Student Payday Loans in the UK: A Complete Guide
Attending a university is a huge milestone for many young people in the UK. This is an important step that will prepare them for life in the work force. But this major event also marks a huge challenge in terms of the financial aspect. The cost of acquiring education has resulted in many student families overcoming financial obstacles, which is why student payday loans have grown in popularity. At Money Pig, we work to help you find the best lenders in the UK that will assist during times of financial difficulty. There are plenty of lenders out there so it is a must to research your options in order to find the most reputable ones.
The challenge of making ends meet in the pursuit of university credentials is a story that is heard quite often. Student payday loans provide an avenue for university students to access financial resources to overcome any financial hurdles. When the related costs of your university studies start to create a strain on your finances, it is hard to recover. But payday loans offer an immediate solution to help you stay afloat.
The spending needs of a university student are not limited to the actual cost of obtaining a degree. There are variable expenses that can put a strain on your finances and make it difficult to cope. Student payday loans provide financial relief on university expenses such as the cost of housing, tuition, course materials (such as books and other learning supplies), transportation, lab fees, and daily expenses (food, etc.).
Students who go to a college or university that is far from their residence will have to find a place to live in while attending school. This is one of the biggest expenses that students need to shoulder, apart from the tuition and educational costs. Keeping up with your rent can easily eat up your finances and payday loans provide immediate assistance when you need to update your rent.
And speaking of tuition, the cost of universities and colleges in the UK are not always free and can still be expensive even when you qualify for government help. When enrollment expenses trump your finances, you can turn to payday loans to push your dreams of earning a degree forward. Aside from the tuition that you would have to pay, you must also pay for the cost of course materials and lab fees (if necessary). These miscellaneous expenses do not seem much but when you add them up, they can put a serious financial burden on students and their families.
Payday loans are ideal for students who have full-time employment, or those who are working and have opted to attend the university. The steady employment will open up opportunities for payday financing when needed. If you are employed on a part-time basis, you can still qualify, and payday loans can offer a temporary lift when the finances are tight. A steady employment is a favorable factor or credit consideration for payday lenders. While those with part-time jobs are still eligible, if you have full-time employment, it can boost your creditworthiness.
In addition to your financial information, payday lenders will also review other information accessible to credit reporting agencies. Among the information that will be reviewed are your full name, address, birth date, and credit file. This information will provide a snapshot of your credit history. Payday lenders for student loans will use the information to evaluate application although they might not delve as deeply into the information as traditional lenders do.
As long as you provide the information required above, you should be confident that you will qualify for student payday loans. But there are a few details in your credit history that could hurt your chances. Among them are outstanding debts, late payments, credit inquiries, house repossession, or legal actions (involving creditors).
Those who are new to the idea of student payday loans find it difficult to fathom that such a loan option could exist. After all, most payday loan lenders regard age and employment status as one of the main eligibility requirements for this type of loan. But there are an increasing number of lenders that realize that this isn’t always the case. There is another market for this type of loan that specifically targets students who are in need of financial assistance.
The widespread availability of UK lenders offering payday loans has provided a huge financial lift to students in the UK and their families. If you run short of money, you can look to outside sources to get the financial lift you need, albeit temporary. As pursuing education is not an inexpensive feat, payday loans help families make ends meet.
If you are one of those who are new to payday loans for students, this is the best place to learn more about this type of loan. The following are commonly asked questions for people who are interested about student payday loans. Educate yourself about how this loan works before you get started.
Top Questions on Student Payday Loans
- Do I qualify for a payday loan even if I’m a student?
- Is full employment necessary to qualify for payday loans?
- What can a student payday loan be used for?
- Will getting a payday loan as a student affect my credit?
- Do students with bad credit qualify?
- Are payday loans for students safe?
- Do all lenders offer payday loans for students?
- Can a student with no credit get a loan?
- Is credit check required for student payday loans?
- How much can students borrow?
- What are the repayment terms for student payday loans?
