Short Term Loans and Affordability

When considering your borrowing options a popular lending market for consumers is the short term loans market. Short term loans have been available to consumers for many years now and as the years have passed the resource which is offered has adapted and changed to ensure the product remains useful. The key with this unique type of borrowing is to ensure that the loan selected is one which is truly affordable and this means it works alongside the other normal costs you face. This approach of making sure short term loans are affordable is very much the focus of lenders who exist in the modern day market place but this has not always been the case. As mentioned, the market and the products available have changed over the years and this is as a result of not always being able to correctly meet the true needs of the customers who turn to short term loans.

Short Term Loans

In the past when we generally referred to short term loans this was in the content of payday loans. Payday loans are a product and term which millions of consumers are familiar with. In some respects the payday loan was the first type of loan to be offered in the manner of an online lending resource and as such had a few lessons to learn in the early years of trading. The concept of the payday loan was simple in that lenders gave consumers the ability to borrow a small amount of money, quickly, to be repaid on their next employment pay date. The aim was to ensure the product was simple and easy to understand due mainly to the fact that this specific type of borrowing was new and therefore consumers needed to be able to trust they were getting a product exactly as it was presented. Payday loans often meant borrowing in the region of £300.00 and paying £30.00 interest for every £100.00 borrowed, so a £300.00 loan would cost £390.00 on the agreed date.

Although simple the payday loan has not proved to be the most desirable way of borrowing from short term loans lenders as the years have passed and this is mainly due to the fact that they were not always affordable to the customers using them. The lump sum repayment structure lead to customers being put in a position where they could not effectively make repayment to satisfy the loan agreement and making costly interest repayments instead. As the years have passed this fact became increasingly clear and as such lenders had to make a change in order to ensure their product was still used by consumers and offered a product which was genuinely useful. Short term loans nowadays are delivered in a package which allows repayments to be made over a number of months and therefore at a reduced rate. These loans are therefore known as instalment loans. Instalment loans are increasingly becoming the only choice considered by consumers thanks to their ability to be flexible and therefore in fit alongside their existing expenses.

Payday Loans Found in The UK

If anyone is ever looking to borrow money at any stage in their lives they will always have to consider a number of different things before any application can then even look at being completed. First of all someone must know that they definitely need to borrow the money in the first place and then if so they can then look to only borrow a realistic and sensible financial amount. Any amount borrowed must be affordable for that person so they can then make sure they are in a position to repay the debt. The actual type of finance can then be selected and here there can often be multiple choices. For example from the financial market place if a loan is needed it can be a short term loan such as payday loans UK or possible instalment loans can be required. Credit cards are another common way to borrow money. As well as people considering the finance they need they must also choose the lender to submit any application through. Again there can be multiple choices here to. Once all of these have been decided on an application can be submitted.

Payday Loans Found in The UK

In this article I am going to look further into the payday loans UK borrowing market so basically looking at Payday loans. A high number of different people are looking for Payday Loans UK when they need to borrow money. These are short term loans that are often used by people who have poor credit and therefore may have been rejected elsewhere. The direct lenders who aim to provide people with payday loans aim to help people with bad and poor credit loans when they are needed. Lending to such people can always be a risk as they not be able to repay the debt and because of this it is typical that payday loans charge high interest and can often be expensive as a way to borrow money. The interest may vary on payday loans UK however most lenders will charge a high amount. There are certainly cheaper borrowing options than payday loans.

As mentioned briefly above Payday Loans are often an expensive way to borrow money from the financial market place. Now the interest can vary and some direct lenders may be able to offer any loan at a reduced rate from one of their competitors. It can be common however, that most lenders will charge around £25 to £30.00 per £100.00 which as you can see is expensive interest. It is dear because people only borrow the loans in the UK for a single monthly period yet they pay high interest despite only having the loan for such a short space of time. Lenders know that lending their payday loan to people who need them is always risky as mostly people with bad credit take them out. That will be one of the main reasons why lenders who offer loans to these such people charge high interest as they calculate that a number of different borrowers will not repay the debt. 

Lending Stream Provide People with Six Month Loans

If anyone is ever looking at taking out finance of any kind at absolutely any time they will always have to consider a number of different things before they can then even think about applying for it. They must always consider every one of these aspects before any application can then be submitted by that person. They must for instance first of all know that they one hundred percent definitely need to borrow the money in the first place and then if so they can then select only a reasonable amount to borrow. Any amount chosen must then be affordable for that person so they can then successfully repay the debt. The actual type of finance can then be considered, there can be a number of different options when choosing this. People for example if a loan is needed can borrow both short term and instalment loans here. As well as anyone considering the type of finance they need they must also select the lender to apply through. It is actually the lenders that I will be focusing on during this article. A particular mention is to Lending Stream and what they provide to borrowers.

Lending Stream are a large UK based financial lender that offer short term loans as a way of borrowing to many different customers. They aim to help people obtain short term loans when this way of borrowing money is desired. In term of the direct lenders who offer this kind of finance Lending Stream are one of the biggest and best in what they can offer. People through them can apply and be approved for amounts ranging from £100.00 to £450.00 for first time applicants and then repeat Lending Stream customers can then look to obtain loans up to £1000.00 providing of course their application is accepted. People then have the ability to repay the debt back to the lender over a six month period. They then have the option to repay back the debt earlier if they choose to and this way clear the balances earlier. This gives borrowers flexibility on the loan repayments which I have always found to be important.

As well as the flexibility loan company Lending Stream offer on their loans they also have another major benefit. They can often give people the cash loans after they have approved the application very quickly and again I feel this is always important. When people are applying for a loan the chances are they will want the cash quickly so they can have it at their disposal when needed and Lending Stream can certainly enable that to happen. People can apply through them online in a quick and simple process that should only take minutes to complete. If the same application is then approved they can look to pay that person in their chosen bank account within just minutes. That is a very quick way to get a small cash loan when one is required.

Direct Lenders can Often Allow Borrowers to Take out Instalment Loans

When it ever comes too absolutely anyone borrowing money a high number of different people may not actually know that there could be a number of different borrowing options available. That is just one reason why no one should ever rush into applying for the first piece of finance that comes along their way. People must take their time to explore the different borrowing options, choose one and then potentially apply for it and then if they are accepted on the application they can take it out. From the financial market place these days’ people can often look to get accepted on applications for both short term loans and instalment loans. Now normally if people want instalment loans they often borrow higher amounts of money and then they can have the ability to repay that debt back over a longer period of time. Some direct lenders can also offer people the chance to take out credit cards that can allow people the chance to pay for different items as well as withdraw cash on credit up to a set limit by actually using the card itself.

In this article I am going to focus on instalment loans borrowing and explain what this can offer to people who decide to take these loans out. There can be people who may need to borrow a high amount of cash as they are looking to make a one off expensive payment for something such as a new car perhaps or maybe someone is even looking to put down some money on a new house. Both of those situations can often require people to borrow a large amount of money as they have to pay for something that is often expensive. Others can just need some help perhaps making their wages last until payday or they may just need to borrow money to pay for an unexpected bill etc. This can be other reasons as to why people will need to borrow. With these loans people can often look to obtain short term loans for relatively small borrowing amounts.

Some short term loans can often be used as a way to borrow money for amounts ranging usually for amounts between £100.00 and £500.00 for repayments then due back over short term periods of time. A short term loan will be due to be repaid back in full to any lender within twelve months. Any loan repaid back longer to direct lenders will not be classed as a short term loan. When people tend to think about short term loans they immediately start to think about pay day loans or some other kind of other expensive finance but this is certainly not the case. People can nowadays borrow these smaller cash loans and then repay the debt as an instalment loan rather than just looking to clear the debt in full with high interest as soon as they are paid again by their employer.

Payday Loans Can Often be Expensive

When it ever comes to borrow money, a high number of different people may not actually know that there are a number of different ways to do this. That is just one of the so many different reasons why people should never ever rush into applying for just the first piece of available finance that may come along their way. People for example can often take out both short term loans and instalment loans in the obvious loan borrowing format. People here can often borrow a range of different loan amounts for repayments then due back over a number of different repayment terms. Another common way to borrow money would be via the use of credit cards, these of course allow people the chance to pay for different items as well as withdraw cash on credit up to set limit via the actual card itself. All three of these finance types are very common ways to borrow money. In the article below I am now going to focus my attention to short term loan borrowing and I will explain more about in particular payday loans and how these can work out to be expensive.

Pay day loans are a very common way for people borrow money, they are one of the most common types of short term loans in the financial market place. This marketing place has grown in recent years as it has seemed that more and more people turn to this way of borrowing money when they need cash quickly for a limited period of time. These loans themselves can often turn out to be very expensive and pay day loans are certainly no exception. People often borrow these for a maximum period of a single month and then repay the debt in full just as soon as they are paid from their work. It can be common that most lenders that offer such a product will charge around 25% or over per £100.00 borrowed by any customer. If someone was to therefore borrow £300.00, people would have to repay around £375.00 to clear that loan in full. That will be expensive interest considering how little time people repay the debt over.

A strong benefit of payday loans however, will be the speed in which people can receive their money once their financial application has been accepted by the lender. I always feel that when people need money the chances are they will want this quickly. People often want the money at their disposal quickly so they can use it as required for whatever they need the cash for. People can often apply for pay day loans online or over the phone in a process that should only take a matter of minutes to complete. If that application is then accepted the lender can look to fund that person the very same of their application getting completed. There can also be some cases when lenders can fund the borrower within just minutes of them approving their loan.

Applications for Short Term Loans

There can always be a time when someone is looking to borrow money. When this is the time for someone they will always have a few different things to consider before they even then think about applying for finance. They will always need to firstly know that they definitely need the money in question and then if so they should always then pick a sensible amount to borrow and one that is also affordable so the debt can be paid back. People will then to of course pick the type of finance that they want. There are a number of different borrowing options and then as well as deciding on the finance to take out the lender can then be chosen that people can actually then apply through.

When it comes to borrow money a high number of different people may not actually know just how many borrowing options could be available for people. That is why no one should rush into applying to a lender and no one should then ever just take the first piece of finance that comes along their way. These days from the financial market place people can obtain both short term loans and instalment loans when a loan is needed. This gives people the chance to borrow a selection of different loan amounts for repayments then due back over a number of different terms.

Credit cards are also a common way of borrowing and these are different to basic loans that people take out. A credit cards allows people to pay for different items as well as withdraw cash on credit up to a set limit. People do this via the actual use of the card itself and the limit they can spend up to is determined and agreed before the card is issued to the borrower in the first place. People are then billed for the use of the card as to how much they have spent. People can then pay either the minimum payment which is usually around 2% of the balance, they can repay the debt in full or they can also pay any amount between.

