These days, we all seem to need a little cash. The hardest part is how we go about getting it.
We could enlist the help of our family and friends, or we could ask for a loan from the bank. You may have even considered borrowing money from somebody you know. You may also consider taking out a cash advance loan, also known as a payday loan. But what exactly is it? And how do they work? This article will clear things up for you by giving you the information you need to know to make an informed decision. So sit back, relax and read away.
Securing a payday loan is easy
You should know that getting a payday loan from a lender is effortless as long as you are a permanent resident of the UK and have a job.
You can apply for new Payday loans online, over the phone or in person. If you apply for a payday loan online, you will instantly get your money, provided everything is in order. When applying for a payday loan, make sure that you read the fine print before signing anything or giving your credit card information. This will ensure that you don’t sign up for any hidden fees or charges that could cost you more money than you want to spend.
Types of payday loans
Payday loans are short-term loans, usually for a few hundred pounds, which are meant to help you cover a financial emergency. They’re small and relatively cheap loans, but they can come with some hefty fees and interest rates. There are three main types of payday loans – cash advance, instalment loan and line of credit. The most common is the cash advance loan.
Cash advance: These loans usually last for about two weeks and carry a flat interest rate. As soon as you pay off the loan, you can take out another one if needed. You might be able to get multiple cash advances in a year. You can find more information about Cash Advance loans online so you can get a better grasp on what their benefits are.
Instalment: These loans are longer-term and come with higher interest rates than cash advances because they’re meant to be repaid over several months or even years. They’re typically around £1,000 in value and last between 12 and 60 months. Interest compounds daily on the unpaid balance, so the total cost of an instalment loan can quickly add up.
Line of credit: This type of loan functions like a credit card or overdraft protection, except that it’s secured by your paycheck rather than your bank account. You can borrow up to a certain amount each month based on your paycheck for 12 to 60 months at once.
Take your credit score into account
Many people don’t know this, but their FICO score is taken into account when applying for a payday loan. Getting a payday loan should be no problem if you have good credit scores. If you have bad credit scores, it doesn’t necessarily mean that you won’t get a payday loan. However, you will be charged with higher interest rates and fees than someone who has good credit scores.
The loan company will want to make sure that they can trust you by getting their money back at the end of the day. Someone with bad credit scores might not be able to do this, which is why they charge them more.
When you need a payday loan, it’s easy to feel overwhelmed by all the options out there. Simply put, there are just too many lenders to choose from, and you’re likely overwhelmed. But don’t fret because this guide is designed to lay out what you can do today if you’re looking for options that can help your financial troubles.
New research has revealed that only one in four civil servants believe their department is…