Is it Hard to Apply for a Payday Loan?

There are many loans available to us and many differences between them. We all have different reasons for picking different types of loan but for some people it is how hard it is to apply for the loan that can be one of the more important factors. Some loans are better known that others and because payday loans are quite new and not that many people use them it means that you may not be familiar with how they work and whether they might be easy to apply for.

How the application process works

Often when you apply for a loan it can be a very laborious process. There could be lots of forms to fill out, lots of paperwork to provide and then a long wait to see whether you are approved. Then you might have to go through other checks as well. With a payday loan, things are very simple. You can apply online or over the telephone and so you will not need to fill out a form. You will not be asked that many questions and the whole process should be very quick. This can make the whole thing a lot easier compared with some other types of loans.

Availability

Applying for a payday loan is a lot easier because they are readily available. Sometimes it is quite hard to apply for a particular type of loan because they are quite scarce. Luckily, payday loans are relatively easy to come by. If you look online you will find a lot of lenders that are available to you. You may even find it a little daunting because there are so many. It could be wise to do some research to find out about the different lenders so that it is easier to pick between them. Asking friends family and colleagues could be handy, online reviews may also help although they could be biased and reading the lenders website could be helpful. You may have heard of a payday lender and be keen to try them, but do make sure that they are the best lender for you as there could be others that are more suitable even if you have not heard of them. You might like to compare them on price and also consider their reputation and customer service to decide whether you think that they will offer you good value for money.

Paperwork

You will probably have to supply a little bit of information but it should not be too difficult to do so. You will need to give details of your checking account so that a direct debit can be set up to arrange repayment of the loan when you next get paid. You may also have to provide evidence of when you pay day is or to show that you do get paid. It may also be necessary to provide some proof of address. This should not be too difficult and could be a lot easier than the information needed by some other lenders.

Credit check

Most loans will require a credit check. This will take time and slow down the application process and will also mean that some people will be turned down for a loan. This can be disappointing and sometimes even distressing, especially if you really need the money and feel that you have little chance of getting it. However, with a payday loan there is no credit check. This is because payday loans were designed to help those people that could not get a loan elsewhere due to having a poor credit score. Therefore, anyone can apply for a loan regardless of their credit score.

Time taken

A payday loan application can be processed very quickly. As long as you provide all of the information required, it may just take a few hours before the money that you need is in your bank account. This means that you will have your money much more quickly than you would with other loans. The lenders often have staff working 24 hours a day and even on weekends, which means that whenever you apply, you will get a very quick service. This may depend on the lender though and so it is worth checking before you apply in order to avoid disappointment.

So, it is not only very easy to apply for a payday loan, the process is simple too and it will not take very much time. You could have the money that you need very quickly and most people will be accepted for the loan so this can also take the stress out of applying. Obviously, it is wise to compare different lenders before you apply, both to see which might be the easiest but also to see how the costs compare and which might offer you the best value for money. Comparing payday lenders is important but also comparing different types of loans is useful to so that you can be sure that you are picking the right one for you.

Will a Payday Loan be the Best Way to get Money in an Emergency?

If you need money in an emergency situation, then it is likely that you will be looking at borrowing options. If you have no savings, then you will need to borrow some money. You might have a selection of borrowing options available to you. However, you will need to consider a selection of factors to make sure that you pick the most suitable.

  • Speed to organise – it can take a long time to organise some types of loans. If you already have a credit card or overdraft with some available credit to spend then these could be the quickest way to get the money. However, if you do not have this option, then it is likely that a payday loan will be the next quickest option. These loans can be organised with a few hours and so you really can get the money quickly enough to deal with an emergency. Some payday lenders will be open through the night and at weekends too so if you need the money at unsociable hours, you will still be able to get it.
  • Credit rating– if you have a poor credit score then you may feel that you will not be able to borrow any money. However, a payday loan is available to those with a poor credit record and so you will not have to worry. The loans were actually designed to help those that could not borrow elsewhere because of having a low credit score. They do not do a credit check and so you do not have to worry at all.
  • Ease of application – Some loans are very complicated to apply for. You have to complete a lot of paperwork and answer lots of questions. A payday loan is not like this. There is a very simple application process which means that if forms put you off, you will not have to worry. It might even be possible to apply online or over the telephone so you may not need to write anything at all.
  • Repayment – many loans can take a long time to repay and it can be rather tedious to keep making those monthly payments. Trying to budget for a long time in order to make sure that you keep making those monthly repayments can be hard work. With a payday loan, there is normally just one repayment. You make it on the next day that you get paid. This means that there should be enough money available to pay it and you will not have to budget for very long before it will be paid off. It can be a relief to know that the loan will disappear very quickly and that you will not have to think about it for very long.
  • Cost – it is worth comparing the costs of loans when you decide which one to take out. A payday loan is often considered to be expensive and so it could put people off. It is important to understand though that some of the extra costs are because you can arrange it quickly so they need lots of staff. They also take a risk as they do not do a credit check. They will also have admin fees, like all loan which you have repay at once, whereas with loans that are repaid over a longer time, these costs are spread over more time and so you notice them less. You do need to consider though, whether you think that the loan will give you good value for money.
  • Lender – it is important to compare lenders. With payday loans you will find that there are lots of lenders available. You may have not heard of many of them though and so it is important to find out a bit more about them. You should be able to find out information on their website and perhaps online as well. If you have time it can be worth asking people you know as well as they may have used some payday lenders and may be able to make some recommendations.

Whether a payday loan will be the most suitable option for you will depend on your personal situation. It is good to try to spend some time researching your options if you can. If you need money quickly, you might not be able to spend long, but it is wise to do some research if you can as you will then be able to make sure that you are choosing the best option for you and that you are getting the best value for money. It might seem like a hassle but it will be worth it if it means that you get the money quickly and feel happy with how much you have paid for the loan and with the lender that you have picked.