ASTA WERKS

Short Term Loans

The affordability of short term loans

 

In the modern day market for short term loans there are a number of different checks the potential lender will complete in order to decide if the loan requested is suitable. These affordability checks have become fundamental to the approval process of short term loans in recent years due to changes in the governing body who regulate the industry as a whole. For a number of years now the short term loans market has been subject to the guidance of the Financial Conduct Authority, this governing body also known as the FCA, were brought into force to ensure the market as a whole began to function in a manner which was more controlled and consumer focused. The FCA set about this task by studying the market and its lenders in great detail in order to establish what the current practices of lenders were and as a result, were changes could be made. What quickly become clear to the FCA was the fact that the short term loans market didn’t to make a number of key changes in order to ensure the product being offered returned to be one which was useful and fair for consumers.

The FCA came to understand that for many years short term loans were not correctly serving the needs of consumers and this was mainly down to the fact the product being offered was too restrictive and adequate checks were not being carried out by the lender. As a result of these facts consumers were often able to borrow money in both a manner which was not affordable and on a regular basis. The FCA noticed that in order to improve this market place on a whole the type of product needed to adapt to better serve the realistic and modern day requirements of the consumer. Over the last few years the product being offered by short term loans lenders has changed and as such nowadays consumers have the ability to borrow in a manner which is flexible; thanks to loans within this market being offered on an instalment style of repayment. The second and notable change which has unfolded is with regards to the checks which are completed by the lender.

The process for approving a short term loan is now more control and consumer focused thanks to the rules and guidelines introduced by the FCA. Their goal is to ensure lenders can demonstrate that they have made reasonable checks to ensure the loan being granted is affordable and realistic to the customer. This is achieved through a range of checks which cover a review of the customers current credit reference file(s), validation of employment based information and detailed analysis of the applicants budget. The order in which these type of checks are completed will of course vary from lender to lender but the point being that the FCA’s guidelines deem they must be completed in order to ensure the required standards are being met. This is great news for lenders and customers alike as it means generally the loans being granted are more suited to specific needs and therefore affordable.


When short term loans can become too expensive

 

When considering lending options there is a vast amount of choice which is available. Consumers in the modern market place can borrow anything from as little as £50.00 right through to amounts as large as £25,000.00. Obviously certain lending resources are tailored to specific type of loans but the point is that credit is everywhere. This is certainly the case when it comes to short term loans. Short term loans have been a popular choice amongst consumers for many years now and as such the number of lenders which are available online is somewhat vast. This means there is plenty of choice and selection should a form of short term loans be required. Thankfully in more recent times the number of lenders who exist has been reduced and actually, improved thanks to the newly appointed guidance of the Financial Conduct Authority. The Financial Conduct Authority or FCA as they are often most well-known now regulates this vast market place to ensure each and every lender acts in a manner which meets their required standards. These standards are designed to ensure consumers are tried fairly, with respect and loans are considered in a manner which ensures they are affordable and realistic to the applicant.

All the changes to practice and lending procedures which have been brought about by the FCA and its new rulings, mean that the modern day short term loans lender is more focused on customers than ever before. In simple terms consumers are now being given more flexible lending choices and applications are being better considered in terms of whether the loan is truly suitable or not. The direct result of all of this is the fact that as consumers we are now expected to assume a greater level of responsibility to borrow in a way which is sensible and within our means. Short term loans can be a really useful resource for covering a short term cost or expense and this is particularly the case in the modern day market place, however, obtaining credit in this manner when not affordable to do so can be extremely expensive.

In circumstances where repayments for short term loans cannot be comfortably fitted into your existing budget there will obviously be difficulty in making the required repayments. In addition to this using short term loans over a pro-longed period of time may also result in increasing costs. Unlike more main stream borrowing which can be agreed over a long period of time, at the point of the loan being approved, short term loans are not designed to be used each and every month. A bank may offer a loan over 3 years because the amount being borrowed is directly reflective of this. Given that short term loans are usually offered between £100.00 and £500.00 as the agreed loan amount, repaying them or borrowing more and more will only lead to increasing costs. This should always be fully considered before any form of short term loan is agreed and the agreed funds deposited into the elected bank account.


