Many of us are struggling to stretch our income to meet our needs, and this can be made more difficult when faced with an unexpected bill or expense. This can be a worrying situation for many of us and can leave us wondering where to turn. This is where direct payday loans can help. Read on to find out more about this type of finance.
What are direct payday loans?
Sometimes life doesn’t pan out the way we’d expected – it can throw us a curveball at any moment. Whether that’s with urgent car repairs, damage to your home, or vet bills that you simply can’t ignore, you’re going to need to find a way to pay for an emergency. This is where payday loans come in. This type of loan is offered by online lenders and can be used to cover an unprecedented expense that your income may not be able to stretch to cover.
As the name suggests, payday loans require repayment on the borrower’s next payday and can be used to bridge the gap between paycheques. This short repayment term can be difficult to manage, which is why it’s essential to ensure you’re aware of the total cost of the loan – including interest – as well as any additional fees that you may incur over the course of the loan before you apply.
Payday loans are easily accessible. The application process tends to take place online, meaning borrowers can compare lenders, and fill out the application form at their own leisure, without spending time at the bank. Once the application is complete, the lender will review the information provided and present a decision. Approvals tend to be more lenient so those with turbulent financial backgrounds can still benefit. Money could be transferred into the borrower’s account in as little as 24 hours – perfect for time-sensitive emergencies.
Quick access to funds
When faced with an unprecedented expense – a bill you’ve not accounted for, medical fees, or emergency repairs – you’re going to need money quickly. As mentioned above, the application process is quick and easy, and only requires a few documents to prove ID and bank account. Depending on the lender you choose, you could have access to funds in as little as a few hours.
Lenient eligibility requirements
Traditional loans are more difficult to apply for, especially if you have a low credit score. And whilst personal loans come with lower interest rates, approval is less likely if you suffer from bad credit. You don’t have to worry about this with payday loan direct lenders. This convenient financial solution allows those who may have struggled to manage their money in the past to benefit from funds to help them deal with an emergency – quickly and easily. Lenders base their decisions on affordability, rather than credit history.
Build your credit score
Not only are these payday loans convenient and accessible, but they can also allow you to build your credit score when you need it most. For example, if you’re struggling to be approved for finance elsewhere because your credit score is low, applying for a payday loan means you will have access to finance that, if you pay off in full and on time, will go towards improving your credit score to stand you in a better position in the future. But be aware this works both ways. If you can’t pay back your loan with additional interest fees, you’re at risk of putting your finances in danger, which will also affect your credit score.
Before applying for a direct payday loan, consider your options. Think about whether you can ask your family or friends for help, or whether you can reach out to local services to help you manage your expenses without the risk of debt. Weigh up your options before entering into an agreement.