What are Payday Lenders?
In an ideal world, your paycheck would cover all the monthly spending obligations that you have to worry about, including your rent or mortgage, your utilities, and even your weekly food costs. However, unfortunately, life doesn’t always work according to our budget. Sometimes, things can go wrong in your world that could mean that you need to borrow a little extra cash to help you get through the rest of the month. For instance, you might have to pay for someone to come and repair your washing machine, or you might have forgotten about an outstanding bill you have to deal with.
How much would you like to borrow?
Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
While good budgeting and cash management can help to give you a lot more financial independence, it’s very difficult to be prepared for everything. A lender that offers payday loan can provide you with a quick and simple way to get your world back on track when something goes wrong. Here, we’re going to introduce you to everything you need to know about payday loan brokers like Boutell.
Are Payday Lenders Like Other Lenders?
There are many different kind of lender available for today’s borrowers. While some focus on offering loans that you need to pay back as quickly as possible, others give you loans that you can pay off over a staggered period of time.
For the most part, lenders that provide payday loans are very similar to any other kind of lender. They’re focused on giving you the cash that you need to get things done as quickly as possible. The main difference with these lenders is that they often specialise in short-term loans. You won’t be able to go to a payday provider for money towards your new house or a long-term car loan, but if you need to replace a boiler in that house, or get a new tyre for your car, then a payday loan company could be just the thing that you need.
When you need to purchase something fast, and pay back the money that you owe quickly, payday lenders make borrowing cash quick and simple. These companies are great for offering quick access to cash, and they often accept more applications than standard loan providers too. Here at Boutell for instance, we can match loans to people from all backgrounds, including those without the best credit history.
One significant difference between a payday loan provider and a standard lender is that payday providers can only offer a somewhat limited amount of cash. Usually, you won’t be able to borrow more than a few thousand pounds from a payday provider, because these loans are intended to be small.
Who Can Get Support from These Lenders?
Just about anyone who needs money in a hurry should be able to apply for a payday loan, provided that they’re over the age of eighteen and a resident of the United Kingdom. There are a few other rules that you’ll need to consider too. For instance, it’s important that you can prove you have enough regular money coming in so that you can repay the loan. Additionally, you’re going to need a current account that your money can be paid into.
It’s also a good idea to make sure that you have an email address or a phone number that your lender can use to get in touch with you if there are any questions to be answered about your current situation. What’s more, like traditional lenders, payday companies will still need to check your credit score when assessing your ability to successfully repay a loan. The good news is that companies like the ones we partner with won’t necessarily just look at your credit history to decide whether or not to give you a loan. Instead, we consider other things like the fact that you have a steady paycheck instead.
- Your full legal name – so the company can run a credit check.
- Current address: This will show that you’re a resident of the UK and will also help to corroborate your application information.
- Income data: It’s important that you can show that you have a regular source of information that you can use to make timely repayments on your loan.
- Work history: Some lenders like to see that you have a long history of employment. This means that you probably aren’t likely to lose your job before you pay off your loan.
Is it Safe to Use a Payday Lender?
Because payday loans have gotten something of a bad reputation over the years, a lot of people are worried that lenders might not be as reliable as they once thought. However, today’s payday lenders are under evaluation by the Financial Conduct Authority, which means that they have to hold themselves to a very specific set of standards. Just like any other lender, these providers must make sure that you can safely repay a loan before you take it out, that’s why we conduct credit and affordability checks when deciding to give you a loan.
However, although most payday lenders are safe, it’s important to do your due diligence. Learning as much as you can about a provider before you apply to get money now will help you to keep your risk levels to a minimum. You can look up the company that you’re thinking of borrowing from online and check their standing with the Financial Conduct Authority.
While you’re choosing a payday lender that you can trust, remember to answer the following questions:
- How much money can they offer? Payday lenders focus on giving you support for small short-term loans. Most lenders won’t give you more than a few thousand pounds in one of these loans, so you’ll need to make sure that you can get all of the cash you need.
- Are there any extra fees? Sometimes, lenders stick additional fees onto their loans, like transaction expenses, which you need to be aware of before you make your application. Avoid anyone who tries to make you pay extra for your loan.
- Can they answer my questions? If you have any questions about payday loans, it helps to know that your lender can help. Look for a company that’s knowledgeable, and ready to answer any queries that you might have.
- How long does it take to apply for a loan? Applying for a payday loan should be a quick and simple process. With Boutell, it is. You can fill out a form and get approval for your loan in a matter of hours. The quicker the application, the faster you get your money.
- How easy is it to repay? Repaying your loan should be as simple as setting up an automatic transaction to repay the cash that you owe on the right day at the right time. If you have any questions about how to repay your loan, speak to the company you want to borrow from in advance.
Do You Need a Payday Lender?
The popularity of payday loans means that a lot of providers can now offer this option for people in search of short-term solutions to their financial problems. While a payday loan won’t always be the right tool for you – particularly when you’re looking for a large amount of cash, and repayments spread over a long period of time, it can be a helpful solution for a lot of customers. If you need to borrow money quickly and you’re happy to pay it back fast and get out of debt as soon as possible, this could be the lending option for you.
Payday lenders offer plenty of flexible assistance to people who need money in a hurry to overcome issues and deal with financial challenges. When your situation demands a quick financial boost between now and your next payday, a payday loan company can come to your aid with a quick and simple solution. These loan options can even be excellent for those unplanned expenses that suddenly turn your life upside down, like a vet bill or a broken-down car.
Just remember that needing money in a hurry from a payday provider doesn’t mean that you shouldn’t still make sure that you’re getting the best deal. As payday loan options become increasingly popular, the number of providers out there is increasing. That means that you need to work even harder to find the kind of lender that you can trust. Take your time to research the options available to you and make sure that you’re getting a deal that suits your needs.
Borrowing money in a hurry doesn’t have to be difficult – payday loan providers are on hand to give you the assistance you need today.