10 Helpful Tips to Get the Most of Your Payday Loan

It’s not always butterflies and rainbows in life. Sometimes we need to face rain and storm once in a while. It goes the same with our finances; sometimes it’s up and at times might be a little bit down. But no matter the circumstance, you know there’s always a solution.

Payday Loans play a big role in helping thrive with daily expenses in times of sudden financial crisis. This route is by far the most convenient way of getting cash in a short period without dealing with any fuss of multiple requirements.

For sure, it’s a good idea to help with expenses and bill payments. But, did you know that you can make the most of your payday loan no matter how much you need? Yes, here are some tips that you should learn to take advantage of when getting a payday loan.

Top 10 Tips for Applying for Payday Loans

  1. Collect, collect, and then Select.

When you see a really good deal from a lender, don’t apply just yet. Remember, they’re not the only ones who are offering this type of loan with no credit check. You might find another lender that offers better value and perks when you apply to them. Start your search ahead of time so you can weigh in your options.

  • Talk to families and friends who have tried it before.

If it’s your first time doing this, it’s always best to talk to people you know about their experience. This way, you can gauge whether it’s something that you need or not. Their advice might improve your decision.

  • Don’t be shy to ask questions.

Sure, you’ve already heard about this lender and what they offer. But it never hurts to ask more questions to know what you’re getting yourself into. Remember, you will be the one to pay and handle the consequences if you made the wrong choice.

  • Investigate the legitimacy of the lender.

In times of financial crisis, the last thing you want to happen is being scammed with a lender. Check for positive reviews, company background, and permits. This way, you can check if you are dealing with the right lender.

  • Opt for the lowest interest rates.

At times when we need the money instantly, we tend to compromise the hefty interest rates. This shouldn’t be the case since it’s still our loss to deal with. Compare interest rates ahead and don’t settle for less. You will benefit the most from this as you won’t have to pay bigger charges on your due date.

  • Know how much you need before borrowing.

It can be tempting to overborrow and spend it for something else. Remember, you still have to pay for it at the end of the day. If it turns out the other way and you can’t pay for it, after all, you will have to suffer other financial woes.

  • Set a calendar of your payment due date.

Sometimes a big deduction from your bank account can be surprising and daunting. To avoid this from happening, remind yourself that payment will be deducted from your account. This can prepare you to set aside some cash for your daily needs.

  • Don’t miss the payment schedule.

Don’t be that kind of borrower who misses payments during payback time. The lender automatically charges you a penalty for every missed payment. In return, you incur more debt than you should have.

  • Don’t abuse Payday Loans.

Just because it’s easy and fast, it already gives you the right to apply even if you don’t need the money. Make sure that when you apply, it has to be for emergency purposes only.

  1. Maintain a good credit status.

Spoiler alert: most lenders check the credit status of the applicants. If they discover that the applicant has unpaid existing loans, this can result in an unapproved application.

The Advantages and Disadvantages of Payday Loans

No matter how good some things are, you can’t help but acknowledge that each of those has its advantages and disadvantages. You see, nothing in this world is for free these days. You pay for every necessity you have, whether it’s for instant use or long term comfort.

A good example is getting a Payday Loan. As enticing as it sounds, especially during a financial crisis, it still has its pros and cons to consider. It’s crucial to know what you’re getting yourself into before committing to taking on this added responsibility.

Here are some of the Advantages and Disadvantages when taking out a payday loan.

The Advantages of Payday Loans

  1. Instant cash for immediate financial needs.

I bet everyone has experienced missing a rent or phone bill payment for a month or two. With this, you realized that you couldn’t pay all those missed payments in one go as you have limited income to help you survive until the next paycheck. By applying for a payday loan, you can settle missed payments without having to worry about how you survive with your paycheck.

  • Requirements are simple and straightforward.

Lenders only care about you being employed. Since you have a source of income, you can pay your loan on the next paycheck. Lenders don’t present you with a long list of requirements to qualify for a loan.

  • You need not visit the bank to make the application.

Especially with the whole pandemic going on, lenders are all the more encouraged to take applications virtually. They are making it easier for loan applicants to apply by phone or email.