Now no matter what people are applying for whether it is in fact credit cards or a short term loan or other loan is required the application process should be more or less the same. Direct lenders who want to loan people money or give them access to a credit card will look to fund that person as soon as possible. They want to remain competitive in the financial market place. People can often especially with short term loans borrowing apply within minutes over the phone or via an online method. The lenders who offer that can aim to pay out that person sometimes within just a few minutes. If people want an instalment loan or a credit card with maybe a higher balance it can sometimes take a longer amount of time they get the finance approved but then people can repay those debts over a longer time frame.

How to Plan a Budget With Short Term Loans

It is important when you are considering borrowing from a short term loans lender that you take into account the monthly commitments you already have and in simple terms this means using a budget. Many consumers are surprisingly unaware of ‘where’ there money goes each month and as a result can find the accurate completion of a budget plan a very revealing exercise. In fact a budget is a useful tool regardless of whether you are considering a short term loan or not as it gives the tools needed to see not only where your wages are being spent each month but also how savings could be made as well. Today we will be looking at the concept of a budget in more detail and how it could be applied to the process of applying for short term loans.

A budget is a planning tool which has been used for a number of years to assist consumers in the effective planning of their finances. A budget can be completed in a number of different ways but ultimately the aim is to list all of your current outgoings and compare the figure to that of the sum received as your monthly income. A budget therefore allows you to understand what amount is then deemed as spare. Given that the nature of our finances are likely to change from time to time it is logical to review your budget on a regular basis; every month would be sensible, in order to ensure the costs of all current expenses are covered as required. With this all in mind you must make sure when you are planning your budget that you include all your regular costs as well as one-off costs which you are aware of in advance. Your regular costs are likely to be your rent or mortgage repayments, as well as the other costs which are associated with the running costs of the household. Your known one-off costs will be the expenses which are paid for from time to time, such as car tax or MOT. Once a realistic summary of outgoings versus incomings has been listed, a true picture of the amount which is spare can be gained.

When you have a completed budget this in itself will allow you to highlight areas where improvements could be made. Whether this be a reduction in the amount which is spent on food each month or a review of the cost of existing insurance policies for example. Of course the completion of a budget will also help consumers to understand what type of short term loans may be best suited to their realistic expenditure. Using the budget as a guide it is important to consider short term loans and the repayments they offer, in a manner which is sensible and reflective of the costs already required and detailed in your budget plan. There is a good selection of short term loans which are on often so making the right selection should be a straight forward task with this in mind.

Lending Stream Can Offer People six Month Loans

There are always going to be a number of different things for people to consider when it comes to taking out possible finance. People must do this before they even think about applying for loans or other types of finance. They have to know for example that they definitely need the finance in question and then if so they will have to always then select a realistic amount to then borrow. Any amount taken out by absolutely anyone must be affordable for the borrower so they can then successfully repay the debt. The actual type of finance can then be considered and here there can be multiple borrowing options. People can often take out both short term loans and instalment loans when they need loans. They can therefore borrow both a range of different loan amounts and then repay the debts over a range of different payment terms. As well as considering the type of finance that borrower must also then choose the lender to apply through. There are so many different lenders out there offering finance in the financial market place. Lending Stream are just one of many and I will be explaining about them in more detail now using the article below.

Lending Stream are a large UK based financial lender who look at offering people the chance to take out loans for amounts up to £450.00 for new customers or existing Lending Stream borrowers can borrow up to £1500.00. People can then repay the product within a six month period of time with the interest that is applied when people first take out the loan. People can then if they choose to repay the debt early and possibly then save on the interest that would not have been applied to the account at that period as to when the loan is cleared earlier. Having a repayment term such as this gives customers a nice amount of flexibility on the product, people can then repay the debt over a longer time frame in amounts that seem to be affordable for them so the debt can definitely be repaid back to the lender who granted the loan so in this case Lending Stream.

I think it is safe to say that when people want to borrow money they would like that money quickly. Here lending stream can certainly help. People often would like their cash loan quickly so the money can be at their disposal quickly so they can use it as required for whatever they wish it for. Lending Stream certainly have the ability to make that happen. People can often apply for the loans there quickly that should only take the average person a few minutes to complete. If that same application is then accepted the lender can look to pay that person in their chosen bank account within minutes of the loan being approved. Lending Stream can look to pay their successful applicants within fifteen minutes of the loan being approved. Perfect borrowing for people who need small amounts of cash very quickly.

Payday Loans Direct Lender

Payday loans direct lender is jus the kind of snappy, easy to remember slogan this company needs, I mean its all very well locking the mongoose up Fred, but all I'm saying is, you keep locking the mongoose up, and eventually the mongoose is going to figure out how the locks work, just think about that the next time you pop down the shops for a Cornish hash brown. If every time I looked into your eyes I saw what I thought I’d saw, you wouldn't have a job here anymore pal, and I mean that as a father talking to his son not boss to employee, alright? Just, relax a bit, yeah? Stop jumping out of the window every time you make a cup of coffee, and stop bloody putting your shoes in the oven and letting me eat them thinking their my fish pie!

The sad fact is Carl is, you're over-paid and underworked, you'll be working on half pay from now on, and every time you walk on the floor that'll be another day added on, but, because I am a fair man, and a man of the cloth, I will allow you this one chance to give yourself up, come on, admit it, you were the one who spiked my rich teas weren't you? Well you greasy idiot, I'm on to you, I was in the army, I will glue all the toothpicks I've collected over the years together and fashion them into Punjab sticks and spike you right in your tiny, tiny knees. Oh, and one more thing Dan, that's a threat, not a promise; I doubt I have enough toothpicks.

