6 Things to Remember about Payday Loans

When it comes to payday loans there are quite a few different things that you will need to keep in mind. Each year thousands of people all across the UK apply for these loans, and they can be quite helpful for those who are in a tight financial situation. If you have some type of important expense that cannot wait, a payday loan could really be a lifesaver. Before you go ahead and apply for one of these loans though, you will have to first get the facts.

1. They are Short-Term

Payday loans are short-term, which means that you will only have a couple of weeks to pay back the money you borrow. It is important that you only take out as much money as you need, and never more than you think you will be able to pay back on time. These loans are different from many others in the sense that you won’t have as much time to pay back the money you borrow.

2. You can get approved with bad credit

A perfect credit score is definitely not a requirement when it comes to getting a payday loan, so you will need to keep this in mind. Even if you have a less-than-perfect credit history, there is still a good chance that you will be able to get approved. Lots of people get approved for payday loans even though they have somewhat spotty credit histories. Don’t let the current state of your credit stop you from applying.

3. Everything can be done online

It is also important to keep in mind that everything can be done online with a payday loan. You will fill out the application online, which only takes several minutes. If you are approved for the loan, you will be sent a contract via email to sign (type out your full name.) The money will be electronically transferred into your checking account, so you don’t have to physically go anywhere to cash a check.

4. Not everyone pays an insanely high interest rate

While it may be true that payday loans typically come with higher interest rates than other types of loans, not everyone has to pay a ridiculously high rate. Take Emu.co.uk for example. The interest rate that you get for your loan will depend on a number of things, including the lender you choose and what your credit is like.

5. The Lender you choose to borrow from matters

The private lending company that you choose to get a payday loan through will be very important, so you will have to make a point of doing some research before making a final decision. The more time you take to do this research, the better your chances are going to be of getting a great deal on the loan you need. If you want to spend as little as possible with your loan, you will have to use the internet to your advantage. There are lots of different payday loan lenders, and you don’t want to choose just any of them.

6. Approval is never guaranteed

Before you fill out an application for a payday loan, you will need to remember that approval is never guaranteed. You will want to avoid any lenders that claim to approve anyone who applies, because they are most likely not reputable at all. There are many different factors when it comes to whether or not someone gets approved for a payday loan, but many people do. And while it may be true that you might not get the loan you need for whatever reason, it is still very important that you apply.

Final Thoughts

Many people are applying for payday loans each year because of how helpful they can be when it comes to getting cash fast. If you have a crucial car repair, home repair or medical bill that you need to take care of right now but don’t have the money, you should try applying for one of these loans. There are some basic requirements that you will have to meet, such as being a legal citizen of the country and having an active checking account at a bank or credit union.

Your Simple Guide to getting Pre-Approved for an an Auto Loan

Since there are quite a few different things to know when it comes to getting an auto loan, it is important that you take the time to find out what they are. When you actually take the time to learn about these loans, you will be able to increase your chances of getting one without any complications. While it’s true that there are no guarantees when it comes to getting this type of loan, they are fairly easy to get approved for.

Where to get pre-approved for a car loan

You can get an auto loan from any traditional bank or credit union, though there are also a number of private lenders as well. It is important to keep in mind that banks typically charge significantly higher interest rates than credit unions. You should avoid going through a car dealership directly for the loan you need, as your interest rate will most likely end up being much higher. The lender you choose to borrow from will be very important, so you will need to keep that in mind.

Requirements for auto loans

It is important that you are familiar with some of the basic requirements of auto loans if you are interested in getting one yourself. When it comes to credit, the lender you apply with will ultimately determine whether or not your score is adequate. People with poor credit can still get an auto loan, though it may be a bit more difficult. If you haven’t taken a look at your credit score in a while, you will definitely want to do that. This will let you know what to expect when it comes to applying for a loan.

Shopping for a pre-approved loan

Once you have been approved, the lender will give you the total amount that you can spend and the interest rate for which you were approved. The next step you take will depend on whether you plan on buying a brand new or used car. If you already know the exact new car you want to get, you will want to negotiate for the vehicle, and the dealer will contact your lender to arrange payment. Some lenders have a list of approved car dealers, so you will need to verify that the dealership at which you are shopping is on it.

