Now more than ever, it is customary to get a loan when you require cash, and this has made several loan agencies available to help you fulfill that need.
Additionally, several loan options are available for a borrower to pick from, which often leaves them confused about which one to go for. There are resources available to guide them. But, most times, contacting a loan agency seems the best choice.
Payday Loans UK is one of the best loan agencies to help you choose the best loan while connecting you to a good creditor. They do that for you when you contact them on their website online.
After filling out your application, they proceed to match your documents on their database and get you short term loans uk direct lender that matches your need. This makes getting a loan easy for you and stress-free as much as possible. The fact that you get the money you need immediately is also an advantage for you.
But, what are the alternatives to these loans, and what else should you be aware of when it concerns these loans?
Applying for loans you can quickly get has become a norm for most people. But, this does not excuse the fact that these loans still have significant drawbacks. So, what alternatives do you have to pick before applying for instant loans?
Get an overdraft
This is the first ideal alternative to taking out a loan when you are broke and need quick money. This option is usually perfect for those who have a current account in their bank.
Getting an overdraft is good because it saves cost in terms of interest which you would usually have paid so much for if borrowing from a lender. While there are instances in which you need to pay a small fee for this overdraft, there are some banks that don’t require the fee, especially when the amount you are getting is small.
Use your credit card.
A credit card is one of the best ways to get money without taking out a loan. But, getting more money usually depends on your credit score, making it impossible for those with bad scores.
Try a guarantor’s loan.
In this type of loan, you need someone who will co-sign with you. Their signature in the agreement means they are ready to pay up your debt if you fail to pay it back. You may have people in your life ready to do that for you.
However, your guarantor must have a good credit rating and a means of earning. This loan is ideal when you want to take out a loan that you need an extended time to pay back.
Ask family and friends.
No doubt that most relationship has fallen out because a borrower refused to pay a friend or family member the money they borrowed. Most of them believe that since they are close, they can get away with it, making it difficult for those with the financial capacity in the family to give out their money as a loan.
However, offering something as collateral or letting them know you are willing to sign an agreement for the loan can influence them to give you the money because they have something to hold on to in case you default.
Try to ask someone close to you for help because it will be signing better than getting a loan from a creditor. This loan is usually cheaper because the interest will be significantly reduced.
Eligibility for this loan
If you still want to get a short-term loan instead of going for the alternative you have, it is easy to do that because the requirements can easily be met.
Before applying, know that your age matters; you must not be below 18 years at the point of application. You must also be a citizen and resident of the UK, and your medium of identification, like your ID card or utility bill, will prove those two.
An active credit card or bank account is necessary because that is where your money will be paid in after your application has been approved and you signed the agreement.
You don’t need to worry about your credit score because it does not affect a creditor’s decision to give you the loan. You can contact Payday Loans UK for a loan. If you work towards improving it, it will be beneficial to you.
The repayment period for this loan
All the loans available have different repayment plans, depending on your loan or the creditor and how you negotiated the terms.
The irregular period of repayment loan can take between 30 days to 12 months. If you are getting a payday loan, for instance, you know that within 30 days, you need to repay it based on the contract.
This varying repayment plan has made installment loans the best quick loans one can get; the payment can be made in installments, and it can span 12 months or more to repay.
Additionally, the installment payment can be made monthly or weekly, depending on your terms with the creditor. But, it doesn’t remove the fact that quick loans have some of the highest rates.
When you decide to get a loan, also be ready to follow through with the repayment plan that was agreed upon because this can further affect your credit rating either positively or negatively because paying back the loan on time increases your credit rating and improves it if you formerly had a bad one, and failing to pay it back further decreases your ratings which makes it difficult to get a traditional loan in future.
There are still many people who would stick to these loans instead of going for the alternatives available, and it is beautiful if that is what you need. But, you need to contact a good loan agency to facilitate this process and free it from stress. So, contact Payday Loans UK.