You might have heard a lot about what payday loans are and how payday loans can help you access money when you need it. But did you know there are many other benefits as well?
In this guide we’re going to explain how a Payday Loan can help. Click here if you want to find out Lending Stream compares to a payday loan.
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5 Useful Benefits of A Payday Loan
If you find yourself in urgent need of cash, then a payday loan could be the answer. Payday loans are usually for a small amount (a few hundred pounds) and are often paid back the same month you take out the money. You repay the loan on Payday (get it?).
So why would you want to get a Payday Loan:
1. Payday Loans Are Quick To Get
If you are applying for a payday loan in UK, then there are high chances of getting your loan application getting approved quickly. Most lenders will pay out the loan on the same day you apply (if you’re successful).
Also, since the amount of money involved in a single loan is quite low, a credit broker or payday lender can be more likely to approve you than a bank. Although, your loan application might still get rejected if your credit history is extremely poor or you have a history of late repayment mentioned in your credit file. Late repayments can cause you serious money issues and give you a bad credit score too.
2. Payday Loan Repayment
Most lenders will automatically take your repayment with the debit card you register on your Payday. The lender will automatically calculate the amount you owe and take the payment from your debit card using what’s known as a “continuous payment authority”. Our advice will be not to miss any repayment date because missed repayments are something which can affect your credit score negatively.
3. People With Bad Credit Can Also Apply
Since the amount you can borrow is quite low, lenders may be willing to lend to people who might get rejected by high street banks.
So, if you are applying for a payday loan then we suggest you look for a direct lender who can consider you for a loan. At Lending Stream we like to consider ourselves to be a cut above the rest. See how we compare to a Payday Loan here.
4. Easy Loan Application Process
Payday lending is almost entirely automated. Meaning that lenders can conduct their checks on you without having to ask for the information directly.
If you want a simple process, without lots of intrusive questions, then find an FCA approved Payday Lender. They will do the proper checks on you, but make the process nice and simple.
5. Available 24/7
In a digital world, it can be hard to just be stuck to the 9-5. With automation most lenders will be available 24/7 and can pay out to you within minutes of your application being accepted.
Note: Late repayment can cause issues with your credit score and might prevent you from getting best deal from your lender.
One Important thing to note
Payday loans can let you gain access of money quickly to meet your immediate financial troubles. But they aren’t a long term solution. It’s an incredibly expensive way of borrowing. If you need to take out a Payday Loan, you should consider the alternatives. Like borrowing from Friends / Family instead. You might also want to try a short term loan.
Warning: Late repayment can affect your credit score, can lower your chances of getting approved for your next payday loan and the late fees on missed or late repayments is quite high. So always repay the loan on time.
If you are looking for a payday loans alternative, then click here to check what Lending Stream is providing you and how our loan is different from others.
Do You Have Any More Questions?
We hope that by now you know all about all the benefits of a payday loan. However, there might be few extra questions running in your mind like how to compare loans? how to find the best payday lenders? Are Payday Loans same as Short Term Loans? Will I get enough money to meet my serious money problems?
To answer the above few questions, you don’t have to compare loans by yourself as we have already done that for you. Here is our compare loans page. Do check it out.
There are many payday lenders and other brokers available online and all are good but always go for a lender who is approved by FCA only. Also, Lending Stream offers a payday loan alternative through which you can get a short-term loan of up to ÂŁ1500, which is repayable over up to 6 months (if approved).
Always Borrow Responsibly.
Disclaimer: We are not providing financial advice. Our blogs are written for informational purposes only.