Best Payday Loans – How to Choose the Right One?
Payday loans offer a great solution for anyone who has a cash emergency and are in need of immediate cash. While this type of loan has gotten a bad rap, the best payday loans you can get through Money Pig is designed to offer unique solutions for your needs. Whatever your financial problem might be, you are guaranteed to find the right loan provider here at Money Pig.
Payday loan is one of many types of short-term loans. In order to have access to immediate credit, you are expected to pay for high interest rates. It is also commonly referred to as cash advance loans.
Just as payday loans are acquired quickly, they must also be paid quickly. In most cases, payday loans in the UK must be paid within a month (referring to one payday cycle). Due to the ease of processing and payment, a lot of lenders in the UK make this type of loan available online. This facilitates in giving borrowers easy access to the cash they need and for faster approval process.
Are you looking for the best payday loans in the UK? You have come to the right place. Here, you will learn about a few common questions you might encounter if you are new to this type of loan, as well as additional information you need to determine where to get one.
Frequently Asked Questions on the Best Payday Loans
- What to look for in the best payday loans in the UK?
- Who is a candidate for payday loans?
- How do payday loans work?
- What are payday loans for?
- How much can I borrow?
- Can you process payday loans online?
- What happens if I pay off the loan early?
- How do you find a lender that does not require a credit check?
- Can I have two payday loans simultaneously?
- How soon can I re-apply after paying off the loan?
- Do payday loans hurt your credit?
- How long does a payday loan stay on your credit?
- Are payday loans illegal?
- Are payday loans good or bad?
- Can people with bad credit qualify for payday loans?
- Who are the top payday lenders in the UK?
- Is credit check required for payday loans?
- How fast can you get a payday loan?
- What happens if I’m unable to pay off the loan on time?
- How is interest rate calculated in payday loans?
- Can Money Pig help find payday loans for people with poor credit?
Payday loans have gotten a bad rap in the loans industry. When consumers hear the phrase “payday loan”, most would automatically assume that these lenders are dodgy. But the reality is, you can find plenty of reputable lenders out there that offer payday loans in the UK.
One way you can determine if a company is reputable is to look at their website. You can determine a lender’s credibility by what they put out on their website. The more transparent they are in providing information about their company, the better able you can trust them. Aside from providing adequate information about the company and its contact information, they should also be transparent about the fees and payment structure.
When looking at reviews, check out what the clients have to say about the said payday lender. If possible, you can gather more information about the lender from third-party review sites. Keep a close eye for honest reviews that will provide you with an honest assessment of the company’s reputation and credibility. If you have any doubts, you can contact the lender directly to ask any questions and gauge if they meet your borrowing needs.
The qualifications for payday loans are similar to most types of loans. You need to be at least 18 years of age, a UK resident, and have a valid bank account. If you meet all three qualifications, you can get approved for a payday loan.
There are some cases wherein people with bad credit are not approved but it varies on a case-to-case basis. It is now possible for people with bad credit to find lenders that offer payday loans for those with poor credit. If you belong in this category, it is important to do a thorough research of lenders that can accommodate those with bad credit.
Payday loans work just like most traditional loan types. The main difference is that the amount you can borrow is smaller than traditional loans. In addition, the length of the loan is shorter. The loan is charged with an interest rate, but you will not have to pay any additional fees if you are able to pay off the loan on time.
Some lenders will conduct a credit check while others will require proof of employment. Once the loan application is approved, the fund is typically released within 24 hours (from the time of application). As soon as the fund is released, the repayment period begins. The repayment terms will vary from one lender to another, so make sure you check the details before you agree to them.
When you apply for a payday loan, you are not asked to provide the purpose of the money. However, there are plenty of uses for payday loans, especially since they are used for emergency situations (such as when you are short on cash or have medical emergencies). They money you get from a payday loan can, therefore, be used for any purpose you deem fit. It will enable you to survive any financial crisis until your next paycheck arrives.
The amount of money you can borrow through payday loan will be determined by the lender. Each lender has their own limits as to how much they can offer but it will also be determined by the qualification of the borrower. On average, you can borrow anywhere from £75 to £750.
In most cases, your borrowing potential will be based on your income. The more you earn, the more you can borrow. But since this is a short-term loan, it is important to borrow only the amount of money you can pay within your next paycheck. Otherwise, you will be faced with stiff penalties and other charges.
Yes, most UK lenders are now able to operate online. Some even enable you to process your application for payday loans online. The best payday loans UK lenders offer online portal for application to make it more convenient for borrowers to access their financial products and services.
If you wish to pay off your payday loan before its due date, most lenders will allow it and you won’t have to incur pre-payment penalty. Make sure you discuss it with your lender beforehand, or before you make payments to pay off the loan in full (or better yet, check your contract).
Many lenders would be willing to reduce your interest rate if you are able to pay off the loan before the due date. For a few others, though, you will be paying the fixed interest rate for your loan that you agreed on at the time of application.
The truth is payday lenders that don’t require a credit check are few and far between. There are two main reasons why most people have difficulty getting approved for a payday loan. The first reason is that borrowers would apply for many payday loans in the past that required credit check. The second reason is that these credit checks negatively affect the credit score. By the time you pursue a payday loan, your credit score has dipped tremendously that it lowers your chances of getting approved at all.
Do not believe lenders that claim they can process your payday loan application without a credit check. The reality is, they simply cannot release a payday loan without doing a credit check. Most have developed a credit check system that will avoid the detrimental effects to your credit score.
There are no rules that indicate you cannot apply nor have more than one payday loan at the same time. However, payday loans come with high interest rates, so it is not a good idea to have more than one loan at the same time. You should pay off your existing payday loan before you apply for a new one.
