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4 Quick Points on Using Short Term Payday Loans

4 Quick Points on Using Short Term Payday Loans

Short Term Payday Loans UK

It’s to no surprise that millions of people in the UK use short term payday loans, but, with so many lenders promising to offer the best interest rates or the quickest, easiest applications, how do you make a decision?

The truth is, most people (when searching for a loan) want it ASAP, if you dive straight in – you could be missing out on a better rate. Check as many lenders as you can, compare your loan options or even try a loan broker that actually does all the ground work for you.

Short term loans and payday loans as a whole are obviously not a method used long-term (the clues in the name). Generally speaking, they must be paid off within 6 months to a year max, however this depends on lender to lender. Any loan for a longer period than that is normally viewed as a personal or long term loan.

It’s important for consumers to understand exactly what their loan options are, and how they can make the best decision for their circumstances. Below are a few tips that will hopefully help you to save a bit of money along the way, or at least point you in right direction to making an informed decision.

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A Good Starting Point

As mentioned above, probably the main takeaway is – shop around before taking out that loan quickly. It’s very important to do as much digging as you possibly can, lenders will offer different rates of interest, or may even add in additional charges. Having a nosey at their reviews can give you a helping hand in making that decision on giving them your custom.

1. Understand What Type of Loan You Need

This one might sound obvious, but some loans are advertised in very similar ways, plus – you might not get accepted for a payday loan with bad credit but you might do for a logbook loan. It can be tempting to go for the loan you’ve accepted for, but ensure you always evaluate the terms before saying yes.

It’s important to understand/assess which loan type will benefit you and your circumstances the most. By doing this you’ll avoid those hasty decisions.

2. Only Take a Loan Out if You Can Afford It!

This one might sound counter-intuitive…

However, by saying this – all we mean is that you should make sure you can definitely make the required repayments on the agreed date of each month, across the full loan term.

It isn’t uncommon for people to take out a loan tempted by the idea of instant cash, even if they know they won’t be able to pay it back in time. By not making your repayments causes you to incur further charges, and can transition into being unable to obtain credit in the future.

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3. Don’t Take a Loan Out for Something You Don’t Need

A lot of us have this sense of importance around keeping up to date with the latest gadgets, clothes and trends. To be fair, it’s not easy when you see these things constantly advertised, it can be difficult to steer away from that temptation of buying.

As a rule of thumb, you should avoid taking a loan out for any unnecessary purchases – if you didn’t need it before you heard about it, you probably don’t need it now!

4. Pay It Back Earlier if You Can

It’s no secret that short term payday loans generate higher interest payments than traditional lending products. However, did you know that by clearing the balance early, you may be able to significantly reduce the total amount of money you’ll end up paying back?

Many lenders will charge daily interest amounts based on the total (remaining) outstanding balance. Put simply: the longer you maintain a balance on a loan, the more interest you’re likely to pay.

If you come into a bit of money, or if your payday falls before the agreed repayment date, why not consider making the payment a few days earlier than planned. You could end up saving yourself some cash here, just make sure you check in with the lender beforehand to see what their terms are on this.

If you’ve assessed all of the above and need a short term payday loan today, you can Apply Now with us. Most lenders we deal with can offer loan disbursals within an hour or potentially sooner.

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