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Guaranteed Payday Loans
Amidst this global financial meltdown, there is the urgent need for people to come out with a solid means of paying their bills and getting out of huge debt. While the financial recession is biting hard on people’s income, the cost of living is becoming unreachably high for some people.
If you are living in the United Kingdom and have such financial difficulty, don’t give up on life, you can always take advantage of guaranteed loans in the UK to bail yourself out of any finan-cial challenges you may have. What are guaranteed and payday loans in the UK?
Guaranteed payday loans in the UK
A payday loan is a short-term loan that is not secured not minding if the repayment of such loan is connected with the payday of the borrower. It is also known by different names such as pay-roll loan, short term, and salary loan, among others. What does an unsecured loan mean?
This simply means that this loan is not taken by providing any collateral to be used for payment in the case of failure to make the repayment or bankruptcy. To make up for the possibility of bankruptcy or failure to repay such loans, the creditors usually implement high-interestrates. If they lose their money in the process, the interest will make up for some of their loss. This makes unsecured loans to be a bit expensive due to the high-interestrates.
This type of loan is usually the last resort when you need extra money to fix some issues when your assets have been used as security for an existing debt.
Types of payday loans
There are different forms of payday loans. Let’s consider some of them:
Online Payday Loans
This is a short-term payday loan that can be taken for not more than14 days. The loan will be deducted from your account whenever you are to be paid.
There is a small requirement you must meet if you want to get this loan. You will be required to show evidence of your employment when applying for the loan. If you can provide your bank statements for three months, you are eligible to take the loan.
If you want to take this loan, you are limited to £1,000. This is the minimum amount that is available for online payday loan. The loan amount you will get is determined by your income.
Another important thing about this loan is you can get the loan within a couple of days after applying for it. If you can afford to pay an extra fee, you will get the loan wired into your ac-count that day so that you will have access to the account that very day.
In addition to that, the repayment for this loan is 14 days. This is because the loan is given out on the condition that you will pay on your next payday. If you can’t meet up with the payment then you can have more days added to the repayment period. That will come with an an addi-tional fee.
Instant Payday Loans
This loan type guarantees instant loan application review. The moment you are through with your application, rest assured that the process of making the payment available to you is in progress. Then, the lenders will contact you with whatever means is suitable for them so that you can finalize the process. If your eligibility is not questioned, the money will be made availa-ble to you as soon as possible in your account. On the next business day, the money will be available for withdrawal. If you want it wired, that is possible. It will only cost you more as the lender will add extra fee and your bank may demand that you pay some fee too.
This loan type guarantees you a loan within £100 and £1,000 depending on your income and other factors.
Low Fee Payday Loans
The Low Fee Payday Loans have interest rates that are lower than the others. However, some companies have very strict requirements than others in the business but you can still get some loan lenders with fewer requirements.
The loan amount available here is between £100 and £1,000. However, some lenders may lend out larger sums depending on your income and what your payment plan looks like.
You can get this loan within a period of 5 days before you can have the money deposited in your account. If you can’t wait that long, give them a call and explain your situation. You may get the money very quickly but will attract an extra fee.
You are expected to pay back the loan in 14 days. But if you have genuine excuses, some lend-ers may give your loan an extension at an additional fee. Some companies also renew such loan and deduct their fee from your account. Until when you finally make the payment, the company will deduct some fee from your account.
This loan type has no restrictions and can be taken for a wide range of uses. However, it is rec-ommended that you use it for emergency cases only due to the high fee it attracts. There are tons of alternatives that will give you the desired financial result without the huge charge.
Military Payday Loans
This loan type is specifically designed to cater to the needs of military personnel. There are some lenders that give special concession to men of the armed forces. The military payday loan has a strict requirement for the loan to be given out. According to a military code, if any military man is unable to meet up with his or her financial obligations, he or she runs the risk of clearance, transfer, confinement, or discharge.
As a military officer, this loan plan allows you to borrow up to 35% of your monthly income which is determined by your rank.
Bad Credit Payday Loans
This credit loan is for people whose credit scores are low. This is because their credit cards are not checked before considering them for a loan. What a borrower needs is a valid account and evidence of income. The interest rate is usually high at 28% because the lenders are aware of the possibility of default in payment. However, this loan plan is very quick since the normal verification process is usually.
