A short term loan, such as a payday loan can be extremely useful if you need money fast and you cannot wait until payday. You will be able to borrow up to £1000, although how much will depend on your specific circumstances. The loan will need to be paid back on your next pay day unless you want to have to pay extra fees.
There is not a large amount of requirements to get a payday loan. You will need be at least 18 years of age and have a job which pays over £1000 a month. You will have to prove that you have a job and a UK bank account. No credit rating is required, which means that even people with a poor credit score will be able to have a loan. Some lenders will even be flexible about employment and if a potential borrower can prove that they have a regular income, then this could be enough to allow them a loan, even if that income is not from employment.
There have been negative stories in the press about pay day loans and this can put people off. However, it is worth remembering, that despite the seemingly high interest rates, these are based on yearly borrowing, when in most cases, payday loans no credit check are only taken for a few weeks. This means that you should worry about the actual cost of the loan, rather than the APR. It is true that costs will increase, if you do not pay the loan back on time and it is therefore sensible to only take one out, if you are sure that you will be able to pay it back.
One of the main pluses of a payday loan is the speed that you can get the money. It only takes a few minutes to fill out the application form and it can be less than a day until the decision is made as to whether you have approval for the loan. They tend to be used for emergency expenses when there is very little money left in the bank and so not enough funds to cover it. The payday loan can give you the money that you need and tie you over until the next pay day.
When to Borrow Money?
It can be difficult to make the decision as to whether to borrow money or not. It is something which you think hard about as you will have to pay back interest as well as how much you need. Find out how much the repayment amount will be and consider whether you can afford it as well as whether it is worth the cost. Consider the consequences of not have the money and the consequences of having the money and which will be the best for you.
How Much to Borrow?
When you are considering borrowing money, it can be difficult to know how much to borrow. You may be restricted in how much a lender will let you have, because of your personal circumstances. However, it is not always to borrow the maximum amount that they will lend you because you will be charged for it. It is therefore best to borrow the minimum necessary so that your fees are lower and therefore the loan is more affordable.
How Long to Borrow For?
Loans will have different repayment periods. Basically, the longer that you have the loan, the more expensive it will be and so it is best to pay it off as soon as possible. Short term loans can therefore be a good option as you will quickly clear yourself of debt. They also have the advantage of not leaving you with a long term burden of debt, which can be a scary prospect for many people.