If you still have yet to decide what kind of car you want, a lot of lenders will give you sort of a “blank check” that is not limited to a specific car or dealer. The maximum amount will be the one for which you qualified, so keep that in mind. When you have this check in hand, you will be able to visit numerous dealerships and test drive as many cars as you want before making a final decision.

Why get Pre-Approved?

There are a number of reasons to think about getting pre-approved for a car loan, including the fact that doing so will encourage you stick to a budget. It can be easy to get carried away and want to go outside of your budget when shopping for cars, but it’s never a good idea. Getting pre-approved will also allow you to compare interest rates for the very best overall deal. The last thing you want is to end up with too high of an interest rate on your loan. The negotiation process will also be a lot simpler, so you will have to keep that in mind as well.

Final Thoughts

All in all, getting pre-approved for an auto loan is a great idea for a number of reasons. If you need to buy a new vehicle soon, you will definitely want to consider doing this. Many people decide to get pre approval, and they are very glad for it later on. You will find that getting preapproved for your auto loan will also reduce the risk of spot delivery complications, and it will save you a lot of time and hassle. Those who do not get preapproved for their auto loans usually end up having to waste a lot of time in insurance offices, which is the last thing you want.

What you need to know about being a Guarantor

Guarantor loans can be an excellent option for those who need to borrow a significant amount of money, and they have become a very popular option for a number of reasons. If someone has asked you to be a guarantor for them, you will need to take multiple things into consideration before making a final decision. The more time you take to think about it, the better your chances will be of deciding right. Too many people rush into this kind of decision, and they usually regret it later on.

What is a Guarantor?

A ‘guarantor’ is someone who essentially agrees to assume responsibility for paying back a loan if the primary borrower is unable to for whatever reason. If the borrower gets behind on their payments, the lender has every right to go to the guarantor for the money that is owed. Being a guarantor means assuming quite a bit of risk, so it’s not something that you will want to enter into lightly.

Before you decide to be a guarantor for someone, you should consider:

Why does the person borrowing the money need a guarantor? (do they have a spotty or poor credit history? Are they already in debt to someone else?)
Is the person asking you to be their guarantor truly trustworthy?
Is the loan the person wants to take out something they really need or just want?
Would you actually be willing and able to pay back the loan for them if necessary?
What would you put up as collateral and would you be willing to lose it if you cannot pay back the loan yourself?
Is being a co-borrower safer than being a guarantor?

Many people seem to believe that being a co-borrower on a loan isn’t quite as risky as being a guarantor, but the truth is that the level of risk is just about the same. If you are acting as a co-borrower, you are still at least partially responsible for paying back the loan if the other person cannot.

Limiting your Liability

There are a number of things that you can do to protect yourself as a guarantor, limiting your liability. The guarantee for the loan should put in writing and signed by you as the guarantor. Make sure that this guarantee contract includes the amount of money for which you are liable, the circumstances in which you might have to pay, the total length of your obligation. Any legitimate lender will put all of this in writing, but you will need to keep that in mind when going forward. The last thing you want is to be unwittingly put on the hook for any other financial obligations the primary borrower has.

When you are guaranteeing a loan, the lender is required to give you a copy of essential information about the credit agreement so that you know exactly what your obligations are. The creditor must also inform you within five business days of any change to the credit contract which either increases the borrower’s obligations or shorten the payment period.

Obligations of the lender to you

The lender must make reasonable enquiries before entering the loan to ensure that you’ll be able to comply with the guarantee. You will also find that the lender should inform you of any key features of the guarantee so that you’ll be able to make a completely informed decision. The lender should recommend that you seek professional legal advice before you officially sign off on the guarantee for the loan.

Final Thoughts

There are quite a few different things to keep in mind when it comes to being a guarantor for someone else who wants to borrow money from a lender. The more time you take to consider this, the more likely you will be to make a good, informed decision. You definitely don’t want to rush into this kind of choice, because you might just end up regretting it in a big way. With all of the different angles there are to consider, you will certainly need to make a point of thinking about everything before signing any legal contract.