Why not look at long term loans?
Given the current economic climate, many lenders at the moment are clamping down on their lending rules. Just a few months ago it was really easy to get credit and most of us were snowed under with offers of new credit cards, loans and mortgages. Now, however, things look very different. All is quiet on the offer front and we have to work much harder to take out loans and other kinds of borrowing.
Nowadays a lender is much more likely to turn you down for a loan and many would prefer you take out secured loans instead of unsecured ones. This makes perfect sense from their perspective as this kind of loan is less of a risk for them to take. Here, you have to use your home or other assets to guarantee your borrowing. So, if you find that you can’t pay back the money you borrow, then your lender can seize your guarantee.
The situation is even worse if you just want to borrow a small amount of money for a short time -- say, to help you pay for or buy something between now and your next payday. The last thing you want to do here is to borrow loads of cash that you don’t need and to have to be paying it back for years to come.
Why look at payday advance loans?
Payday loans don’t come with these issues. These loans are designed to give you a cash advance for smaller sums of money (up to £750) that will be paid back the next time you get paid.
So, with a payday loan you don’t have to risk losing your house or car if things go wrong because you don’t need to use security to borrow money here. You also won’t have to face years and years of loan repayments for borrowing money that you didn’t actually need in the first place. And, you don’t have to waste time. The application process here can be completed online, takes just minutes and could see your cash in your account today.
This kind of loan is also great news for people who rent their homes. For so long the banking industry has favoured home owners -- now tenants can have access to lending that works for them too. And, this kind of loan is given based on your current income so you’ll have no worries if you have a bad credit history either.
Some people do worry about using payday advance loans as they do come with higher APRs that other longer term loans. To be honest, as long as you use this kind of service wisely and do not rollover your borrowings but pay them off when they are due then this need not be an issue. The APR given on a payday loan is based on annual costs and most payday cash advances will be paid off in 30 days or less for a simple flat fee cost.
So, if you are looking for a short term cash injection that you will pay off in full next payday then a payday cash advance could be a solution worth looking at.