3 Things You Need to Know Before Taking a Payday Loan

As inflation continues to rise across the UK, the disposable income levels of British citizens have come under sharp focus.

The most recent studies have been carried out by the Resolution Foundation, who have revealed that only the top 1% of households in the UK have fully recovered from the financial crisis.

As citizens continue to struggle with real wage stagnation and the rising cost of living, there may be a growing temptation to seek out unsecured, short-term loans. While this can provide relief, however, it is important to consider the following before taking out a payday loan.

  1. Payday Loans Still Carry Fixed Interest Rates

While the days of excessive interest rates on payday loans may have come to an end, it is still important to understand the nature of short-term lending and calculate the precise amount you will be required to pay back.

Regulations introduced in 2015 by the Financial Conduct Authority (FCA) capped all payday loan interest rates at 0.8% a day, minimising the cost of borrowing nationwide. This is still slightly higher than secured loans, however, so you must factor this when determining whether or not you can make a full repayment according to the terms of the agreement.

So, do your own calculations when determining how much you can actually afford to borrow, before reading through the necessary small print to highlight any other factors that may affect your repayment.

  1. Not All Lenders Are Created Equal

While all payday loan firms offer a similar service, they are not all created equal. There are even some that have forged their own unique niche within the marketplace, to the point where they would even classify themselves as payday loan firms.

Take Smart Pig, for example, which delivers a loan service aimed at students and positioned itself as a viable alternative to a classic payday loan. Not only does it cap interest rates at 0.8% per day as stipulated, but it has also placed further restrictions and eliminated hidden fees to create a fair pricing structure.

It is important to keep this in mind, as ideally you should seek out specialist short-term loans that are designed to meet your specific circumstances.

  1. Payday Loans Are There for Emergencies, Not Cash-flow Shortages

While payday loans have historically been demonized, they do serve a viable purpose in the modern age so long as they are used responsibly.

More specifically, they should only ever be used to cover an unexpected payment or emergency, so long as the value can be comfortably repaid from your next pay-packet. Conversely, they should not be used to fund a lifestyle or plug gaps in your cash-flow, as this becomes unsustainable due to the mounting interest and late payment charges associated by some operators.

Best Ways to Obtain Payday Loans

Personal loans can be started at any point in time, by selecting one of the vendors that can offer you a good rate of interest. You can apply with an application form and simple formalities for the submission of the address and your Id proofs.  These documents can be submitted securely online through websites and can be accepted by vendors on time.  So, you can start with the application ASAP, and you can check the status online through their websites as well.  It will help you in letting you know where your application has reached now.

The interest rates on the payday loans Fresno Ca can vary from bank to bank, and you will have access to them very quickly. Their interest rates can be fixed or can be on a variable model.  They can range from 5.49% – 14.24% APR (with Autopay) and 4.990% – 11.090% APR.

Let’s have a look on some of the advantages of Payday loans:

  1. A Boon for Tenants and non-homeowners: Tenants and renters do not have to think that they can’t take a loan as they do not have real estate collateral.  There are many unsecured lenders that can help them in getting it done easily.
  2. Increasing trend: The trend for the unsecured personal loans in the Fresno Ca and all across the country is increasing with every day.  Borrowers have accepted these types of loans.  They are for the person who is earning income but may need access to quick funds without having any collateral in their name.  Undoubtedly, they are a big escape in difficult times.
  3. Application of Interest: The interest rate on any loan is typically not applicable if you don’t use the funds within a stated period of time, and quickly pay off the loan.

The repayment period can range from weeks to months to even years, based upon your income level, credit score, the lender’s policy and the terms and conditions.  Credit cards can also be a kind of payday loans Fresno Ca.  So, try to get the duration of the repayment as per your suitability, don’t make it too short or long, and just try to justify and meet it on time so that you will be eligible for the another loan.  Once you think of using payday loans Fresno Ca or any kind of loans, do take care of every aspect of the same and the company too, through which you are withdrawing the funds, and then go forward with the application so that you will have the best service with a fast processing time.

So, in any case shop around for loans that you are eligible for to fulfill your daily means and secure your future longer term, but before taking the Payday loan, it is advisable to take a comparison quote from all possible Payday loan companies!

Creative Ways of Covering Surprise Expenses

For many people, living on a tight budget is the norm. You may barely make enough money to pay for your regular expenses with limited income each month. However, there are often times when unexpected expenses arise, such as vehicle and appliance repairs, insurance deductible, medical bills and more. These can create a true financial burden on your budget. If you are facing unexpected expenses today and are stressed out about how you will make ends meet this month, rest assured that you may have a few solutions available to consider.

Use Your Savings Account

Your savings account should be your first line of defense for dealing with unexpected expenses. Many people have at least a modest rainy day fund available. Your savings account may be used to pay at least a portion of your unexpected expenses. However, many people do not have a high balance in their savings account, and because of this, you may be looking for additional methods to pay for your unexpected expenses.