Sweet Linda, sweet dead Linda how the minutes have passed, sadly you haven't aged well at all have you? Regardless, I love you all the same. I am nostalgic for our future and I look forward to our past, for the rest of my life I love you, Fred. Payday loans direct lender she says, get a real job she says, stop screaming at balloon animals that does not earn you any money she claims, well I've got news for her, that’s my family she was talking about, and no one, not even Jeff Briggs in Alabama, talks about my family like that. The heat is incredible, its as though every match under the sun has received the Holy Ghost, and is now running about the place speaking the word of God.

The curious thing about me is, I can't see where I’m going, and yet, I guide others on their own path; seems odd does it now, that I am in a position, and granted access to advice young people on what to do and where to go in life, and yet I am totally at a loss myself. Disgusting. I believe, using myself as the example, this shows a total breakdown in our society, and should this kind of behavior be allowed, or even encouraged to continue, then I can say with very little doubt in my mind, that within the hour, we'll all be ghost-smashers. Couldn't say busters too afraid of the copyright.

Payday loans direct lender was the only man I ever trusted, however, as soon as I’d given him the nod, off went my arms and I was at his mercy once again. Silly old payday didn't bank on my having a double edged sword stashed safely up the back passage, I shot it out and began using the force to cut him down to the size of a cup; within hours, he was back in the dishwasher where he knew he should have been all along, cheeky really, trying to escape like that. From the look of the forecast I have inferred there is a 60% chance of rain and a 100% chance of this sentence ending with improper grammar,

They are coming for me… with every word typed they grow nearer, and again, with every word I seal my fate… This being of course because I have to stop roughly around the 750mph mark, however, he has been known to go slightly over just for giggles, and in some rare cases a few under.

The rocket NASA used to put man on the moon, Apollo 11 to be precise, had 20,000,000-horse power amazingly. Meaning, if a spaceman, or woman, so space officer we'll say, wished to reach the moon by horse, they would have to negotiate with the horse, and agree that the horse would bring 19,999,999 of his mates along. Ah yes, as predicted, well over 750mph.

Get Payday Loans in London Even with a Bad Credit Record

Payday loans are way different from the conventional bank loans. These loans are unsecured and are very expensive too. Hence, these are best borrowed when a financial emergency hits you suddenly, like major repairs in the house or a huge car repair bill. In such situations, bad credit payday loans London helps borrowers to get rid of the crisis, but at the cost of a very high interest rate. These loans are given for a time period of up to 4 weeks and are to be paid back in one instalment on the borrower’s next payday, which is where the payday loan gets its name from.

Why Payday Loans are So Loved?

Bad credit payday loans London are actually no less than a blessing in financial crisis, where the borrower will be able to free himself of sudden financial troubles quickly with these loans. But we must also not forget that payday loans come with a fair amount of risk associated with them.

The first obvious reason for the high risk is that high interest rate, which is very high as compared to other credit forms. So if the borrower is not financially stable, this loan is not at all for him, as he might end up in a larger debt.

But it is true that payday loans are so easily and readily available and do help you out from bad situations. These loans are a lifeline during situations when you need urgent cash and no other form of credit is working out for you. The payday lenders process bad credit payday loans London in a matter of just a few minutes without a lot of documentation and the process is transparent as well as straightforward.

What is the difference between payday loans and bank loans?

·         Payday loans are actually meant for shorter duration, and hence are short term loans, while bank loans are meant for larger periods of time.

·         Payday loans are meant for shorter amounts like 1000 pounds, while bank loans are meant for larger amounts.

·         Payday loans are meant to be paid back in one payment including the interest rate, while the bank loans are paid back in easy instalments.

·         Payday loans are unsecured and do not require a guarantor or a collateral. Bank loans require collaterals.

·         The rate of interest for payday loans is high due to their short term, while bank loans have very reasonable rates.

So how do you apply for a bad credit payday loan?

First of all, get your papers clear and all in one place, as you don’t want to go through the hassle of rummaging your documents to find the right one. You can get the list of the required documents from the lender’s website or by calling them. Then you need to fill-up the application, either at the lender’s branch or their website. After your application gets approved, the loan will get credited to your bank account within an hour mostly, though it can take a few more hours, which is very rare.

How are payday loans repaid?

Traditionally, borrowers were supposed to give the lender a post-dated check of the full loan amount plus the applicable interest rate. The lender would cash this check on the repayment date. But nowadays, the process has become easier. The lender takes down your debit card details at the time of application and then on the repayment date, the payable amount is automatically debited from your account by the lender.

What if I have a bad credit record?

A poor credit score might be a reason to worry about in case of bank loans. But in case of payday loans, it really isn’t a hindrance. The reason behind this is that payday loans are given only to steadily employed people. So on the repayment date, that is the payday of the borrower, the repayment will be done as soon as the pay check is credited into the borrower’s account. So the lender is not at loss. Hence, people with bad credit ratings too can apply for bad credit payday loans London and can get approved.

But there may be some exceptions. For example, you might be denied a payday loan if you have any outstanding loans which are yet to be repaid. You might also be denied a payday loan if you have defaulted on a high number of payday loans.

So make sure to borrow wisely and to repay on time.

