UK Payday Loan – Getting the best deals from loan companies
The financial global crisis has really taken its toll in the global market. As it is, financial problems are much harder to deal today than it is before. UK payday loan offer quick solutions to all our financial cringes. Albeit the high interest rates, people turn to loan companies for solution as they offer quick cash in times of financial needs.
Nowadays, UK payday loan is slowly gaining popularity amidst the financial crisis people are experiencing. Personal emergencies may befall everyone; and even the most prepared individuals might be put in tight situations in need of urgent cash. In such cases, UK payday loan is a great alternative to money making strategies. However, before getting one, borrowers must review their current financial capacity to know if they are really capable of paying for the principal and high finance charges.
Payday lenders are often viewed as “loan sharks”. And that is really understandable as they offer quick cash at the cost of high interest rates in addition to quick repayment terms. On the average, a borrower might be able to get quick loan amount ranging from 100 to even 1500 pounds depending on his financial report. However, since this UK payday loan are essentially short term loans, borrowers must pay the loan within the next pay period or about 2 to 3 weeks time. In addition, borrowers must also shoulder the high interest rates that the loans carry. Most loan lenders would add about 200 to even 300 percent interest depending on their offers. For a salaried person, this high interest rate could be a huge burden to your monthly budget.
But you may wonder how loan lenders and UK payday loan are still able to survive despite these criticisms. Since many loan lenders would easily encounter problems with regards to repayment, they provided ways to ease repayment terms. Nowadays, it is already possible to find loan companies who offer installment plans for loans and even extension of repayment terms. That is, they would with money borrowed until your next two pay periods. Although the overall period of repayment is capped at around 6 months, that would still be ample time for the borrower to gather money to pay the loan lender. However, it must taken into consideration that the longer the loan is unpaid, the higher the finance charge. So, it is still best to settle all accounts on the due dates to avoid the high penalty charges that come once the loans remain unpaid.
UK payday loan requirements
Before you get approved for your UK payday loan, you must certain requirements set by the lending company. Although these requirements may vary from one loan company to another, these are the most common things that these companies look for. For a borrower to apply for a UK payday loan, he must be at least 18 years of age. With such low age requirements, loan companies may be thinking that a UK payday loan will be able to address problems of independent students. Most of the time, borrowers of this age would use the money for immediate tuition needs or other school expenses.
Another requirement would be a stable job with at least 1000 pounds monthly income. Since loans are required to be paid in a short notice, loan companies want to be guaranteed that borrowers will indeed be able to pay for the approved loans. At a 1000 pound salary, borrowers might be able to pay a 1500 UK payday loan in about two pay periods.
Nowadays, UK payday loan transactions are made easier as payday loans online are already available. Most applications can be accomplished through an online form where borrowers must provide personal, debit card and bank information. Once everything is accomplished, loan companies will present you with a contract that you will have to agree on. At this situation, it would be best to review the contents of the contract paying close attention to details such as annual percentage rate or interest rates, repayment terms and loan length.
The timing of the payday loan application process is not important nowadays. With everything turning online, transactions are made easier and approval times are shortened while increasing approval rate. More often, instant payday loans might be approved within the same day and withdrawal can be made then after. Some private payday loan lenders even offer some benefits for their loans that is why it is somehow good to compare these loan lenders available to see which one offers the best deal.