There are many companies offering so called payday or microloans and the reason is just as obvious as it is simple - sometimes you need money instantly. It may be that you found a product you have thought about buying and that for a limited time is an extraordinary good price so you now have the opportunity. Something in your house or anything on or in the car may have broken down and needs to be repaired for you to be able to get to work or have food in the fridge. In those cases, payday loans can be a good solution.
Borrowing money from the bank or through payday loans?
One should not compare bank loans and payday loans since they are two separate things that should be used in different ways. In the case of bank loans they usually involve more long-term commitments when buying a house, car or anything else where you need a larger amount of money than what payday loans offers. Most institutions that lend money short term and quickly provides smaller sums, up to £300-700 per loan and the purpose of these is that they must be paid back quickly. One should simply not miss a good chance to not having the money in the account. For banks that offer loans of larger amounts and in most cases, offering them with better terms on their loans , which is absolutely necessary when it comes to larger amounts to be lent.
Which direct lender is the best?
The best lender is often your bank that you have earned and good relationship with, or even better if you can borrow money from your parents or a rich count who you're related to . But all is not quite as well and sometimes you find yourself in the situation that you need money quickly and then you can find a variety of direct lenders here with us. A new player in the market is Nanoflex who has an offer where you can borrow up to £1000 and choose a repayment period of your choice - between 15 and 30 days, which means that their loans ended in a second place in our comparison.
What is a payday loan?
The so-called payday loans get in most cases money in your bank account the same day as the loan is approved. When this popular loan form was started the loan applications were sent via text instead of as today, when most loans are handled through the internet. Microcredit was also used as a name as the loans handle smaller amounts of money and fast loan became the name as it is known today, given that the loan is approved or denied quickly and that the money is paid out on the same day.
Some payday loans have conditions where, for example, the lender does look up credit history which may be important to know for some people. Other issues that some less reputable companies that work with payday loans have are lots of hidden fees and some are not clear about interests. But you should be mindful about the interest when it comes to payday loans and micro-loans, and be sure to pay back the loans on time, otherwise it can be costly.
There may be lots of reasons to want a loan without personal information about yourself and often is the reason that you want "clean papers" when you go to the bank the next time. What it boils down to is that some lenders do not make a full credit check on you without judgment using public material available they get at various different companies and make an overall assessment with the help of this. In some cases, firms are doing full credit checks in order to grant your payday loans and it all depends on what your financial history looks like and how the lender considers your ability to pay back your loan.
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