Understanding Whether Short Term Loans are Beneficial

There can always be times when someone needs to borrow money and this can be down to so many different reasons. It is here where people need to know that there can be different borrowing options available for people to choose, apply for and if accepted potentially take out. That is just one reason as to why no one should ever rush into applying for finance and they should always explore all their available avenues and then make a firm decision on the finance. From the financial market place people can often take out both short term loans and instalment loans when it is possible. The borrower can then select from these a range of different loan amounts for repayments then due back over a selection of different repayment terms. The former loan the short term loan is normally repaid over a limited period of time whereas with instalment loans, people often borrow larger loan values for repayments then due over a longer period of time. Both are very common as a way to borrow especially in the loan format. It is the short term loan borrowing that I am going to now focus the article below on. I will explain how this way of borrowing may be beneficial for people.

I think it will always be safe to assume that when people want to borrow money the chances are they will want the money quickly. People will always want to get the money quickly so they can put it to use as to why they needed the money in the first place. Having the money at someone’s disposal is always going to be important. Short term loans are definitely one kind of finance that can allow people the chance to borrow money quickly. Most short term loans are offered to people for amounts ranging between just £100.00 up to £500.00 but sometimes people can potentially borrow more. Direct lenders allow people to apply for short term loans online in a process that should only take a few minutes to complete and then if those same applications are accepted by them people can get the money that very same day. Some people when approved can receive the money in their chosen bank account within just a few minutes.

Another benefit of short term loans borrowing would be the fact that the lenders who offer the product can look to lend to people even if they have poor credit. If people have poor credit they can generally find that obtaining future credit will be hard to achieve and at times when people are approved with the poor credit it can very expensive. Borrowing short term loans may therefore then be the borrowing alternative, people can often get approved for these loans and get the money quickly even if they have taken out other debts in their past and not repaid them. Sometimes borrowing short term loans for people with bad credit may be their only option of getting cash when it is needed.

What are the Different Repayment Terms for Short Term Loans

There are a number of different ways short term loans can be repaid nowadays. Lenders offering short term loans now place a great amount of focus on the ability to offer a lending resource which is fair and consumer focused and with this comes the need to offer a loan which is flexible. Short term loans are designed to offer a lending tool to a specific set of requirements and do not offer the same style of loans as that offered by say a credit card provider. Where a credit card provider will allow an applicant access to a on-going resource; should they be approved, short term loans are really only designed to be used over a short term basis. As the name of these loans suggests, borrowing from these online lenders is not designed to be an ongoing point of borrowing and is therefore completely different to a more traditional loan we may be used too.

Short term loans in the modern market are offered to consumers through a simple and easy to follow application process which ultimately lends to the ability to borrow a reasonable ‘small’ sum of money to be repaid in an agreed period of time. This period of time for which the loan will be repaid is often decided by the applicant at the point of submitting the application, when the lender will offer a number of repayment terms. These repayment terms will of course vary depending on the lender in question and the amount which is being applied for. So for a customer looking to literally borrow £50.00, it is unlikely the vast majority of lenders will offer the same terms as that of their larger value loans. Equally with this in mind it is unlikely a lender will allow their customer the ability to borrow £500.00 to be repaid as a lump sum with interest in a single repayment, as for many, the same of this repayment may proof too costly.

The great news is as part of the application process for short term loans, lenders nowadays, will help you decide which sort of repayment term may be most suitable. This is determined by assessing the applicant’s affordability. This means they will review all the information which is available and make an informed decision. A lender of short term loans will achieve this in a number of different ways. One such method for understanding what would be suitable is the use of a full review of your current credit reference file. Lenders will review your existing financial commitments alongside their proposed borrowing resource to ensure overall, that the loan would be affordable. As well as a credit review lenders will now ask that you complete a budget plan as plan of applying. A personal budget will allow the lender to better understand if short term loans are really a suitable choice. This means it is very important that when applying for short term loans it is done in a manner which is honest and also accurate.

Payday Loans Broker Scams and How to Avoid It

The payday lending industry is a successfully growing one, and with every such industry, there are some people too who want to cash in on this success by using malpractices or deceptive methods. In case of instant payday loans in Birmingham, it is the brokers who were found creating troubles recently. A lot of borrowers, especially new ones who were unaware about the payday loan practices and malpractices, are complaining about some brokers who charged very high amount of fees to arrange payday loans for them. This problem was faced by a large number of borrowers, with some of them being charged up to a huge amount of £60 by such brokers for processing their applications for instant payday loans in Birmingham. Apart from the huge fees, some of the brokers had very comfortable waiting periods of up to six months before they can find a result for the borrower. This was unacceptable, as such a long time to find a payday loan package would defeat the main purpose of payday loans, which is to be fast and flexible, as most of the borrowers borrow payday loan for instant emergencies.

Brokers Charge Huge Fees

The Citizens Advice Bureau provided some important figures which indicated that around two out of five people who had filed a complaint regarding payday loans did so as they were being charged such huge fees by the brokers. More than half of such people were being charged such fees while the rest of the borrowers were facing deceptive malpractices used by a few brokers, like charging irrelevant fees for which the borrowers never agreed. Also, there were many instances when a few brokers were posing as direct lenders rather than stating that they were brokers.

Brokers Take Months to Process Loans

Many people in the UK nowadays use payday loans for emergencies because of the advantages of this type of credit. Instant payday loans in Birmingham are easy to apply for and the loan reaches your account in within an hour or two. The whole process is completed online and is very quick. Good brokers are able to get good payday loan packages for the borrowers so that they can get the needed amount quickly, sometimes on the same day when the loan was requested. But in many complaints that were made by the borrowers to the Citizen’s Advice Bureau, the borrowers stated that the brokers had taken a lot of months to process their application while many had not received the loan still, even after getting charged a huge amount in fees by the brokers.

