Many people are aware of payday loans and often turn to lenders for short term loans to solve their sudden financial crunch. There are various options in the market but you need to consider the pros and cons of each option so that you don’t land in trouble. You would lose credibility as a client.
Apart from your side, you also need to check from where you can get the loan with best possibilities. Finding a reliable lender is quite easy nowadays. You can just search them online and compare their service terms and conditions and go for what is most suitable in your situation.
When applying for payday loans make sure the lender is approved and regulated by FCA. LoanPig is one such direct lender in the UK who also acts as a broker if they are unable to lend directly. You can get an estimate of how much you have to repay with your choice of loan amount and time period for repayment by visiting LOANPIG.CO.UK. The application is done completely online and generally, you would get a decision instantly. The maximum amount that you can borrow as a payday loan is £1500.
Benefits of Payday Loan
The best part of a payday loan is how fast you receive the loan without much hassle. It doesn’t matter where you are and what time it is. You can just apply for a payday loan at your own convenient time from your mobile phone, tablet or PC. Just fill in the form with the right information which takes just a few minutes. The lender would check the client’s affordability from the credit file.
After assessing the application, the lender immediately lets the applicant know about the decision and if approved, it doesn’t take long to get the money transferred. It is not a secured loan that does not take any collateral against the amount borrowed. It might be one of the reasons that it has a high rate of interest as it involves high risk.
But, of course, there are other benefits. You have a chance of getting this loan even if you have a bad credit score or a scarce credit history. Some lenders even lend to people on benefits with proper proof. The whole money lending process has to be finished within the same day of application. As you already know this type of loans are meant for emergencies.
How Is It Better Than Other Credit Options?
If you try to get a credit advance from a credit card, it will affect your credit score if the amount crosses the credit utilization limit. The penalty and interest will not be negligible. Moreover, for other credit options it is not easy to get approval. You need a good credit score and record. They take a long time to complete the assessment and come to a decision.
High cost short term credits are now regulated, so they are not disastrous once you maintain your part of the contract. They are readily available in the market.