Bad credit payday loans can be expensive

When it comes time for someone to borrow money, that person then may or may not know that there are often a number of different borrowing types available for people to choose from. Some may be more commonly used than others. It is because of this that no one should ever then rush into applying for finance and why they should always explore all the options available before they can then look to then submit any form of financial application nor should a person ever borrow must the first piece that comes along their way. People from the financial market place these days can often look to borrow if a loan is required both short term and instalment loans. These can range from bad credit payday loans or longer terms of borrowing where more is borrowed and then is repaid over a longer time frame. Credit cards as well is another common type of borrowing and here of course people can pay for different items as well as them withdrawing cash on credit up to a set limit. Below is extra information regarding a finance type that people can use even if they tend to have bad credit and therefore have limited borrowing options.

There can be a high number of different people out there who need to borrow money but they have bad credit. This as a result can often lead to them having limited borrowing options. If these people were to try and get their loans from typical major high street lenders such as banks and building societies they can then often be declined for the finance. However, having said that some financial lenders could still help. Some lenders such as Lending Stream or potentially other payday lenders can often look to lend to people with bad credit hence giving them a chance to borrow. They actually often aim their finance towards such people. Bad credit payday loans are one of these as a borrowing option but other payday and short term loans can often be obtained by people who have bad credit and a low credit score.

Bad credit payday loans

Lenders will always know that lending to people with bad credit is a financial risk. They know that these such people have struggled with other debts in the past and they can always fear that the same person will nopt repay their debt should they provide them with finance. That being said people with bad credit can still borrow from a whole host of different lenders. One of the most common ways to borrow money this way would be through bad credit payday loans. These when borrowed are normally done so for amounts ranging between £100.00 and £500.00. That loan when borrowed must be repaid back to the lender in full just as soon as the person is paid again from work. High interest is normally charged on the finance and adding this to fact that the full balance is normally due on the product in one go repayments on these debts can be tough. These bad credit payday loans are normally by many seen as an expensive way to borrow a small amount of cash for a very short period of time.

Why planning for a payday loan is important

If you decide that you need to borrow a payday loan, like any other form of borrowing it is still important to make sure you plan for the cost in advance of signing the agreement. Some may think because a payday loan is for a much smaller amount than that of larger borrowing resources, that there doesn’t need to be full consideration for how and when repayments need to be made and this is simply untrue. Like any other form of borrowing, if poor planning leads to repayments for such loans being missed, there are consequences to be considered. This will likely mean some form of late payment charge or fee as well as the lender reporting the broken agreement to the Credit Reference Agencies. This action in itself could lead to difficulties obtaining credit again in the future. So like if you were looking to obtain a credit card or bank loan, you would first consider the options and make a selection based on what is realistic to your needs, the same approach should and must apply to borrowing a payday loan also.

important of payday loan

So what considerations then to be thought about before taking a payday loan? Well a good starting point is whether your reason for borrowing matches the product being offered. As the name of these loans suggest, they are not designed to be repaid over a long period of time and instead actually offer relatively short repayment terms. So where you might consider a credit card if you need a continued access to credit, which can be managed via the means of minimum monthly repayments, it is unlikely a payday loan is going to be right. If though you are facing a one-off cost, like a school trip or car repair and just need the money to cover the cost and you know you can repay it in a number of months; a payday loan might be able to help. Equally using payday loans for non-essential costs, such as clothes shopping or a weekend out is not a sensible choice and instead, highlights a need to manage more effectively your existing wages and expenses.

The second consideration is the type of payday loan you want to borrow, providing your reason for borrowing fits the product being offered. This means deciding on what type of payday loan will be realistic and affordable for your need individual expenses. In order to understand this in a clear and logical manner, why not complete a budget plan. To formulate your budget, simply list all of your regular outgoings and deduct the total amount from your known income. The amount which is then left over as spare, is known as your disposal income. From your disposable income you will need to decide upon an amount you are prepared to use as the amount for your payday loan repayment. So depending on the amount you have as disposable and how quickly you wish to repay the loan, the final task is to select a payday loan which suits. 

Repayments Due on Payday Loans

I can never even begin to stress enough at how important affordability is on finance. If any loans for example are not affordable for any person then the chances are repayments will then be missed on the debt. When this occurs it will nearly always lead to severe negative consequences for the person involved and this will make most people not ever want this to occur. Selecting the right kind of borrowing can help make the finance affordable and easier for a person to manage in order to make sure that debt is then repaid. It does not matter whether someone is out there looking for short term loans such as payday loans, instalment loans or credit cards whatever it is must be affordable. That way providing they have the intention to the loan can then be repaid back to the lender as agreed. Below is how people can see I finance is affordable and how some debts such as payday loans may be harder to afford than others.

Repayments Due on Payday Loans

I have found that a good way to test to see if any finance is affordable would be for that person to locate on average what their disposable income is. This amount can vary from month to month but it still should give a good indication as to whether the finance is affordable. People locate this income by looking to the month ahead, they must then add up all their income expected during that period. This can include things such as salary plus any benefits or credits they are due to receive. Then from that amount the same person over the same time frame deducts all their expenditure. That in turn can include their rent costs, any debts they may have as well as food and transport costs etc. Now once that calculation has been done in full the money left over is the disposable also known as the spare income. If that amount is high then the chances are the finance is affordable however, if low or if it does not cover a payment that is due then no application should then be made.