Many Brokers pretend to be Direct Lenders

There are many good brokers who clearly state upfront that they are not direct lenders but brokers who offer to get payday loans for the borrowers on their behalf. The Citizens Advice Bureau found that a lot of borrowers who were applying for instant payday loans in Birmingham were under the impression that they were dealing with a direct lender, but they actually were being deceived by a broker with the help of confusing and sometimes deceptive marketing messages on their websites. This can be a problem when you search online for any service or product; the websites can look very genuine and convincing. Determining whether a website is of a broker or a direct lender is one of the most major issues that are being faced by borrowers. The solution for this is that, if you are not sure whether an organization or website is a direct lender or a broker, then let your doubts win and move on to find another lender which you can surely say is genuine and upfront in its role and does not charge any extra fees.

Brokers Refuse to Refund the Fees

The biggest problem faced by a lot of payday loan borrowers is that some of them unintentionally used a broker and paid him the fees upfront, who then refused to return the fee. Getting a refund can be very difficult at such times. A lot of brokers refuse to refund the fees simply, even though they are bound to repay it back to the borrowers in case they don’t get them any loans. The figures from the Citizen’s Advice Bureau stated that around 28% of the borrowers reported this problem.

So it is advised that you stay away from brokers and rather go directly to a major reputed lender for getting instant payday loans in Birmingham.

How Bad Credit Borrowers Can Avoid Debt and Still Borrow Payday Loans

Payday loans for bad credit record in Birmingham have shockingly been one of the most borrowed forms of credit in the UK finance market, even though they are so expensive and risky in nature. The major reason why borrowers are attracted towards payday loans is that they can be borrowed easily without much hassles and are approved within a few hours, sometimes within 30 minutes. This makes it a perfect credit option for emergencies like urgent heavy bills, medical urgencies, etc. And after FCA regulated the industry, it has become more beneficial for the borrowers, even though it is still high on risk if not used properly.

But the main reason why payday loans have, in their whole lifetime, received a lot of love from the borrowers yet a lot of criticism from the financial critics is the fact that even the borrowers who have a damaged credit record can borrow these loans. This means that those who are rejected by other financial institutions for their financial instability are welcomed by payday lenders. While this can be a good thing for those who are in emergency and are not allowed a loan from any other source, it means giving loan to a person who has not been able to afford loans in the past, and thus may default on future loans too, going deep into more debt.

So we will discuss in this article how borrowers with poor credit ratings can still borrow payday loans for bad credit record in Birmingham while not going into debt. But first, let’s see why in the first place the payday lenders offer loans to those with bad credit records.

Why People with Bad Credit Record Can Avail Payday Loans but Not Any Other Loan

Payday loans are short-term and unsecured and are given out only to salaried people who have a steady monthly income, regardless of their bad credit ratings. The loan is automatically deducted from the bank account of the borrower on the day when he receives his next pay check. So there is little to no risk at all for lenders to not get back their money on time. Hence, they offer these loans regardless of whether the borrower has defaulted on previous loans or not, as no or little credit check is performed.

Meanwhile, the long term loan options are given to people who are financially stable and can afford to pay the instalments of the loan on time. Intensive check is performed on the financial background of the borrower to see if he is financial stable or not. If not, then he is not given the loan as he may not be able to pay it back and thus go into debt and may lose his collaterals.

Now let’s see how you can keep yourself out of debt while still borrowing payday loans for bad credit record in Birmingham for your urgent needs.

Try to Avoid Payday Loans

You should never in the first place go for a payday loan. You must always look for other easier and better sources of money. You can asks your close friends for monetary help or can even take help from your family members. You may ask an acquaintance for help who you have helped before. You can try selling some expensive stuff which is of no actual use to you, for example, a second car which you don’t much use.

Borrow Payday Loans in Emergencies Only

Payday loans for bad credit record in Birmingham are an expensive mode of credit. They are short term but high-cost loans and thus are very risk and must be used only for strict emergencies when there is no other way out. For example, if your house is in an urgent need or repair or one of your family member has fallen ill, then it is acceptable to get a payday loan in such conditions. But you should never forget the seriousness and risk of these loans and you should never use them to pay for your vacation or to buy yourself some luxuries or expensive gifts. Doing so will put you into a habit of repeat borrowing which will harm you in the future financially and may lead you to debt.

Cultivate a Habit of Saving

When you save a little money every month from your income, you are creating a backup plan for emergencies and that amount of money will grow over months and years and will help you out in emergencies without having to take a payday loan.

Lending Stream Offer Six Month Loans

There can always be times when people need money and most likely this can be down to a whole host of different reasons. Some people may need a small amount of money as they need some help looking to tide their finances over until the next time they are paid by their employer. There can also be other people who need a large amount of cash as they are looking to make a large expensive purchase for items such as a possible new car or maybe someone is looking to put down a deposit on a new house. No matter what the amount of money needed if people have the money saved they can use this for what it is required for. Some people may have enough in savings to pay for what is needed outright or other can just pay some of it towards what is required. If money is not saved away on the other hand then people may need to borrow it and here there can be a high number of different options for people to explore, meaning no one should ever just apply for the first piece of finance that comes available.

