Interesting Facts About Payday Loans You Should Know

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.

Finding the Right Lender for a Payday Loan: What You Should Consider

You don’t want to leave anything to chance when getting a payday loan, including the lender. It is imperative that you devote a significant amount of time to making the right decision – even if you need to get cash now. The company you choose to get your loan from is crucial for a number of reasons. It will determine how much you pay and what the overall terms are. If you want to get a truly good deal, it will be necessary for you to do some research. In the end you will be glad that you took the time to do this.

The Lender’s Credentials

One of the most important things to look for in a payday loan lender is their credentials. You definitely need to make sure the lender is officially licensed so you can trust they are legitimate. It is never a good idea to take your chances with a lender that is not licensed, because too much can go wrong. You can check with the Office of Fair Trading to find out whether or not a certain lender really is licensed. This is one of the first things you should learn about these companies.

Borrowing Amounts

When you start looking into the various private lenders that exist, you’ll find that some of them are willing to give out more than others. If you need to borrow more than £1,000, you might need to spend a little bit more time looking around. You should be able to find out the maximum amount each lender gives out by visiting their website. This information will help you find out which lenders can match your needs. You don’t want to bother applying for a loan if you can’t get the amount of money you require.

Location

You also need to make certain that you choose a payday loan lender that is based in the UK. This is actually important for a myriad of reasons. This will ensure that the lender is bound by all of the laws and regulations pertaining to these loans. It also helps you get the money you need as quickly as possible with minimal complications. All you have to do is visit the lender’s website to get this information.

Application

Take a quick look at the application on each lender’s website. By doing this you will be able to see how quickly you can get through them. If you are in a hurry to get your money, this is something you’ll want to consider. The last thing you want to do is to choose a lender that makes getting through this process more cumbersome than it has to be. It really shouldn’t take you any longer than 15 to 20 minutes to complete the initial application. You’ll want to keep this in mind when looking through your lender options.

Fees

The fact is that not all private lenders charge additional fees with their loans. In fact, it should be pretty easy for you to find one that doesn’t. Submitting the application should be completely free, because otherwise you are just getting ripped off. You don’t want to choose any lender that charges anything for this. Before you sign the loan contract, make sure that you see if there are any hidden fees. If you happen to find this, you should definitely choose another lender. They should be completely honest and upfront about any fees they charge on their loans. The only extra thing you should have to pay is interest, which is of course standard for all loans.

Dispersal of Funds

It is a good idea to find out how quickly each lender disperses funds to approved applicants. This is especially important if you have an emergency expense that you need to pay for right away. You don’t want to wait any longer than you absolutely have to. The best way for you to get your money quickly is to choose the right lender. Find out how long it will take for them to transfer the funds into your bank account once the loan document is signed by both parties. This will really help you with narrowing down your lender options.

There are plenty of reputable and honest payday lenders out there, but not all of them will be able to satisfy your needs perfectly. Remember to determine what your needs actually are before you get started doing this research. By thinking about this you will have a much easier time finding a lender that you can rely on for the best services. Remember to also pay close attention to the customer support options each one offers. If you are ever in a situation where you need to contact the lender, you don’t want it to be a hassle in any way.