If you’re reading this, you’re probably considering taking out a loan but are unsure about your options. Maybe your car broke and you need fast cash to repair it so you can drive to work, or maybe a special someone’s birthday is coming up and you want to gift them something special but you are short in cash this month. Sometimes we might only need a few hundred pounds to cover an unexpected expense until we receive our next wage and maybe your financial situation is generally good, but sometime the timing of an expense can be inconvenient! If you need to borrow money fast and you think a payday loan might be what you need, here we will tell you a bit more about this type of loan so you can make an informed decision.

What is a payday loan?

Payday loans are defined as small, short-term unsecured loans that are available online and from high street shops. These types of loans are usually approved on the same day that you apply for them and are viewed as something to cover a temporary financial shortfall, rather than a long-term financial product.

Payday loans are sometimes known as a payday advance, a payroll loan, or a cash advance loan. Despite its name, the repayment date doesn’t necessarily have to be your payday, but most people will choose this date for convenience because they know they’ll have funds to comfortably repay the balance due.

What can I use a payday loan for?

You might be wondering if there’s any restriction on what you can use the borrowed money for. Generally there’s no specific requirement on what you can use the cash for, however, same day loans are seen as a fast way to borrow money to cover unexpected expenses before you receive your next wages. Some of the most common reasons why people apply for instant cash loans are: unforeseen large bills, extra cash to buy home appliances that have broken down, and car repairs.

That being said, it’s important to take into account that short-term loans usually charge high interest rates and so you should consider if you genuinely need the loan and if you’ll comfortably be able to repay it on your agreed repayment dates before you apply.

What is a payday loan direct lender?

A payday loan direct lender will review your application and check your credit file to make their lending decision. If your application is approved, a direct lender will transfer the funds directly to you rather than acting as a broker. In the same manner, when it comes to repaying you loan, you will make your repayments directly to the lender on the agreed repayment dates.

What are the advantages of using online lenders?

Now, we’ve mentioned that there are two types of payday loan lenders: high street shops and online lenders. So, what makes online direct lenders a better option?

The most obvious reason is that, since the whole loan process takes place online, you can apply from the comfort of your home in a matter of minutes. And who doesn’t like convenience, right? But that’s not all. Usually, the payday loan online direct lender will let you choose the amount you want to borrow to the nearest pound, so you don’t have to borrow more than you really need. Also, online lenders will normally let you know the outcome of the application in a matter of minutes and transfer the funds to you within two hours. Some even transfer the money within 15 minutes! This might make it very appealing if you’re in need of quick cash!

“But what if I have a bad credit record?” If you have bad credit or a thin credit file your application could still be approved if you satisfy certain criteria, which is always good to hear! On top of that, you can have access to your account from anywhere anytime, which might help you budget accordingly to meet your repayments and rebuild your credit score little by little.

You might be wondering “but what happens if my circumstances change and I can’t repay my loan?”. You know what they say, communication is key. If your loan becomes unaffordable you should contact your online direct lender as soon as possible to arrange a more flexible repayment option as they should want to help you repay in a way that you can afford, particularly if your request is fair and reasonable.

Hopefully all this information helped you gain more insight into what payday loan options are available for you and you will be able to make an informed decision on whether this is a suitable product for you or not. Payroll loans are available online, but by choosing an online direct lender like cashasap.co.uk, a payroll loan can also be the most convenient option, as you can apply easily and have access to your account whenever you want and from wherever you are.

Responsible Borrowing

After learning what payday advance loans are and the benefits of choosing an online direct lender you might be thinking that this is the right way to approach the temporary economic shortfall you may be experiencing. Nevertheless, please be aware that you should always be a responsible borrower and only apply for a short term loan if you are confident you can repay on your agreed repayment dates. If your circumstances change and you are unable to meet your repayment dates, we recommend contacting your direct lender to find out more information about your repayment options.