Payday Loans Bad Credit

Introduction to Pay Day Loans:

Pay Day Loans have evolved from a dire need to supply short term credit to customers across the world. Pay day loans are becoming the norm, owing to the financial instability that is sweeping every nation. Pay day loans can be called a blessing as well as a curse, because they have created a scenario where it has become highly convenient to borrow money and a curse because the term “unreliable” has become synonymous with pay day loans bad credit.

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There are 2 sides to a coin, metaphorically speaking as this responsibility doesn’t lie with the lending agency alone. There needs to be an informed public, irrespective of the class of society they come from, who are availing of these short term credit facilities. Let us discuss some facts to talk about how these facilities are being given the notorious description of “payday loans bad credit”.

We are often used to seeing this headline in the newspapers where several regulatory bodies have been known to defend their argument of how pay day loans leave a bad taste in the mouth of the customer.

Understanding the concept behind these loans:

These loans cannot be put in the same category as conventional loans being offered by large financial institutions. These can be compared to the age old money lenders who lend you a certain amount in exchange for a certain inflated interest. These age old techniques have been sophisticated to suit the modern world and as a result of that, these lending agencies have come into existence. These loans need to be used only when you are in a dire need of money and should not be considered as a substitute for additional income.

Let us look at an example of this:

Suppose, it is the end of the month, and due to a minor accident, your car needs repairs. Now, you are in urgent need of cash and the expense cannot wait till the next month. In such a case, when you are confident about repaying the amount in your next pay cycle, should you use such facilities?

These lending agencies thrive on these scenarios and are a good way out of these situations.

Benefits of these pay day loans:

  • These pay day loans are designed to get you out of sticky situations and should be considered as an option only when such a situation arises.
  • They involve minimum documentation and the process is fairly simple.
  • Since they thrive on urgency, their fast cash transfer process provides you with the cash within 24 hours.
  • They don’t approve a loan just based on your past credit history and make a more unbiased decision when it comes to your loan approval.

 

paydayloan 

Disadvantages of pay day loans:

  • These pay day loans have known to have a very inflated interest rate since they are charging you an interest annually. This implies that you need to be a lot more careful when you are applying for this loan.
  • Extension of this loan means an even higher interest rate and it has resulted in a financial crisis for many individuals.
  • Many customers have refereed to this means of borrowing money as a black hole as it leads to a vicious cycle of borrowing more and more money, if you are not able to repay your debt.
  • Many of these lending agencies do not come under the purview of regulatory bodies and this has resulted in many of them capitalizing on a customer’s weakness.

 

The Cycle of Debt:

This is perhaps some of the reasons why one would be discouraged to get a pay day loan as it can result in a series of debts which could be extremely difficult to handle. It is essential we understand how one loan can lead to another loan, as statistics reveal than more than 75 % of our population is borrowing close to 11 times a year. There are people lobbying for increasing the number of times to double in the following years.

These statistics expose a larger problem. Even though these lending agencies are doing their job by bringing short term credit to each and every customer, it is the average man on the road who is not being responsible about the way he is handing his finances. These lending agencies have been built on the pretext of supplying money to people in “need” and the more we lose the essence of their purpose, the more financial turmoil this can create. For the sake of ensuring that there can be a certain amount of stability that exists, there needs to be a stricter cap on the interest rates as supplied by these agencies. There should also be a cap on the number of loans that one is allowed to take in a year, which can limit the possibility of such damage.

 

Role of the Lenders:

In order to shake off this image of “pay day loans bad credit”, what needs to be ensured is a certain amount of transparency to be exercised by the lending agencies which will build confidence in the minds of the customer.

They should not observe any hidden costs and should carefully explain the implications of non- repayment of these loans. These agencies should also guide their customers in a way which instills a certain financial sense in them, which will lead them towards greater financial responsibility.

cash_advance _payday_loan

Conclusion:

It needs to be understood that it is equally important for the public to be well informed about the services offered by these agencies, to carefully scrutinize their financial products, be thoroughly prepared for contingencies as well as be up-to-date with the developments in the world of pay day loans. Following these developments will make you more informed as well as more knowledgeable about the practices adopted by these agencies so that you don’t enter the dreaded cycle of debt. It has brought about a revolution in the world of credit lending, but it needs to be exercised with a certain amount of caution as well as thorough information.


