What Are Payday Loans?
A payday loan is a financial product that enables you to borrow a small sum of money over a short period of time. These loans are unsecured, meaning none of your assets will be tied into the agreement, and they are designed for those emergency moments where we need quick cash to tide us over until we have been paid.
The representative APR on a payday loan looks quite high, but it is only a representative against an annual period of time. This could be to cover an unexpected car repair bill or to ensure you pay your rent on time and don’t end up in trouble with the landlord!
Why Would You Need a Payday Loan?
The only reason you should take out a payday loan is for emergency funds. Have you found yourself in a sticky financial situation? Perhaps you cannot pay your electricity bill this month? Maybe your computer has broken, and you need a new one for work purposes?
No matter your reason for wanting emergency cash, if you need an instant decision short term loan, a payday loan could be the perfect solution for you and here at LoanPig, we offer responsible lending, credit checking and an easy application form to guide you through your loan application.
What Can I Use this Loan For?
An increasing number of people are taking out payday loans nowadays. In fact, they have received quite a bit of negative press. Unfortunately, this is because there are a lot of people that attempt to take out an instant loan when they know that they cannot afford the repayments.
So, when is a payday loan advised? These loans have been designed to help those that find themselves in a short-term monetary emergency that needs to be dealt with as soon as possible – you cannot wait until your next payday.
Although not all payday loans are payable by the next payday, you do only have a short period of time to repay the loan, i.e., six months to a year at the very most. You should never take out a payday loan if you have a long-term financial problem.
This will only make the situation worse. Instead, payday loans are ideal for the likes of unexpected bills, dealing with imminent overdraft charges, paying for a broken down car, and such like.
If you know you have the cash coming in at a later date, payday loans can stop you from incurring excessive charges in the immediate future or a late payment flagging on your credit file.
How Do I Apply For A Loan?
We know that if you have found yourself in an emergency financial position, you will want the problem rectified as quickly as possible! This is why we have committed ourselves to make sure that the process of applying for a loan is quick and easy.
In order to make an application for payday loans online, we will require the following information from you. You must:
- be a UK resident
- be 18-years-old
- have an active bank account and bank card
- either be in permanent employment or through receiving some form of disability/living allowance or a pension
Once we have proof of the above, we will process your application as quickly as possible so that you have complete peace of mind. Our application process includes a financial credit check in which we will review your personal information, financial information and credit score, we take your bank details within your personal details to ensure we look for any money problems you may be encountering, but review your application based on your ability to pay without financial detriment.
When Will I Receive My Payday Loan Money?
One of the main benefits associated with payday loans is the fact that you can receive your cash much quicker than you would if you want down another route.
At LoanPig, we work around the clock to ensure our clients get the cash they need as quickly as possible. If you make an application on a weekday, prior to 3 pm, you could get your money the very same day.
If you apply for a payday loan on the weekend or after 3 pm on a weekday, you will likely receive payment the next working day.
How Do Payday Loans Differ To Other Loan Types?
This type of loan differs from other loans because they are designed for short-term, financial emergencies. These loans enable you to borrow up to £1,500, with the longest repayment period being 12 months.
You don’t need to go through the lengthy and long-winded process of applying for a bank loan, and you don’t need to be tied into a repayment scheme for years on end. Instead, a payday loan will give you access to fast cash so you can deal with any immediate financial troubles, paying back the loan from your upcoming wages.
We Are A Payday Loan Broker And Lender
LoanPig is one of the few remaining true Payday lenders in the market, we are a direct lender and a broker, which means we have a much bigger selection of financial products for you to choose from, if we cannot lend to you ourselves, giving you the best of both worlds and ensuring our clients get the best for their situation.
We Don’t Rule Out People With Bad Credit
A lot of people with poor credit histories believe that they are never going to be able to get a payday loan. However, we recognise that your credit history does not always reflect your ability to make loan repayments.
We base our approvals on making sure the person taking out the loan is in a position to make the repayments so that they do not end up in further financial trouble and offer bad credit loans to those who are eligible.
Is a Payday Loan Right for Me?
FCA regulated Payday loans companies are there to help you out in an emergency situation. They provide essential funding for situations that arise unexpectedly and can be a theoretical lifesaver for some who use them properly. Ones of the first thing you should do, before you consider applying for a loan, is think about whether or not you actually need a payday loan.
If you are out shopping and a bargain presents itself, but is only a bargain today, then a quick cash injection which will be paid back at payday will be fine. As long as the money you are saving on that bargain is more than the interest you’ll pay on the loan, and you can afford it, then why not!
Those who need to pay for an unexpected car repair, fridge repair or something else that is considered time-sensitive could benefit greatly from taking one out.
How Much Would You Like?
Payday Lenders Reputation
It’s no secret that payday loans have a mixed reputation, but a lot of people don’t know the real story behind it all of the negativity. If you are in need of emergency cash because you have some sort of unexpected expense, you will want to know all you can about these loans and the truth about them. A high number of people avoid this type of quick cash loan because they have heard so many negative things, especially from people who don’t know what they are talking about or “know someone” who’s had a bad experience
Interest Rate Misconception
One of the many negative remarks about payday loans is to do with high-interest rates. While it is true that rates on these loans tend to be a lot higher than many others. However, they really aren’t as bad as you might think.
The interest rate on your payday loan might depend on a few factors, these might include; where you live and what your past, current and future potential credit are like. It is important to keep that in mind when you apply for a loan as you won’t necessarily pay the highest rate of interest with every payday loan.
They have never actually taken a Loan out before
Those who unfairly criticise payday loans and the lenders usually have never actually taken one out themselves. So they aren’t in a position to say anything about them let alone something negative. Once you have gone through the process of applying, you will quickly discover how simple and easy it is.
We Are Regulated Direct Lenders
You can have complete peace of mind when you take out a loan with us because we are authorised and regulated by the Financial Conduct Authority. Our registration number is 736632. The FCA has very strict guidelines in place, which we fully adhere to.