this will greatly improve your chances of timely repayment.