It can certainly be very common that some finance types are more commonly borrowed than others. With that in mind it can also be popular that some are more suited to a person’s financial situation than to what others can provide. Take payday loans as a common example. When these are obtained by someone they must then be repaid back to the lender in full just as soon as that person is paid again from their employer. Now for a high number of different people repaying any loan in full as well as maintaining other financial commitments can be tough and for some people payday loans will just not be affordable. There can then be other cash loans that people can take where they borrow similar amounts but they can then spread the cost of the debt. They pay in fairer and more affordable instalments but they just repay the debt back over a longer time frame. 

Payday Loans and What they Can Offer

Payday loans can be really useful if you are facing an unexpected financial concern. Whether this is a broken down car, a broken washing machine or even an emergency dental bill, the point is these loans are equipped with the ability to serve short term one-off costs. Whereas you may speak to your bank regarding a loan needed to purchase a new family car, payday loans are much better suited to the smaller costs which annoyingly present themselves from time to time. In fact, payday loans are best used to cover these costs because the loan amounts being offered are small and the repayment terms match. If for example you have a broken car, you are not going to want to make repayments towards this cost for the next year and instead it is likely you’ll want to cover the cost in as fewer months as possible. Given the fact that payday loans usually are for an average loan amount of £300.00 and repaid over terms ranging from a single month up to 6 months, it is easy to see where in such cases, a loan of this nature may be suitable.

Payday loans are defined as being a form of short term and high cost borrowing and therefore could cost you more than a larger form of borrowing when it comes to the total cost of borrowing. That said, payday loans are not attempting to compete with these larger loans and as discussed above, exist to serve very different needs. That said payday loans and their costs can be managed effectively by ensuring they are repaid in a timely manner and not repaid over a period any longer than the original term agreed with the lender. When considering the term of repayment you wish to repay a payday loan it would be sensible to consider each and every option in comparison and then make a selection based on this. The repayment term settled upon should be sensible and most importantly, be able to be repaid within your realistic means.

Useful Payday Loans

One of the best and quickest ways of determining a sensible repayment is to be fully aware of your existing expenses and furthermore, able to manage your spare income to accommodate a new financial commitment. This could mean then that you need to reassess your monthly budget, to gain this understanding. A budget allows you to view clearly all your current outgoings alongside your current income. When one is deducted from the other, your spare income is then revealed. It is from this spare income that a loan repayment will need to be made so understanding it and its limitations is very important. It would also be worth adding that using all of your disposal or spare income, to repay a payday loan repayment, is unlikely to be a suitable choice. Spare income needs to cover all the things you wish to do on a monthly basis deemed as leisure activities; whether this be going out with the family or buying a new handbag so do not leave yourself with absolutely no spare income. 

Direct Lenders of Short Term Loans

Direct lenders are often the preferred choice for customers looking for a short term loan. Direct lenders, as the name suggests, offer consumers the ability to apply for a small loan on a direct basis and it is for this reason primarily that consumers select them for their borrowing needs. Within the short term loans market there are a number of different ways of borrowing money and then a number of different lenders who offer the service. As well as the direct lenders there are also the loan brokers who also aim to offer the ability to obtain a loan. Unlike the direct lenders though brokers do not offer a direct service and instead deliver a different form of service to customers. Today we will be digging a bit deeper into these two different types of lenders to better understand the positives and negatives of each.

Direct Lenders of Short Term Loans

Firstly, lets learn in greater detail the manner in which direct lenders operate. A direct lender as mentioned above offers the service of applying for a loan with one specific company. In order to offer this service an applicant can expect to supply all information needed to make a definite lending decision. This means the application will gather all of your personal information as well as information linked to employment and bank information. For the application to be submitted a loan repayment term will also be selected and the agreement electronically signed. At this point the direct lender will review the application by both electronic and manual means and then make an informed decision as to whether the loan can go ahead and be approved. If approved the lender with whom the application was completed will deliver the loan to the supplied bank account. It is important to note here that whether direct lenders can approve the loan or not, they are extremely unlikely to charge a fee simply for applying. In cases where the application is declined, the applicant will then simply need to look elsewhere, starting the application process again.

Now let’s look at the loan brokers who fundamentally offer a similar product to that of direct lenders. A broker will need their applicants to complete an application online, in the same manner as direct lenders. There is a difference however in that loan brokers do not gather all the information to provide their service. This is because a brokers role is to attempt to locate a lender who may be able to help and this is done by ‘offering’ the applicant to their bank of lenders. Where the broker then has a lender who is prepared to consider the applicant further, there is a requirement to complete the remainder of the application with this proposed lender. At this point the brokers job is complete and the ultimate decision as to whether a loan can be granted or not is down to the proposed lender. So effectively brokers provide a service which reduces the need to shop around, however, unlike direct lenders, in most cases there is a fee payable for the service being provided by a broker. 

