Borrow Money in the UK
How Much Do You Need?
- Same-day funding
- Loans available up to £5,000
- No late, hidden fees
- Bad credits considered
Representative example: Borrowing: £1,200 Interest: 0.34% per day for up to 75 days (124% per annum, variable) Representative: 49.7% APR (variable).
Ways of Borrowing Money
Loans
A quick way to get out of a tight financial situation is to take out a loan. It allows you to borrow money and pay it back within an agreed-upon amount of time, plus interests. Nowadays, online loan marketplaces have made getting loans a hands-down process, allowing you to apply for them from the comfort of your home. With iPaydayLoans, you can access an array of trusted lenders providing various financing options, such as short-term loans, same-day loans, payday loans, quick loans, and bad Credit Loans. There are not so many checklist boxes to tick when it comes to the eligibility criteria for getting these loans. Poor credits aren't a big deal. No jobs also don't matter.
Overdrafts
Bank accounts with arranged overdrafts essentially allow you to keep spending money from your current account, even if your balance falls below £0. Most banks will usually help you to deal with unexpected bills by providing an overdraft with an interest-free buffer. This makes them a suitable solution when you need to borrow money for dealing with small unexpected bills or everyday expenses. However, keep in mind that should you end up exceeding that set amount, then you will be charged high interest, which makes them unsuited for long-term or regular borrowing.
Credit Cards
Credit cards are a practical option for many because it allows you to comfortably spend up to an agreed credit limit and then pay back the money later. And in such instances, you will usually need to make at least a minimum payment each month. The benefit of this method of borrowing money is that some credit cards tend to offer interest-free purchases and reward programs. On the other hand, the downside is that if you choose to only pay the minimum amount due each month, instead of the full amount, then your interest can start to stack up over time.
Do I Qualify to Borrow Money?
You will usually need to meet some basic eligibility requirements, in order for you to stand a better chance of successfully qualifying for a loan. And in order to borrow money in the UK, all credit lenders expect you to be above the age of 18 years, be a UK resident, be employed with a steady income stream, as well as have an active UK bank account and debit card. These are generally the standard eligibility requirements that you will need to fulfil to prevent your application from being rejected.
And while most traditional lenders expect you to have a good credit rating in order to qualify for a loan, most credit lenders are willing to approve your loan application, even if you happen to have a bad credit score. However, this is largely dependent on your ability to prove that you can pay the loan on time, which is why you may also be asked a few personal questions such as the details of your monthly income and expenditure, as they will want to get a deeper understanding of your financial situation. So, as long as everything is in order, you should be able to borrow money online without any problems.
What Information Do I Need to Borrow Money?
Unlike when you borrow money from traditional lenders like banks when borrowing money from credit lenders, the entire application process is often conducted online. As such, most of these lenders will usually have their own rules about how much borrowers need to earn, their age, and the state of their credit record. However, the one consistency that most of these lenders share is that you usually don’t need to send them any excessive financial documentation or proof of identification other than what is necessary, since the process is designed to be quick and easy.
Moreover, most of them don’t require you to show proof of having a stellar credit score to qualify either. In this respect, the basic requirements that you are expected to present will usually be: your bank account details, details of your monthly income and expenditure, proof of your UK address, as well as your place of employment. These details are mainly used for verification purposes to confirm that you can pay the loan, but also to let the lender know where to send the money should you end up being successful in your application.
How Much Money Can I Borrow?
How much you can borrow will often be largely determined by your current financial situation that you are in. As a credit broker, we are in the best position to connect you to credit lenders that generally have a minimum loan limit amount of £100 and a maximum loan limit of £5000. As such, before submitting any loan application, you should take the time to determine the exact amount of money that you need, as this will allow you to determine which type of loan and payment terms you need. Moreover, it is important to keep in mind that when you need to borrow money online, each credit lender will usually have its own limits as to how little or how much money you can borrow.
For instance, if you need a loan to purchase a car, then you will need to find a credit lender that can provide you with a loan that has longer repayment terms, but if you need a small loan for a car repair, then borrowing money from a credit lender with shorter/flexible repayment terms will be ideal. You should also keep in mind that the interest rate of the loan you take will largely depend on the amount of money you borrow. Also, you don’t have to worry about having to deal with any extra fees either.
