subject: 5 Tips To Consider When Applying For A Pay Day Loan [print this page] The unexpected happens to all of us at some point in our lives. When this involves money an ideal solution is to take advantage of having a loan on your salary before you are paid.
How it works:
In order to be legible to apply for a pay day loan you will need to have a regular salary or income. The lending company carries out a quick and easy credit check to ensure that you have the means to re-pay without getting yourself into debts which you are unable to make the repayments on.
1. Lending solutions:
Pay day loans are not a long term lending solution, they are designed to help you pay for the unexpected without having to wait until your salary is paid. There has been much media attention about the use of this type of loan, with money experts telling people to be very wary and cautious before making an informed decision to apply for a short term loan, with emphasis being put on your ability to pay back the loan, plus the interest, fully at the end of the month otherwise the APR applied has the possibility to drive people further into debt.
2. Risks:
Any type of loan has a risk associated to it, whether you take a loan from a bank or building society or pay day loan company. Therefore selecting a reputable lending company is highly recommended, these companies are not loan sharks, quite the opposite! They are companies who realise that sometimes people need to be able to have quick cash solutions and emphasise the importance of knowing all the nitty-gritty of what is involved before entering an agreement with them.
3. Protection:
Protecting your personal details is paramount which is another reason why it is recommended to only use reputable lending companies who are registered with the Information Commissioner's Office, which falls within the remit of the Data Protection Act, along with a Consumer Credit License. Looking for these on a lending company's website will give you the peace of mind that you are applying to a creditable company.
4. Terms and conditions:
As with any financial agreement you enter into, whether it is for a loan, hire purchase, insurance etc. it is of up most importance that you read the terms and conditions before you make your final decision. Reputable lending companies will have these available on their website, it is your responsibility to ensure you fully understand the commitment you are making. If you are unsure about any aspect either email a question or pick up the phone and ask!
5. Hidden charges:
Before deciding which pay day loan company to opt for check that there are no hidden costs, such as administration costs which may also be added to the repayment costs. You need to know exactly how much you will be required to pay back at the end of the month. Hidden charges may well take the repayments beyond your financial reach.
by: Richard Waterstone
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