- What is the eligibility requirement for student payday loans?
- How soon can a student get their payday loan?
- How can students protect against “dodgy” lenders?
- How do students pay back the loan?
- Should you repay the loan in lump sum?
- Why start at Money Pig when finding student payday loans?
Yes. Payday loans are now available to students, which applies to students with either part-time or full-time jobs. You can find lenders in the UK that offer payday loans for students who are in need of cash assistance. In fact, some of them have loan products designed specifically for students.
This type of loan was developed to provide financial solution for students who are in a financial pitfall. These lenders understand how difficult it is to sustain a financially-free lifestyle given the expenses of becoming a university student. It is now easier to look for payday loans designed for students in the UK.
No. As mentioned above, students with part-time jobs can also qualify for a student payday loan. UK lenders understand the difficulty of maintaining full-time employment while being a student at the same time. Knowing this, they have made this type of loan available for students with part-time jobs. In fact, those students with part-time employment are the ones who are in need most of cash assistance due to the limited access to income and the expenses involved with being a student of the university.
At Money Pig, we act as an independent broker. We can match with you a lender that can satisfy your financial needs. We only work with lenders who are known for having a good reputation and transparency, so we are confident that they are the best solution for your needs.
There are many possible uses for payday loans for students. Being a student entails a huge expense, aside from the obvious costs involved with going to a college or university. The tuition is the primary source of expense among students, but there are also many other financial responsibilities for a student including transportation, boarding, and learning materials.
Unfortunately, not all families in the UK can afford the cost of studying in a college or university. As a reason, it is necessary to obtain a payday loan to acquire extra funds that can be used to cover the expenses mentioned above.
All types of loans, not just payday loans, will have some type of impact on your credit rating. The type of impact it makes will depend on the type of loan you get and if you are able to make payments on time. As a student, you might have more substantial concerns about taking out a payday loan, especially since most of you are still in the process of building your credit.
All direct lenders of student payday loans are legally obliged to perform a credit check when evaluating your application. But with our service at Money Pig, we are able to obtain your information and use that to show you which lenders are the best match for you. This process minimizes the need for you to apply to multiple lenders at the same time, which could damage your credit rating. As we find your match, you will significantly improve your likelihood of getting approved for the loan.
The process of matching you with the best UK lenders can also make the process faster and more efficient. You will have access to the money you need in a prompt manner. The process of taking out a payday loan will not hurt your credit score. But when you encounter problems during repayment (such as when you are unable to make payments on time), only then will your credit score take a dent.
Once you decide to take out a payday loan as a student, commit to repaying it on time. If you do this, you can even help improve your credit.
Payday loan lenders in the UK require a credit check when dealing with applications for student loans. If you need a loan and you have bad credit, you can still qualify. There are multiple factors that are evaluated by a lender to assess your creditworthiness. But if you have a bad credit, you might expect higher interest rates than usual.
It is a huge risk when you take out payday loans with high interest rates given that this type of loan already entails steep interest rates. But if you need the cash, you need to build a good repayment plan to ensure that the loan is paid off on time.
Payday loans for students offer the same protection as other types of loans. It is, therefore, a safe and competitive option for when you need extra cash, provided that you have diligently researched through various UK lenders. There are many unscrupulous lenders out there who will attempt to take advantage of students’ desperation to get quick cash. As long as you borrow from reputable lenders, there is nothing to worry about.
While payday loans for students are becoming more common, they are still not as widely offered as other types of loans. When shopping around for this type of loan in the UK, you might find that there are a few lenders to choose from.
Most UK lenders offer the same types of loan products and services. But some loan types are less common than others. Although student payday loans are growing in popularity, not all lenders offer them yet. To save time, you can use Money Pig as an independent broker to help point you towards lenders that do offer this type of loan. By using our service, you will be able to find lenders that provide this loan so you can speed up the application process.
