7 Things to Know Before Applying for Instant Payday Loans

by Lauren Strom Content Writer

Iinstant payday loans for people on benefits

Payday loans are popular as emergency loans. For, they are available instantly to borrowers irrespective of their credit rating and past history. In fact a majority of online borrowers apply for payday loans as instant cash gap loans.

However this convenience of instant cash loans with no credit checks come at additional cost. These are one of the most expensive loans available to borrowers. The sheer convenience of availing timely loans make payday loans one of the most sought after funding solutions.

It is prudent to steer clear your doubts before you apply for payday loans. Here is a quick rundown on 7 key factors to know before applying for cash advance loans:

1. Instant cash loan
These loans are available as instant loans for full time employed irrespective of their credit score and past history. However if you need payday loans for people on benefits, you must check this out with the loan broker. For, not many deals are available if you do not have a fixed income source. You should always read fine prints and know what to expect from the deal.

2. Very short term loan
Payday loans are ideal for very short term funding. Owing to small duration the burden of interest is generally bearable. If you seek loans for longer duration you must look for instalment loans.

3. Fixed deadline
Payday loans are meant to be repaid on a fixed deadline, i.e., your next payday. So, this borrowing channel should be used as a fixed gap fill arrangement till your next salary cheque only.

4. Lump sum repayment
The repayments are made as a fixed lump sum amount which involves principal, interest rate and processing fee. You must be financially prepared to repay the whole amount on the deadline.

5. Affordability of loan
It is important to assess your credit situation and clearly find out if you could afford the payday loan or not. You can also use free professional loan advice to gauge your financial situation. Borrowing according to your repayment capacity helps you better manage your finances.

6. Rollover
Some of the lenders allow borrowers to rollover payday loans with some late payment charges. You must check this clause before signing the deal. However owing to high cost of payday loans it is not recommended to opt for rolling over these loans.

7. Repayment plan
The best way to ensure the successful repayment is to make a repayment plan in advance. You can adopt certain lifestyle changes and save enough effortlessly every day. For example: Merely cutting down your monthly alcohol consumption, cigarettes, coffee or dining out can help you save funds for repayment.

Payday loans are very short loans used for small amount and thus it is easier to manage and repay these loans. A strong will power and continuous efforts can go a long way in helping you repay your loan on time.

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About Lauren Strom Advanced   Content Writer

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Joined APSense since, December 8th, 2015, From London, United Kingdom.

Created on Mar 31st 2018 02:51. Viewed 1,055 times.


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