There are times when we all have gone through financial crisis. We’ve all looked for ways to get some quick cash on credit to meet financial emergencies or any unexpected bills. Anything can come up such as car repair, faulty appliances at home or small home improvements. In such circumstances, payday loans are the best option for you, rather than borrowing from a friend or family member.
You need to plan your payday loan application well, so that it is approved sooner. For this, you should be aware of how the payday loan works, when you need to repay it and more. This article briefly explains to you everything you need to know about this loan type.
Payday loans in the UK are largely approved by banks and other direct lenders. Loanpig is one of the popular names in the industry and they have been successfully helping people meet their financial needs with a variety of short term loans.
One can easily apply for any loan by visiting www.loanpig.co.uk. All you need to do is fill up an online form. They are direct lenders as well as are brokers for short-term loans in the UK. Also, they guarantee security and minimum interest rates to their customers.
How Do Payday Loans Work
- What is a payday loan?
- A payday loan is a short-term loan with a higher interest rate when compared to other long term loans.
- You have to repay the amount on your next payday either in one-off or instalments within the specified time limit of up to six months.
- The application process
- You can apply with a simple online process.
- Know all the lending rules clearly, as the lenders follow them strictly.
- Provide all the necessary information such as your personal details, bank account, savings, and expenses.
- The majority of the lenders provide the online calculator tools to estimate your loan cost and repayment.
- Payday loans work well, as many lenders are not looking for your good credit score.
- How to pay back the credit
- Loan repayment has to be done by the Continuous Payment Authority (CPA) method.
- With this, lenders will get the authority to take the credit back from your bank account on a specific day of agreement.
- You can even change the amount monthly if you are paying in instalments
- You are accountable for your debts, even if you cancel CPA at anytime.
- The Regulating Authority
- The lender must be registered and approved officially in Financial Services Register.
- The Financial Conduct Authority regulates registered lenders as loan brokers. Also, it helps consumers from any illegal procedures undertaken by lenders.
- The conduct rules ensure that the lenders stay honest. Also, responsible for providing all the details about costs and affordability to the consumers.
Fortunately, payday loan benefits many because it is easily available. Even if you have bad credit rating, you can get a instant cash loan. However, the interest rate will be a slightly higher and the loan amount will be less than expected.