- Personal Loans
- Payday Loans
- Home Loans
- Cash Advance
- Auto Loans
- Credit Cards
- Bad Credit Loans
Fast Cash in 3 Easy Steps
Payday Loans Lenders Look After Themselves
There are a variety of payday loan lenders available. Payday loans are a great option if you do need to bridge the gap to payday, especially if you have an emergency like a broken boiler or a burst water pipe. However, you will need to be careful of these loans because they are often more in favour for the payday loan lenders and not for you.
The interest rates can be exceptionally high. The main reason for this is because the payday loan lenders are putting themselves at a high risk of losing their money. The problem is that they are not doing any checks into your credit history, which will help you gain the money. To make sure that they are able to get the money back, the interest will be made high so that you are more likely to want to get the loan paid off.
In fact, so that you will pay the money back on time, the payday loan lenders will keep the interest rates low for the first 31 days. Usually there is a flat fee for the money or there are some payday loan lenders that will be happy to charge a small daily interest rate. This is almost like rewarding you for paying the money back early, unlike other banks. However, this does help the lenders because the daily interest rates could often work out more than a monthly lump sum depending on the amount of days that you need to borrow the money for.
Another way to make sure that the payday loan lenders get their money back is by setting requirements. The main requirement is that you earn a set amount each month and this will increase as you want to borrow more money. This is a loan that will need to be paid off by your next payday so it is unlikely that you will be able to borrow £750 when you only earn £1000 each month; you will need to consider your regular outgoings too.
Some payday loan lenders will also ask that you are in full time employment. However, understandably, it is difficult to gain this. There are single parents who are only able to work part time and there are a number of people working self-employed because they are unable to find other work. Because of this, there are some lenders who are willing to loan money to these people; however, you will need to do a search for these companies.
Opting for payday loans can often be better and easier than looking into bank loans; you will not have all of the credit checks and you are more likely to gain approval for the loan. The payday loan companies are more interested in your current financial situation and not your previous situation. However, there are negatives to payday loan lenders and you will need to consider the dangers to your credit rating and finances if you find that you are not able to pay off the loan at the end of the month.