You have heard about payday loans. You see ads and billboards, but you have never really been involved with them. You know they are referred to as short term loans, meaning you get a particular amount of money that you should be able to cover it with your wages. Now, the main question is – are they really worth it?
Apart from getting a bit of money to keep yourself on the floating line, a payday loan will bring in a plethora of other advantages. So, what makes these loans so popular?
Payday loans do not involve getting to a bank, waiting in a queue, applying and waiting for days or even weeks for a reply. Instead, you usually get your application approved or rejected within minutes only – sometimes, even instantly. Then, money goes to your account within a couple of hours. Simply put, you get a good amount of money for emergencies, be it a car repair or rent.
It is worth noting that the speed of your application decision is based on providing the right documents and details.
Forget about banks, letters, documents, prints, queues and so on. More and more lenders stick to online payday loans only. In other words, you sit down on your sofa, complete the application on your smartphone or computer and send it. You do not have to leave the home. You only need an Internet connection.
Discretion is quite common these days, but doing it online provides even more privacy. Sure, you will have to provide real details, such as your name or payslip details. But then, you can avoid showing up in person. You do not have to discuss face to face with a manager. You do not need to borrow money from friends or family. You can take care of your financial issues and keep your reputation clean.
Pay your loan on time and you should have no issues whatsoever. Build your credit score up and show the lending institution that you are a reliable customer. With time, your credit limit will be increased. Assuming that you are still employed and you can pay the debt, your credibility will go up.
As a first time customer, you will be lucky to get £500. Most lenders allow smaller loans. As you keep repaying on time, you are more likely to get up to £1,000 or even more.
Payday loans do not have the best reputation out there. Times are different now. Back then, the industry was quite problematic. Fees were high. There were all kinds of brokers selling these loans and many of them sold the customers’ data to call centres and so on. Luckily, the FCA (Financial Conduct Authority) has decided to put an end to all these problems.
Rules are quite strict these days. Reputable companies have managed to stay on the market, while the scum is mostly gone. Obviously, you still have to pay attention and research your lender. But then, there are price caps regarding charges and fees, meaning your extras will no longer explode.
Simply put, if you are after a payday loan, you can now enjoy a well-deserved peace of mind. You will work with well-regulated lenders and charge the right fees.
Bottom line, payday loans represent a completely different industry these days. Despite being plagued with scams and huge fees for years, most of the scum is gone since it was properly regulated by the FCA. It makes a good alternative for those who need some quick cash for emergencies without ruining their credit scores or reputation.