Payday loans can also be referred to as cash advance loans that are most useful for people who need emergency cash assistance. This loan system offers a borrower a short term loan with quite high-interest rates. Payday loans provide monetary support to people based on their earnings or profile submitted when applying for it. This loan is offered to a borrower for a specified period, usually 30 to 45 days. If the borrower fails to repay the loan at the due date stated, his or her wages can be seized to repay the money owed. Another thing that could affect or influence the amount you will be borrowed in a payday loan system is your credit score and credit history.
If you want a payday loan Somerset UK, you should be prepared to repay the money with high interest. Most times, direct lenders add 500% APR percentage annually. Payday loans are not hard to obtain as you can get them from online loaning companies and traditional banks available.
The interest rate for payday loans is quite high, although there are several laws passed to reduce it. Payday loans can be received immediately after submitting the necessary documents such as ID, credit profiles, banking details, and others. However, a suitable Somerset payday loan company or lender provides the loan before 24 hours.
Types of payday loans
There are three main types of payday loans:
- One hour payday loans: This is a type of payday loan that makes it very easy and quick for you to borrow. It only involves supplying the required documents to the online loan platform, which will provide the loan in just an hour. This type of loan is quick, as you won't need to wait long for your request to pass through a series of approval tables before being granted. Also, this type of payday loan is more convenient as you don't need to move an inch in your room before getting an approved loan. Furthermore, the process for a one-hour payday loan is simple, not strenuous, and more secure.
- Instant online payday loans: This is another type of payday loan which is primarily meant for people with monetary emergencies. This loan also does not take much time before being granted. The only setback about it is the high-interest rates it bears.
- Cash advance: Cash payday advance loans are made to keep you financially balanced until the repayment date. Cash advance loans do not necessarily warrant you to bring back the money to the lender or loan company at the repayment date. This type of loan usually carries high-interest rates than others.
How to get a pay day loan in Somerset, UK ?
Getting a payday loan is not arduous. The pay day loan lender needs documents such as current income proof, identification means, current credit score, and credit history. Another requirement Somerset payday loan lenders watch your age. You have to be above 18 before you are granted a payday loan.
After the provision of the required, you will then agree on the date you will repay the loan. The period for payday loans varies as some uses two weeks, 30 days, or 45 days. The payday loan system usually does not require any collateral, but if you default, your credit scores might be at stake. Your future loans will carry higher interest rates.
If you are not able to get the repay amount at the stipulated time, no problem. You can negotiate with your payday lender to renew your repayment plan, which might bear additional interests. Cash advance loans are also available online. If you choose to borrow the loan online, the requirements are not too different from that of local companies. Moreover, the process of obtaining cash loans online is more comfortable and quick.
The requirements for pay day loans in Somerset, UK
These are the primary requirements you should consider when applying for a payday loan:
- Proof of age: You just need to provide evidence that you are over 18 before you get a payday loan.
- Proof of income: This is acutely necessary when requesting for a payday loan. It is the level of your income that will give the payday lender or company a clue on how much to borrow you and how much interest they will place on the loan.
- Means of identification: In most cases, you will have to be the citizen of the country from which you are requesting a payday loan.
- Provision of a valid address: A verifiable and valid address will be needed to obtain a payday loan. If the address you provided in the document is invalid, the loaning process might be canceled.
- Provision of a valid bank account: This is another essential requirement to get a payday loan, especially from online payday loan companies. You should have an active savings bank account before you decide to request a cash advance loan.
Payday loans in Somerset online
Payday loans online are more convenient, secure, and straightforward. To obtain a payday loan, you just have to surf online for a remarkable and affordable interest rate loan platform. You can do this on your mobile device or PC. Once you have discovered a suitable payday loan platform online, you will need to read the terms and conditions attached to the payday loans they offer. Online payday loans Somerset, UK also warrant documents like proof of income, identification card, proof of age, and so on before you get the loan.
Payday advance loans
Getting a payday loan online is faster than using a traditional retail loan company. You don't have to wait till the morning when the bank will open before you complete your loan transaction. This also makes it more convenient, too. However, when you are using an online payday loan platform, you should endeavor to read and understand the terms and conditions so you won't be in debt at the end of the day.
Another thing, when dealing with an online payday company, you need to ensure that the company is a remarkable and prominent one. This is just because many scam loan platforms are available nowadays.
Safe online payday loans for bad credit
If you are confused about payday loans online in Somerset, UK, or you are searching for an online loan company that will offer you the best payday loans, here is a list of the best online payday loan companies.
Payday loans for bad credit in Somerset, UK
A bad credit payday loan system refers to a situation whereby a borrower with low credit history is borrowed their requested loan with higher interest. This payday loan system helps people with financial shortcomings to get balanced for a short period when they repay. Besides, a guarantor is not necessarily needed before you can get a loan online.
Reasons to choose Somerset online payday loan
Some of the multitudinous advantages of payday loans will be listed below:
- It is more effective: This is one of the significant benefits of payday loans. Payday loans are easy to get compared to other loaning systems. Also, it doesn't necessarily require a guarantor, unlike other loan systems. Usually, payday loans are provided for borrowers within 24 hours, which is fast. Besides, to get loans from other traditional banks, you might have to provide your social security number and a guarantor. This might lead to the delay of the loan you requested for. In Payday loans, you are only required to provide four documents: proof of income, age declaration, Identification card, and a valid bank account.
- A payday loan doesn't warrant collateral: Other traditional bank loan system will require you to provide a guarantor or your house for collateral, sometimes your car. This is not so in payday loans as you don't need a guarantor before you borrow the money you need. If in a case whereby you default, your bank account might be charged straight away, or you might be taken to court.
Demerits of payday advance online
Some of the disadvantages of payday loans will be listed below:
- They are costly: To start with, payday loans bear higher interest rates, which makes it a bit expensive. The average interest rate of payday loans globally is 400%. This simply indicates that you should be ready for a higher interest rate if a pay day loan is your choice.
- A cycle of debts: Pay day loans are sometimes escalating to a cycle of debts because it has high possibilities of drawing the borrower into debt quickly. In a pay day loan, the lender does not check whether you will be able to repay the loan or not, which is likely to cause you debt. To circumvent this disadvantage, just make sure you get the money ready before the stipulated time.
Payday loan late payment
Many people ask the question, 'what will happen if I fail to pay on time?' In the payday loan system, if you don't repay the loan you borrowed by the stipulated time, the money might be withdrawn automatically from your bank account. Another way is to use your wages as the repayment fund, this will be done till the money you borrowed, and the interest on it is balanced.
Alternatives to payday loan online Somerset
These are other ways you can consider if you are not eligible for a payday loan.
- You can borrow from family or friends: If you can't meet up with the requirements of pay day loans, you can go back to request a loan from your family members or friends.
- You can request an advance payment from the employer: This is another way for you to get the money you require quickly if you can't get a payday loan in Somerset UK.
- You can borrow from credit unions: Borrowing from credit unions is more affordable than payday loans. They bear low APR percentages as well. You should try them out too if you didn't get a pay day loan.