Affordability and Short Term Loans

One of the most important considerations for short term loans lenders is that of affordability. This means they must be confident that the loan being requested is truly affordable and therefore suitable for the individual needs of the applicant in question. In order to reach this decision short term loans lenders will perform a number of checks throughout the application process. These checks will actually start right at the beginning of the purpose; via the application form. Not only will this form gather the basic personal information you would expect but in addition it will also then provide the information they require to complete affordability checking. These checks will be done through assessment of the customers’ existing expenditure, thanks to the access granted to credit reference file information and also the details of the customers’ existing budget; supplied at the application stage. In order to understand exactly how this particular assessment effects the overall decision made by a short term loans lender, today we will review this in greater detail.

Affordability and Short Term Loans

In order to understand whether an applicant can afford a loan they have requested a lender of short term loans will conduct a series of different checks specific to verifying this. The exact manner in which this is completed will of course vary from lender to lender and the also the order of completion too, so what you read here is an example of the kind of checks which will be completed in some manner. As mentioned above one of the key providers of affordability based information is that of the applicants credit reference file and this is because of two factors made clear to the lender. The first of which is with regards to the applicants previous performance in terms of credit commitments. A history of successfully repaid credit agreements will begin to build the picture that the customer understands and is able to maintain and repay credit. Where there are entries suggesting poor credit performance, the lender will then need to consider if this newly requested loan would be suitable. The second factor is that of active credit agreements. The lender will want to make sure the applicant is not over committing themselves financially and therefore will assess and make decisions based on any and all active credit agreements shown.

The second major factor mentioned earlier was that of the customers budget. In order to understand this a short term loans lender will ask that applicants supply there current budget as part of applying. So this means detailing all current incomings and out-goings. Like the review of the applicants credit reference file, a review of the contents of the applicants budget will also give a very clear indication as to their ability to afford and repay the loan instalments due under the proposed agreement. By combining this information with that which has been gathered from the credit reference file, a short term loans lender will be one step closer to making an informed and sensible decision concerning an applicant’s request for a short term loan. 

Instalment Loans For When Cash is Needed Quickly

There can always be times when someone needs money and this can be down to so many different reasons. There can be some people who may need a large amount of money as they are looking to make some form of expensive purchase. This could possibly be for a new car perhaps or maybe someone is looking at putting money towards a new house etc. There can then be others who may only need a small amount of money to possibly just have some help paying an unexpected bill or they could just need some help making their finances last until they are next paid from their employer. Now regardless of whatever anyone ever wants the money for, if they have this saved away they can then look to use it as required to pay for whatever they need. Some people may then even have saved away to pay for their requirement outright. Now turning to savings is always nice when it is available however, this is not the case for everyone. If it is not available then a person may then have to look at borrowing the money.

Instalment Loans Needed Quickly

When it comes to borrowing money when this is needed, some people may then not know exactly what options they have available at their disposal. For example if a loan is required then both short term loans and instalment loans could then be available. This is a way that a person can then look to borrow a selection of different loan amounts for that person to then repay the debt back over a range of different repayment terms. It can then be common that someone with instalment loans can borrow more and then they can repay that debt back over a longer duration. A mortgage for example is actually one of the most common instalment loans that people tend to borrow. So many people from all over the world of course have or have had a mortgage at some stage in their lives.

I have found that borrowing instalment loans can have a number of different benefits for that person. It can give people flexibility on any amount borrowed. They can borrow a range of different loan values and can then repay the debt back over a suitable repayment term that suits both them and the lender. Another benefit of this borrowing is the fact that people can often get their cash quickly when it is needed and I always feel that this is going to be important. People can apply for instalment loans mainly online or sometimes it can be done over the phone. The application process can often be done in just a matter of quick minutes. Now if that same financial application is then accepted by the lender most of the time they will look to pay out that borrower that very same day. They will often pay out the loan into the borrowers bank account and these details will be provided at the application process.

Making Sure Short Term Loans are Affordable

I can never ever stress enough at just how important affordability is on finance. If someone is not sure that finance is affordable or they know full well it is not then no one should ever even apply for it. Not being affordable is one of the main reasons someone will miss payments on loans or other finance. Now missing such payments will always result in severe negative consequences for that person and most people will always want to avoid this whenever possible. So if someone was to apply for short term loans or instalment loans or even credit cards they must be affordable so the debt can then be repaid back to any lender who granted any person the finance. Below is a good way to make sure someone knows how to test if the finance can be repaid.

                                    Short Term Loans are Affordable

I have found that a good way to test if finance is affordable would be for a person to locate on average what their disposable income is each month so they can see if a set amount can be deducted from that figure in order to pay for the finance. This amount may well change from month to month however it still should give a person a good indication as to whether finance is affordable for someone. People can locate this amount by looking to the month ahead, adding up all their income expected for that period. This can include their wages, their benefits they may be entitled to as well as other credit etc. Then from that amount the same person over the same time frame can deduct their monthly expenditure. This can include things such as their rent/mortgage payment amount, their debts they may have as well as other living expenses such as transport and food costs. The amount then left after that total calculation is the disposable income. If that figure is then high then the chances are the short term loan ort other debts are affordable however, if low or if does not even cover a payment that is due then no application should then be made.

Choosing the correct type of finance is always important when it comes to affordability. Some finance types are more affordable and realistic for people to repay than others. Take short term loans for example and in particular payday loans. When people obtain these loans they will be required to often repay the debt in full just as soon as they are paid again from their employer. This can be tough for certain people to manage because repaying a debt off in full as well as maintaining other debts can be tough and at times it will not be able to be affordable. In contrast now there are other short term loans that can be obtained and then people can spread the cost of the debt over a number of months. These loans are then repaid in a more realistic and affordable manner. Any short term loan will have to be settled however, within a twelve month maximum period of time for it to be classed as that way of borrowing. 