It depends on the specific lender you are applying for. All payday loan lenders require a credit check during application. If you don’t have credit, it will be difficult for the lender to assess your creditworthiness. A student with bad credit would be a more favorable candidate as compared to those with no credit.
Again, the policies for each UK lender will vary. If this case applies to you, make sure to reach out to specific lenders you are considering seeing how they handle this particular case.
Yes. This is a mandatory step for all types of loans, including student payday loans. The credit check is an important step for the UK lenders in making a lending decision. During the credit check, they will review the students’ personal and financial information. The credit checks performed on students are more lenient as compared to other borrowers, especially fully employed individuals, though.
Hence, it is important to find a lender that specializes in payday loans for students. They offer a different method of performing credit checks and evaluating student loan applications based on the unique circumstances of students.
The amount that students can borrow through a payday loan will be solely determined by the lender by the time of application. They take into account various factors for evaluating how much a student is qualified to borrow, such as their credit history and financial information. Specific lenders also set specific caps on the amount of money they lend borrowers so that is also another factor to look into.
To give you an idea, the maximum amount that lenders can provide students via payday loans is at £5,000.
The repayment term for payday loans offered to students is the same with traditional payday loans. The typical repayment period is within the two-week period. When your payday loan is due, you must be able to pay the loan in full. Otherwise, late payments will entail late and penalty fees, which will cause you to sink deeper into debt.
To qualify for student payday loans, there are a few requirements that you need to comply with. The main qualification is that you have to be a student enrolled in any college or university in the UK. If you are employed, whether part-time or full-time, you need to submit your proof of employment as part of your application.
In some cases, an active bank account is required for approval. The payday lender will deposit the amount you requested once your application is approved to the bank account provided.
Just like a traditional payday loan, students can get their funds within 24 hours. This is one of the unique features of payday loans because it is ideal for those who would like to access funds in times of emergency. As long as you provide the documents needed upon application, you can expect fast approval and release of funds in 24 hours or less.
There are several ways for students to avoid being a victim of dodgy lenders that offer payday loans. One way to do that is to conduct extensive research on lenders offering payday loans in the UK. Once you have a shortlist, do a background check on each company on your shortlist. Read reviews and learn about the history of each company. It also pays to look at their website and read about their loan terms and rates.
Another way for students to protect against illegal lenders would be to use an independent broker. With the help of a broker, you can identify legitimate lenders that offer payday loans for students. Not only that, you can also save time from doing your search of lenders in the UK.
The method of repayment varies from one lender to another. This is often discussed with you upon approval of the loan and before the funds are released. In most cases, the amount is debited from your account once your loan is due. You can also opt to pay the loan early, especially if you want to avoid late penalty fees. Make sure to review the loan agreement to ensure that you avoid any unnecessary fees or charges.
This varies from one lender to another and the details of your loan agreement. Some UK lenders require a lump sum payment while others offer easy repayment schemes. Before you choose a lender, it pays to know what repayment schemes they have to offer. This will enable you to find a lender that matches your financial situation and the method that makes it easier for you to repay the loan.
Not all UK lenders offer payday loans for students yet. While it has grown in popularity in the last few years, it is still very limited in terms of available options. At Money Pig, we work as an independent broker helping consumers in search of the best payday lenders in the UK. You can use our service to help save time and effort in searching for lenders that offer student payday loans.
We have a list of reputable lenders that offer this kind of loan. We will gather your information and match you with the lenders that would be a best fit for your needs. We take the guesswork out of your payday loan processing and ensure that you can boost your chances of getting approved. Money Pig is, therefore, your ticket to ease your financial woes.
When you use the services of an independent broker, you won’t have to worry about paying higher interest rate or covering extra fees. The broker is paid for via commission by the lender, so it won’t affect you, the borrower, in terms of the amount you owe. Feel free to use our service for your own benefit and to help you find the right lender.
For students struggling financially, there are also independent agencies that you can turn to if you need help with your financial situation. You may check out Money Advice Service for free financial help and consultation.