There are quite a few interesting facts about payday loans that you should be aware of before deciding whether or not you should get one. Most people are surprised to learn just how little they actually know about these loans. The more you learn the better off you are going to be in the end. You don’t want to borrow any sum of money before you take the time to get all of the relevant information.
Four Out of Five Payday Loan Borrowers Pay Back the Full Amount on Time
A vast majority of people who take out payday loans end up returning the money they borrow by the due date. This is definitely something important to consider if you are afraid that you won’t be able to pay back your loan on time. While there are some pretty heavy consequences associated with this, there is nothing to worry about. These loans are known for being very easy to pay back due to their short terms and interest rate caps.
The Average Interest Rate is Just 45%
Another reason that some people are apprehensive about obtaining a payday loan is because they don’t want to pay a huge interest rate. The fact is that the rates with these loans really aren’t that bad on average. You can minimize the total amount you pay by simply comparing rates online. Make sure that you visit at least a few different lenders’ sites to get this information. You should have no problem whatsoever with getting a good rate for the loan you need.
Three Out of Five Borrowers End Up Getting Another Loan
Most people who obtain payday loans find them so useful that they end up applying for at least one more at some point in their lives. This is because these loans have so much to offer to so many different people. Once you get a payday loan, it will be easy for you to see why they have become such a popular borrowing option.
The Average Maximum Borrowing Amount is £1,500
You could be able to borrow up to £1,500 from a private lender with a payday loan. This means that you should be able to get your needs met no matter what. Whether you need to get your car repaired or take care of an important bill, this is a very encouraging fact. You will need to look for a lender that gives out the amount you need though.
It is important to keep in mind that you will only be allowed to borrow what you can afford to pay back. If your income is deemed insufficient by the lender, your application is going to be rejected. It is crucial for you to first determine for yourself if you can afford to pay back the loan by the due date. This will help you to avoid a really bad situation in the end.
You Can Get Your Money the Same Day You Apply
It is very common for people who get approved for payday loans to receive their funds on the same day they submit their application. This can be incredibly helpful if you are in a hurry because you have something urgent you need to pay for. There is no point in waiting any longer than you have to for your funds. One of the best things about these loans is that they give you a highly efficient way to obtain money when you desperately need it.
Applications are Typically Processed within Three Hours of Submission
You can expect the application you submit to a payday lender to be processed within just a few short hours. If you want to speed up this process as much as possible, remember to apply early in the morning on a Monday or Wednesday. These are the best times to submit your application, as they tend to be the slow periods for these businesses. The sooner you get it in to the lender, the faster you will be able to get your money. You will also need to make sure that you submit only accurate and truthful information. Otherwise you will most likely get rejected by the lender.
These facts about payday loans should be taken into consideration before you make a final decision. You don’t want to make a choice either way until you have learned everything you need to know. This information will help you with deciding what to do based on actual facts as opposed to misconceptions or myths. You don’t want to avoid these loans simply because you have been told certain things that aren’t true. In the UK, this is one of the best ways to obtain a loan without delay. It could be one of the best financial choices you ever make for yourself.