How to Decide Upon the Best Repayment Term for your Payday Loan

Thankfully nowadays payday loans come in lots of different shapes and sizes and this means as consumers, we have plenty of choice and flexibility at our disposal. Whether we are looking to borrow £100.00 until pay day or £500.00 for a longer period of time, there is likely to be an option to fit the need. Payday loans are not designed to be used all the time and instead are most effective when used as intended; for short periods of time. The name given to these type of loans is not coincidence and in fact the name ‘payday loans’ is very finding for the type of product on offer. Payday loans do what the name suggests and allows us to borrow until our pay date in simple terms. With this in mind it is easy to see how they vary from more traditional ways of borrowing money. Take for example a bank loan, available from a host of different high street banks, these can often be offered to consumers over a number of years’ worth of repayment and furthermore can reach values way up into the thousands of pounds. Clearly consumers needing to borrow these sort of sums would not benefit from the resources offered by payday loan lenders.

Thankfully Payday Loan

One of the most important considerations before taking a form of payday loan is whether the reason for borrowing matches the resource which is ability. As discussed above payday loans are not designed to be used as an on-going resource and therefore will not be useful to all consumer needs. Instead if you are looking to cover a short term financial short fall, payday loans can prove to be a useful resource. Take for example a broken washing machine or the requirement for a new car tyre. These are the type of costs which can arise from time to time but will not continue to be a financial concern month in and month out. If, however, there is a financial cost which is likely to occur regularly, it would be more suitable to consider the resources of a larger and longer term loan product; for example, a credit card provider.

So assuming there is suitable reason for borrowing, matching that of the resources offered by payday loan lenders, it is next important to select a repayment term which is sensible and realistic. This means not over-committing yourself financially in terms of the repayment amount agreed to. Given that payday loans can be repaid in a number of ways, there is plenty of different ways in which the repayment amount can be amended to fit your budget. Payday loans are often offered over a range of terms, whether this be 3, 5 or 6-month repayment terms or 1, 2 or 3-month repayment options for example. This means the repayment amount can be increased or decreased on a monthly period depending on the overall period of repayment which is decided upon. Therefore, it is very important to review the options and make an informed lending decision. 

Direct Lenders of Short Term Loans

When it comes to short term loans there are a number of different loan options and lenders to choose from. The market in which these small lending tools exist has evolved quite considerably over the years and for many consumers, the modern day offering, is not one with which they are familiar. For many years the short term loans market was dominated by a single repayment style of borrowing and sometimes this meant the resource was not truly fitting for the needs of the individual borrower. Thankfully as the 10 plus years have passed since short term loans were first introduced in an online format, the style of borrowing has been transformed and as such is now much more consumer friendly. Nowadays the loans being offered to borrowers are more flexible in their repayment terms, better assessed in terms of suitably for borrowing and are underwritten with the regulating bodies requirements at their core. This is of course all great news for consumers and means more so than ever, there is real choice and selection available within the vast market place for borrowing a small sum of money. The loans being offered today vary in value and as such will often allow consumers the ability to borrow between £100.00 and £500.00 with some consumers having higher loan values at their disposal. The repayment terms, with the added flexibility in mind, allow the ability to borrow over a range of repayment terms, still starting from a single month and then extending up to a 12-month period and anything in between.

Direct Lenders of Short Term Loans

When it comes to the type of lenders who offer short term loans, there are two specific types for consumers to consider. These lenders can be grouped into direct lenders and then loan brokers. Firstly, let’s look at the direct lenders for example. Direct lenders operate an application process via an in-house application form. This means when an application is completed with a direct lender, it is that same lender who considers the application and will make the final decision as to whether a loan can be granted by them. In the vast majority of examples, a direct lender will not charge a fee for the service of simply applying for a loan and this remains true regardless of whether the application is converted into a successful loan. The other type of lender is that of loan brokers. Loan brokers offer the service to provide a proposed lender, based on the information supplied by the customer in completing the application form. In the same way that a comparison site will make suggestions as to suitable providers, a loan broker will attempt to find a lender to meet the applicant’s individual needs. Given that brokers do not therefore offer loans directly, there can be and often is, a fee payable for the service they offer. This means that unlike direct lenders, if a broker completes their service and finds a proposed lender, regardless of the outcome with this proposal; there will be a fee payable for the service. 

Borrowing Funds From Direct Payday Lenders

If anyone is ever looking to borrow money, regardless of the reasons and no matter what people ever needs the money for, they will have to always consider a number of different things before the application can then look to be submitted. They will have to all firstly know that they definitely one hundred percent need to borrow the money in the first place and then if so they will then have to only borrow a realistic loan amount. Any amount obtained must then be affordable for that person to then manage and then repay the debt. The actual type of finance can then be chosen and here there can be a number of different borrowing options. For example both short term loans and instalment loans could then be available. This way from possible direct payday lenders people can look to often borrow a selection of different loan amounts for that person to then repay the debt back over a number of different repayment terms. As well as the type of finance being considered the lender must then also be chosen and here there can often be a number of different borrowing options.

Obtaining money from direct payday lenders can be a way for people to borrow mainly short term loans when they need to borrow in the first place. I have certainly found that in recent years it does seem more and more people are turning to this way of borrowing when they need to. It can be a common way for someone to obtain a relatively small amount of cash for a then short period of time. Direct payday lenders normally aim to help people obtain amounts up to £500.00 and then just like other short term loans, when borrowed they must then be repaid back to the lenders within a twelve month period of time as the maximum duration. Any loan that is repaid back over longer cannot be classed as that way of borrowing money. There can be some cases where more than £500.00 can be borrowed but this will be subject to what the lender can then provide to that person.

Funds From Direct Payday Lenders

I have found that borrowing money this way can give people flexibility on what they can then look to borrow which I always will feel is beneficial to that person. Another benefit of using direct payday lenders would be the fact that they can give people cash very quickly when they need it. People can often apply for these loans online or over the phone in a quick and simple process that should only then take a matter of minutes to complete. If that same application is then accepted from the lender then that person can often look to receive their loan that very same day. In some cases people can then look to apply for the loan and then if approved they can receive their money in their chosen bank account within just a matter of quick minutes. People can honestly receive their money that quickly through some financial lenders. 

Bad Credit Loans

There can always be times when someone needs money and this can be down to so many different reasons. There can be some people who may be looking for a large amount of money as they are looking to make some form of expensive one off purchase for maybe a new car perhaps or maybe they are looking to put money towards a new house etc. There can then be others who may only need a small amount of cash, to possibly just tide their funds over until they are next paid from work or they could instead need some financial assistance paying for a bill that could suddenly have just arrived. Now regardless of how much they need and what they need it for, if someone has this saved away they can then use it as required to pay for whatever they need. Some people may then even have enough money to pay for their requirement outright or at least they can put money towards what they want. Now turning to savings is always nice but it is not available for everyone and if this is then the case the chances are people will then have to borrow the money.

Bad Credit Loans 

Borrowing money when required can often present people with a number of different options. This is why no one should ever rush into applying for loans or other finance and why someone should then always explore all the options available rather than just rush into applying for it. The options can then be limited for people with bad credit. If people have bad credit they will have to look at bad credit loans to satisfy their borrowing needs. People obtain bad credit by taking out loans and then not repaying their debts on time or by missing their commitments altogether. This when occurring does make it much harder for those people to get finance or when they are occasionally accepted people can realise that the borrowing is often very expensive. A common bad credit loans would be the payday loan.

A high number of different people turn to short term loans when their options of borrowing are limited for example they were to have bad credit and a low credit score as a result. I have certainly found that it seems more and more people are turning to these loans. When people think about short term loans they immediately think about most likely about payday loans. Now although payday loans are a common short term loan they are not the only type of that borrowing available. With the payday loan it is common most people borrow amounts ranging from £100.00 to £500.00 and then that person repays back the debt just as soon as they are paid again from their employer. People are often required to settle the debt in full with their other borrowing options then somewhat limited. These loans as well as often seen by many as a very expensive way to borrow small amounts of cash quickly but expensively. 

Short Term Loans for Fast Cash

There can always be times when people need money and to be honest most likely this can be down to so many different reasons. There can be some people who could potentially need a large amount of money as they are looking to make some form of expensive purchase. This could possibly be a new car perhaps or maybe someone is even looking to put money towards a new house or home improvements etc. There can also just be others who may only need a small amount of money as they could need some help to pay a bill perhaps or they could just need some extra money to make their wages last until the next time they are paid from their employer. Regardless of whatever anyone ever needs the money for, there can be some people who have the money saved. If possible they can then use that amount to pay for their requirement. Some may even have enough put away to pay for their requirement outright. If that is not possible however, and someone needs money then the chances are they will need to borrow it.

Short Term Loans for Fast Cash

The short term loans available can also be used as a way to get cash quickly and I have always felt that is important to borrowers. The chances are if people wish to borrow cash, they will want the money quickly so it is to be at their disposal as soon as possible. Here short term loans can enable this to happen. People can most likely apply for the product online in a quick and easy application that will take most people a matter of minutes to complete. If that same application is then accepted that person can normally be paid out their loan in a chosen bank account the very same day. In some cases, people apply for the finance quickly and if there accepted they can be funded within just an hour’s time.There are certainly a number of different borrowing options available for people to choose from and this is just one reason why no one should ever rush into applying for finance. Short term loans are just one way of borrowing money and I have certainly found that in recent years more and more people are turning to this way of borrowing money when they need cash. It can be a good way to obtain amounts that usually range somewhere between £100.00 and £500.00 and people then repay that debt back over a number of different repayment terms. A short term loan however is defined as a way to borrow money for a short duration and their repayment terms are offered over a maximum repayment term of twelve months. Any loan that is repaid back over a longer period of time cannot be classed as a short term loan. These loans as the name would suggest for a short term cash emergencies and never should they be used as a long term borrowing option.

