If you are borrowing for the first time and if you are looking for payday loans, then this blog is for you.
Payday loans are quite popular in the UK as well as in many other countries around the world. Due to its hassle-free borrowing aspects and pace, many consider them one of the most efficient loan options to use when there is a funding need ahead.
The good thing is you can use a payday loan in flexible ways to make your funding more productive and more interesting.
A single payday loan can make a great deal of work done when you know how to use it in the right ways. Payday loans are also deemed good options in this regard for both individual borrowers and businesses.
Note that taking out a payday loan for the first time isn’t that problematic. Rather it may save some more time and effort of yours. Read this post to learn how to take this loan out in the simplest ways possible.
Taking a Payday Loan for the First Time: Here’s What You Need to Know
Borrowing for the first time can mean you are hunting for several loan deals. But if you are concerned about the part of guaranteed approval rates for this loan, then you may stay relaxed. You can easily get Guaranteed Payday Loans from a Direct Lender in the UK. All you need to do is to find a lender and that’s it.
Now the question is, why are these loans always guaranteed? Why do you not have to be worried about it?
Well, we must first go through the definition of a payday loan.
A payday loan is originally a personal loan. You can also call it an unsecured loan because they do not involve collateral. Added to that, the term ‘payday’ has a significant influence on the terms and conditions of this loan. It is a short-term loan that you take on account of the money you receive on your payday, i. e. the day you get your salary.
Payday loans are also known as cash advances.
So, what this means is you produce the income details to your lender. The organisation will verify it and send you the loan within 24 hours. You can repay the loan in the full amount (along with interest charges) on the next payday.
There are variations, though. You may also repay a payday loan by breaking the repayment duration into shorter term lengths, such as 3 months or 6 months. Most lenders might allow you a payday loan term of up to 12 months or a year.
Below mentioned in the step-by-step guide on how to get a payday loan for the first time:
- Take a Look at Your Income and Use a Loan Calculator
How much do you earn? Your payday lender will look at this as the only factor to offer you a loan if you want a fast lending solution.
Although you can get these loans from many mainstream lenders, choosing direct lenders is always going to help you in a better way. It is because you might gain flexible repayment plans and quite reasonable interest rates with a direct lender. We also use a paperless application form which makes the verification faster.
Even if you earn freelance or are into a part-time job (or if you earn benefits), it is not going to be a problem to a direct lender as long as your repayment instalments or repayment amount (if you choose to repay on your next payday).
Estimate your income and consider backup options. Can you make a loan repayment with the money you earn? If yes, then you may go for the next step.
Your documents required are:
- Offer or Experience Letter
- Name of the employer
- Paychecks
- Detailed Employer Information and Online Salary Transactional Data (for Part-time and Freelance work)
- Balance sheet and revenue generation papers (for businesses)
- ID information and bank statement
We can now learn about the next step.
- Find a Direct Lender Service
There are various lenders in the industry. Mainstream lenders might offer a payday loan. They come in high interest, though. But direct lenders can make it easier for you because they have flexible repayment packages and various interest rates.
A direct lender service can also help you extend the loan terms to a few months.
Additionally, taking advantage of the paperless application form can get you a loan much faster. We can discuss that in the next point.
- Fill out the Paperless Application Form and Verify Your Documents
The application form is called paperless because it is available completely online. Filling it in will take a few minutes or maybe less than that because the forms do not ask for lengthy and varied details.
Pick all your income statements close at hand to send them to your direct lender. These will be verified within a few more minutes to offer you the loan approval.
- Updating Credit Scores?
Well, you can get a payday loan without investing attention to the condition of the credit score.
Firstly, you will get a loan of this kind with a no-credit-check if you are not a credit card holder.
For a good credit score, the lender will take note of your credit record as a way to embrace formal credit check requirements in the direct lending practice.
Payday loans for bad credit from direct lenders in the UK are still very popular because these loans are offered solely based on your income. Lenders can make a soft credit check, but you won’t have to worry about the loan because the credit check process isn’t hindering the disbursal of money.
Speak to your credit card provider and check all the details of it after updates. It will help the direct lender make the most effective lending choices for you.
To Conclude
Well, now that you know how you can take out an easy payday loan, don’t waste more time and get a loan soon.
And if you want to speak more with us, then write to us, phone us or comment on this post to initiate a great conversation.
Jessica Rodz is the Senior Content Writer at Cashfacts. She has a long career in the field of content writing and editing. Jessica has the expertise in the UK lending marketplace where she has worked with 7 different lending organisations and acquired many responsibilities from preparing loan deals and writing blogs for their websites.
At Cashfacts, Jessica is managing a team of experienced loan experts and doing a major contribution in guiding the loan seekers via well-researched blogs. She has done graduation in Business (Finance) and now currently doing research papers on the UK financial sector.