When people first look to borrow money I think it is safe to assume that they will try to get the money through friends or family as they know this way they can take out the money needed where applicable interest free meaning only the amount they borrow is due to get repaid back. People this way can also repay the debt when they have funds available and are under no official contract to repay the debt however that does not mean they do not have to repay. No matter who money is borrowed form people must always repay the debt. It just this way gives people the cash they need quickly and they can repay once they have available funds again. If borrowing money from friends or family is not available then the chances are people have to borrow it from lenders.

Lending Stream are just one financial lender that offer products to people who have the urge to borrow money. They actually specialise in the short term loan borrowing market which is a market that has grown rapidly in recent years. Lending Stream was formed in 2008 and have grown massively every year as it seems more and more people keep turning to short term loan borrowing to satisfy their borrowing needs. This lender in question allows people the chance to borrow amounts ranging from £50.00 to £800.00 for first time applicants or Lending Streams repeat customers can obtain as much as £1500.00 in their bank account. People apply for their finance quickly online and then if the application is accepted people can be funded within just four minutes from having the application approved. This can then by many be seen as perfect borrowing for anyone who needs the cash that quickly, no matter what they actually need the cash for.

How to Use Short Term Loans

There are several different types of short term loans which exist within the modern day market. Over the years many consumers have used this resource and witnessed first hand how a short term loan can be presented in a number of different forms. This way not always true and the first few years of the market saw a vast number of lenders all offering a near identical product to the consumers who were looking to satisfy their short term borrowing needs. Thankfully as the years have passed better regulation of the market coupled with a much better understanding of consumer needs has meant the market has adapted to ensure the product presented today is still one of use to consumers. The need for short term loans was somewhat unknown prior to their introduction nearly a year ago. The ability to borrow a small sum of money, with minimal checks was a resource which had never been presented in such a format as that offered by online short term loans before. Consumers could turn to their banks, credit card providers or even shop front lenders but all of which offered a very different service or product.

Nearly a decade ago short term loans which are available online came into force and with that so did the ability to borrow a small sum of money in a manner which was simple and discreet. Lenders offered loans ranging in value from £50.00 up to £500.00 normally and did so through the use of an online based application form. The forms themselves were designed to be clear and easy to follow to allow the customer to complete the application process entirely, hopefully, without the need to communicate with the lender in question. These forms took about 10-15 minutes to complete and if the applicant was successful, they could often receive the agreed funds directly into their bank account the very same day. The repayment structure of the loans was also designed to be simple and straight forward. Lenders offered their applicants the opportunity to borrow until their next employment pay date, which meant in reality the repayment terms were never any longer than 31 days.

As the years have continued to pass the product offered as short term loans has certainly become more flexible in its delivery. Although the process for applying has remained fundamentally the same, being online based. Consumers applying for a loan of this nature now can actually make a selection of repayment term from a number of different options. What has become clear over the passing years is the fact that consumers need choice in order to ensure the selection which is ultimately made is an affordable one. In order to deliver this effectively short term loans can now be repaid in an instalment basis if suitable to the borrower. This means at the point of applying the customer has the option to select the number of months over which repayments are made to clear the loan. Depending on the option, this will make the monthly amount greater or smaller in total.

Bad Credit Payday Loans and The Options

For a large number of consumers bad credit is something which is experienced at some point in our lives. As live changes and unexpected costs present themselves, sometimes, falling behind on previous agreements is an unpleasant but unavoidable outcome. The modern day economy is no stranger to this and the way in which we conduct our monthly expenditure is almost representative of this fact. As the years have continued to pass it has become increasingly clear that in order for us to manage our lives, often credit of some form plays a role. This doesn’t even necessarily make reference to our houses which we often pay for via rent repayments or a mortgage but also the things we need and ‘do’ in our everyday activities. Recent times have seen an increase in consumer finance in relation to purchases of goods and services too. So whilst as consumers we are used to making purchases via credit, it is easy to understand why a change of circumstances may lead us to poor credit at one point or another.

For most of us a stint of poor or bad credit is often short lived and therefore corrected in a timely manner. For others however, the problems associated with poor credit can continue. If this is the case there are a number of free advice and support based organisations who may be able to offer guidance and tools for better managing existing finances. One such organisation is Step Change. Step Change is a charity based organisation who can review existing expenditure and help consumers better understand ways of managing the commitments in a more stable and practical way.

For consumers where previous poor credit or late repayments have been dealt with, it can sometimes be difficult to be considered for credit once more. Even if time has passed and the current financial position is much more stable, the general activities of our economy in recent times has resulted in some of the more major lenders being wary of considering those with previously poor credit. For consumers in such a position bad credit payday loans may be of some use. Bad credit payday loans could be suited to consumers who are in need of demonstrating their ability to now be able to successfully manage a credit based agreement. The loan amounts considered by bad credit payday loans are often smaller, usually no greater than £1000.00 in value and can be repaid over a flexible number of terms. The successful repayment of such an agreement will allow an opportunity to show an update on a number credit based reference files and may be able to assist consumers in obtaining more mainstream credit in the future. Equally bad credit payday loans are also a useful resource for consumers who are simply struggling to borrow a small amount of money as a result of poor credit in the past. The application process of bad credit payday loans is online based in the majority of cases and therefore considered discreet and convenient. 

