We’ve all been in financial jams. Unexpected expenses can arise, and sometimes, they are necessities that must be paid for. Luckily, short term loans online can help. When considering short term loans, UK residents should consider the following frequently asked questions to help determine whether or not short term loans are the right choice:
1) How much can I borrow?
This depends. If you haven’t borrowed before from the company to which you are applying, you may have a £400 borrowing limit. If you have previously taken a loan out with the company (and have paid it back in a timely fashion), you may be allowed to borrow up to 1,500 pounds.
Loan companies will consult with credit agencies to make sure that you have decent credit before giving you a loan. You don’t have to have pristine credit in order to receive some money, but you may not get as much if you have a less than perfect spending and payment record.
You are free to apply for as little as £100 or as much as £1,500. However, there are very high interest rates on instant loans, so it is highly advisable to be sure that you will be able to pay it back quickly and that you have secure employment.
2) How fast can I get the loan?
Some loan companies can give you the money you request instantly if you are approved. If you need to have the money on the same day, there is typically a fee of around £15. Otherwise, you can typically get it overnight or within 24 hours at the most.
3) How long do I have to pay the loan back?
This depends on the company you’re working with. Many companies require that you pay your loan back in a maximum of six months, and some may require that you pay it back sooner. Often times, companies such as these have you pay a variable amount per month. At the same time, if you can afford to pay your loan back sooner (in full, or a larger payment than the minimum due), it definitely benefits your credit and your wallet.
4) What does the application entail?
When applying for payday loans, UK residents may find that it is quite easy, and it can all be done online in mere minutes. First, select the loan amount you want. Second, enter your name, date of birth, phone number and email address. Then, you will need to provide information about your employment and debit card number. After, you sign and send the form, and then simply wait for approval.
5) Are there restrictions on what I can use the loan for?
Although it’s not recommended to use short term loans for ongoing financial problems, you can use them to fund virtually anything—medical bills, student expenses, car repairs, etc.
Jessica writes about a wide variety of topics. She especially enjoys writing about finances. You can learn more about Short Term Loans UK at www.pounds2day.co.uk