Categories
Payday Loans

My Friends use Payday Loans, Should I?

You may have friends that use payday loans and you may therefore wonder whether they will be a good thing for you to try as well. It is wise to have a good understanding about the loans and what they are designed to be used for before you figure out whether they are suitable for you.

What are payday loans for?

Payday loans were set up to help those with a poor credit record. These lenders noticed that there were no borrowing options for those that had a poor credit record and therefore if they needed money in an emergency they would have nowhere to borrow from. This means that they decided to set up loans that were specifically targeted to meet this demand. So the credit checks done on them are minimal and as long as the potential borrower has a regular income they are likely to be accepted for the loan. The loans are also really quick to set up. Some lenders can get the money into your bank within a few hours of a successful application and some work outside of normal business hours so that they can send you money at any time. If you do need money quickly then it is worth checking with the lender you are hoping to use to see how long it will take them to get it to you.

How do they work?

A payday loan has a unique repayment scheme as well. Unlike most other loans. You repay it all in one go in a lump sum repayment. This means that you will be able to eliminate the debt very quickly. The loan is designed to keep you going until you next get paid and this means that a direct debit will be set up for you to make a full repayment on the day that you are paid. You will therefore need to make sure that you are confident that you will have enough money available to make that repayment when it is needed. It should be the case that you will have lots of money in your account when you get paid, but whether this is enough will depend on how much you have borrowed and how many other payments go out that day as well as how much you get paid.

Should I get one?

Getting any loan should be a decision that you do not take lightly. You should take time to think about the decision and whether it is one that will work for you. If your friends use payday loans, then this is probably something that will make you think that they are trustworthy and that if you need one then you should have one. You could even ask them which lender they use and whether they would recommend that specific lender. However, it is a good idea to also think about whether the loan will suit your specific needs. Identify what you are looking for in a loan and if this will work. Also check your financial situation and make sure that you will be able to afford to repay it. If you cannot afford the repayment then the loan will cost you more money and this is not ideal. It is really important to also think about whether you will be able to afford the rest of your essential payments once you have repaid the loan. You will have to manage for the rest of the month on your salary minus that lump sum payment. You will need to cover the costs of all of your essentials such as rent or mortgage, utilities, food, transport and things like that. Therefore, it is worth calculating whether you will have enough money to do this. If not, you may need to consider borrowing less, seeing if you can repay in instalments or finding a way to get some extra money really quickly such as doing some freelance work or online work.

It is a big decision to make and you should not let your friends influence you too much. You need to think about what will be best for you. Therefore, think hard about that repayment and whether you feel that you will be able to cope with it. It can also be worth comparing different lenders as they will have different costs. If you work out what the loan will cost you for various lenders you may find that there quite big differences in cost and that if you pick the cheapest one, you might be able to afford to repay that one. It will take time to do this research and to think about your situation. However, it will be worth it because it will make a big difference as to whether you will have a positive borrowing experience or not.

Categories
No Credit Check

Are no Credit Check Loans Available for Anyone?

There are many different types of loans available but there are many that are restricted in who is allowed to take them out. Some loans are only for use for specific purposes, some need a good credit record, some need a good income and things like that. This might mean that you will question different loan types and think about whether you think that it will be okay for you to take out that type of loan. The least well-known loans tend to be the ones that we perhaps question the most. It is good to find out more about them though as this will help us to know whether they will be suitable for us to use or not. No credit check loans are probably the loans that most people know least about. This is because they are newer and tend not to be offered by traditional and high street lenders. It is good to know what restrictions there are on using them so that you can decide whether they might be suitable for you.

  • Age – you will need to be over the age of eighteen in order to have a loan. This is because loans can only be made available to adults and you will not be considered to be an adult if you are under this age. It is likely that you would not want a loan if you were younger than eighteen anyway as hopefully your parents or carers would be looking out for you.
  • Residence – if you are looking for a UK no credit check loan, then you will need to have an address in the UK. You will need to be able to prove this as well by providing some sort of identification that has your address on it. A utility bill, driving licence or similar could be good enough but your lender should provide you with details. If you live outside of the UK then you will need to get a loan in the country that you live.
  • Bank account – you will need a UK bank account in order to take out a loan like this. This is for two reasons. The lender will need somewhere to transfer the money to when they let you have it and so they will need a bank account to do this. They will also want to set up a direct debit to receive the repayments and you will need a bank account to be able to do this. It is easy to set up a bank account and so if you do not have one you should be able to do so. You will need ID to prove your identity which most people will have. Ask the bank what you need and you should be able to set up an account really quickly.
  • Income – The lender will want to make sure that you have an income. This is because they will want you to be able to repay the loan. This may not necessarily mean that the income has to be salary or wages though. If you are getting income from other sources such as pensions, investments or benefits they may still be happy with this. It may depend on how much you are getting and on the lender that you choose. It can be worth checker with the lender that you have in mind before you apply for the loan. They will be able to let you know what restrictions they have.

So, as you can see, there are not really lots of restrictions on no credit check loans. Many loans will have many more, such as expecting you to have a high and regular income, a good credit record and maybe even something as collateral for the loan. This low amount of requirements means that many people will be able to fulfil them and therefore the loans will be available for most people. They will not be available for absolutely everyone but most people will be able to use them if they want to.

If you do know very little about this type of loan then it is worth finding out a bit more than just the requirements for those wanting to repay. Find out how they work so that you know how you will be expected to repay. The most important thing to work out is whether you will be able to afford the repayments because if you miss one then you will be charged extra money, have this appear on your credit record and be stressed. However, if you can find a loan which has manageable repayments you will not have any of these problems. It is therefore really worth doing that research and it will not really take that much time either, especially compared to comparing suitable lenders to see which will offer you the best value for money.