Buried in school holiday financial pressure? Need an emergency repair on your car? Or just finding yourself a little short on money for the weekly shop? The need for a little extra money has a way of hitting us hard when we least expect it. Traditionally, payday doesn’t adjust itself to meet your unanticipated needs. That’s where payday loans help bridge the gap. At MoneyBoat, we’re dedicated to helping you float more smoothly through your financial struggles. We’ve put together some essential tips on how you can get the most from your payday loans direct lenders.
When Turning To A Direct Lender Could Make Perfect Sense…
Everyone experiences cash crunches from time to time. Unexpected car repairs have a way of cropping up at the worst possible times. Plummeting temperatures send the electricity bills to unprecedented proportions, throwing your entire month’s budget off-kilter. Our problems come at any number of costs. How can Payday loans direct lenders help?
What is a Payday Loan and How Does it Differ From Other Options?
Generally speaking, payday loans are short-term borrowing solutions designed to help make ends meet when they otherwise wouldn’t. When thinking about choosing this route, you typically have low minimum and maximum loan amounts at your disposal. At the same time, eligibility requirements are usually a little more lax than with larger installment loans. For the most part, you’ll need to pass the following provisions:
- Age: You’ll have to be at least 18 years of age in order to qualify.
- Employment: In order to take out a payday loan, you must have a payday coming. We check your current employment status in order to ensure you have a way of paying back your loan.
- Income: For payday loans direct lenders applicants, we require an income of at least £1000 per month. Our staff will first compare your income against the amount you need to borrow. This helps to ensure such a loan won’t create over-the-top hardships for your future.
Standards of Eligibility
Once you pass our eligibility requirements, the money should be available to you within one day of submitting your application. You shouldn’t need to wait several days or weeks like with other conventional alternatives. Here, you’ll pay your loan back over a short stint rather than a lengthy term. Given the nature of this type of loan, interest rates are bound to be a bit higher than other options out there.
With all that being said, you have two resource choices when you’re seeking a payday loan: brokers and payday loans direct lenders. MoneyBoat is a direct lender. With us, you’ll have a number of benefits over using a middleman broker.
Payday Loans Direct Lenders
As the name indicates, payday loans direct lenders will loan money directly to borrowers. Brokers, on the other hand, act as middle men. They search a database of available payday loans direct lenders and pair borrowers with the ones they deem best suited to the situation.
What Are the Benefits of Choosing Direct Lenders?
Before making your decision you may ask yourself what are the benefits of using direct lenders for payday loans?
First and foremost, the main advantage of coming to a direct lender like MoneyBoat is the simplicity of the entire experience. From the beginning, it’s clear you’re dealing with us, the lenders, directly. We’re the ones who will supply the funds that you need, and we’re the ones you’ll be reimbursing for those funds when the time comes. Of course, that’s only the tip of the iceberg.
Benefits of using Direct Lenders for Payday loans:
- Transparency: MoneyBoat discloses all fees up front before requiring you to hand over your financial information. Brokers could ask for your bank account information before getting the process started and potentially share it with other lenders. If their not careful, customers might end up paying more than they thought they’d agreed upon. With MoneyBoat, you’ll pay 0.7 per cent, per day for each £100 you borrow. That’s it. There are no hidden fees, no surprises, and as long as you make your payments on time, no additional charges will be accrued.
- Ethical Operations: Each direct lender operates under the jurisdiction of the Financial Conduct Authority. We’re subject to fee and interest rate caps passed down for the areas we serve. MoneyBoat takes care to remain well under the maximum amounts allowed for our industry.
- Freedom of Choice: When you go with a direct lender like us, you’re free to shop around for the lowest rates. Brokers do this on your behalf, which is one of their main selling points. They act as intermediaries between the lenders in their databases and the loan-seeking public. Brokers are paid to bring your business to their clients. Choose to work direct, or use a broker but be aware of the possibility of additional agency costs.
- Responsibility: As payday loans direct lenders, our actions drive our reputation, and the public’s opinion of us is a reflection of our company. Should we disappoint the very customers keeping us in business, we’ll suffer as a result. This isn’t how we choose to operate. We value your business and strive to exceed your expectations. Brokers act independently of the lenders they work for, so those they represent are the ones most often affected by any negative feedback.
Payday Loans Direct Lenders Are There For You
These are only a few of the benefits of acquiring a payday loan through a direct lender as opposed to a broker. Brokers promote the bonus of placing a wide range of lenders at your disposal. This is sadly often used to their own advantage rather than yours. Plenty can be said for the absence of additional fees when you work with a direct lender as well.
Repayment Terms on Payday Loans
When you apply at MoneyBoat, we consider your employment status, how long you’ve been with your current company and your income. This is our way of determining whether or not you’ll be able to cover the amount you’re hoping to borrow. This includes interest rates when the time comes to repay. Our eligibility requirements are in place for your protection as well as ours.
You’ll have a month or so to repay your loan with specific terms discussed on an individual basis. When the time comes, you may choose to have the funds drafted from your bank account. We’ll keep your scheduled payday or selected draft-out date in mind when requesting payment. You may also be able to choose to pay us directly depending on the surrounding circumstances.
A Few Words of Advice
Since payday loans first became available, some have used the service incorrectly. This left them stuck in a vicious cycle ending in various levels of financial hardship. This isn’t the norm, and it’s very much avoidable with the right precautionary measures. We take a number of steps to ensure this doesn’t happen to our customers, but we’d also like to offer some extra guidance in this regard.
- Take Only What You Need: If you need £200 but you know you can technically borrow £800, taking the maximum amount and sorting it all out later could be a tempting prospect. As easy as it would be to do, it’s not necessarily the best course of action. The more you borrow, the higher your total interest will be in the end.
- Be Sure You Can Cover Your Payments: In some cases, the need for a payday loan comes about as a result of time missed from work. Once you take out a payday loan though, it’s important to ensure your next scheduled pay cheque will cover your first installment. If you miss additional time from work when on an hourly or production-based pay scale could leave you short when payment time rolls around. This could lead to additional charges which we’ll explained in further detail later. We understand that we can’t always pre-empt certain extenuating circumstances, so please talk to us if you see a problem with repayments creeping. Just remember that unfortunately they’ll cost you more in the long run.
- Pay on Time: For most people, the real financial difficulties begin when payments are late or altogether missed. We allow a three-day grace period during which we’ll attempt to contact you. This would only happen should your payment be late or funds not available in your bank account at payment time.
Beyond that point, your balance begins to add up in the way of:
We initially impose a late fee of £15 once your grace period is over.
At MoneyBoat we do not offer the option of rolling over your balance as interest and fees continue to mount when you take this route. Our primary concern is our customers long-term welfare.
- A court situation could arise in the event that a customer defaults on payment.
Keep in mind, you bank may charge additional fees for any withdrawal attempts made if sufficient funds aren’t available to cover them.
To keep your balance as low as possible, be sure to make your payments as scheduled. Only use the rollover option if it’s an absolute necessity – however note that this is an option scarcely available with lenders nowadays. If you anticipate a problem with making your payment, contact us so we can help you in advance, to make the necessary arrangements.
At MoneyBoat, we’re here to help when you find yourself short on cash. Payday loans are a great option when used occasionally and with discretion. Make your payments on time and turn to payday loans direct lenders like MoneyBoat as opposed to brokers and we’ll help keep fees and interest rates as low as possible. This is our method of helping you ensure repayment doesn’t leave you in a worse financial state than where you started. Fill out the application we’ve provided to get the ball rolling on your payday loan, or contact us online or by phone to learn more. Don’t forget to seek help or debt advice if your debts are becoming unmanageable.