Who will come to your rescue when your rent is long due and you have multiple bills to take care of on top of that? Payday loans are the only solution if you want fast cash and that too, on an urgent basis. A payday loan comes in different names and titles – it’s often called an emergency loan, a check advance loan or even a cash advance loan in some places. In the United Kingdom, payday loans are typically under the sum of £500.
But, do you have any idea what particular steps you should follow before applying for a payday loan in the U.K.? Soon as you go online to look for a payday loan, there are multiple things which will overwhelm you. However, you will not have to be bombarded by numerous payday sites, because here is a helpful guide towards getting the best payday loan in town.
Step # 1 Plan How And When You Are Going To Repay
This might not seem like the very first thought you would want to think about, but in fact, this should be something you plan ahead. When you are taking out a payday loan, make sure you are aware when you are going to pay it back. Will you go for short-term intervals, or set up a direct debit? There are multiple types of repayments plans and options that lenders provide you, hence you have to be sure to select the one that best suits your payroll and future expenses.
It’s also a good habit to plan out a monthly repayment budget, because if you exceed payment timing, you get to pay with an extra interest percentage. You will have to pay the entire loan sum back either way, so why make yourself suffer more?
Step # 2 Start Comparing And Shop Around For The Best Offer
Who says you have to jump at the first offer you get? There are so many payday lenders today, that people practically shop for the best payment option and loan plan. Look around and read the customer reviews and comments. Don’t get fooled by the bogus lender, because many people have fallen into the trap of payday loan sharks. A great way to check if you have the best payday loan offer is to compare different payday loan companies.
Step # 3 Learn The Payday Loan Requirements
In order to apply for the payday loan, you will first have to learn the payday loan requirements. Various payday companies and service providers have various policies and requirements regarding the lending process. Some are extra careful about tracking their borrowers, and others are low key in running background checks. When a company is very laid back while offering you an immediate loan, you should know there is something fishy going on. Normally, payday loans are not that commendable on the side of a lender, since they have next to none security or safety on behalf of the borrower.
- You have to be of right age in order to be eligible for a payday loan.
- The right age is 18 years or older.
- You will have to be a UK resident, one who is currently residing inside UK.
- You would have to provide a monthly income proof.
- Payday lenders want to provide loans to only those people who have steady cash flowing on a monthly basis.
- A valid house address is also required, which is checked through the U.K. address register.
- Lastly, you will have to have an active U.K. bank account, which will allow the direct transfer of money.
Step # 4 Tools For Payday Loan Management
Once you find a good payday loan company or lender, you must next try and find out whether they are offering you something more, or just good rates.
Some payday lenders provide online budgeting tools that will aid your repayments. These tools help you in planning your monthly repayment plans. This step is important because it will make you think twice when applying for a company that doesn’t help you figure out your extra outgoings.
Step # 5 Make Sure You Are Budgeting Accordingly
Once you settle down and get ready apply for your selected payday loan the one of the last step would be to budget your finances. This is extremely crucial if you want to avoid falling into a spiral of payday loans. Count your monthly outgoings and setup up various spreadsheets and plans. Doing so will help you in tracking your repayments and monthly spending.
Make restrictions on yourself for the next month, or whenever your repayment is due, because if you keep on living the same luxurious life—you will not be able to tackle your household expenses and payday return payments at the same time.
Remember: Payday Loans Are Short Term Financial Solutions
Always keep one thing in mind: payday loans aren’t a longer term finance solution. The lesser you are borrowing the better, and similarly the earliest you are repaying the best. To place it roughly for every hundred GBP your are borrowing, you get to pay back £25 more, in addition to the loan amount. Therefore, it’s essential for you to borrow with a responsible attitude. Don’t try to transfer or delay your payments to the loan service company, as it will only make things worse for you.
A thing to ensure is that you are applying for a payday loan, just because you have a sudden emergency that you couldn’t foresee. Hence, you should rely on payday loans just to pay for that extra expense that’s suddenly in your monthly budget. For long-term loans and financing solutions you should be careful about considering payday loans, because for the purpose, a bank loan is advised.
Before you file the payday loan process, remember to seek advice from finance experts and third parties. Good communication with a well-reputable lender is the key to getting, using and repaying a payday loan.