At some point in life we may need financial assistance. Banks offer loans to tend to such situations. Lenders take a risk by offering you loan and hence charge APR and interest on the borrowed amount. Taking loans require finding a reputable lender, completing paperwork, submitting loan application and waiting to loan approval.
But there are situations when you need instant cash to tend to financial emergencies. There are quick short-term loans that let you borrow a small amount of money and repay it within a short duration. Payday loans are popular short-term loans that are hugely beneficial to sort out financial emergencies.
Purpose of payday loans:
Payday loans aren’t like other mainstream loans. They aren’t meant to be used as a go-to choice when you are in need of money. They are specifically designed to be used during financial emergencies like unexpected medical bills, rent, car repair work etc. Since lender run minimal credit checks before granting loans the interest rates are high.
If you are in need of instant cash start by finding a reputable direct lender. Visit https://loanpig.co.uk for affordable payday loans. They are the go-to choice of UK residents for quick loans due to their fair interest rate, fast loan approval process, easy of loan application submission and high loan acceptance rate.
Considerations before taking loan:
Be it any loan, the borrower must make timely payments to ensure that their credit score doesn’t go down. With payday loans where the interest rate is high, failing to make timely payments would push you into more debt. Before taking payday, loans take the following into consideration.
- Calculate the exact amount you need: Short-term loans are expensive than conventional loans and so if you end up borrowing more than you require, you’d be unnecessarily paying more repayment amount. Borrow the exact amount you require to avoid paying extra.
- Ensure you can repay the loan: Depending on the lender, you may have to make the repayment during your next payday or as instalments over a period of few months. Work out a budget sheet and check if you would be able to repay the amount you owe after paying off other monthly expenses.
- Understand the risks involved: Payday loans come in handy without a doubt, but in case you fail to make timely repayments, your credit scores fall, which in turn hinders your odds of future loan approval. You would come across as an unreliable borrower in addition to finding yourself in more debt.
- Pay attention to the terms and conditions: FCA strictly regulates the payday loan market and has fixed a cap on interest and APR rates. However, lenders have their own set of loans and conditions with respect to penalty for late payments or other fees. Read them thoroughly before accepting any loan.
Always seek financial help from reputable FCA approved money lenders. They are more transparent about the repayment amount and there are no hidden charges. Direct lenders are a recommended choice due to the absence of middlemen involved and quick loan approval process.