7 Things People Get Wrong About Payday Loans

There are a lot of things that people don’t understand about payday loans, and it is important for you to learn the truth. These loans can be of immense help if you need to pay for something important but just don’t have the money at the moment. The more you learn about these loans, the easier it will be to make a decision that is right for you.

  1. The Interest Rates

Some people believe that interest rates on payday loans are always horrible. The truth is that they actually aren’t that bad, especially if you take the time to shop around. If you spend some time getting quotes from different lenders, you can get a pretty solid deal. The interest rate you get will partially depend on your credit though. It is important to maintain realistic expectations while still doing your homework so you don’t spend more than you have to.

  • Regulations

Another thing that people get wrong about payday loans is that there are no government regulations in place. In the last couple of years there has been quite a bit of legislation passed to protect borrowers. This means that you feel free to borrow with one of these loans without having to worry. These regulations will ensure that you get the financial assistance you need without fear of being taken advantage of. There are plenty of legitimate and trustworthy private lenders that you can get these loans from. It is, however, still important that you research your options.

  • Borrowing Amounts

It is a common myth that you can only borrow a few hundred pounds at a time with payday loans. Depending on your income, you can borrow upwards of £2,000. This will allow you to get the money you need for whatever important expense you currently have in your life. The lender will take a close look at how much money you make before deciding whether or not to approve your application. You will be required to submit detailed proof of income when you apply for one of these loans, so keep that in mind.

  • Difficulty Paying Back the Loan

One of the things that people are most afraid of about payday loans is that they are difficult to pay back. In actuality, most people who get these loans are able to pay back the full amount on time without any issues. Part of the reason for this is because the terms are usually so short. When you have a loan term of two weeks, you won’t be hit with a ton of interest and other fees to pay off in additional to the principal.

  • Applying

You might have heard that applying for a payday loan is a real hassle, but it couldn’t be easier. The fact is that it doesn’t take very long at all to get one of these loans, and you can do it all online. The whole process makes getting the money you need more convenient than you could possibly imagine. In fact, you could get the money you need the same day that you submit your application. The application itself only takes around an hour to complete, which is a huge plus.

  • The Fees

If you are worried about having to pay tons of fees on top of the principal and interest on your loan, you can relax. While there might be one or two fees with these loans, they are usually pretty nominal. You can also most likely get some of these fees waived by the lender if they are reasonably flexible. All it takes is a little bit of light negotiating to achieve this. Most private lenders that give out payday loans don’t stack on any hidden fees.

  • Limitations

Despite what some people think, you can actually use the money you get with a payday loan for anything you want. Unlike traditional bank or credit union loans, there are no limitations on how you can spend this money. This just makes it so much easier for you to pay for whatever you need. The lender won’t ask you any questions about why you need the loan, and if they do it is just formality.

As you start learning more about what payday loans are actually all about, you will be increasingly tempted to get one yourself. These days practically everyone is applying for these loans, and it’s not difficult to see why. Payday loans offer far more convenience and flexibility than standard bank loans. You can use the money however you see fit, and it is insanely easy to get approved. The whole process of acquiring one of these loans takes about 1-2 business days at the most. There is no better borrowing option for fast cash with minimal strings attached.

Important Payday Loan Features You Should Pay Close Attention to

There are certain features and aspects of payday loans that demand your full attention. It is crucial that you learn about these things so you can get this type of loan without having to worry about experiencing problems later on. It’s no surprise that they have become so popular in the UK and throughout the entire world with how flexible and easy to get they are. This article will key you in on some of the essential points of these loans that you should focus on.

Processing Time

When you are trying to get a payday loan, you will need to find a lender with a quick average processing time. You can get this information by simply reading reviews from previous customers. This will give you a better idea as to how fast and efficient each lender really is. The last thing you want is to days or even weeks for your application to be processed. You also don’t want to wait more than a couple of days to get your money if you are approved.

Amount

Some lenders give out more than others, so you have to keep this in mind. You should try to look for a lender that is willing to give out larger amounts, especially if you have a big expense to pay for. Just remember that your income has a direct impact on how much you can borrow. Yu also need to think about how much you need. Don’t borrow any more than you require at this moment in time.

Online Application

You should never try to borrow from a lender that doesn’t give you the option to apply online. Fortunately, these days most private payday loan lenders do offer online applications. This makes getting your loan much easier and more convenient. It should only take 30 minutes to an hour for you to get through the application and submit it.

Loan Term

The length of your loan term is definitely something else that you’ll want to keep in mind. You should try to get a shorter term so you don’t pay more interest than you really need to. The fact is that you just don’t need a month to pay back £500. A term of around 2 weeks is perfectly adequate and even ideal for most short-term payday loans. If you are borrowing a couple thousand pounds, a term of 3-4 weeks might be appropriate. Some lenders give you an option for a longer term, but you should really think twice before doing it.

Fees

Fees are an unfortunate and inescapable aspect of most loans, but that doesn’t mean you shouldn’t pay any more than you absolutely have to. When you are evaluating a lender’s loan offer, make sure that you take a look at the fees they are going to charge you. If it seems excessive, you will probably want to do some negotiating. There is a good chance that you can talk the lender into reducing or even waiving some of the fees. The origination fee can usually be waived upon request.

The Website

You will even need to pay close attention to the website of each private payday loan lender before choosing one to apply with. Make certain that you only fill out these applications on websites that are confirmed to be secure. An easy way to tell if a website is secure is if it has the “https” instead of just “http” before the web address. Look at the top of your web browser to see this. If it is not a secure website, you don’t want anything to do with the lender.

Requirements for Eligibility

You’ll quickly find that every lender has their own set of requirements for eligibility, so you need to know what they are from the beginning. Any legitimate lender will provide you with this information right on their website. This will give you some idea as to what your chances are of getting an application approved. Take a look at the income requirements, as this will be one of the most relevant factors. If you don’t think you will get approved, you probably shouldn’t even try. Just look for another lender until you find one that matches your needs.

When you spend some time taking a close look at all of these payday loan features, you can get the money you need without any unnecessary hassle. A surprising number of people pay more than they have to with these loans because they weren’t careful enough. It is always a good thing to be cautious when you are borrowing any amount of money. This article can serve as a reference to help you as you go forward to obtain a payday loan for whatever expenses you may have.