UK Companies offering Personal Loans
Most people think that borrowing is very expensive because of high interest rates. What they do not realise is there is due justification for this. First up, it is there to fill up a sudden financial need. These are given to people who need money immediately and cannot wait for their next pay cheque. The situations that borrowers face vary. Some of them need the money because they or their loved ones met an accident. Some request this type of payday loan for important matters like utility bills.
Loans of this nature in the UK are very different compared to the ones people get in a bank. First of all, borrowers borrow from a lending company not from banks. But the biggest difference is the absence of a background check. It means that people who do not have good score are allowed to file for payday loans bad credit when they need it.
Filing can be done on the internet. We offer direct lending. The application is very simple. Application forms are found on the web. You simply access these sites and fill out the important information regarding your personal and financial details. Your application is then reviewed by the lending company. A decision is made within 24 hours of your application. In fact, there are borrowers who get their money within the day. With a bank, you need to file for it personally. Then you have to wait for weeks for their decision on your application. Banks are longer in terms. These are the advantages why a lot of people need this to solve the financial crisis they are in.
For people with poor credit history when borrowing in the UK, this is their only choice aside from borrowing from their friends or family. Because in this product, lenders are not required to perform credit checks on their borrowers. This is according to UK policies. But lenders have their way of checking on borrowers financial history. The bottom line s that, if they think you cannot repay them on time, they will decline your application. But if they think that you have the capability to repay for the money you borrowed, then there is a big chance of getting an approval, guaranteed.
The one thing that concerns many people is that the interest rates seem very high compared to banks. This is very true. A loan of 100 pounds gets the borrower 24 pounds in total interest which he has to pay at the end of the loan. This is usually god for about thirty days. Debit card purchases have significantly lower interest rates than this.
This fact may make this product look very expensive at its’ maturity. But it does not end there. You still have to pay for additional charges when failing to pay when due. Late payment charges and higher interest rates compound the original amount of the repayment which makes the total amount rise higher than the original figures.
But lenders do this because they are not allowed to do background checks on their borrowers. This acts like a security measure for them which they certainly lack. And there is no collateral involved meaning that if the borrower cannot pay, they do not have the assurance of getting their home or car for it.
Here are some ways that will help you avoid getting into a financial trap. It is important that you pay on time. Aside from that, make sure before you file for a loan that you are capable of doing so by calculating the amount you wish to borrow including the estimated interest rate. Choose an amount that will not jeopardize your next budget. Ideally, you should only borrow a third of your estimated salary for the next payday. Try to save excess money after you have used it and add it to the repayment.
While true that the interest rates are very high. But considering that you will not have to risk any of your precious properties as collateral, this will still work in your favor, even with bad credit. The thought is it might lose your house or car due to an unpaid loan will put too much stress and pressure on you. As it is, even if you fail to pay, you are guaranteed to have a house to go home too or a car to drive around with. So it is not a bad exchange after all.
Pay day borrowing remains the best short term loan to file for when in immediate need of money.