  • Approval is fast, and money is immediately deposited.

You don’t need to do a follow-up since lenders will immediately respond whether you’re approved for a loan or not. Once approved, your money will be reflected in your account without a need for any confirmation.

  • You don’t suffer from long amortization schedules.

Since it’s quick cash and the loanable amount is controlled for a maximum of £1000 only, you have a higher chance to pay it off as quickly as possible. Dealing with a huge debt for a long time can put a strain on your income and overall finances.

The Disadvantages of Payday Loans

  1. You have to repay the loan as quickly as you got it.

Time can fly by so fast, just like enjoying your newly released loan. The quicker it arrives, the quicker you have to pay it off. Payday loans are meant to be paid by the next paycheck in full. Having enough balance in your account is a must to avoid penalties.

  • You might deal with high-interest rates and additional charges.

Do not forget that apart from the loan amount you took out, the interest rate and other charges shall be dealt with. It’s important to know how much you are capable of paying before deciding how much to borrow. The additional fees might support you during payback time.

Key takeaway

Applying for a payday loan might sound easier, but it also has its responsibilities to commit with. If you know your needs, you should identify them now. This way, you can avoid over-borrowing and won’t fail to pay for it. There’s nothing wrong with getting fast cash through payday loans. But it’s wrong if you don’t have a good purpose for using it. Then again, payday loans might not be for everyone. The pros and cons presented above are to help you decide whether it’s something you like to have or not. If it best fits your need for the moment, then this route might be just what you need.

Payday Loans 101: Things You Should Know When Planning To Take a Payday Loan

With all that’s currently going on in the world today, wars, threats of economic adversity, unemployment, and the pandemic, a lot of individuals are having a hard time making ends meet.

Consider yourself blessed if you get to keep your job. However, losing it in the middle of this chaos is another story. There are bills to pay, mortgage, rent, food for every day, and other daily expenses. One’s mind is all too crowded that how a single paycheck or an onset of unemployment can remedy these financial responsibilities.

No wonder why Payday Loans seems to be a great idea by now. It saves us from all the pain of finding a way on how to pay all these bills. But, before you do so, you need to learn if this route is the best choice for you.

What is a Payday Loan?

Getting a Payday Loan is unlike any other regular loans that people usually apply for. Payday Loan was born out of the urgency of needing cash in just a matter of days or even hours. The working-class people usually rely on this route to cover up unexpected bills to pay, which they can eventually pay on the next paycheck schedule. The application process was made easier and faster, where you can even do it via call or email. It offers hassle-free, stress-free, and easy cash for emergency cases.

The requirements of applying for a payday loan

Even though it’s a fast-type loan, you still need to be eligible to take out a payday loan. After all, you need to pay it on the next paycheck. Lenders would need to know if you are capable of getting one and paying it off with the following criteria below:

  • You must be at least 18 years old and above.
  • You must present a Certificate of Employment or a copy of Recent Paycheck as proof of Active Status employment.
  • Bank Statement with your Bank Account Number to deposit the payday loan.
  • The lender might also check credit history as the basis of loan approval, depending on the bank you are applying with.

The approval of payday loans

The good thing about applying for a payday loan is the higher chance of being approved as long as you meet the requirements stipulated by the lender. You don’t need to wait for weeks or months to hear the news since they release their verdict even within the day, depending on the lender.

Once you get your loan approval, the money is instantly deposited in your bank account. You are ready to use for such emergency purposes. You can borrow for as much as £1000 depending, of course, on your need for the time being.

But remember, you will also have to pay the same amount you borrowed no matter how small or big on the next paycheck. On top of that, you’re also paying for the interest rates and other incurred charges.

Paying your loan on time

So you can take advantage of this perk of having to loan instant cash, you need to be a responsible borrower. Paying on time is crucial, or else you’ll suffer from even great penalty fees.

All loans made with lenders are centralized and monitored via Continuous Payment Authority (CPA). All of your payment dues, including the interest rates and other charges, will be billed automatically to your account. Not having sufficient balance in your account or failure to pay on time might result in additional fees, which is something you don’t like to happen.

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