It will always be better to save than borrow money

There can always be occasions when people need money, this can be for a variety of different reasons including that person making a one off expensive purchase such as a new car or someone may just need a small amount of cash to tide them over until the next time they receive their monthly salary. Whatever the reason if people have that money saved away they can use this when they need to, it will just then become their responsibility to repay the money back into their savings as soon as possible. If that is not an option then they will look at possibly borrowing cash from family or friends potentially and if this is possible then they can repay those people free of interest when they are paid. There can however be times when again this neither is an option when borrowing so people will have to then use lenders to get that money when it is required. With Christmas just around the corner I am going to look at what kind of loans people obtain around the festive period when other means of money is not available to them.

payday-loans-true blue loans

Because Christmas is only over a single month people tend to borrow to accommodate for that type of borrowing. With that being said most borrower swill then look at short term loans during this period of time when they need cash and they do not have money saved to cover their expenses. When I say short term loans most likely if they have bad credit then payday loans will look to be obtained. A payday loan is a small loan provided by lenders for repayment back with high interest charged on that borrowers next available payday. People if they need cash during December for instance to fund Christmas spending would look to borrow a required amount and then repay this debt with high interest at the end of December. Now the interest on such a product can vary depending on the lender chosen however it will always be common for people to charge around 30% per £100.00 borrowed by the customer and it is because of this that makes payday loans hard to repay for certain people. If they borrow in December £400.00 then they will have to pay £500.00 and maybe more at the end of December which will leave their finances likely to be short again during January.

3 month loan

Because of the information above it will always be best to save money where ever possible. Some people will be able to save more than others but at least saving something no matter the value is better than doing nothing here. People will also know that if they have money saved then they will have constant access to this money if they require funding during any stage. Some people will think that when they put money to one side they lost it but of course this is never the case. They will have access to this money constantly but if people ever remove funds from savings they should be sure to put this back as soon so it is there again encase money is needed for the future. Whenever money is taken out of savings it will be interest free.

 

Spread the cost of Christmas with a short term loan

 

Before anyone ever applies for a loan of any kind they certainly will have to question with themselves a few things. They will need to know that they definitely need the loan in question and then that person must only borrow a realistic amount of money that can be affordable to get repaid. They must then also choose the type of loan to borrow and people here may not actually realise that there are a number of different borrowing options. People can often look to obtain short term loans such as payday loans over small repayment terms and high amounts become due or potentially as an alternative instalment loans over longer time frames can be taken. With instalment loans lower amounts will be due over longer periods and also normally more can be borrowed there. A mortgage is actually a type of instalment loan. Other finance that could be considered is credit cards and these allow people the chance to withdraw cash or pay for items on credit up to a set limit that is agreed between the borrower and lender before the card is issued. In the article below I am going to look more into borrowing options during Christmas time.

installment loans versus payday loans

People will know that typically Christmas time is expensive as it requires so often people to pay for certain items that they would not normally budget for in any other months. Some of these items include Christmas presents for friends and family, a large amount of food for that time including a turkey that can be expensive as well as drinks for the family and friends who may visit at this time of year. Because it only lasts for this month though it can be common that short term loans are commonly used to borrow money this time of year as people tend to take them out to repay throughout December. This is known as payday loan borrowing which when loans like this are taken out they must be repaid in full with interest on that persons next payday. This can be expensive as loans such as these charge around £30.00 per £100.00 borrowed and when they are obtained they must be repaid in full within a maximum of thirty one days.

trueblueloans.co.uk

Credit cards around Christmas time are also very popular and can be taken out to cover any costs that a person must make. With a credit card the customer and lender must decide on the credit limit set for the card and a customer must never exceed this amount. The credit card itself allows people the chance to purchase goods or withdraw cash on credit so this is very popular especially this time of the year. When a balance is then placed on this card the customer will have the chance on their payment date to pay either the full balance on the card (normally no interest charged if this is done) the minimum amount on the card which is usually around only 2% of the overall balance or they can pay somewhere in-between. If they are then struggling just after Christmas they can pay small amounts and then look to clear it say in February when they may have more disposable income to clear that balance.

