We've all been there. Too much month left at the end of the cash. Two weeks until your next pay-day, and nothing left in the bank to see you through till then. It happens to most people at one time or another, and often no sort of planning or careful budgeting can stop you from running short. All it takes is for something to go wrong with the car, an unexpected vet bill or household cost and all of a sudden you find your bank balance taking a nosedive. Seem familiar?
With the cost of living getting steeper all the time, not everybody is in a position to afford the advantage of saving money for circumstances like this. The choice of asking the bank for help through a loan or overdraft may not always be available - or even the right way to go - if you simply need a bit of money to help you over until you next get paid, so a pay day loan may provide the perfect solution.
Pay day loans are designed specifically to suit people who need a short term loan which they'll be capable of paying back quickly. There are lots of pay day loan banks out there, and it is important to do your analysis and make sure you feel comfy before making your choice about which company to borrow cash from. Here are some things to think about when you're looking for a pay day loan lender:
Does the lender have a good reputation? Do they look genuine and are they able to answer all your questions? Don't commit till you feel confident that you're entering into an agreement with an ethical, valid bank.
Do they have a shopper credit license? To lend cash in the United Kingdom, all lenders must hold a client credit license. Responsible banks must adhere to a set code of conduct in the opinion of the provisions of their license. Avoid borrowing money from lenders who do not have the shopper credit license as they could be trading unlawfully.
Are you clear on what you will be paying and when? A responsible bank should supply you with a clear schedule of the payments of any cash you borrow, including the dates, amounts and how it should be paid.
How long will you have to pay back the loan?This varies from lender to bank. Some loans would have to be repaid in 30 days, others could be longer. Make sure you will have the money to pay the loan back by that date.
How much is the interest (APR) on the loan on top of the initial amount? Ensure you learn what the APR figure is on the loan. Since payday loans are built to be paid back swiftly you should be mindful of what you will pay in interest. Compare the rates with a few different lenders to make sure you're getting a fair deal. And do not make any commitments till you are certain you'll be ready to afford the payments.
What will happen if you can't afford the repayments? Find out from the bank whether there would be any additional charges if a payment is missed.
Is the company a license moneylender or a broker?Some firms which present themselves as a bank are essentially a broker, and it may work out better for you to borrow straight from the lender. If you do decide to go with a broker, do you know whether they will charge a fee?
If the lender can transfer the money very swiftly after the loan is approved, will they charge you more for this service?
There are several different types of loans available, so be sure you do the research and this'll help you secure the hottest deal.
With the cost of living getting steeper all the time, not everybody is in a position to afford the advantage of saving money for circumstances like this. The choice of asking the bank for help through a loan or overdraft may not always be available - or even the right way to go - if you simply need a bit of money to help you over until you next get paid, so a pay day loan may provide the perfect solution.
Pay day loans are designed specifically to suit people who need a short term loan which they'll be capable of paying back quickly. There are lots of pay day loan banks out there, and it is important to do your analysis and make sure you feel comfy before making your choice about which company to borrow cash from. Here are some things to think about when you're looking for a pay day loan lender:
Does the lender have a good reputation? Do they look genuine and are they able to answer all your questions? Don't commit till you feel confident that you're entering into an agreement with an ethical, valid bank.
Do they have a shopper credit license? To lend cash in the United Kingdom, all lenders must hold a client credit license. Responsible banks must adhere to a set code of conduct in the opinion of the provisions of their license. Avoid borrowing money from lenders who do not have the shopper credit license as they could be trading unlawfully.
Are you clear on what you will be paying and when? A responsible bank should supply you with a clear schedule of the payments of any cash you borrow, including the dates, amounts and how it should be paid.
How long will you have to pay back the loan?This varies from lender to bank. Some loans would have to be repaid in 30 days, others could be longer. Make sure you will have the money to pay the loan back by that date.
How much is the interest (APR) on the loan on top of the initial amount? Ensure you learn what the APR figure is on the loan. Since payday loans are built to be paid back swiftly you should be mindful of what you will pay in interest. Compare the rates with a few different lenders to make sure you're getting a fair deal. And do not make any commitments till you are certain you'll be ready to afford the payments.
What will happen if you can't afford the repayments? Find out from the bank whether there would be any additional charges if a payment is missed.
Is the company a license moneylender or a broker?Some firms which present themselves as a bank are essentially a broker, and it may work out better for you to borrow straight from the lender. If you do decide to go with a broker, do you know whether they will charge a fee?
If the lender can transfer the money very swiftly after the loan is approved, will they charge you more for this service?
There are several different types of loans available, so be sure you do the research and this'll help you secure the hottest deal.
About the Author:
De Dhar is a business writer concentrating on cash loan and credit products and has written prominent articles on the finance industry. She has done her gurus in Business Administration and is at present assisting as a fast loans specialist.
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