A payday loan is a short term loan that is borrowed against one’s next paycheck. The loan is supposed to be paid within 31 days but this period can be extended upon the customer’s request for an additional fee. There are some times in life when a person finds themselves in a situation where they need some cash within a short time frame and for some reason they cannot use their credit card or get a salary advance from the office. The reason might also not be convincing enough for formal lending institutions. During such circumstances getting a payday loan can be the perfect credit solution.
The conditions for qualify for a these online loans are not very strict. All that is needed is;
Past credit details like bad credit or having filed for bankruptcy in the past do not lock out the applicant from qualifying for the loan.
There are many payday loan lenders available on the internet for one to choose from including 247Moneybox, Pounds Till Payday, Payday UK, Wonga, QuickQuid, TxtLoan, Minicredit, and Swift Sterling among others. Faced by such a large number of payday loan lenders to choose from, it is important that a person knows how to select the best lender for their needs. When looking for a payday lender one needs to consider the following factors;
Speed with which the loan is approved- if one needs the money fast, then they can opt for a lender who approves loans within hours and puts money in the customer’s account the same day. There are several lenders online who process the loan and put money in one’s account the same day.
Minimum and maximum amount of money that one can be lent-one should check the amount of money the lender is willing to lend and look for one offering the amount they need or the closest amount to what they need.
Interest loan charged- different payday loan lenders charge different interest rates and comparing the interest rates and choosing the lender charging the lowest interest rate is a good idea.
Penalties for nonpayment- some lenders penalties for nonpayment are harsher than others. Also some lenders allow for an extension of the repayment period and might be a better choice if you doubt your ability to pay within the stipulated length of time.
Before getting the payday loan there are thing you need to consider;
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk