Direct payday loans are designed to be a short-term finance option that, as the name suggests, is then paid back in full on the applicant’s next salary date. They are not suitable if you need long-term financing and should be avoided if you have a bad credit history. Find out more about direct payday loans and quick payday loans in the UK by reading the article below.
3 myths about bad credit
Many people believe that because they have bad credit, they cannot apply for payday loans or other cash advances. This is not true. When it comes to direct payday loans and similar financial products there are no checks done on your credit rating and bad credit is irrelevant. All you need is a regular salary, and that’s it. So if you’re worried about your credit standing, don’t be – get quick payday loans today!
The truth about payday loans
The first thing you should know about quick payday loans is that they’re not meant for long-term use. With how fast these loans can be processed, it’s easy to see why people turn to them as a short-term solution; however, if you find yourself resorting to such loans with some regularity, it’s important to look at what might be going on in your life.
Are you spending more than you make? Is there an emergency you haven’t accounted for? Do you have any other possible avenues of funding available? These are all good questions, and ones that lenders don’t take into account when issuing these bad credit loans.
Take time to learn more about cash advance laws and find out if quick payday loans could be right for your situation or not.
How much can I borrow?
The size of your loan is determined by your salary and how much you can afford to pay back each month. Of course, you mustn’t borrow more than you need – but with a quick payday loan, you may be able to borrow more than with a standard bank overdraft.
How long will it take to get my money?
The application process for payday loans is fast and straightforward. Because it’s an online application process, you can be approved and receive funds within hours of applying. Apply, receive funds and take care of your financial needs quickly. Whether you want a weekend getaway or unexpected expenses arise, direct payday loans are there when you need them most.
Read Also: UK Loans and Mortgages
What if I can’t afford the loan payments?
The main worry about payday loans is what happens if you can’t afford to pay them back. Some may fear that they will be plunged into a cycle of debt where their income will be eaten up by spiralling loan payments and they’ll never get out.
The good news is that thanks to protections offered by both government and industry, you are unlikely to find yourself trapped in such a situation. Firstly, if your lender offers an interest-free period or a relatively short one (say two weeks), then it can’t charge you any interest on your overdraft either – meaning no spiral effect as long as you do repay it on time. Next, remember that payday lenders aren’t allowed to take more than 10% of your income for your loans.
How do I apply for a payday loan?
Once you’ve determined that a payday loan is right for you, it’s time to figure out how exactly to apply. Direct payday loans can be applied for online by visiting your bank’s website and filling out an application form or in person at a local branch. If you go through a broker or third-party site like Kwikmoney, they’ll usually help you find a lender and walk you through every step of your application.
