Individuals often find they need cash quickly. Where should they to turn if they have bad credit or no credit? Many conventional lenders refuse to work with individuals who have less than good credit, and often they turn away consumers with good credit as well. Lending standards have become much tighter in the past few years, nevertheless more people are struggling now, than ever before. Thankfully, with the help of payday loans, borrowers have an option. This option allows borrowers to get the funds they need in a timely manner without the hassle. MoneyBoat offers direct payday loans that better meets the needs of UK consumers today.
What are Payday Loans?
Payday loans fill a gap that has long been missing in the financial market. This type of loan helps those who have bad credit or no credit obtain the funds they need. This could be to cover an emergency or any other immediate need, even when traditional lenders deny their application. The terms of payday loans differs from a conventional bank or long term lender. The amount offered is usually lower than available with other financial products, and the loan must be repaid in a shorter period of time. They’re great for when an emergency arises, but should never be considered a means to solving long term financial issues. This is simply because they do come with a higher interest rate.
MoneyBoat features a transparent interest rate, allowing individuals to know exactly how much they will be required to pay. Note that our rate is lower than you’ll find with many competitors.
How Do Payday Loans Work?
Individuals apply for the desired funds, often online. Some lenders require no credit check, but others do choose to check the credit of the consumer. This would be done via an affordability test to ensure they will be able to pay the funds as agreed. People often, understandably, question these steps. Yet a trustworthy lender understands the problems that may arise when a person cannot pay their loan. At MoneyBoat we want to protect our borrowers from a negative financial experience. Once the loan has been approved, the money typically arrives in the borrower’s bank account within a short time. This allows the borrower to take care of the financial crisis promptly.
Repaying The Funds
Payday lenders typically allow a borrower to repay the funds over a one month period, including the principal of the loan and the interest. Some lenders do allow the borrower to select the repayment period, however, the funds are then automatically deducted from the borrower’s bank account. This is where some borrowers find they run into trouble, as they end up owing the lender and any overdraft fees from their bank.
When customers find they can’t pay the loan back as agreed, many lenders agree to work with them and give them the extra time they need. This comes at a high price, as interest continues to collect on the loan, leaving the borrower owing much more than he or she originally planned on. They roll the loan over multiple times in an attempt to catch up, only to find they get further and further behind.
Other borrowers work to pay the original loan off only to come up short. They believe the solution to this is to take out another loan to pay off the first one. When they do so, they just extend the amount of time needed to catch up on their obligations, and they never get ahead. In some situations, the borrower feels they can pay off the loan and then a new emergency arises. They must take out a loan to cover that emergency and find they are in over their head. This is one reason why payday lenders have obtained a bad reputation. In many cases, it is not anything they have done, but borrowers who aren’t acting responsibly.
Other Reasons Why Payday Lenders Have Earned A Bad Reputation
Payday lenders contribute to their own bad press. Many lenders fail to fully disclose their fees and terms. As a result, borrowers may not fully understand how much it is costing them to borrow funds. For this reason, anyone looking to obtain funds from a lender of this type needs to make certain they read the terms and conditions, understand what happens in the event they cannot pay and learn the annual percentage rate before they apply for the loan. Our terms and conditions are easily understood and our interest rate is lower than seen with many lenders, which is why consumers turn to us rather than our competitors.
When Are Payday Loans Appropriate
Individuals may find payday loans do meet their needs. For example, individuals who find it difficult to budget in the long term may find being forced to repay the loan in a short period of time is best for them. They don’t want this debt hanging over them, as another financial obligation could come up in the future and put them more into debt. This is actually a way to responsibly borrow the funds and ensure they will be paid back in a timely manner. Many individuals, however, aren’t in this situation and don’t plan for the future. They need more time to ensure they can pay back the funds they borrowed, and this is where MoneyBoat becomes of great help. We offer more flexibility when it comes to paying the loan.
MoneyBoat understands individuals may run into financial difficulty at times. Obtaining a payday loan might not be appropriate for them, however, as they can’t pay the funds back in a short period of time. They need to stretch it out over a longer period, anywhere from two paycheques to six months. For this reason, MoneyBoat offers short term instalment loans, similar in many ways to payday loans. The major difference between the two products is the amount of time provided to the borrower to repay the loan and meet their obligations. This is only one reason why people rely on MoneyBoat.
MoneyBoat offers a lower interest rate than seen with many payday lenders. In addition, they are very clear about their terms and conditions, so borrowers know exactly where they stand at all times. Finally, staff members are very friendly and helpful and will take the time to answer any questions the borrower may have, as this helps to ensure the borrower doesn’t get into a bigger financial mess.
Alternatives to PayDay Loans
Payday loans are only one option available to consumers. Those with bad or no credit may find they can borrow money using an instalment loan. This loan type allows consumers to pay back the funds over a longer period of time. Others opt to borrow money from friends or family to resolve their financial problems. The keys to successful borrowing involve three steps.
- understanding the terms of the loan,
- comparing the various solutions to determine the best
- budgeting to prevent problems of this type in the future.
We understand that everyone has financial problems at times. We therefore work with consumers to find the solution that best meets their needs. Our goal is to help individuals solve their financial problems without creating new ones. Because of this fact, many in UK borrowers rely wholeheartedly on MoneyBoat.