 


Spread the cost of Christmas with a short term loan

 

 

As people will so often know Christmas is an expensive time of the year, people will need to make some possible expensive purchases for Christmas that will not be needed to be made at many other time of the year. With that being said Christmas should still be enjoyed and for me personally it is my favourite time of the year. Throughout December people will know (providing they celebrate Christmas) that a Christmas tree will need to be paid for, people will also need to purchase a turkey, presents for family and friends as well as other food to have throughout that time. If these items are purchased people could often find that they are struggling to make their financial ends meet in December and they may not be able to settle other bills or payments as required. If people have money that is saved away then they can use this to help their finances however if not then the chances are they may have to borrow cash and is that what I am going to focus the article below on.

spend money carefully

Because Christmas is a short period of time for people they will always consider looking at short term loans over this period to fill their borrowing void. People will be aware that there can be some loans that can provide same day cash with a quick application process and then people can repay this debt the following month meaning they do not have to worry about the balance for two long. Some short term loans available can fund similar amount to payday loans value (up to usually about £500) for repayment up to anything as high as twelve months. Again this gives the customers the chance to borrow money when cash is needed and then repay over a small time frame and not have debt lingering on for prolonged period of times. People may know though that typically short term loans can be a very expensive way to borrow money for only short spaces of time. For example take the payday loan for example, people here can borrow amounts for anything up to a single month as a maximum and they can pay around 25-30% per £100.00 that is borrowed. There are definitely cheaper options available than payday loans around Christmas

12 month true blue loans

If short term loans are not taken by customers then other people may look to take out credit cards and borrow money that way. A credit card allows people the chance to pay for a range of products or withdraw cash up a set limit on credit, the actual limit for the customer can vary depending on their credit status or the lender chosen by the customer and this will always actually be agreed before the card is sent to the relevant person. These are very popular especially around Christmas as people can spend money on the card and not pay for it until they are due on their credit card statement. People can then get the payments out the way after Christmas has finished. People with this finance can usually pay the full balance off, they can pay the minimum which is only about 2% of the balance or of course they can pay somewhere between these figures.

 

A small amount of money could be saved each week

Often in life we find ourselves in a position where all our money, or wages, seems to have been spent without truly knowing exactly where.

Often in life we find ourselves in a position where all our money, or wages, seems to have been spent without truly knowing exactly where. This is because so many of us use our debit cards to make the purchase of goods and services and often do not keep a track of the when’s and where’s. A budget can help with this and in doing so help you save money every week. A budget is a simple tool which can be used to control your spending and also highlight areas where improvements to spending can be made. This means in simple terms a budget needs to include all of your current outgoings versus your current income.

Many of us as modern consumers are managing a whole range of different expenses. As well as the classic expenses we face including rent, water, electricity and gas, we also now have to pay for a whole host of other commitments also. This could mean monthly repayments towards electrical goods, home furnishings, clothing, and cars and of course other existing financial commitments. As a result for some of us the list of our monthly commitments is actually much longer than we are truly aware of. That is where in a few simple steps a budget can highlight our regular areas of spending. Having listed all the true expenses against total income the next step for a budget is to understand the amount which is left. This means if your total expenses are £1300.00 for example and your total income is £1750.00, you have £350.00 which is deemed as spare. This spare amount is also known as disposable income which can be spent on whatever you like throughout the month.

In order to quickly and somewhat easily save money each week you must be able to review your budget in detail and see where areas of improvement can be made. Take for example your costs associated with food. If you note that you are spending £75.00 every week on food, whether that be via the supermarket or eating out, why not see if this can be reduced be making cuts. Many of us eat out regularly without considering any promotions which many be available via the web, check this out before you decide where to eat perhaps. The amount saved here could then be put directly into savings to be enjoyed at a later date. Review each part of your budget in this manner and see what areas can be approved.

Another way to save money each week is to manage your disposable income effectively. The best way to do this is to split it across the month and therefore avoid the temptation to spend all of it quickly. Many of us find ourselves turning to lending resources in the later parts of the month because our spare income has run out, if we are able to better manage this spending it is likely to have a positive impact on our month as a whole.

to make the purchase of goods and services and often do not keep a track of the when’s and where’s. A budget can help with this and in doing so help you save money every week. A budget is a simple tool which can be used to control your spending and also highlight areas where improvements to spending can be made. This means in simple terms a budget needs to include all of your current outgoings versus your current income.

cash_advance _payday_loan

Many of us as modern consumers are managing a whole range of different expenses. As well as the classic expenses we face including rent, water, electricity and gas, we also now have to pay for a whole host of other commitments also. This could mean monthly repayments towards electrical goods, home furnishings, clothing, and cars and of course other existing financial commitments. As a result for some of us the list of our monthly commitments is actually much longer than we are truly aware of. That is where in a few simple steps a budget can highlight our regular areas of spending. Having listed all the true expenses against total income the next step for a budget is to understand the amount which is left. This means if your total expenses are £1300.00 for example and your total income is £1750.00, you have £350.00 which is deemed as spare. This spare amount is also known as disposable income which can be spent on whatever you like throughout the month.

