Payday loans are short term loans UK that satisfy immediate cash crunches when emergencies crop up. These loans have various benefits that make them an attractive option to resort to when you have looming expenditures.
Straightforward Application Process
Short term loans UK are quite easy to apply for either by phone, online or in person. This is because very less information is required as compared to traditional bank loans that require extensive information and credit checks. With payday loans, all you have to do is provide bank information, proof of age, and proof of income to cover debt repayment to get the loan sanctioned. With hassle-free online loan applications, it is quite easy to obtain a loan in the comfort of your home.
Approval within a Short Time
Traditional bank loans take a longer time to be approved as compared to short term loans UK that are usually approved within 24 hours. With instant cash deposited in your bank account, you can cater to your emergency as soon as possible without waiting for too long. All you have to do is fill the online application form and wait for an approval notification.
No Credit Checks
With payday loans, there are minimum eligibility requirements when it comes to borrowing such a loan. You merely have to be a salaried individual above the minimum age having a steady source of income. Your credit score is not even required. Yes, that is right. Unlike traditional bank loan applications and stringent credit checks, short term loans UK do not look at your credit history to determine your eligibility. This brings good news for those individuals with bad credit who disqualify for loans elsewhere. However, if you fail to repay payday loans, your credit score will be affected.
Absence of Collateral
This is perhaps the best feature of a payday loan; no collateral. Therefore, you are not risking your valuable possessions incase you are unable to pay on time. However, such unsecured loans just like personal loans result in fines and additional charges when payments are not made on time.
Short term loans UK are thus a credit management tool that can help prevent you from defaulting on urgent repayments before you receive your paycheck at the end of the month. While payday loans have their advantages, they should not be overused. A simple rule of thumb to abide by is to just borrow money that you need, when you need it and repay it back quickly when you get your paycheck.