Factors to Consider in Deciding to Borrow Money
Should you decide to borrow money online, it is important that you take your time to find the right lender that offers reasonable interest rates and flexible payment terms, as failure to do so can affect your financial health considerably. Moreover, take care to always check the total amount you will need to pay back when borrowing money. This is because a shorter repayment period can sometimes be more affordable than choosing a slightly lower (APR) amount.
You should also take a look at any potential penalties for missed or late payments, especially if you are considering taking an interest-free loans UK deal, because if they lend you money and you fail to pay it back within the set period, then you may have to deal with a very high rate of interest as a consequence. Also, in the event that you are using a credit card, always make sure that you pay off at least 10% of your balance each month. This is because only paying the minimum amount will often leave you paying off the debt for an unnecessarily long period of time, which will just cost you more money down the line.
FAQs
How can I borrow money fast?
Finding the right credit lender with the best repayment terms that are best suited to your financial situation is often the most difficult part of borrowing money online. However, you can use our credit broker service to easily fill out your details and we’ll direct you to a list of lenders that will most likely approve your loan application. From there, it’s just a matter of selecting the one best suited to your needs, submitting your full application and once that is approved, you can expect your cash to be sent to your bank within a matter of hours.
What happens if I am approved?
Should you end up being approved for your loan, then the credit lender will list your set schedule of repayments that will dictate how much and when they will be collecting money from your bank account. They will also indicate the rate of interest that you’re being charged, which should come included in your monthly schedule of payments, as well as any additional charges that you will incur should you fail to make a repayment on time or in the event that you decide to pay off the loan in full early. If you are fully satisfied with the terms and conditions they set, and are also confident that you will be able to repay the loan as expected, then you can accept the loan, which will then be deposited into your account almost instantly.
What if I have bad credit?
Traditionally, borrowing money from banks will usually require you to have a good credit rating in order to be approved for a loan. However, the advantage of borrowing from credit lenders is that even if you have a bad credit score, you should be able to qualify for a loan, as long as you can prove that you have a steady income stream and can pay off the loan on time. And in order to determine this, lenders will usually dive deeper into your monthly income and expenditure. In other words, as long as your current financial circumstances indicate that you have the ability to repay, then you can expect your loan request to be granted without any issues.
Is it safe to borrow money online?
Borrowing money online can come with its own risks if you’re not careful, and considering the fact that there are more lenders in the UK than ever before, it can be a minefield trying to figure out the best place to borrow money online. However, keep in mind that all legitimate lenders and credit brokers in the UK are heavily regulated by the Financial Conduct Authority (FCA). This in turn means that the level of scrutiny that UK lenders must go through is more serious than ever before, thereby ensuring customers a high level of protection. In fact, the FCA introduced a general rate cap of 0.8% interest per day, which means that you should never have to pay a loan in excess of that.
Do I have to have a credit check?
Yes, you still have to have a credit check carried out whenever you borrow money. This is because while most credit lenders are not discouraged by a bad credit score, every legitimate lender that has been authorised and registered with the Financial Conduct Authority is obligated to assess your ability to repay the loan that you are requesting. And naturally, this involves conducting a full check of your credit history. In fact, should you come across a broker or lender that suggests a credit check is not necessary in order for you to get a loan, chances are they are not regulated by the proper authorities. This in turn would mean that should anything go wrong with your loan, you will have little to no protection, so be careful.
How quickly can I get the cash?
If you are in urgent need of a loan to cover an unexpected emergency, then you can rest assured that most credit lenders will generally provide you with an instant decision. If your loan application is accepted, depending on the lender, the processing speed of your bank, as well as whether you applied for the loan on a weekend or weekday, you can usually expect to receive the loan money within hours, if not minutes after your application has been approved.
Compare Your Borrowing Options Now!
Securing a loan can often be very difficult nowadays, especially if you have a poor credit score and are in urgent need to borrow a loan. However, with PaydayLoansUK we’ve got you covered, as we can point you in the right direction by helping you find the right lender, as well as compare all the loan options available to you today!
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