Many people turn to payday loans to cover the financial gap at the end of the month or to help with any unexpected cash flow issues. They can also aid with a costly emergency situation, such as urgent car repairs or a broken down boiler. However an applicant chooses to use the funds, a payday loan can be a useful tool to refresh their finances. While it is not possible for a trusted lender to promise 100% approval for every single borrower, there are a few things that they can guarantee.
1. Payday Loans Cover A Short Term
With a payday loan, you will not have to worry about repaying over a long period of time. As the name suggests, a payday loan is usually to be repaid on or before your next payday. This usually means that the maximum amount of time you can have on a term is 30 days, but some lenders may offer slightly longer terms of up to 3 months. However, while this may be ideal for your peace of mind, it can also mean that payday loans carry higher interest rates. Research into payday lenders before applying to find the best deal possible.
2. Payday Loans Offer Smaller Amounts
As payday loans are a form of short term loan, they tend to only offer small amounts of cash. Usually, you will be able to borrow between £100 to £1000, but some lenders may be able to offer slightly more. They are often used to meet emergency costs, which typically do not exceed the small loan amounts. However, if you find that you require a larger amount of money, you may need to seek other forms of loans or financial support to help.
3. Payday Loans Have Fast Approval Times
It is understood that payday loans are typically sought out by people in emergency situations, so lenders can usually guarantee fast approval times. While this does not mean that they will approve every application, it does mean that your application will be assessed as quickly as possible. If a lender offers 100% approval, they should be approached with caution. Credit checks should be undertaken in every application, even for bad credit payday loans, so lenders that offer guaranteed approval do not have your best interests at heart.
4. Payday Loans Are Not For Everyone
If you choose to borrow from a trusted lender, they will be able to guarantee that payday loans are not for everyone. While the idea of being able to borrow a small amount of money for a small amount of time is attractive, payday loans can carry higher interest rates than other loans. This means that this sort of finance is not affordable for everyone and if you are worried about making repayments, you should seek financial support before applying.
We recommend that you only seek out payday loans if you have exhausted all other financial options, including using your savings, personal borrowing, and approaching credit unions. If you still feel worried about your position, please seek impartial help from the Money Advice Service.