Life happens, so people must prepare for the unexpected. This is often easier said than done, however. People budget their money, only to have an emergency crop up. This could be an illness, an unexpected car repair, a broken household appliance down or any number of things. Sadly, many individuals don’t have the funds to cover the unexpected expense and wonder how they can resolve the problem in the shortest time possible without bringing about a whole new set of financial difficulties. For many, an express payday loan from MoneyBoat is the solution they have been searching for when situations such as these arise.
Payday express loans, often referred to simply as payday loans, offer a way to fund a small and unexpected expense. They help to deal with the emergency in a small period of time. It may be better to borrow money on a higher interest for the short term to guarantee a person isn’ t negatively affecting their credit months or years to come.
The Benefits Of Express Payday Loans
Express payday loans are very easy to obtain. They offer a convenient way to get funds when money unexpectedly runs short. Banks and other traditional lenders tend to have a long application process, thus the individual may find they have already received a pay cheque or two since they applied. This doesn’t help during an emergency situation. Express payday loans ensure a person gets the funds they need rapidly.
Although prospective borrowers do need to submit to a credit check and affordability assessment, the standards tend to be less restrictive when it comes to this type of loan. Payday lenders understand people run into money difficulties, yet may still need help during a crisis. They work with these individuals to provide the funds in a timely manner.
Lenders may require securing a loan before providing the finds. With express payday loans, however, this is not an issue as they specifically offer unsecured loans. Be aware that the interest rate is higher, due to the added risk the lender is taking on. Nevertheless when the money is only needed for the short term, many individuals find the interest charged is less than the late charges could be. Add this up with the disconnection fees and more hidden costs that they may be hit with for not paying a bill on time.
What To Consider When Requesting An Express Payday Loan?
First and foremost, consumers need to borrow only those funds they absolutely need. Due to the high interest rate associated with this type of loan and its short-term nature, its best to limit the amount obtained. Doing so helps to prevent additional financial difficulties from arising.
How soon do you need the money needed? If time isn’t of the essence, it’s best to look at other loan options. Obtaining the money needed through a bank takes more time, yet the accompanying interest rate tends to be lower. This is especially true when a consumer chooses a secured loan, as opposed to an unsecured one. Express payday loans are unsecured, which helps to explain why the interest rate is higher.
Research the lender to ensure they are both fair and responsible. Check with the Financial Conduct Authority to ensure the lender has obtained permission to offer consumer credit. Look for those companies with a full FCA authorisation, although an interim permission is also acceptable.
A reputable company doesn’t simply hand money over to a consumer. Find a company that carries out comprehensive credit checks and conducts affordability tests before approving a loan application. In addition, the lender should make use of a tool, such as a bespoke scorecard, to determine whether the consumer is getting in over his or her head. Lenders are in business to make money, but this doesn’t mean they should lend irresponsibly. Any lender who makes little effort to research their customers before providing funds, should be avoided.
The Express Payday Loan Process
Express payday loans can be obtained in a very short time frame, making them the perfect option for many individuals. Thanks to technology, applications may be made online. This allows for a quick decision, which is of great importance to consumers. Even if the answer is no, the consumer knows this and can begin looking at other solutions.
The application is first examined for any missing or incomplete information, as the errors need to be corrected before the process can move forward. If there are no errors, various information providers are contacted to learn more about the borrower’s financial history. These providers have been certified by the government to supply this type of information, allowing consumers to feel confident sharing sensitive data.
As per the declaration on the application, borrowers need to be completely truthful on the form. They must provide the whole truth, even if it shows them in a negative light. Inputting all correct into a mathematical algorithm then happens automatically. This algorithm is used to determine whether the borrower can repay the loan while meeting their other financial obligations.
Criticism Seen With Express Payday Loans
People often criticise this type of loan. They believe it causes more financial difficulties than it solves, yet this isn’t the case. Individuals may do their best to cover all of their expenses and try to save money, only to find they have a setback. If not handled in a timely manner, this setback can be devastating and this is where payday express loans come in. These loans aren’t meant to be used as a long term financial solution, thus consumers need to borrow wisely. Individuals who do so find they can get back on track financially in a short period of time.
Moving Forward After Obtaining An Express Payday Loan
Individuals need to plan for the future to ensure they don’t encounter financial difficulties in the future. Set aside a small amount each paycheque to deal with emergencies. Make a budget and adhere to the budget. This may be done by using envelopes to hold funds for different budget categories or it may be accomplished with a variety of other methods. Each consumer needs to find the right solution for their unique needs.
When a person has an emergency fund in place, unexpected financial situations become less of a concern. The individual can deal with the situation and move forward with life. Obviously, when a situation such as this does arise, the emergency fund will need to be rebuilt again. However, doing so becomes easier every time, as the basic steps are already in place. In addition, even if one needed to borrow more in the future, the funds that have been saved allow for less needing to be obtained. This helps to save a consumer on interest fees.
Uses For Express Payday Loans
Time tends to be a factor in many financial crises. For example, a person who is ill cannot wait until their next payday to receive medical attention, and the health service doesn’t cover all expenses. The funds obtained through an express payday lender cover this shortfall. They allow the person to recover from the illness without fear of becoming sicker and possibly incurring more medical expenses while missing additional time from work.
How about using the funds to fix a broken down vehicle? This could be critical when using the vehicle to get to and from work to earn a living and pay their bills. While other options may be available, such as public transportation, this isn’t always the case. If a car is essential, payday loans can help to keep it on the road.
Household appliances have become so commonplace the majority of individuals cannot imagine life without them. A refrigerator that suddenly stops working can be very costly. Not only will you run the risk of losing all food kept in the fridge, he or she will likely need to eat the majority of their meals at a restaurant until it is fixed. Obtaining an express payday loan makes sense in this situation, as the person will again likely spend less in interest than he or she would in eating out.
These are only a few of the many situations where a payday loan becomes of great help. The key is to borrow responsibly and only those funds that are absolutely needed. When consumers do so, they find this option to be of great benefit to them if a financial emergency arises.
Don’t let a financial emergency completely alter your way of life. There is no way to prepare for every eventuality. Although it is wise to have an emergency fund in place, there are times where multiple things go wrong simultaneously or in close proximity. This can leave the fund dry and an individual scrambling to come up with cash.
Express payday loans are of great help in this situation, as they enable the borrower to deal with the emergency quickly and get back on track in a short period of time. This is one option every consumer should consider when they run short on funds and have a true monetary crisis they are facing. It truly is of great help in this situation.