Application Stages for Short Term Loans

When it comes to borrowing money there can be a high number of people that do not really know the different options they may have available at their disposable when they need money. The process of people just taking money out from their local bank manager has long gone. People can now from the financial market place take out a high number of different financial products when they need to borrow money. People nowadays can take out a range of different short term loans, here people tend to borrow relatively small amounts of money and then repay the debt over limited periods of time. Instalment loans are then the common borrowing alternative and people here usually take out larger loan amounts for repayments then due back over longer periods of time. Both of those loans are very common when it comes to borrowing money from the market place and they will both have benefits about using the products as well as negative factors. A common short term loan is the payday loan and a common instalment loan is actually a home owners Mortgage. Both should have similar application stages that I will now explain about in the article below.

It is always going to be very common that any application completed by a potential borrower will be subject to a credit check to see the likelihood as to whether or not that person will repay their debt once they have obtained it. They run this check to see what the person applying for the loan has shown when they may have taken other debts out in the past. They can see back usually a number of years to see what they have done with other credit in the past and then if they have paid their debts and the loan is affordable for that person then the chances are the application can look to be accepted and then down the line funded. If people have taken other debts in the past and not made the required repayments they will have poor credit and will find obtaining finance in the future much harder to come by.

They have to validate that the person applying for any finance is the person they say they are, this is a security check on the applicant. The customer will have to input all their personal detail on the application process including things such as name, date of birth, address and employment details. They will also be likely to need their card details and their other banking information to make sure it is validated to that potential borrower and therefore be registered to that home address in the original application. It can be likely during their process that the application for the short term loans will need their bank details as that is how the loan will be likely paid yet the repayments due on the loan will need to be taken from the card linked to that said bank account. They will need both of these details to get any loan approved. The lenders final decision is then the final step on any loan or other financial application.

New Loans Such as Sunny

Many consumers who use the short term borrowing market do so as a result of a need to cover an unexpected cost. This could be anything from a broken car or a broken washing machine but the point here is that the cost is not one which could have always been planned for in advance. Short term loans which are available online has been a useful resource to consumers for nearly a decade and as a result many are familiar with the product and service which is on offer. Recent changes to who oversees this market place mean there is an increasing number of more responsible and better able lenders who are now ready to assist modern day consumers and their short term borrowing needs, one such lender for example is Sunny. This new breed of lenders focus their efforts on granting loans which are realistic and truly affordable rather than generic for all. The new governing body in question is the Financial Conduct Authority who have, for some time now, been observing the traditional practices of established lenders in an effort to understand where improvements could be made.

What has become obvious to the FCA (Financial Conduct Authority) is that many lenders who have been in operation for some time were in great need of guidance to ensure their product and practices are able to better meet the needs of consumers in a realistic and fair manner. The FCA continues to keep a sharp focus on this industry and through new guidelines and rules is helping shape a much better future for the short term loans market. Where new lenders such as Sunny have grown, some of the other more well-known lenders have had to face the reality of change in order to remain key players. One of the key findings of the FCA was that for the most part, short term loans were no longer effectively meeting the needs of the consumers using them. Although the principle of the product; to serve those individuals who needed a small loan for a short period of time, was justified, the delivery had become poor. Unlike new lenders like Sunny, many of the ‘classic’ lenders offered a product based on the understanding that a lump sum repayment is made in order to repay the amount borrowed. This lump sum was often repaid in under a month’s period, due to the fact lenders asked that customers make repayment on their employment pay date.

Through the guidance of the FCA the short term loans market is increasingly moving away from this dated model which repeatedly proved itself to be expensive and unrealistic and instead is creating a market which allows repayments to be made over an agreed period of time. Like the product offered by Sunny, this means instalment based loans. Instalment loans are proving a far more popular choice with borrowers because there is better control over the amount which needs to be paid; instead of a costly lump sum.

Payday Express and What They Offer

Payday Express are one of the key players in the short term loans market and have been in operation since the 1999. Like many lenders in this market Payday Express have had to continue to evolve in order to meet the changing needs of consumers. In the very early days of online borrowing the needs of consumers in this sector were very different and in many respects focused on offering a simple loan which was clear to understand and repaid quickly. The type of loan was known as a payday loan and as the name suggests, gave short term borrowers the ability to borrow a small amount of money until their next pay date. This simple to understand product was once offered by Payday Express and like other lenders, Payday Express aimed to bridge the gap between a customer’s wages short fall and their next employment pay date.

The early days of the short term loans market saw the market somewhat explode into life. This was at a time when the internet was becoming one of our most valuable tools and able to offer many resources we previously would have had to leave the comfort of our own home to acquire. This ranged from good to services and introduced the population to a new way of existing. Short term loans added to this resource and allowed consumers to borrow a small loan without the need to visit their bank in person or by phone. The nature of the online application form meant the process was simple and also discreet. Consumers were able to access money in a way which had not been seen before. The payday loan product served a massive purpose to millions of people, allowing them to cover unexpected costs and expenses without needing to seek help from the banks or credit card providers, who often operated on a much larger scale.

As the years have passed, the needs of short term loan users have changed, as have the spending habits of the modern day consumer. Nowadays and for some time in recent years gone by, consumers have become better able to manage their finances if repayments towards goods and services are made on a monthly instalment basis, rather than as a lump sum repayment. It is therefore of little surprise that short term loans, such as those offered by Payday Express, have moved in the same direction. Nowadays the loans offered in this sector have changed to ensure if consumers wish to do so, repayments can be made on an instalment basis. Like in the case of Payday Express consumers have the choice to make repayments towards the loan over 1, 2, 3, 4 or 5 instalments. This means like never before consumers have a sense of choice and flexibility and also gives a level of control in terms of the amount which must be committed from their budget each pay day. As the years continue to pass it seems likely many short term lenders will follow in these exact same footsteps.