For many of us, the reality is that at the end of the month, finances are running thin. This can be a challenge to many as unexpected bills could be enough to push finances to the breaking point, but how could this be prevented? In this article, we will be providing you with insight into payday loans and how they can aid you in a financial emergency.
What Is A Payday Loan?
Payday loans are a type of short-term loan for small amounts of money that are typically paid back within 1 to 3 months of taking out the loan. These loans are typically available from highstreet brokers or through online lenders and can be used to aid you in a financial emergency. Whether it is an unexpected boiler breakdown or a bill for more than you expected, this loan can help you to cover the costs.
How Much Can Borrow with a Payday Loan?
When looking to take out a payday loan in a financial emergency it is important to make sure that you are aware of the amount that you can borrow. Though this borrowing amount can completely depend on the same day loans lender that you are borrowing from, the amount you can borrow will typically be between £100 and £1,000 depending on the amount that you need to get yourself out of your financial emergency. When applying for a loan such as this, you should only ever borrow the amount that you can afford to pay back when you have got yourself in a better financial position.
Understanding Payday Loan APR
An Annual Percentage Rate is a rate used by lenders to help borrowers understand the cost of borrowing and the amount that they will have to pay back long term. The APR takes into account the amount that you have borrowed as well as interest and any additional charges that will be added when you take out this line of credit. All of this important information will be outlined to you when you are applying for the loan, allowing you to do the calculations and work out which one is right for you.
How Do I Apply?
Applying for a loan type such as this is a simple process and can be completed online with ease. When you have found the right loan for you, simply answer all the questions on their form and you will be submitted for all necessary checks almost instantly. From there, your chosen lender will then conduct credit checks and look into your monthly income to determine if you can afford the loan that you are looking to take out. Should your application be successful your lender will be in touch with the money in your account within 24 hours.
Whether you are new to the process of applying for loans or you applied for financial help many years ago, there are several elements that you need to consider to make sure that you get the loan amount that is best for you.