We Do Not Check Payment History – UK Lenders
Only a few people are born with a silver spoon. These are individuals who will rarely, if not never, want immediate or instant cash. However, it is different for an average Briton. There will come a time when you’ll encounter a financial emergency and you will have no choice but to find a quick fix for your money problems.
Those who know or are familiar with it understand that this option is quite expensive. Many experts advice their clients not to take this unless they are sure they can repay it fully on the date specified. That is an undeniable fact, but there are many other things you should know about payday loans.
This is only for the short term. It aims to provide people with some sort of relief from their money problems until their next guaranteed employment cheque. The amount borrowed is transferred directly into one’s bank account and the repayment, which includes the interest, should be settled. However, there are also instances when the direct lender allows the borrower to set the easy repayment period.
When the time comes that you have to pay your due, the lender will automatically take the amount you borrowed and the interest from your bank account. As you can see, getting yourself into this kind of loan will make your circumstances much worse with no idea what you are getting yourself into or if you cannot pay it in full.
In the past, lenders charge around £25 to £30 per month for borrowing £100. Another £30 should be paid on top of it when failed to repay it on time. In 2015, the Financial Conduct Authority ordered that lenders stop charging borrowers twice the amount they initially borrowed. The move was made as part of the government’s efforts to help consumers get out of debt. Furthermore, they are only allowed to charge up to £15 in penalties and interest on the borrower’s outstanding principal and default charge for failing to pay the loan during the specified repayment period.
When borrowing money, lenders are usually required to check the borrower’s history. Those with high scores have higher chances of getting approved. Now, what about those who have low scores or people with bad history? They turn to lending with no credit check in the UK.
The qualifications are lenient. The borrower simply has to be at least 18 years old and have a regular income. It is a popular option for individuals who need money but has nowhere to turn to. Many people take out a small loan because of many reasons. It may be due to an unexpected bill that they need to pay or to meet certain obligations and avoid incurring penalties. Others have cash due to a family emergency or maybe because they need money to fund their travel.
The Advantages and Disadvantages
We don’t check prior lending history — and that offers many benefits. It does not require the borrower to have an established history, which their chances of getting denied are slim. The approval process is online, simple and the waiting period can be as little as 15 to 20 minutes. Borrowers also do not need to provide any collateral in exchange for the loan. They do not have to offer the title to their car, house, or other valuable assets. They can also help improve the score of those who use quick cash to settle their other debts like mortgages.
Apart from the advantages, you should also understand the disadvantages that are associated with it. First, you need to learn that the interest rates are extremely high and can also put those in need of cash in a more dire situation. It can make a difficult situation much worse especially if the fees and interest rates continue to pile up. You may also get hooked into applying for a no credit loan in the UK on a constant basis. As mentioned earlier, they can be helpful if you are in need of urgent cash. However, it can lead to spiralling debt if you use the money to buy things that are unnecessary.
Always keep in mind that these types of loans can offer you a perfect solution when you are in a tight financial situation. In addition, it can help you get back to financial recovery. However, you should make sure that you handle your finances appropriately to avoid further setbacks. Use them occasionally and only to meet unexpected expenses. Never secure them up to a point that you are already taking every pay cheque to your lender.