There are many different kinds of payday loans that you can use. Each one has its own advantages and can be used in very different situations. When you are getting a payday loan, you don’t just think about what type you need, but you also need to consider a few other things such as how long you need the payday loan for, how much money you need to borrow, and when you will pay the loan back.
There are many different types of payday loans. Here are some of the different types of payday loans that you can use when you are in immediate need of quick cash.
Generally, all banks offer personal loans as a generic product. In a personal loan, the borrower has to pay the entire principal amount back in addition to the interest that is charged over it. This amount is to be paid in a lump sum at the end of the term period.
These loans normally require the borrower to give something to the financial institution as collateral. Collateral can be anything ranging from jewellery to an entire house. However, this requirement only stays for the secured loans. Unsecured loans don’t require any collateral from the buyer.
1 Hour Payday Loans
These are instant payday loans that you can get within an hour of applying. As soon as your application is approved, you can borrow your funds immediately. Maximum 1000 pounds can be borrowed, and the money should be paid back within two weeks’ notice.
Low Fee Loans
This type of payday loan isn’t very commonly used because as the name suggests, it still has an average premium charge which is 8% but lenders also do background checks and you never know whether your application for a loan will be accepted or not. Even if your application gets approved, the money transfer could take at least 5 days to get into your bank account. You cannot borrow for more than two weeks, like many other types of loans.
Advance Cash Loans
This short term loan against your credit card is known as an advanced cash loan. So, instead of using the credit card to make any payments, you can take the card to an ATM or a bank and get cash taken out instead for whenever you need to use it. You can also get advance cash loans from payday lenders when you write them a check.
30 Day Payday Loans
There are 30 day payday loans that can help you out when you are stuck in a financial crunch. 1000 GBP is the upper limit for borrowing and the amount is required to be paid back in 30 days. But since the borrowing period is longer in this case, the premium is also higher. This becomes more expensive than usual payday loans. These loans also take a little bit longer than usual 1 day loans; they take about 4 to 5 days to process.
Online Payday Loans
You can fill your online application for your online payday loan instead of going to the place and physically doing it. You can borrow money for maximum two weeks time period and the money can range between 300 to 1000 pounds with a 20% premium average. You get your money as quick as possible and these are usually one of the most commonly used types of payday loans. Lenders will require some kind of proof that you are working, getting paid on a monthly basis and that you are above 18 years of age.
Poor Credit Payday Loans
These bad credit loans are great for people who are bad with their credit history and have bad or really low credit scores. But the unique selling point of this type of loan is that they don’t check your credit scores. All you need to get a loan is to have a checking account that is valid and proof that you have an income every month.
So, these are some types of payday loans that you can use when you are in a need for emergency cash. Whenever you decide that you need money immediately, before making any hurried decisions, you need to fully understand what you are agreeing to and what kind of loan you really need, and what the best decision would be for your situation. You also need to be careful and fully understand when you have to repay your loans to the lenders because it could put you at risk of losing something.
Confused over which option you should take? Well, we’ll help you figure out what to do when are in dire need of cash funds instantly. Just click here and browse through a comparison of different lender rates available in the market.