Direct Payday Loan Lenders - An Overview
Payday loans are short-term loans that are offered to people who need money urgently during an emergency situation. You can receive this type of loan from direct payday loan lenders when you are out of money, temporarily. A payday loan can easily tide you over your financial problems, until your next pay day comes around.
How Does a Payday Loan work?
In order to be eligible for a Redwallet payday loan, you must be at least 18 years old; you must be a UK citizen, you are also required to have a valid bank account and you must be employed - having a fixed monthly income. The loan amount would range from £100 to £400. The money will be deposited directly into your bank account sometimes as quickly as one hour. When the repayment is due the money will be collected from your account along with the agreed interest payment. The money you need to repay the loan will be explained at the time of application so no hidden charges or fees will be added to the account if paid in full on time.
When must the loan be paid back?
The repayment date is specifically agreed upon by both the lender and the borrower. However, normally, a payday loan has to be repaid in a lump sum, over a period of seven to thirty days. This implies that, as a borrower, you won’t have to worry about the installments; instead you can simply focus on repaying your loan straight away and stay on top of your finances. At the end of the loan period, you can either settle the account or roll it over. If you notify the direct payday loan lenders that you are unable to repay the agreed amount in full, then most payday lenders will provide you the option of 'rolling over' your payment. But, rolling over a loan would also mean additional fees and interest rates.
Benefits of Lending From Direct Payday Loan Lenders:
This is the main benefit of payday loans. Completing the application process and receiving the loan amount takes only a few hours, and a majority of direct payday loan lenders will offer you a 1 hour guarantee for receiving the money after the loan is approved.
Unlike traditional bank loans that entail additional collateral such as a house or car, payday loans are approved unsecured. Hence, these loans can prove to be highly beneficial if you are unable to give the additional collateral required by banks.
Payday loans usually have no restrictions so; you can utilize the cash for anything you want.
People with bad credit scores are not automatically excluded from applying for a payday loan, which might not be possible in case of traditional loans.
Helpful During Emergencies:
Since you can obtain your loan in a few hours, you can utilize the money to pay an unexpected medical bill, your upcoming bills, pending fees, repair your car/house, avoid bounced check fees etc.
Allows Small Loan Application:
Payday loan lenders offer loans that are as low as £100. On the other hand, banks may be reluctant to offer a loan of less than £1000. Additionally, though banks offer an overdraft facility, the overdraft fee is quite high.
Overall, borrowing from direct payday loan lenders can be invaluable if you are in the middle of a financial hardship and need monetary aid to pay for the necessary expenses till you get your next payday. This type of loan is more flexible as compared to the other loan options and is ideal for people who require only small loans without having to undergo a pile of paperwork and a prolonged waiting period.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk