Payday Lenders

What are Payday Lenders?

If you’ve ever found yourself in an emergency, where you need to access cash as quickly as possible, then you’ll understand the appeal of payday loan companies.

Unlike standard banks, credit unions and other traditional lenders, payday loan providers can give you access to a small amount of cash quickly. They generally offer loans that can range from £50 to £3,000, depending on the company that you choose to work with. What’s more, fast cash lenders make applying for the money that you need as easy as possible.

There are fewer hoops to jump through with a payday loan than if you were applying for a standard personal loan. Additionally, you can often ask for the money that you need online and receive a payment to your bank account within the same day.

If you’re interested in taking out a short-term loan that you can pay back when you get your next payday, the first thing you need to do is learn everything you can about the industry.

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What do They Do?

They are typically companies specifically committed to offering short-term cash advances to people in need of money fast. Unlike traditional banks and building societies, these providers won’t always have a brick-and-mortar office that you can visit. Usually, they’ll run their companies entirely online, which helps to save on overhead costs.

There are many different types of lender on the market today. Some offer loans that you’ll need to pay back in full on the day of your next income payment. Other providers can give you loans that you can pay off over a series of installments.

If you’re looking for the cheapest payday loans, then you’ll need to stick with direct lenders. Direct lenders are the companies that handle quick loans without the intervention of a third-party broker. Because they’re not paying for brokers to send them clients, direct lenders can often charge fewer fees. They’re also much easier to work with. If you’re over the age of eighteen and have a regular source of income, you may be able to access the money you need in a matter of minutes.

How to Choose Between Them

Payday loans can be an excellent way to deal with emergencies. If you have nowhere to turn when you have an expensive vet bill to pay, or your car breaks down, payday lenders are there to help. They can give you money fast, and the eligibility requirements aren’t as strict as they are with typical lenders. The popularity of these cash advance options means that there are now many different lenders you can choose from on the market.

Finding the right lender means knowing how to compare your options. While most people know that they should compare their loans to get the best deal, by looking at fees and interest rates, they forget to examine the payday lenders too. Remember, every provider has different features and benefits to offer. There are also lenders that offer varying amounts that you can borrow, and unique term times. A few things you’ll need to ask yourself when you’re looking for a loan include:

• Can they offer the right amount of money? Can your payday lender give you all the cash you need to pay for your emergency expense? Make sure that they give you the repayment options that you’re looking for too – such as instalment payments instead of a one-off bulk payment.
• How difficult are they to work with? Ensure that the company you look at can give you a quick and easy application process, followed by fast approval. If you need money to pay for an emergency fast, it’s a good idea to look for someone who can deliver cash quickly too.
• What kind of reputation do they have? Does the lender have other testimonials and reviews from customers that you can use to gauge the kind of service they offer? Do they have trust symbols on their website to demonstrate their commitment to security?
• How much will the loan cost? How much will your loan firm charge you in terms of interest rates and extra fees? Is there are a transaction fee that you’ll need to consider on top of other expenses?
• Is the lender licensed with the FCA? Make sure that your lender is licensed with the Financial Conduct Authority. You can often find more information about a lender’s credibility on their “About Us” page.

How Does Happy Penguin Compare?

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Up to £5,000

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Yes, immediate.

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Poor Credit Possible?

Yes. Bad credit too.

All considered.

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Within the hour!

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Flexible Repayment Dates?

Flexible terms.

Quick and easy.

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How Do They Give You Loans?

Payday lenders offer payday loans. While there are some lenders that will provide access to other kinds of cash advance, their main focus will be on payday products that can be paid back within a short period of time. Applying for a loan is usually quite simple. You provide your banking details, some basic ID, and answer a few questions, and you’re ready to go.

Most lenders will give you a decision about your cash advance within 24 hours. However, it’s worth noting that the amount of money and the terms that you can get from each lender will differ. What’s more, just because you see a representative APR on a lender’s website doesn’t mean that your APR will be the same. A representative interest rate is only applied to 51% of loans.

One of the most appealing things about this type of lender is that they don’t rely too heavily on your credit rating when deciding whether to give you a loan. A good credit score is great, and often gives you a better deal on your cash advance. However, if you don’t have the best history, your lender will also be looking at your affordability levels too.

If you have a less than perfect credit history, but you can prove that you’re able to afford the loan repayments that you’re agreeing to with a regular source of income, you may still be approved. If you’re concerned about how successful your application will be, consider applying with bad credit lenders instead.

How Long Will It Take to Get a Payday Loan?

There are many different parts of the payday loan experience that can differ depending on the lender or broker that you choose. For instance, the size of the cash advance and how quick you can get the cash that you can access will be dependent on your lender. Some companies are only willing to offer anything up to £500. Other organisations will offer a few thousand pounds to those who prove that they can pay the money back.

Another common factor that differs between lending companies is how quickly you’ll be able to access your loan. While most providers will aim to have your cash with you as quickly as possible, some payday lenders can deliver the money you want to borrow within as little as one hour. Of course, there are things that can affect the speed of a transfer that may be outside of the lender’s control.

For instance, if you apply outside of business hours, then you should expect your application to take a little longer. There’s also a risk that there may be a problem at your bank or the bank owned by the lender, that holds your payment up.

Are They Safe?

Thanks to the regulation of the Financial Conduct Authority, short term lenders today are just as safe as any other loan provider. The FCA has placed numerous caps and precautions in place to make sure that people are less likely to face problems with payday providers. For instance, there’s a limit on how much interest you’ll need to pay on your loan, and lenders are capped on the late fees that they can charge too.

What’s more, the FCA also requires all lenders to conduct an affordability check when they’re deciding whether to give someone a loan. This ensures that people who can’t reasonably afford to take out a cash advance won’t be given the option to do so.
Of course, just because payday lenders are safe, doesn’t mean they’re all alike. Some will offer a better borrowing experience than others. Reading reviews online will help you to figure out what kind of provider is best for you. Additionally, while you’re comparing your lender reputations, you can also look at things like how much your loan will cost you in terms of interest and fees.

One piece of good news is that borrowing from payday lenders shouldn’t negatively affect your credit history or rating. Although you will need to agree to a credit check, most payday loan providers will still offer you a cash advance regardless of whether your credit is poor. You can also apply directly with companies who offer solutions specifically to people with bad credit. What’s more, when you pay your loan off on time, you’ll show the credit authorities that you can be trusted to manage your money carefully.

Do You Need a Payday Lender?

Short term loans aren’t the right option for everyone, but they are an excellent way to access money fast, for a short period. If you want to borrow money quickly, and pay it back as soon as possible, a payday lender can get the amount you need into your bank within a matter of hours. Just remember to compare your options first, so you can be sure that you’re getting the right deal.

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