Payday Loans UK and The Different Repayment Options

If you are looking for a resource to borrow a small sum of money, there are now plenty of different options to choose from. There can be times in any given month when a cost arrives on our plate which we simply could not have planned for in advance. Take for example a broken washing machine, this is the source of cost we know may arise at some point but it is difficult to know exactly when! These one-off costs can often demand our immediate attention in the respect that repayment needs to be made promptly to avoid further issues but at the same time; we may not have the funds readily available. For those of us who do not have a pre-existing financial support at our disposal, for example a credit card or spare savings, it may be that we need to turn to a borrowing resource to cover the cost of the unexpected expense. Although in an ideal world we would all be able to cover such costs without the use of additional finance, thankfully in todays borrowing market there are a good selection of different tools which we have to consider.

Different Repayment Options

The market for borrowing only a small sum of money is actually now quite sizable. Payday loans UK are a common name given to these such loans. Based online, these loans give us the ability to apply for a small sum of money in a manner which is fuss free and discreet. This is thanks to payday loans UK lenders offering loans via the means of a simple and easy to follow online application process. This means we can complete and submit an application as and when we need to do so via the use of ourSmart Phones, laptops or tablets. Referring back to the example of a broken washing machine, this may be something which occurs at any point in the day and therefore the ability to locate and secure funding the same day may prove to be vital. This is why there is reassurance to be gained from knowing such payday loans UK applications are vastly available 24 hours a day, 7 days a week, meaning if you need to apply outside of working hours you will be able to do so.

Thankfully payday loans UK lenders now offer a flexible service which allows us to choose from a range of different repayment terms. This means we have the ability to make an informed and therefore sensible choice for our unexpected cost. Depending on the lender and the amount which needs to be borrowed, there are a number of different terms of repayment to decide upon. Generally speaking there are terms which range from a single payment right through to 12 months. This means we can ensure we select a repayment amount which is realistic and therefore able to fit in with our existing costs and budget. Given that a broken washing machine will only occur once every few years (if we are lucky), these sort of loans may just be the right resource to assist us.

Payday Loans UK and The Different Stages of Application

When applying for a small loan online there are likely to be a number of key steps that will be completed by the potential lender, in order to decide if the loan requested can be granted. Today we will be looking specifically at payday loans UK which covers lenders who offer loans which are considered ‘short term and high cost’ borrowing. This market place is regulated by the FCA (Financial Conduct Authority) and as such the practices of the lenders trading within this online market place are governed by the FCA and the rules set out by them. The FCA is responsible for ensuring their regulated lenders are treating customers fairly and therefore being proactive in their approach to ensuring loans are approved in a manner which is considered and affordable to each and every applicant. As a result of this payday loans UK lenders will undertake a number of steps to not only ensure the requested loan is suitable for the individual requesting finance but also that the FCA’s requirements have been met and ultimately satisfied. Today we will be looking specifically at the application stages likely to be taken as part of applying and potentially being approved for a short term, high cost credit facility.

Different Stages of Payday Loans

Typically speaking these ‘type’ of loans are accessible via the means of an online based application form. There are still lenders who exist via more traditional means being a store front on the high street but the convenience of the online application means that these type of loans are often the vastly preferred choice amongst borrowers. Most payday loans UK lenders now offer their application form via all means of internet enabled devices meaning the form can be completed on a Smart Phone, tablet or laptop, as well as the traditional desktop. The application itself is usually made up of 3 stages, designed to gather personal information, banking information as well as banking information of the applicant. Usually the time required to complete such an application is little longer than 10 minutes.

The information gathered at each stage of the application will allow the potential lender the ability to assess whether the required loan is financially viable, meaning whether the applicant has the means to make repayment for the commitment proposed. This assessment will be achieved through a number of different electronic and also manual based checks, preformed once the application has been completed. Depending on the lender the time it takes to make a lending decision will vary slightly but many lenders aim to deliver their final decision within a manner which is both timely but also full considered. Given that most bank accounts now are enabled with the facility of Faster Payment, this means when a loan is granted the applicant can normally expect to receive the agreed funds the same working day. Ultimately the lender wants to make the right decision regarding an application, based on information and facts gathered throughout the application process.  

Payday Loans UK and Instalment Loans

When it comes for someone to ever borrow money, some people may not actually know that they may be entitled to a number of different borrowing options. That is one of the main reasons why no one should ever rush into applying for finance and why everything must be taken into consideration before anyone ever even thinks about applying for loans or other finance. It is now certainly safe to say the only way of borrowing would be through your local bank and the manager there that has now well and truly gone. From the financial market place these days’ people can often look to borrow both short term loans and instalment loans when these are needed. Here people for example can look to borrow a range of different loan amounts for repayments then due back over a number of different repayment terms. Another very common way of borrowing would be via payday loans and these of course allow people the chance to pay for different items as well as withdraw cash on credit up to a set limit via the actual use of the card itself. All three are very common ways of borrowing money however, they will each have their own benefits as well as negative factors regarding what they offer to people.

Apply Payday Loans UK

In this article it is actually the instalment loans that I am going to mainly focus on. In particular I will explain how Payday loans UK can offer assistance to people who need to borrow money and how this lender has gone from just offering people payday short term loans to instalment loans when a person needs to borrow. This of course gives someone more flexibility on the finance. They can borrow a set amount that they need and then rather than clear the debt in one go they can spread the cost in order to help the debt get paid off in a more affordable and realistic manner. That can help make sure that the finance is repaid to the lender who granted it. With Payday loans UK it can be common that people can borrow from £100.00 to £650.00 if they are first time applicants or then repeat borrowers can look to borrow anything up to £1000.00.