Turn to Your Credit Card

A credit card is a great financial resource to turn to when you need extra cash. If you do not currently have a credit card, now is a great time to apply for a new account. You can use the available credit limit to make charges. If your unexpected expenses require you to have cash available, you may be able to take a cash advance out on your available credit limit. This can be an expensive option to consider, so you should use credit and cash advances with care.

Ask for a Payday Advance

If you are on good standing with your boss, you may consider asking for an advance on your next paycheck. Some bosses may be more than happy to do this for you, but you should use this option with care. The last thing you want is to constantly be asking for an advance on your next paycheck. Also, be aware that this does not give you extra money. It simply gives you the money you would have earned sooner. You may still need to find some extra money to access to pay for your extra expenses this month even if you can get an advance on your next paycheck.

Sell Your Unused Items

You can also consider selling your unused items to get access to extra cash. Many people have items of value lying in their drawers, closets, attics and other spaces. Take a closer look at your belongings as you walk from room to room. By selling some of your items, you may be able to easily raise hundreds of dollars or more.

Pick Up Side Jobs

Another smart idea is to pick up a side job. Consider your time availability and skill set as you explore odd jobs you can do to earn extra money. For example, if you have a lawn mower and a few free afternoons, you can ask your neighbors if they are interested in your mowing services. If you have friends in need of childcare, you can offer to watch their kids for a few years to earn extra money.

Get a Car Title Loan

If you have significant equity in your car, you may be able to tap into that equity through a car title loan. This is a special type of auto loan that has a short term, and most need to be repaid in full within 30 days. You may be able to obtain a few hundred dollars or more through a title loan, and this may be just what you need to make it through this rough patch. Read the terms carefully, and have a plan to pay off the loan.

As you can see, there are many financial solutions available to you. It may be smart to explore multiple options and even to combine a few ideas for the best overall results. If you need cash urgently, there is no better time to begin exploring the options than right now.

Short Term Loans CAN Help You Out of a Jam

Whether you’ve fallen behind on credit card bills, want to fund a trip, or simply need some extra cash to tide you over until your next pay, there’s nothing like having a financial “lifeline” to assist you. While some might have an emergency stash they can tap into, many need to look outside for a little financial support. It is quite common in this instance to apply for a loan.

Though it is true that a loan is considered a debt, when used correctly it can prove beneficial. Here’s a look two major benefits in applying for a short term personal loan:

  • Loans can be good debt – As long as you’re not in default on the loan, it is actually good debt to have. As the loan amount and frequency of pay will be displayed on your credit history, this shows creditors that you can be trusted with a considerable amount of money.
  • They get you out of a jam – Short term loans are great for getting you out of a financial jam. Because the stipulations are not as strict as a traditional bank loan, you can typically receive approval along with the funds deposited into your account within 1-2 business days.

Choosing the Best Lender

Now in order to capitalize on these benefits of taking out a short term personal loan, you must first choose the best lender. There are a ton of companies out there to choose from, so it can get a bit tricky. Keep these tips in mind as you search for the right lender:

  1. Legitimacy – Unfortunately, there are a lot of scams out there and fake sites in which thieves are simply trying to collect your personal information for their own use. Therefore, the first thing you want to do is determine whether or not the lender is legit.  Some ways to do this would include:
  • Search the Better Business Bureau – The Better Business Bureau allows you to search for companies across the US. Simply type in the name, URL, or information you have on the lender to determine if they’re legit.
  • Check social media – Another avenue for determining if a company is legit would be to check social media outlets. For example, if you were interested in a company like MaxLend loans, you can find MaxLend Information on LinkedIn. Review their contact information to see if it is a legitimate address and phone number.
  1. Reputation – Once you’ve determined that a company is legit, the next thing would be to determine whether or not they’re a good company to receive a loan from. Consumer reviews will be your best bet when determining the reputation of a company. While you could always check out review sites, you can also look to social media, such as the Twitter account of lenders like Max Lend Loans, to see what real people have to say about the business.

Being a Responsible Borrower

The final component to reaping the above mentioned benefits of obtaining a short term loan is to be a responsible borrower. It is quite common for individuals to simply click agree to get the cash, but in order to keep this debt from becoming negative or a burden on you financially you’ll need to do the following:

  • Read the contract entirely. In order to understand the amount of interest, number of payments, and other stipulations, you must read the contract entirely.
  • Only take out what you can afford. You might be tempted to take out the maximum amount allowed but if you can’t afford to pay it back in the time you agreed to, it is best to take out a smaller loan.
  • Pay timely. It is important to pay as you agreed so that you don’t accrue late fees and higher interest rates.
  • Communicate when trouble arises. If you cannot stick to your arrangement, be sure to communicate this to the loan company instead of ignoring them and the payments. If you’re in a serious bind, you may want to look into getting help with your bad credit so that you can start to clean up your credit history.

Short term loans sometimes get a bad rap, but the truth is they can be a great help. If you’re in a jam, be sure that you keep all the above factors in mind. Search for a reputable service provider and be a responsible borrower. In doing so, you create a lasting relationship with a lender – just in case you need their services in the future.

 

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