In order to quickly and somewhat easily save money each week you must be able to review your budget in detail and see where areas of improvement can be made. Take for example your costs associated with food. If you note that you are spending £75.00 every week on food, whether that be via the supermarket or eating out, why not see if this can be reduced be making cuts. Many of us eat out regularly without considering any promotions which many be available via the web, check this out before you decide where to eat perhaps. The amount saved here could then be put directly into savings to be enjoyed at a later date. Review each part of your budget in this manner and see what areas can be approved.

Another way to save money each week is to manage your disposable income effectively. The best way to do this is to split it across the month and therefore avoid the temptation to spend all of it quickly. Many of us find ourselves turning to lending resources in the later parts of the month because our spare income has run out, if we are able to better manage this spending it is likely to have a positive impact on our month as a whole.


Repayments needed for short term loans borrowing

 

It is never wise for any potential customer to ever get themselves involved in a financial product when they know that this is not realistic for them to manage and then successfully repay that debt. People can get themselves into debt situations when this is not carefully considered. Never take a loan that is not affordable for repayments and choose a financial product that can be suited to your current and any future financial circumstances someone may have. Missing any due loan repayments can result in severe negative consequences for anyone involved so this is something people will always want to avoid at all costs. Having a decision on the lender to choose and then apply to is always important, there are so many different lenders out there and some will clearly be better than others. Some of the different finance available for selection includes short term loans and instalment loans over possible longer periods. It will be the latter that I will be explaining about below, I plan to write about what they offer and the payments that should become due on the product on a monthly basis.

A loan should only be taken out when it is affordable for that person to manage and then they can comfortably repay the debt until the balance comes settled. Short term loans can offer the chance for people to pay back up to twelve months at an affordable rate. To ever find out if finance can be affordable that person needs to find out what their disposable income is for the month ahead and then live within these financial means. The disposable income is the amount of money left over for someone after all their financial commitments are then met. This amount can vary from month to month however it still provides a good indication if finance is ever affordable. Some can add up their income expected for the month ahead including wages, possible benefits due etc. Then after this is done the same person for the same time frame should deduct all monthly expenditure from that figure which will include any rent/mortgage payments as well as other possible living expenses and other bills due etc. The figure left after the calculation is the disposable income. Now if that amount is high then the loan can be affordable to take out however if the figure is low or if it does not cover any due repayments of a loan then quite simply no application should then be made by the customer.

A common type of short term loans borrowing is the single month payday loan. Because they are repaid once taken out within a single month they fall within the definition of short term borrowing. A payday loan can be tough for people to manage to clear in a single instalment, the product can charge high interest due to short nature of the loan agreement and that as a result makes clearing the total balance that little bit harder for people to manage. The interest on a payday loan can vary depending on the lender chosen however most firms here can charge around £30.00 per £100.00 borrowed by the consumer. This can mean if people take out £400.00 for instance they will be required to pay around £520.00 in full on that loan to repay the whole balance and for some people to repay that figure as well as other possible financial commitments can be hard to manage and a certain payment could then be missed as a result.

 


The importance of making the required payments on short term loans

Whenever a loan is applied for and then funded to a customer there is a really large piece of importance on what must next be done. The loan must be repaid as agreed with the lender and as explained in the terms and conditions of the loan agreement. Missing loan repayments will nearly always result in negative consequences and this is always something people will want to avoid. To help making sure that does not occur a customer should consider a few things before applying for any finance. They can firstly make sure that the finance is definitely needed in the first place and then only a realistic and affordable amount can be borrowed and then repaid. The type of loan and the lender to choose and apply through is something else to take into consideration. People can have a strong amount of variation on the loans out there and there are a number of different options available in regards to finance and the lenders to select from. In this article I am going to discuss just how important it is to make repayments on short term loans and other debts someone may have.