Payday loan is a type of short-term loan that is designed to give you quick access to funds during times of emergency financial situations. You should only apply for one when necessary or if you have no other means to produce the funds you need. If you find yourself constantly having to apply for payday loans, it might be time to evaluate your finances. You can speak to a finance expert so you can determine how you can improve your financial situation.
If you were able to pay off your previous loan, you can apply for a new loan immediately. However, you still have to go through the same process for approval as your first loan. With that said, there is a possibility that you can get refused for a loan (even when you were previously qualified or had paid off the loan). Each lender uses a different method for the approval of loan applications, and you will be subjected to that, accordingly.
Payday loans can only hurt your credit if you are unable to pay it off or miss payments. When you pay off your payday loan on time, you should not worry about it hurting your credit score, especially if you used the money to survive a financial crisis. Before you apply for a payday loan, commit to paying it off on time to avoid negatively affecting your credit score.
Just like any other types of loan, any late or unpaid loan will stay on your credit for up to 6 years. This type of loan is regarded the same as any other methods of borrowing. This is one more reason why you need to strive to pay off your payday loan within your due date.
No. Payday loans are legitimate forms of short-term, unsecured loans. You need to beware of lenders that might skirt the law in an effort to capitalize on those who are in need of cash. Make sure you research the lenders with which you get your money from to ensure that they are reputable and won’t take advantage of your financial situation. You should also beware of payday loan lenders who charge astronomically high interest rates (even for payday loan rates standard).
It depends. Payday loans are good if you use the funds wisely, such as to cover for expenses during a financial emergency. It is also good if you are able to pay it off by the time your next paycheck arrives, which is the ideal model for this type of loan. But it can be bad if you fail to make payments on-time. When you are unable to pay off the loan by the due date, you can be charged with stiff penalties and late fees. It can also hurt your credit score if you don’t pay off your payday loan.
Most payday loan lenders require a credit check for those who wish to apply. People with bad credit might be worried that they can get refused for the loan. There is always that possibility but there are also lenders who target those with bad credit. If you can find them, it is best to go for these lenders instead.
Credit unions and online payday lenders are also more likely to offer payday loans for people with bad credit. Banks are typically stringent when it comes to their qualification requirements and people with bad credit will most likely not get approved.
There are also other reasons why people with bad credit are denied by payday loan lenders aside from the inability to meet the minimum requirements. One of those reasons is if you have any other existing payday loans. This could be an indicator that you have difficulty making ends meet and therefore unable to make payments.
The most common reason why people with bad credit are not approved for payday loans is if they don’t have stable income. If you are recently unemployed or use welfare as your main income source, then chances are you won’t qualify for a payday loan. If none of these cases apply to you, then you might still qualify for a payday loan even with poor credit.
If you lied on your application, you could get rejected for the loan, too. Even if you have bad credit, make sure to be truthful in filling out information during your application.
There is no definitive answer to this question. The truth is the best lender will vary based on your unique and individual needs. There is a specific type of loan and lender that is best suited to your unique financial situation.
Before you begin your search for a lender, it is important to evaluate what you really need or are looking for. Using this information, it becomes easier to compare through various lenders and narrow them down to find the best lenders to match your needs.
We can help direct you to the best lenders in the UK. Our goal is to help you compare through these various lenders to help with your current situation.
It varies from one lender to another. Most payday loan lenders do not require credit check and have few requirements for approval. In some cases, lenders do not even perform income verification – all they need is identification and a bank account with good standing. Then again, each lender is different. Make sure you perform a thorough comparison to find the best payday loans in the UK.
Even though some lenders do not require a credit check, you still have other eligibility requirements to meet to get approved.
On average, payday loans are deposited into your bank account within 24 hours. There are a few factors that can delay but if there is no problem in your application, then you should expect to get funds within a day from the time of your application.
The fast approval process and easy access to funds are a few of the reasons why payday loans are popular, even with its high interest rate and short repayment period.
If you are unable to make payments on time, talk to your lender directly. Let them know that you will be unable to complete payments for the loan before your due date arrives. When you do this, it will enable you to negotiate with the lender so you are not charged with late fees or other penalties (which can be stiff).
Lenders appreciate it when borrowers are honest towards them about their inability to complete payments on time and some might be willing to negotiate with you, provided that you can promise to pay it off at a specified date. Again, not all lenders are the same but most of them would appreciate your honesty.
The calculation for the annual percentage rate for payday loans will vary from one lender to another. Most lenders use the same formula: interest rate ÷ amount borrowed and then × 365 (days in a year) ÷ repayment term (number of days) and x 100.
To put it simply, the interest rates on payday loans are astronomically higher than other types of loans or credit. On average, the annual percentage rate (APR) for a payday loan is from 300 to 400 percent. On the other hand, credit card APRs range from 12 to 30 percent. Based on this figure alone, payday loans charge higher interest rates than any other types of loan. This interest rate is charged in exchange for the convenience, fast approval, and immediate access to cash when needed.
Given the high interest rates, it is important for borrowers to do a thorough comparison on lenders. This will give you the opportunity to find the most ideal rates that is better than what most lenders can offer.
Yes. As mentioned above, there are more lenders in the UK that can facilitate the financial needs of those with bad credit. If you are looking for the best payday loans in the UK for people with poor credit, you have come to the right place.
Money Pig gives you access to a wide range of financial products and services to suit the unique needs of our clients. We can help you find lenders that specifically target those with poor credit to make your search easier and to save you time. This process is done prior to your application, which increases your chances of getting approved for the loan. At the same time, it can maintain your credit score (rather than hurt it by getting rejected for a loan application).
While you cannot bypass the credit check, it does not mean that you won’t qualify for a payday loan. Other factors are also taken into account when evaluating your application to boost your chances of approval. By directing you to the right lender, we are confident that we can provide resolution to your financial woes in a timely and prompt manner.