Payday Lenders That Are Just Like Sunny but Better
Having financial issues that require quick solutions? Having a hard time seeking for fund sources for your emergencies? You might have heard about Sunny Loans, a lending company that offers quick loans without admin, application or late payment fees. This lender offers short-term loans that are straightforward and transparent. However, you might be surprised by the expensive rates they offer!
While Sunny loans advertises themselves as a payday lender, they are not actually “payday loan” types that they offer. They offer an alternative to the traditional payday loans where you can borrow for a short time and you pay in a single repayment on your payday. So, when you borrow from Sunny Loans, you will make a repayment each month, for the capital or original amount borrowed plus the interest accrued.
In most cases, payday loans do not have a very good reputation in the finance industry. Thus, lenders try to recreate means to offer financing to those who are looking for payday loan alternatives. On the other hand, loans with longer terms usually become more expensive in the long run. Despite smaller repayment on schedule, the accrued interest can sometimes double the original amount borrowed.
Sunny loans may offer flexible amounts from £100 and £2,500, but the terms are normally based on the amount you borrow. Therefore, you have a limited flexibility on your loan repayment schedules. When you try to delve deeper into how a short term loan works at Sunny, you would understand why many borrowers search for Sunny loan alternatives instead.
How Does A Short Term Loan from Sunny Work?
Sunny Loans is one of those online lending companies that offer quick release of cash advance loans to borrowers. Thus, the application is also very straightforward. You will fill in your details on the online application and provide documentations required. Once you have submitted your application, the lender will assess your information, run a credit and affordability check. And similar to other lenders offering bad credit loans, Sunny also accepts applications even if you have bad credit history. Once approved, the company will aim to transfer cash into your account within 15 minutes.
Sunny will set up a Continuous Payment Authority (CPA) for your monthly repayments. It means that they will deduct the payment from your account on a regular schedule on the agreed day of the month. Typically, the interest you’ll pay is about .8% of the loan amount on the day of the loan.
Will Sunny Loans Run a Credit Check on Me?
You can visit the Sunny Loan website to access their eligibility checker to find out if you are likely to be approved or denied. The checker involves a “soft” search on your credit history, but it will not affect your score. Having a bad credit may discourage you to try out various loan offers, but it does not necessarily lead to a rejection on your application.
If you decide to proceed with borrowing, you can expect Sunny Loans to run a credit search on you using a Credit reference agency (CRA).
Why Are Borrowers Seeking Sunny Loans Alternative
Needing immediate cash may spur you to check out variou lending companies online to see where you can find the best loan deals. You might find people telling you to try Sunny Loans services, but how much do you really know about this lender? There are many loans like what this lender offers. You should also know that there are alternative services that you might want to consider before pursuing a loan at any lender.
Sunny Loans might be a convenient option when you don’t want to borrow money from friends or family during an emergency. It has a convenient application process, quick assessment phase and speedy loan decision. All it takes is just a few minutes, and after a few more minutes, you will receive the approved amount in your bank account. You don’t even have to leave home to apply for the loan. Everything can be done online, from the application, submission of documents and the transfer of funds into your account.
These features have made Sunny a well-known online lending company for urgent financial needs. It may seem like the ideal loan company until you realize that the repayment for the loan you made is almost double than the original amount!
Unlike traditional payday loans, Sunny offers short-term loans which are payable in installments for several months. Thus, depending on the amount you borrowed, you may be assigned a six, 12, 18 or 24 months repayment period. Along with this is an interest fee that is computed with the original amount you borrowed. The installment amount is usually very inviting because it is just a small amount that you need to pay for monthly. However, when you look at how much you pay in total, you’ll realize how expensive it really is.
People often search for lenders that offer the quick and convenient process like Sunny Loans, but without the high interest rates for the monthly installments. There are various other lenders offering UK residents the same short-term loans to get a better APR interest rate.
Why Consider a Sunny Loan Alternative?
Applying for a regular loan at Sunny will limit you to their pre-set loan amounts, fees, charges and repayment terms. Thus, if you prefer a more flexible arrangement, these offers might not work for you. More so, you might want to apply for a loan that is more favourable for you despite your urgent need.
Repayment terms with Sunny are also fixed. Thus, you will be forced to pay off your time in the timeframe that they outline and set for each loan amount they approve. Some borrowers also find that they are paying interest on a loan longer than they would like to do. This can be extra frustrating especially if you already have the funds to pay off the loan amount in full. And sadly, you can be charged with early payment fees and charges in case you want to complete payment for your loan.
Although Sunny Loan is very popular, there are still a lot of rough edges on their services. If you want greater flexibility on the amounts you can borrow as well as the duration of payments, it is best to check out offers from other lenders. You can find a lender that will ideally provide the most suitable terms and amounts for your needs.
Am I Eligible for a Sunny Loan Alternative?
It is fairly easy to become eligible to payday loans and short terms loan offers similar to the offers of Sunny Loans. Most UK payday lenders have minimum requirements for their borrowers. Some of the basic requirements for loan application include the following:
- UK Resident
- At least 18 years old
- Has a bank account with valid debit card
- An active mobile phone and email
- Must have regular income/employment
If you meet these minimum requirements,you can easily apply for a short term loan by filling out an application form from any lenders online. They would be willing to assess your application and offer you their services.
Most of the time, application takes as few minutes to complete. The lender will assess all information you provide and verify the authenticity of details you submitted. They may call your employer and conduct “soft checks” on your credit file. Even lenders that offer bad credit loans still conduct credit checks, but they do not rely on this information to approve or deny you of your loan. After approval, you can expect to receive the amount you borrowed in your bank account in a matter or minutes or within 24 hours at most.
Sunny Loans is an online lender that runs under Elevate Credit International Ltd. Like any other payday lending companies, it is authorised and regulated by the Financial Conduct Authority. And under such regulations, a borrower’s information will be shared with credit referencing and fraud prevention agencies. The company is pretty well-known in the online short-term loan industry because of their unique services. They have high regard for financial security, convenience and quick release of funds. On the other hand, short-term loans they offer can also lead to financial stress especially if you cannot pay on your due date or if you want to end the installment term early.
If you need immediate cash and you plan to borrow through an online lender, you might want to consider other Sunny Loans alternatives. Short-term loans from Sunny does sound promising, but they have limited flexibility on the terms and amounts they offer. It might not be the ideal lender for the kind of arrangements that you have in mind. There are loan broker sites wherein you can check alternatives to Sunny Loans and other short term loan providers. Therefore, before you submit your loan application, try to explore the wide range of lenders available online. Find the lender that can give you the best deals for your needs.