There are many types of loans that a person can apply for. There are conventional personal loans, which you can apply for through a bank. Given the fact that the credit industry is still ailing from the crash of 2008, most banks aren’t very keen on lending out money to first time applicants. Unless you have a decent credit score and a reliable credit history, your application is likely to be rejected. Personal loans are also of a slightly larger denomination. You may need a personal loan to buy a car, or to make an investment. You may even need a personal loan to pay off another debt.
Another type of loan is a mortgage. A mortgage is basically a loan used in order to buy real estate. The key difference between a personal loan and a mortgage is the fact that the mortgage is secured by the property of the borrower. For instance, if you apply for a mortgage on your house, the bank will give you a hefty amount of cash. In case you fail to make the payments as was originally mentioned in the clauses of the loan agreement, the bank will assume ownership of the house. A mortgage is usually of a pretty large amount. In many cases, the amount is equal to the valuation of the property that is put up as security.
Other types of loans include student loans, appliance loans, auto loans, etc. However, even though each of these types of loans is very different and usually designed for a different purpose, they all share a common similarity: they are all granted mostly by banks after you go through a pretty lengthy application procedure. Unless you have a good credit score and history, you will be unlikely to secure a loan. If you hail from a low to mid- income family and only need a small amount of money to bridge the fiscal gap between your paydays, applying for a lengthy personal loan is a bad idea. Instead, you should look for a payday loan.
Payday Loans- What You Need to Know
Payday loans are different as compared to conventional loans. The borrower does not need to provide any security for the loan. Moreover, perhaps the most attractive factor about taking a payday loan is the fact that they are granted very easily. It doesn’t take more than a day or two for your application to get processed. If you apply via a bank, the whole application process can take several weeks.
Nowadays, many people use the internet to fulfil their needs. It doesn’t matter if you need to buy high- tech gadgetry or your monthly groceries; you can make the purchase online. Many payday companies now also offer the option of applying for payday loans online. This simplifies the whole process exponentially.
Payday loans are of pretty short term denominations. In many companies, the upper ceiling is set at 1,000 GBP. These loans are usually repayable on the very next payday. For instance, if your payday falls on the 10th of next month, you will have to send in a post- dated cheque for the 10th of next month before the loan can be granted. The whole process is pretty straightforward and completely hassle- free.
How to Send in an Application Online?
Applying for payday loans online is perhaps the best way to send in your application. Rather than taking the pains of going out to the company, you can send in an application from the comforts of your own home. First of all, you must find a decent company that offers a good interest rate. Since payday loans are so convenient, companies also charge a higher interest rate. Before sending in your application, the first step is to find a company that offers the lowest interest rate.
Once you have found the company of your choice, visit their website and open the application form. In many cases, you will be required to fill in the usual bit of information: your name, address, work, etc. Online application forms aren’t very lengthy, and you can fill them out at your own convenience.
When filling out the form, make sure that all the details you provide are accurate. The payday company will verify everything that you mention on the form, so go through it again before you press “Submit”. In many cases, you will also be required to provide the relevant documentation and pay a small fee (usually 1-5 GBP) before the application can be sent. Your documents include proof of employment, proof of residence and bank account details. Once you have uploaded all the relevant details and submitted your application, you need to wait. In some cases, the whole process can be completed within a single business day.
What Happens Next?
Once your application has been approved, a representative from the company will get in touch with you. They will confirm your identity and finally, the amount will be credited to your bank account. Keep in mind that you will be required to send them a post- dated cheque for the return of the money, or follow the wire transfer method as provided by the company. In common situations, payday companies have standing deals with banks. Once you provide authorization, the bank will automatically transfer the loan amount to the payday company’s account on the day you receive your payment.
Applying for payday loans online is an excellent way to make life easy for yourself. If you need a payday loan to make ends meet by the end of the month, you should definitely use the internet to your advantage. You can also go through reviews of the best payday companies in the United Kingdom, as well as read the accounts written by others, detailing their experiences. Many payday companies are now working towards developing their own mobile apps, which will further make it easy for their customers to apply for payday loans online.