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Why it’s Ideal to Use a Payday Loan for Emergencies?

Payday Loans | LoanTube | UK

 

When bills mount up with their deadlines staring right at our face, we often start searching for ways to pay them instantly. Payday loans in the UK are instant but expensive. Read this article to explore various features of this credit product that may help you during uncertain times. ⭐3-minute read⭐

A payday loan is a popular option among Brits when they consider borrowing a helping hand to deal with their financial necessities. If you are ever in a bind where you need funds immediately, our instant instinct is to use our credit cards. But the question is how ideal is a credit card over a payday loan? A credit card is certainly the easiest way to fund your expenses but not an inexpensive one. Moreover, the amount borrowed has to be repaid in a lump sum.

Maximise your options: Compare and apply for loans below with LoanTube

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Norwich Trust

Loan Term

1 -

10 years

4.8/5

4.8/5

Representative APR

22.9%

Minimum Age

21 Years

Minimum Income

£2000 per month

Representative Example If you borrow £20000 over 72 months, your representative APR will be 22.90% APR. Your monthly repayments will be £488.36 and the total amount repayable will be £35,161.92.

4.8/5

4.8/5

Norwich Trust

Loan Amount

£4000 -

£20000

Loan Term

1 -

10 years

Representative APR

22.9%

Minimum Age

21 Years

Minimum Income

£2000 per month

Representative Example If you borrow £20000 over 72 months, your representative APR will be 22.90% APR. Your monthly repayments will be £488.36 and the total amount repayable will be £35,161.92.

Loan Amount

£5000 -

£100000

Evolution Money Loans

Loan Term

1 -

20 years

4.5/5

4.5/5

Representative APR

28.96%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00

4.5/5

4.5/5

Evolution Money Loans

Loan Amount

£5000 -

£100000

Loan Term

1 -

20 years

Representative APR

28.96%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00

Loan Amount

£1000 -

£10000

1Plus1 Guarantor Loans

Loan Term

1 -

5 years

4.4/5

4.4/5

Representative APR

47.80%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative example: If you borrow £3000 over 36 months at a Representative rate of 47.8% APR and an annual interest rate of 39.7%, you would pay 12 monthly installments of £143.84. The total charge for credit will be £2178.24 and the total amount payable will be £5178.24.

4.4/5

4.4/5

1Plus1 Guarantor Loans

Loan Amount

£1000 -

£10000

Loan Term

1 -

5 years

Representative APR

47.80%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative example: If you borrow £3000 over 36 months at a Representative rate of 47.8% APR and an annual interest rate of 39.7%, you would pay 12 monthly installments of £143.84. The total charge for credit will be £2178.24 and the total amount payable will be £5178.24.

In this article, we will explore the various features of an unsecured payday loan that may benefit us during uncertain times.

                There are various reasons because of which we choose a personal loan. A quick cash injection has often proved to be successful during a financial emergency. In order to decide the ideality of this high-cost short-term credit, we need to dig around for the reasons people choose it. Listed below are a few common circumstances under which we consider taking out a short-term loan:

  1. Bad Credit: Potential borrowers who do not have a spotless credit history often choose an Unsecured Payday Loan for Bad Credit due to their flexibility of repayment and a simpler application process.
  2. Medical Emergency: People often borrow a loan to pay the medical bills if they do not have health insurance.
  3. Unemployment: With the recent news regarding austerity looming over the UK, many Brits borrow a loan to cover their expenses.

The list of reasons may be endless. A person may want to borrow money for any financial emergency they are facing. Let us know how a payday loan is suitable:

Easy Application

It is comparatively easier to apply for this loan. The process of application has been designed in such a way that it takes only a few minutes for a decision.

No Restriction

A borrower has a complete degree of freedom to use the loan amount for any purpose.

Fast

From the processing of the application to loan disbursal, the time taken is comparatively lower. Therefore, many of us consider this to be one of the fastest methods to borrow cash.

Available 24/7

These loans are available online and hence, an individual seeking for a loan may avail them at any hour of the day.

No Collateral

The loan doesn’t need any form of a valuable asset to be pledged as collateral. This reduces the risk of any collateral damage.

No Guarantor Required

During an emergency, it becomes daunting to find a co-signor to avail a personal loan. One may easily avail a Payday Loan with No Guarantor in the UK.

Regulated

The FCA has made the lending standards more stringent to protect borrowers from astronomical interest rates and fees. The capping that was introduced by the financial regulator reinvented the lending industry of the UK.

Conclusion

A personal loan is one of the best financing options during emergencies, ONLY if borrowed responsibly. Being a  borrower you have the responsibility to repay the loan on time. It will help build your credit score. A good credit score often fetches favourable rates of interest while a bad one may have a higher interest rate.

Borrow responsibly, spend wisely and repay timely!

To apply for a safe Payday Loan application with LoanTube, click here.

Warning: Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK

Credit subject to status & affordability assessment by Lenders.

LoanTube is a credit broker and not a lender. Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on any debt secured against it.

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