People will never appreciate being in debt as it can nearly always be an embarrassing time for people to experience. When a repayment is made to a lender that person will be chased for the payment on the money that is owed. The lender will have the authority to now call the customer on any number they have available including home, mobile and work contact information. If calls are made to the customer on home or work numbers it could lead to embarrassment as third parties may find out about the debts that person may have. As well as phone contact letters, texts and emails can be frequently sent to that person to chase the money owed. A customer should always where possible make contact as soon as possible (preferably before they even become due) and advise them of their current financial situation as the lender may be able to help and payments if applicable could even be reduced for periods of time. Never avoid your debt as it only makes the matter worse and never makes the debts go away.

When any repayment is missed by someone and not paid as soon as possible it can be entered on that persons credit file. This will normally be done if the overdue account is not paid within a month of the payment firstly being missed. Having this occur can lead to further credit being harder to come by or typically more expensive to receive. This is really negative if people are ever looking to borrow loans again in the future. A default against a customer can remain on a credit file for up to six years unless paid off in the meantime. When the repayment is made it will take a certain amount of days to update this information. Always settle the required payments as soon as possible even if repaid at a reduced rate than previously agreed with the lender.


12 Month Loans

 

12 Month Loans May Be The Solution You Are Looking For

Given the variety of options that are available when it comes to short term loans, it makes sense to look for the option that is most suitable to your needs and financial situation. There is no getting away from the fact that there has been an increasing array of short term financial solutions, which is a good thing for consumers, but there is a need to think about which option is best for you.

Given the variety of options that are available when it comes to short term loans, it makes sense to look for the option that is most suitable to your needs and financial situation. There is no getting away from the fact that there has been an increasing array of short term financial solutions, which is a good thing for consumers, but there is a need to think about which option is best for you.

Every applicant is different and indeed, every short term loan can be different. One applicant may require a short term loan to pay for one unexpected bill of a modest amount, which can be paid back within one payday whereas another applicant may receive a much larger bill that could only be paid back over a longer period of time. This is where instalment loans provide a great benefit to users and there is no doubt that a 12 month loan is likely to be a great solution for many users.

This style of loan is broken down into easy instalments

A 12 month loan will be broken down into 12 equal instalments. This provides consistency for the user, but it will; also provide them with a greater likelihood of being able to pay the loan amount back. Ultimately, the total amount of money that is paid back will be higher, but this is due to the length of time, which impacts on the interest. Due to the loan being paid back in 12 equal instalments, each individual payment will be lower, better fitting in with people’s disposable income for each month.

This is the key aspect of 12 month loans, because it fits in with what people are able to pay, which should always be a number one consideration when it comes to taking out a short term loan. While unforeseen things can happen from time to time, an applicant for a short term loan should always have a degree of confidence when it comes to paying back their loan. Being able to spread their loan payments out over 12 months will provide a much higher degree of confidence for each user, which is very important when dealing with all financial matters.

When it comes to obtaining a 12 month loan, the same criteria for shorter and smaller loans is likely to be applied. This means that applicants prefer the online or over the phone application process associated with short term loans will find that they can make their loan application with confidence. This is a major benefit of applying for a 12 month loan.

You can receive a stronger level of funding from this style of loan

Another major benefit of applying for a 12 month loan comes with the fact that there is an opportunity to apply for a much larger level of loan. A payday loan will commonly be on offer for sums of money ranging between £100 and £1,000. When it comes to obtaining a 12 month loan, it is far more common for these loans to be available for sums of money between £500 and £2,000 or even higher amounts of money. A 12 month loan is the ideal point between standard short term loans and the more traditional loans that are on offer from banks and building societies. If you felt that there was no middle ground between a short term loan and the traditional loan, a 12 month loan may provide you with the solution that you are looking for.

The strongest part of the 12 month loan is the fact that it offers the best of both worlds. It offers the speed and convenience that is normally associated with short term loans but it provides the sort of financial support and backing that is more commonly associated with major financial institutions or backers. When it comes to receiving funding support in a manner that is best for your needs, you should look into the support provided by 12 month loans.

