Category: Payday Loans

How to get a payday loan

During the last couple of years, payday loans have become significantly more popular in areas from all around the world, especially the UK, since they offer consumers a quick and efficient way of getting access to some emergency cash that they are free to use in case of an economic hardship.

However, for some, the process of getting a no credit check payday loan may seem a little bit complicated, so in this guide, we will talk about the steps that you need to follow to get a payday loan, and make sure that you get the best deal available for you.

1. Choosing the right company and gathering the materials you’ll need

To kick things off, it is important to avoid getting a payday loan unless you truly need one. Based on this, consider the economic issue that you’re dealing with, and attempt to calculate whether you will be able to pay back your loan on time, and can cover all of the afferent fees. If you have decided that you want to go for it, consult the internet for payday loan agencies near you, and see the offers that they have. You can apply via the Internet, phone or even in person, which makes it more convenient than having to get a traditional loan. In general, it is important to look for companies that are tied to a larger institution, do not have very high interest rates, and tend to be upfront about the requirements that you need to fit to be eligible for a loan.

2. Go ahead and collect all the details that you need for the loan

Secondly, you will need a couple of documents, these being: proof of a steady income, proof that you are the owner of a bank account, contact information for yourself and your current employer, your ID which proves that you are over 18, a statement which says that you have a gross, household income over a certain threshold, and if needed, proof that you are currently not dealing with bankruptcy.

3. Fill out the application and ask your questions

If you have decided to visit a local agency, once you have shown the documents, you will need to fill out an application. In case you have any questions whatsoever, make sure to ask the person taking care of your loan, as this will help avoid running into other issues later down the line. You may also want to discuss the taxes, interest rates, alongside with penalisations in case you don’t end up paying your loan back on time.

4. Have your funds given to you cash, or deposited to your bank account

A few hours later, or during the next business day, you’ll be sent out the cash. Make sure to use it wisely, and only for covering the financial emergency that you have been dealing with. Another tip would be to avoid overspending your salary that month, as this may make you unable to pay back your loan on time.

5. Paying your loan back

Most of the times, payday loans are meant to be paid back as soon as you have received your next pay check. Based on this, on the day that you have filed in your application, the payday loan agency will attempt to debit your account, and hence remove the debt owned alongside with the interest fees, that can be of anywhere between £10 to £50, depending on the loan that you have gotten.

In case you won’t have the money needed to pay back the loan on time, then you’ll want to contact the payday loan agency and let them know about your issue. While the interest fee will surely be higher, some agencies may give you an extra day or two, or even more time for you to get some more money, and pay back the loan. This represents the main reason why it is important to find better ways of budgeting, in case you have scored a payday loan. Running from paying the loan back can lead to all sorts of trouble, including a lower credit score, but also higher taxes and other financial issues later down the line.

Based on everything that has been outlined so far, securing a payday loan should be quite simple as long as you are employed on a fulltime basis, and have a steady income that you can prove to the agency. Be wary when it comes down to paying the loan back on time, and when you budget, as you definitely don’t want to end up being in more debt, and having to live pay check by pay check.