You don’t want to get a payday loan without first being aware of some helpful tips. There are lots of things to consider that will affect your ability to get a good loan deal. One of the big mistakes people make with these loans is getting them without any prior knowledge.
- Get Your Loan Online
While it is still possible for you to find physical payday loan businesses in the UK, going online is a much better way to go. It is far more convenient and makes this process go a lot faster overall. You can find lots of these websites for these lenders by performing a simple Google search.
Online payday loan applications are pretty straightforward and won’t take up a lot of your valuable time. They are also completely secure, so none of your information will be at risk in any way.
Some people are still hesitant to submit their personal details on the internet, but these sites are 100% safe. Just make sure that there is a little lock icon next to the website’s URL at the top of your browser. This indicates that the site is encrypted and therefore secure.
- Find out about Renewals
When you are looking into some of the different lenders to get a payday loan from, you’ll want to inquire about renewals. There are some lenders that will renew your loan if you are late on your payment. This will save you from having to pay some pretty outrageous penalty fees. Not all lenders do this, so it’s something you will want to specifically ask about. If you are able to get your loan renewed, you won’t have to worry about paying anything extra.
- Make sure the Company is Based in the UK
It’s also important for you to find a lending company that is based in the UK. This ensures that the lender must follow all laws related to payday loans. The last thing you want is to borrow from an overseas company, only to experience problems with your loan. You might end up in a very bad situation.
This information should be listed on the company’s website. If you can’t tell from their site, you should contact them to find out. You don’t want to choose any lender in particular before doing this.
- Read the Loan Agreement
If you get approved for a payday loan, you will get a fairly long and detailed contract in your email inbox. You will be required to give your digital signature before the loan can be officially processed.
Make sure that you read every single word of the contract before you sign it. Keep in mind that digital signatures are still legally binding. Too many people neglect this document, and they do so at their own peril.
The loan agreement is going to give you all relevant information about the loan, such as the amount of time you have to pay it, as well as the interest rate. All other fees should be laid out in this contract as well. If you don’t see something in the document that should be there, do not hesitate to ask the lender about the omission.
- Get the Right Term
Payday loan terms are traditionally pretty short, around two weeks for most people. If you are borrowing more than £1,000 with this type of loan, you should try to get a bit more time to pay it back. When you get a longer term, you won’t feel so pressured to get the money together. It will give you more time, which is a good thing if you suddenly lose your job or undergo some other financial hardship.
- Take the Application Seriously
A lot of people just breeze over their payday loan uk application, which opens them up to all sorts of issues. You will instead want to fill out everything in detail with nothing missing. Make sure that everything you put on your application is completely accurate as well. You shouldn’t try to get away with being dishonest about anything, including your income. It will only decrease your chances of getting approved.
It is crucial that you not get so caught up in being approved for a payday loan that you forget to do these things as well. A payday loan can definitely work in your favour, but you have to be careful when approaching this process. Remember to explore the different lenders online so you can pick one that is reliable and solid overall. You’ll also want to anticipate a credit check, as there is no way around it. While these lenders check the credit of applicants, it is still possible to get approved with a score that is very low.