Everyone cannot afford a savings or maybe they have recently invested in an asset and have less cash for emergencies. Thus, to overcome the sudden financial crunch a person can take a short-term loan which is also called a payday loan. This loan is given easily and instantly unlike banks and other financial institutions that keep their customer waiting in queue for hours and then reject their loan application for certain incomplete or incorrect documents and information.
The application process for short term loans is pretty simple. You need to contact your lender, which is generally an online service. They will send you an application form and request for certain documents. These documents will be driving license, employers name bank details, proof of UK resident, etc.
Once all documents are sent through email along with the application form they start verifying and scrutinizing it. It may take 2-3 days and once the application is approved, the funds are transferred online to your account within a few days. Your repayment starts from the first day when you get your paycheck. The interest may be high, but the tenure is short so you get rid of the loan faster.
Loan Pig is a UK based payday loans provider. They provide a quick loan with a high acceptance of interest rates. They are regulated by the FCA, therefore all the terms and conditions are clear in their online site loanpig.co.uk. They are the fastest money provider as the loan is transferred within 24 hours into the borrower’s account if all the documents are valid.
When a person applies for a short term loan, it is when they don’t have savings or a credit card to cover up expenses. Saving money is in your hands, but credit cards depend on credit scores. So majorly it is those who have bad credit scores generally look for short-term loans because they can’t get a plastic card. Various lenders reject applications due to bad credit but also welcome such customers as lenders understand their situation.
A special bad credit payday loan has been designed which is a high-cost short-term loan. It is made for those customers who have a poor credit history. It is a high-cost loan which is up to 12 months. The interest rate can vary from lender to lender, but the other charges are abided by FCA rules. However, remember that the interest in this special loan is normally higher than ordinary short term loans.
While taking a bad credit loan, you should know a few things –
- Bad credit loans are for those who have poor credit history due to missing loan repayments or other credit commitments like credit card payments.
- You can always improve your credit history by paying timely your high-cost short term loan.
- You should always take a loan that you can manage to pay because your loan installment will also include an interest rate which is higher than normal loans.
- Even if your credit history is poor, lenders will still look into your earnings.
- For a bad credit loan, you don’t need a guarantor. If you take a guarantor loan, then the credit history of the guarantor is taken into account.
There is hope for everyone in this world. Instead of ruining your credit score and getting into late payments and further financial burdens, it is wise to save money by cutting down your unnecessary expenses.