You never know when you might need a little extra money in case of an emergency and asking from family and friends is not always the best or available option. Why embarrass yourself when you can easily take out a payday loan and get done with the emergency on a short term loan?

Payday loans are becoming increasing popular in the UK. They are convenient and can help you out with your problem without going through the long process of applying for one. The best part is that a payday loan does not depend on your credit score. Anyone with a good income can take the loan out and pay it back the next time they receive their income.

Payday loans are extremely easy to acquire and due to this ease and the short term of borrowing, they come attached with a higher interest rate than most standard long term loans.

If you are in need of some money fast, consider taking out a payday loan for the following reasons:

In case of an emergency

You never know what might happen in a day that may cause you to use a considerable amount of cash in a short period of time. It could be a medical emergency or an accident that requires you to pay a sum of money before your insurance can cover it.

A payday loan is your best friend in such situations. All you have to do is contact a payday loan provider, give them your details and the money gets transferred into your account within the hour. Payday loans are the ultimate source of cash when you don’t have any other.

Taking out a cash advance on your credit card is similar to this, but you do not have the liberty to negotiate interest rates with the credit card company. For cash advances, the rates are fixed and due to the fact that you take that money out from an ATM, you can’t do much about the rates that are offered to you.

So the next time you’re in dire straits regarding money, be sure to consider taking out a payday loan to help you out.

In case you have maxed out your withdrawal limit on your bank account

It is quite possible that you bought something good for yourself and had to withdraw the money from your account to the maximum daily limit of borrowing. In that case, if the need arises for you to have more cash on hand, you can get a payday loan to help you out for a day.

Payday loans range from £200-£2,500 and in the case you do not require a very big loan to help yourself, get a small payday loan and get through with the day. Payday loans are a short term loan, so you don’t have to worry about paying the lender the whole year round.

Although borrowers do have the choice of spanning their payments over the year in case of a larger amount such as £2,500, but this just means that you will have to pay more interest for a longer period of time so it is always better to repay on payday!

No credit check

In this world of borrowing and lending, finding a loan without a good credit score is nearly impossible. All standard loan lenders follow credit checks religiously and people with a low score are either denied the loan or pay heavy interest on the long term loan.

Payday loans do not require for you to have a high credit score in order to acquire them. A payday lender will only check with you about your income and some basic personal information and you are good to go.

A credit check may not be required to acquire a payday loan, but it certainly helps you out when negotiating interest rates with your lender. If you have a good enough credit score, you can get a better interest rate guaranteed.

Improve your credit score

Since payday loans do not require a prior credit check to acquire, you can always use them to bring up your credit score. If you have a bad enough credit score, you can take out a payday loan and pay it on time to have a positive impact on it.

If you need to buy a house but your credit score is stopping you from acquiring a large loan or a mortgage, start with short term loans and pay them to improve your score step by step. It wouldn’t happen overnight, but it is very effective for people who have bad credit.

But do be careful as defaulting on your payday loan will have a negative effect on your credit score. So plan your budget and start to save up to pay the loan on time.

Nobody else has to know

The best thing about payday loans is that nobody else will know that you have taken out a payday loan in case you don’t want to borrow from your family and friends. Payday loans are totally confidential.

In some cases, the lender might contact your employer to know your income and confirm your details, but you can request your lender to not inform anyone about it and in most cases, they are happy to oblige.

Pay off your credit card debt

When you are about to default on your credit card payments, you can be sure that it will affect your credit score badly. In such conditions, it is better to pay the credit card debt with a short term loan such as a payday Loan to save your credit score from hitting a big low.

When taking out a payday loan, you should be sure to visit different lenders and compare their rates online. To compare different payday lender rates, visit https://paydayloans.quiddicompare.co.uk to compare and find the best payday loan rates available to you.

 

Sources

https://www.snappypaydayloans.com/blog/10-reasons-to-use-guaranteed-payday-loan/

https://www.quickloans.net/5-reasons.html

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