Representative APR 1081% (variable)- Interest 292% pa (fixed)


Paydayloan123. Loans from £50 to £750. Apply Now.

Why Payday Loans Are The Most Flexible Way To Borrow

Written By On

When you need to borrow some money, you want to know that you can get it quickly, easily, and without having to fill in endless forms. That’s why payday loans have become so popular in recent years. They mean that if you have a financial emergency, you can get some cash to cover it in minutes, as opposed to the weeks it can sometimes take for traditional loans to come through. The consumers of today want flexibility and speed in all aspects of their life, and that goes for their finances too, which is why this sort of short term borrowing has rocketed.

 Application process

Screenshot of the application process

Applying for a payday loan is much easier than many other financial products, and the majority of applications are simply done online. This means you can apply anywhere, and don’t need to visit a bank branch.

In order to lend responsibly, your payday lender or broker will ask quite a few questions to assess whether it’ll be affordable. This can include:

– Employment status

– Income

– Outgoings – including rent or mortgage, debt repayments, and expenses

– When and how you’ll be repaying

Once this is done, you’ll often have to agree to a credit check, and most brokers will be able to give you a straight answer right away. This is in stark contrast to dealing with many banks or credit card companies who will make you wait for a decision.

Setting up terms

When you find the right payday loan, you’ll be presented with terms and conditions, and it’s important to read them through. From this, you’ll be able to see when your repayments are, and how much they’ll be. Some places will give you options such as being able to pay weekly or monthly, or you might prefer to pay it off in one go. This will give you the flexibility to arrange your payments to suit your particular needs and pay schedule.

Quick payments

If you take out a loan via a bank or traditional lender, it can take a while to get the money through in most cases. You’ll often have to sign and return paperwork, or visit a branch, which can be difficult when time is of the essence. If you’re looking to get money right away because of a bill or other financial emergency, then a payday loan can be one of the best options around as it means you can get the bills paid as soon as possible.

Paying back early

A traditional loan will usually have strict terms and conditions about repayments. If you try to repay early, then you may face penalties such as having to pay back extra interest. However, with a payday loan, it’s often easy to pay back the money you own, and you can normally do this online. Advantages of this include:

– Saving money on interest

– Improving your credit rating

– Making it easier to manage your finances

Payday loans are unique in their ability to let you pay your loan back early, and it’s hard to find traditional lenders who offer this level of service.

Repayments

If you find yourself in financial difficulty and unable to pay back a payday loan, then it’s important to get in touch with the lender directly as soon as possible. They will probably have many different solutions to help you out of difficulty, which could include a deferment or making smaller repayments, depending on your particular circumstances.

Daily interest

Although the interest on payday loans is higher than you’d find with traditional lending, most places calculate the interest daily so you can save money by taking a shorter loan term. Some sites have an online calculator that means you can see how the amount will change if you have it for a shorter or longer term, and you can decide what will suit you best. You can always get the exact details from the lender before entering into the loan agreement.

Uses

There are many reasons why you might need a payday loan, and while some lenders may ask for a vague idea of what you need the money for, it’s ultimately up to you what you spend it on. Among the most popular uses are help with emergencies and simply bridging the gap until payday, but there are many things you can use it for. Some financial products are made to cover certain costs, from car loans to hire purchase, but with payday loans the decision is in your hands.

Communication methods

If you need to deal with your bank, there are often limited ways to do so, and although you may have online banking, not all lenders offer borrowing online. If you need to check on the status of your application, you may have to call or visit a branch during the day, which is inconvenient. Most payday lenders, by comparison, have the whole process online, and so you can get an update on your loans day or night, or use their online chat and email facilities to get help.

Further finance

Once you’re registered with a payday lender, and have paid back a loan, it’s usually easy to get a further loan if you need it. While payday loans are a short term solution, it’s good to know they are there if needed, and this means you know where to turn if there’s an emergency.

If you’ve never taken out a payday loan before, you may be worried that the process will be complicated, but for the majority of applications it’s almost instant. It’s also one of the most flexible forms of finance, which is easy to pay back, whether you want to pay it before the due date or set it up to pay in instalments. There are many reasons why you might need a loan, and when you need cash, you need it quickly, which is why short term borrowing is becoming so popular, giving you the flexibility that traditional banking doesn’t always offer.

About the author

Peter Davis Peter Davis is a Marketing Analyst at PaydayLoan123 specialising in financial products. Peter writes most of our articles as he stays up to date with the latest information. He enjoys most sports, particularly playing football and watching his favourite football team. Peter really like his food too as we have all witnessed first hand!

Comments are closed.