This lender used to solely offer payday loans to borrowers who needed money yet they now offer instalment loans. The amounts people can obtain have not changed and are as stated above but now people can have a more flexible loan. Payday loans UK offer repayment terms from a single month so sticking with payday loan borrowing but then people can also pay over anything up to five months. People if they know what they can afford each month can then spread the cost to make sure this loan is affordable. As with any instalment loan financial product it always worth taking into account, that the longer people take the repay the debt, the more overall they pay back in total.

Direct Payday Lenders and Short Term Loans

There can always be occasions when someone needs money and this to be honest can be down to so many different reasons. There can also always be people who may actually need to borrow more than others. Some people for example may need a large amount as they are looking to make some form of expensive purchase. This could possibly be for new car potentially or maybe someone is even looking to put money towards a new house etc. Other people may however, only require a small amount of money as they are just needing some help paying a bill perhaps or maybe they are just after some extra money to tide their finances over until they are next paid from work. Now regardless of whatever people need the money for and non-dependant on what they need, if people have money saved they can use this required. They can use their savings to pay for what they need and in some cases they can pay for it outright if they have enough put away. This is not always possible for people when they need money and in those situations the chances are they will need to borrow the money.

Direct Payday Lenders Offers

  

Direct payday lenders may then be approached and these are one set of senders that be able to help borrowers get cash when it is needed. These lenders aim to provide short term loans to borrowers who need cash. Here people can then have the ability to borrow relatively small amounts of cash to then repay that debt back over a limited period of time. Direct payday lenders can normally look to lend people amounts ranging somewhere usually between £100.00 and £500.00 and people can then repay that debt back over a maximum of twelve months. Any loan that is repaid back over a longer period of time cannot be classed as a short term loan. These loans are designed as the short term loan name suggests to be repaid over a quick duration and therefore be used in case of a short term emergency and never should they be used as a long term borrowing solution.

I have found that that these loans are more commonly obtained by people who have bad credit and a low credit score. This has meant that in recent times they have had a high amount of applications for finance decline however, having said that maybe direct payday lenders can help. They aim to provide their finance to people who have struggled to get accepted elsewhere and I have found that this is one of their main benefits of using such a borrowing product. Lending to such people for any lender can always be a risk as the borrower may not be able to repay the debt. That is why some short term loans can work out to be expensive. For example a payday loan is a common type of short term loan and so many people already know these are expensive.

DIRECT LENDERS

Payday Loans have received a certain amount of bad press because of their high interest rates but if you use them responsibly, they can be a definite upside. There is no denying the fact that these interest rates can be dangerous if not repaid on time and there are also a lot of lenders who are not trust worthy, but if you are a customer with a genuine emergency and are in need of some immediate cash, payday loans are the answer to all your needs. There are times when we cannot anticipate a financial calamity and borrowing money from a friend or a relative is not always the best option. It has included a class of people who, in many ways, were being ignored because they did not match the criteria of institutions offering mainstream lines of credit. These people today have access to these forms of credit and this system has bridged the gap between the banker and the customer. In other words, direct lenders have created the kind of impact that is needed on the population.

Payday Loans direct lenders were initially thought as a short term solution used by people with stable incomes to cover their emergency needs or cover expenses that may arise unprecedentedly, but it has slowly shifted from that to a more mass-scale phenomenon, where people are using these type of loans as an additional source of income, thus leading many into the dreaded cycle of debt.

Payday Lending has become an integral part of today’s financially unstable society and the reason why it is regarded to be unstable is because, in previous years, the volatility of the financial world was being witnessed only by mainstream banks and financial institutions but after the 2008 crisis, it has trickled down to every single individual. Payday Lending came into existence in the 1990’s but was then, not as popular as it is today and their popularity just keeps rising. This is mainly because a majority of people are strapped for cash and are finding it difficult to meet ends to ends. A lot of these people also don’t have access to long term loans and as a result, have no way to meet their expenses on a regular basis.

There are several articles that have been posted over the years relating the practice of payday lending to the great depression. It is a common fact that a majority of the payday lenders are catering to the working class people and the poor who probably don’t have the financial knowledge to understand the implications of such practices. The majority of the borrowers represent the age group of 25-44 years.

Almost a decade after pay day loans have been introduced in the UK, there has been considerable debate over the future of these loans. They were a popular option post the 2008 crisis, as the cash-strapped economy found the offers to be far more attractive, since most of the financial institutions have restricted their lending capacities. There have been several people lobbying for stricter regulations on pay day loans UK, as surveys have indicated that about 2 million Brits were using these loans for meeting day to day expenses rather than emergency purposes. Following these not so positive developments, certain regulations have been put into place in early 2014.

As if this situation could not be worse, where occasional borrowers are being slowly converted into chronic borrowers, research into this has found that there are certain lenders who have incentivized this process of conversion for their staff. They encourage their staff to convert the borrowers into chronic buying and are rewarded for their effort. In other words, these companies have a carefully planned agenda behind putting vulnerable populations into the cycle of poverty.

The reason they came into existence, which was primarily to secure people in the case of an emergency and especially those people who couldn’t afford long term loans is slowly fading away giving rise to a system which can create a serious financial crisis, if not regulated completely. This is because of some of the reasons:

·         Many people are not using these services as emergency money but as an additional source of income. There have been numerous surveys done in the past which has shown that only about 16% of the total population of borrowers is using this money in the case of emergencies.

