What are direct payday loans?
If you’ve ever had an emergency bill to pay, and you know that the savings you have left in your bank account simply aren’t going to cover it, then you’ll be well aware of the value that payday loans can offer. It’s often easy to dismiss payday loans, assuming that you can always wait until your next payday if you ever want to buy something that you can’t immediately afford. However, the truth is that when important expenses crop up, like the cost of paying for a new washing machine or repairing your car, you just can’t afford to wait.
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).
Payday loans are some of the most popular short-term lending solutions in the UK today. Now that these loans are FCA approved, you know that you can get the quick money you need with minimal hassle, and you don’t have to worry about paying over the odds on your interest either. However, before you can start reaping the benefits of payday loans, you’ll need to find the lender that’s right for you.
There are two options available when it comes to applying for a payday loan. Your first option is to go directly to a lender that can give you the money without any middleman. The second option is to use a payday loan broker like Boutell.
Why Go for a Payday Loan?
Before we start exploring the different kinds of lending options available to people in search of a payday loan, let’s discuss why you would choose a payday loan as your solution for additional cash. After all, there are a lot of different lending options out there, including personal loans and loans specifically for certain things, like mortgages or car finance lending.
A payday loan isn’t the best choice for every lending requirement, but it is a good option for anyone who needs to borrow money quickly, without jumping through countless hoops in an application. With a payday loan, you can access the money you need almost instantly, even if you don’t have the best credit score. Additionally, the application process usually takes a matter of minutes rather than days.
Payday loans are particularly well-suited to people who only need to borrow a small amount of money for a short period of time. With a personal loan, there’s often a minimum on the amount you can borrow from a bank, which means that you end up getting yourself into more debt than you need to be in. With a payday loan, you only borrow the amount you actually need, and you can pay it off on your next payday. This means that you spend less time trying to figure out how you’re going to make your budget stretch to accommodate repayments for the next several months.
Borrowing Through a Broker or Going Direct?
A lot of borrowers assume that the cheapest way to get online loans will be to go to a direct lender. After all, the fewer people involved in your loan, the fewer fees you need to pay. While that idea works in theory, it also means that it could end up being a lot more difficult for you to get the kind of lending solution you need.
Brokers exist because getting a loan in the current landscape isn’t always as easy as it seems. If you don’t have the best credit rating, you might need to spend days, or even weeks, sending applications to different companies, with no guarantee that you’re going to be accepted. If you don’t get the loan that you apply for a few times, the black marks on your credit report begin to build up, making it difficult for you to access the money you need in the future.
What’s more, just because you find someone who’s willing to give you the direct payday loans that you want, doesn’t mean that they’re also going to give you the best deal. A broker takes the stress and headaches out of your hands by finding someone who can give you the right kind of loan, without the hassle. What’s more, there are no hidden costs along the way, you know exactly how much you need to pay on your payday loan from day one, which means budgeting for your borrowing much easier.
Payday loans through a broker can ensure that you get the best deal first-time around, while protecting your credit history from constant hits. After all, the last thing you want is for future lenders to see that you’ve been rejected from a number of short-term loans already.
What Do Lenders Look for in Payday Applicants?
Whether you choose to get a direct payday loan through a lender, or you prefer to take the option of going through a broker, it’s best to go into the process as prepared as possible. Applying for a payday loan is usually a very straightforward process. These lenders are often willing to accept people from all backgrounds, because payday loans require lenders to take on less risk than traditional banks and building societies.
When you take out a payday loan, you borrow a small amount of money for a short period of time, keeping the risk that your loan company encounters to an absolute minimum. This usually means that your lender will be willing to consider things like your regular income and affordability levels, as well as your credit score and payment histories.
When you apply for a payday loan, you’ll need to make sure that you can show the lender proof that you’re living in the UK and that you’re over the age of 18. Most standard forms of identification will be able to help with this. A few other basic pieces of information your lender will need include:
- Evidence of regular income: Whether your credit history is good or bad, a lender may still approve you if you have a regular income that makes it easier to pay back what you owe on time.
- A good employment history: Submitting proof of a stable and regular income will be an excellent way to prove to your lender that you’re not much of a risk.
- Contact information: You’ll need a legitimate email address and phone number so that the company can contact you about your loan and ask any questions that might be holding your application back.
Remember to make sure that you’ve got a current account set up in the UK that your loan can be paid into as well. This will speed up the process of getting your loan.
What Should You Look for in a Lender?
When it comes to applying for cheap payday loans, it’s important to remember that the lender doesn’t just need to approve you, it’s also crucial for you to approve your lender as well. There are a lot of different providers out there, all with their own specific benefits to offer. Examining the options available to you carefully online or making sure that you get the best selection of choices through a broker will help to give you a more affordable and reliable loan experience.
Remember, look for a lender that is approved and regulated by the FCA. We only connect customers here at Boutell with regulated lenders, so you know that you can trust the person giving you your money. When doing your research, it’s also important to check:
- How much money you can get from the lender: Some companies have limits on the amount they can give to a borrower in a payday loan.
- What kind of restrictions is in place: Do you need to use your loan on something specific, or do you have the freedom to use it however you like?
- Extra fees: Are there any extra expenses that you need to consider, like transaction fees or costs for getting your money to you in the same day?
- Application processes: How easy is it to apply for your loan? Can you set yourself up for an account in a matter of minutes, and how quickly will you be approved?
- Ratings and reviews: Checking the testimonials from other people who have borrowed from a company before can help you to find a business you can trust.
Take your time to consider which payday loan provider is right for you, and how much you actually need to borrow. Although it’s tempting to rush through the loan application process – particularly when you’re in a hurry to get the money that you need, doing your research will ensure that you get the best deal.
Applying with a Payday Loan Lender
Ultimately, it’s up to you to decide whether you need to go straight to a direct payday loan provider, or work with a broker to get the deal that you need. Direct lenders might be a good choice for people who already know the company that they want to use to get their money. However, brokers are typically the best choice for people who aren’t sure where to get started and need to ensure that they’re getting the best possible deal.
A broker will boost your chances of getting an excellent cash loan for whatever you need, and they can help to protect your credit score too. Contact us to find out more.