Payment is usually set at 14 days but some lenders allow 3 or 4 weeks for payment. The other name for this loan plan is no credit check loans.
Other loan types in the United Kingdom
Apart from these Payday loans, there are other loans options in the United Kingdom that you can take to take care of your finances. Consider some of them:
You can take this loan according to your credit rating. This means that you are not expected to present any security before you are eligible to take the loan. With the personal loan type, you are free to borrow as much as £25,000 which you can pay back in up to 10 years.
Debt Consolidation Loans
A debt consolidation loan is a type of loan that gives you the liberty to combine all your small loans and debts into a single loan. You can do this by taking a debt consolidation loan to pay off all your debts and loans while you have the debt consolidation loan as the only loan to pay. This loan offers some advantages such as flexibility of payment, reduced interest rates, longer pay-ment period, among other benefits.
This type of loan requires a collateral before you can get it. In most cases, your property is the security that you can use to get this loan. What is the implication? You run the risk of becoming homeless if you default in payment as your home will be used to service your loan. The good news is that secured loan plan gives you access to £100,000 which you are expected to pay within a period of 25 year
Factors to consider before you take a loan
Before you take a loan, give these factors some consideration:
- Consider if you can pay the loan without defaulting. Some of these loans are very ex-pensive. That is why it is advisable that you pay them back as soon as you can. If you are late in payment, expect a fine for lateness and additional interest in case you fail to pay. In a nutshell, missing a payment or late payment will make you pay far more than what you borrow and will impact on your credit record.
- Have a good look at the annual percentage rate on the loan. Some lenders have a very high percentage rate. Some are as high as 1000% annually. If you consider the loan you want to take critically, you will know the annual percentage rate on the loan which will put you in a better position to make the most appropriate decision.
- Will you pay arrangement fee or not? Some lenders accept it while some don’t. Among those who accept arrangement fee, the fee varies.
- Will you be penalized if you complete your payment before the expiration of the repay-ment period? Consider this critically because some lenders will charge you addition fee for paying before the agreed payment period.
- Are there other conditions apart from the written ones? Some of these conditions are usually written in the lender’s Terms and Conditions.
You have to consider all these factors in order to avoid the emotional stress that will result from defaulting in payment; especially if you take a secured loan where defaulting in payment can render you homeless.
How can you get a loan?
Getting a loan is not difficult. Most of the companies in the business do advertise their services with the encouragement to take the loan without any delay. This overshadows the need to have full knowledge of what it takes to get the loan and make prompt payment that will help you eliminate a late or deferred payment.
These lenders are not strict about borrowing history. The advantage of this is that your credit record plays no role in determining whether you will get the loan or not. You can fill an applica-tion form online and submit for review. If you are eligible to take the loan, you will get it within the stipulated time.
You have to meet some basic requirements before you are considered eligible to take this loan. Some of these requirements are:
- You must be over 18.
- A bank account is a necessity. Without a bank account, payment is impossible. Your bank account will also be used for verification.
- You must have a steady source of income that will make payment possible for you.
- You must reside in the UK.
- Your debit account must be working.
- Working email account and mobile phone.
If you have all the requirements listed above, you can take a loan from the wide range of loan options that are available for you. While taking the loan may be an easy way out, do it reasona-bly. Don’t be tempted to borrow beyond what you can pay, regardless of what the lender says.
Loan lenders in the UK
Some notable loan lenders in the United Kingdom with different ranges of loan and interest rates are:
- QuickQuid Short Term Loan.
- Sunny Now Short Term Loan.
- Lending Stream Short Term Loan.
- Peachy Loans Short Term Loan.
- Drafty Credit Facility.
- H&T Short Term Loan.
- WageDayAdvance Short Term Loan.
- PiggyBank Short Term Loan.
- Satsuma Short Term Loan.
- Square Today Short Term Loan.
You can visit any of these lenders if you meet the requirements for taking a loan and have a legitimate reason to take it. Because you take a loan from a particular lender, read the Terms and Conditions and make sure you can abide by them. If you can’t, back out and look for another lender.
If you take all the factors above into consideration when contemplating taking a loan, you will take a reasonable loan that will help you fix your financial challenges and take you out of debt. Any deviation from the instructions will plunge you deeper into debt. Imagine the negative ef-fects such will have on your home and credit record.