 


3 month payday loans are the ideal length

I can never stress enough how important it is for customers to explore the different financial options they have available when they are looking to obtain finance. It is never just wise to apply to the first lender that comes along for the first loan that is being looked at. People may not realise that the way to borrow money has changed recently, for example people can look to obtain short term loans such as single or 3 month payday loans that will be repaid over a number of months. Instalment loans can also be taken out and these typically have longer repayment terms. Other finance can include car finance when a car is purchased and then repaid back on a monthly basis and also credit cards are also common. They allow people to pay for items or possibly withdraw cash on credit. All of these are very common ways of borrowing money. After selecting the product the customer must then select a realistic amount to borrow and then know that it can be comfortably repaid back. The lender to apply through is another common question that needs answering. This can be a hard choice as there are so many different lenders available for selection and some out there will definitely be better than others.

As mentioned briefly payday loans are a very common way of borrowing money. This is a type of short term loan that requires people to borrow relatively small amounts and then repay with interest on their next payday. This way of borrowing should only be used for short term financial reasons and should never be considered as a long term borrowing option. Most payday loan lenders out there charge around £30.00 per £100.00 borrowed by the customer but this may be different through some lenders. That is a large interest rate considering people can only obtain this product for thirty days as the maximum duration. There are definitely cheaper ways to borrow money. A payday loans has benefits in the way they can be applied for quickly and if the application is accepted people can receive the money the same day of applying. Payday loans are also common loans for people to borrow who have poor credit meaning they get declined for most other finance.

Now as a borrowing alternative there could be the 3 month payday loan. Similar to a payday loan in the way people can receive free same day funding if the application is accepted and they can definitely look to lend to people with poor credit however this 3 month loan product offers more than just the single month payday loan. This product can give the customer flexibility whereas the basic loan cannot. People can borrow a set amount to similar value than a payday loan yet they can repay over any period up to three months instead of trying to clear the balance in one go. It can be common that this loan however more may be due overall to the lender yet the repayments can be managed much easier than the full balance being due in go like on a payday loan.


For Payday Loans, Make Sure You Use Payday Loan Direct Lenders

 

 

Now that we’re familiar with the malpractices of payday loan brokers, we need to understand what makes payday loan direct lenders such a viable replacement. Payday loan brokers, as explained before, essentially leverage on the lending ability of direct lenders by submitting applications on your behalf, while pretending that it’s their money that they’re lending out to you. While this happens, they impose obscene interest rates that are far above the market rate and in a sense, end up scamming financially uneducated consumers. It’s nothing short of horrible and thoroughly ridiculous.

 

Payday loan direct lenders, on the other hand, are designed as honest businesses that ensure their sustainability through fair charges. This means that they would never impose the additional charges on you like how payday loan brokers do. They have a much larger presence in the payday loan market, which means that they cannot afford to tarnish their reputation by making you pay for services that are being offered for free. Applications that are submitted are meant to act as leads for payday loan direct lenders to vet through and determine whether they’re viable candidates to take out a payday loan. Since the nature of their business revolves around issuing out loans and having interests paid to them as compensation, there really is no need for them to conduct their businesses in such a dishonest manner.

 

In fact, payday loan direct lenders will always guide you through their application processes and patiently explain to you the factors that are involved in their consideration for the acceptance of applicants. It’s important for them to educate their borrowers about the dangers of payday loans and talk about the reality of their dangers. Most direct payday loan lenders would have warning signs displayed on their websites to inform borrowers about the risks that are involved and that taking out a payday loan should be taken seriously just like any other type of loan. Falling back on a payday loan can be far more expensive than what it seems, but as long as you handle it appropriately, there shouldn’t be any reason for you to fall behind on your repayments. Payday loan brokers, on the other hand, would attempt to attract borrowers by offering marketing gimmicks such as free gifts to lure borrowers into taking out loans from them. It’s sneaky and it works for tricking financially uneducated consumers.

 

Payday loan direct lenders are the honest and professional counterparts of payday loan brokers. Identifying a payday loan direct lender isn’t as hard as it seems. All you need to do is look out for a secure sockets layer certification (SSL Certification), business registration numbers and a moneylending license. All these components contribute to a payday loan direct lender being responsible and serious enough to obtain the appropriate documentations. Payday loan direct lenders will always have all these fundamental certifications in check before they proceed to lend out loans, making them reliable options. The risk of taking out a loan from a payday loan broker is completely unethical, and it should be avoided at all costs.