·         Their age limit is also facing serious flack. Even though only an 18 year old can borrow money, all 18 year olds are not financially responsible and there needs to be a more thorough check done in this regard. These lending agencies before lending money to this particular age group needs to know if they have the ability to pay back the money on time.

·         Even though as per the lending norms, these lending agencies need to lend money only after a thorough background check of the individual, a majority of them are functioning without doing any kind of check.

This situation can only change when the governments in question and the regulatory bodies realize how dependent the population has become on these payday loans.  Direct lenders of payday loans have been having a field day every day since 2008, since there has been no concerted effort in trying to push the use of other alternative sources of credit. This has led to major conflicts within the existing borrower population, as many of them have complained of being emotionally and physically harassed while repayment is usually done. There has been no effort on the part of the lenders to understand the need for bringing people above the cycle of poverty. Instead they have focused only on their profits which have led to the industry being dependent on the people’s dependence. This relationship of dependence is what has caused this serious upturn in the financial world, where we can now see people rising to the occasion and doing something about these payday loans. However the message is loud and clear: Maybe it is a little too late.

Thinking About Payday Loans for Bad Credit

Over the years short term loans have been used by consumers for a variety of different reasons. In the early years of the market many consumers turned to this resource as a result of a lack in similar products and thanks to the discreet nature of the service on offer. Short term loans offered consumers an ability to borrow a small amount of money without the need to visit a traditional lending resource such as a bank or credit card provider. Often these more traditional lenders were best suited to helping customers who needed a long term loan, with a loan value of a sizable amount. Short term loans were different to this because they specifically allowed consumers the ability to borrow a small sum of money and then agree to repay it over a small and specific time frame. This meant these loans could be used for a variety of purposes, whether that be the repayment of an unexpected bill, a car repair or even dental treatment. As the years have passed the purpose of these loans have broaden and the increasing flexibility in the market means more so than ever these loans are capable of serving a wide range of consumer needs.

What has become evident in the past few years is that these loans, if used correctly, could be used to assist those looking to restore their credit worthiness in the future. Short term loans or payday loans as they are often known, can be used in some cases by those who are now more financially stable then was possibly the case in the past. Payday loans for bad credit allows consumers the opportunity to demonstrate they have moved passed a situation of financial hardship and are now able to manage the commitments required of borrowing money. This is particularly the case when considering the recent changes to payday loans for bad credit. Nowadays the market for short term borrowing is much more flexible than was previously the case in years gone by. There is now a whole range of borrowing resources which have been made available to consumers. That for example the instalment based payday loans for bad credit. These loans allow consumers to borrow a small sum of money but instead of asking that the entire commitment be repaid as a lump sum, allows repayments to be spread out and therefore repaid over a number of instalments. Not only does this mean the repayments are likely to be more financially affordable but also allows the consumer to demonstrate how over time a monthly commitment can be successfully maintained as required. Many lenders of payday loans for bad credit are now moving in the direction of instalment based products in order to better assist the realistic needs of their customer base. Over the years it has become more and more clear that instalment based options for such loans are, for many, the much more suitable and affordable lending choice. This is likely to continue in the years to come.

Payday Loans Direct Lenders

If there is anyone that is ever looking to take out a loan they have to consider a high number of different things before any financial application can then be made. That potential borrower must know that they definitely one hundred percent need the finance in question and then if so they will then have to select a realistic amount to then borrow. That amount or any amount taken must be affordable for them so the debt can be successfully repaid. The type of finance can then be considered and people here have a large amount of different options. People can take out both short term loans and instalment loans where different amounts are borrowed and then repaid over a number of different terms. Credit cards are also a very common way to borrow money. As well as considering the type of borrowing the lender must be chosen and again there are a high number of different options when choosing the lender to apply for the finance through. In the article below it is the lenders that I will be focusing on as I will be explaining in detail what payday loans direct lenders can offer people when they need to borrow money.

There are a high number of payday lenders that operate in the financial market place and not only do they operate there they offer people the chance to apply for the financial products when they need to borrow certain amounts of cash. A large amount of payday lenders as expected offer people short term loans when cash is required. The amount of people now borrowing short term finance has grown rapidly as more and more people are trying to borrow this way when they need cash. Albeit payday loans direct lenders can normally look to help people get short term loans for amounts usually somewhere between £100.00 and £500.00 but in some cases people with this borrowing can take out loans up to £1000.00. Any short term loan will most likely have to be repaid back within a twelve month maximum period of time.

Despite what the name may indicate, payday loans direct lenders do not offer just the payday loan borrowing facility. This is when people again borrow a set amount up to £1000.00 and then repay the debt in full the next time they are paid by their employment. The full balance is always paid when a payday loan is taken out when the repayment becomes due. Payday loans are not the only product however these kind of lenders can fund people. Short term loans can now be taken by the direct payday lenders where people borrow the amounts and then repay the debt over another period than just one single month. People for example can repay these debts back over three, six or maybe twelve months if they choose to. That gives much more flexibility on any borrowing product. Always remember however, the longer any financial loan is taken over, the more repaid back to that lender in total.