With the cost of virtually everything steadily climbing, making ends meet just isn’t as clear-cut as it once was. To make matters worse, income has only risen a fraction of the amount of monthly expenses over the last few decades. It’s no secret the average household salary doesn’t stretch quite as far as it did in the past. How do you bridge the occasional gap between leftover money and unexpected need? Plenty of potential solutions are available. For many, though, the answer lies in a wage day advance loan. At MoneyBoat, we give you a broad range of flexible options, such as a Wage day advance, so that you can choose the terms best suited to your unique circumstances.
What is a Wage day Advance?
Simply stated, a wage day advance is a loan designed to help make stretch your income just a little further than it ordinarily would. When used occasionally on a strictly as-needed basis, this type of loan can help float you through small-scale financial hardships. They have a shorter payback term than conventional loans and are typically only available in relatively small sums.
What Are the Benefits of a Wage day Advance Loan?
Wage day advance loans offer a number of advantages when compared to other alternatives. You might say the main benefit is preventing you from having to do without the need at hand. Whether it be car repairs, medical care or food. Of course, that’s only the tip of the iceberg. Some additional benefits include:
- Less Sizeable Loan Amounts: Wage day advances from MoneyBoat are available in amounts ranging from £200 to £800 since they’re meant to help with emergency needs and immediate expenses rather than significant outlays. Borrowing less money means there’s less to pay back, so as a result you’re assumed to be less likely to face financial difficulties in the long-term.
- Shorter Terms: Instead of making payments over the course of several months or years as you would with a larger traditional loan, you’ll pay back your wage day advance loan over a short period of time. Shorter terms mean you’ll settle your debt more quickly, and you can fall back into your normal financial routine before you know it.
- Immediate Cash: With conventional loans, the approval process takes anywhere from a few days to a few weeks. Wage day advances typically take anything from 30 minutes to a few hours from application submission to approval. From there, the money will likely reach your bank within the same or next business day.
- Less Stringent Credit Requirements: When it comes to approval, most direct lenders put you through the ringer before deciding whether or not you qualify for a loan. While most short-term lenders do have their own sets of prerequisites, they’re usually not quite as lofty as those of other institutions.
What Does this Mean To Me?
In short, this route gives you almost instant access to the money you need for any type of last-minute expense. You don’t have to have a perfect credit score in order to qualify, and you won’t need to spend several months dedicating a portion of your income to repayment. It’s a short term need option, designed to be a simple, small-scale and readily available.
How Do I Go about Getting a Wage day Advance?
To begin with, you’ll need to fill out an application for your loan online. This leg of the process usually only takes a few minutes to complete. You’ll provide some information about yourself and your circumstances, such as:
- Employment Status and Current Employer
- How Long You’ve Been with Your Employer
- Your Average Income per Pay Period
- Pay Frequency
- Desired Loan Amount (between £200 and £800)
- Monthly Expenses
- Bank Account Information
All these questions aid lenders in determining your eligibility. You must be at least 18 years old and currently employed in order to qualify for a wage day advance loan, from MoneyBoat. You’ll also need to have a valid U.K. address and bank account. Your income, how often you’re paid, and your monthly expenditure will help us gain insight into your ability to repay and roughly when your payment dates should be.
Once approved, we’ll use the information that you provided to deposit your loan directly into your bank account. Your money should appear quickly depending on whether your bank allows same-day access to deposits. If not, you’ll be able to use the money by the following day.
Do Any Fees Apply to a Wage day Advance?
With a wage day advance loan from MoneyBoat, a 0.7 per cent interest rate does apply. Interest is multiplied by the total amount of your loan and accrues daily. Aside from a charge for any late payments, this is the only fee you’ll encounter.
What about Repayment?
Usually, payment dates are based on your own pay schedule. Your first payment will be due no less than 21 days from the date your loan was taken out regardless of your next payday. When you’re filling out your application, you’ll be given a choice of three different repayment terms:
- One Pay Period: You may choose to repay the entire amount of your loan plus interest on your first payday after receipt once the 21-day minimum grace period has passed.
- Two Pay Periods: You may also have the option to pay back your loan over the course of two pay periods. On your first scheduled payment date, you’ll pay the accrued interest up to that point with the original loan amount and further interest due for the following payment.
- Three Pay Periods: If you opt for this choice, your first two payments will consist of accrued interest, and the final payment will include the initial loan amount plus additional interest.
A clear summary of your payment dates and amounts should be clear to you before beginning the process. After this, automatic withdrawal of payments from your bank account or prepaid debit card will then begin. If you’re in a position to pay more than the minimum payment, you’re welcome to do so without penalties or additional fees; in fact, doing so will reduce the overall amount of interest you’ll pay.
What if I Can’t Make a Payment?
If, for any reason, you anticipate being unable to make a payment, call us in advance to make alternate arrangements. This is imperative to prevent overdraft or insufficient fund fees from your bank. Late or missed payments are subject to a one-time fee of £15 so it’s always best to reach out to our Customer Care team at MoneyBoat if you encounter difficulties with re-payment. We’re always here to offer our help and support, and want to help encourage our customers positive borrowing experience.
Are There Any Other Details I Need to Be Aware of?
Wage day advances are effective tools for those who have occasional unexpected expenses or simply find themselves struggling a bit here and there. They’re not meant to be used as ongoing solutions for long-term financial difficulties. In truth, repeatedly falling back on this type of loan could actually create greater hardships moving forward. Also keep in mind:
- Make your payments on time to circumvent late fees. Lenders understand extenuating circumstances are sometimes inevitable, but it will end up costing more in the long run to be late with, or miss a payment.
- The deferral option is available in some cases. However only use it if it’s an absolute necessity, to avoid paying extra in interest.
- Never borrow more than you need. If you only need £200, but you know £500 is available, temptation might speak louder than sound reasoning. Taking the maximum will leave you repaying more in the long run especially with daily interest figured into the equation.
- Weigh your options carefully. Some people have buried themselves hopelessly in debt by abusing wage day advances. Borrowing for infrequent emergencies rather than frivolous opportunities is vital if you want to avoid meeting the same fate.
Being responsible is the key to using wage day advances to your fullest benefit. Once you establish yourself with us, the option will be at your disposal anytime you need it in the future.
Finding someone who doesn’t understand just how difficult it is making ends meet these days isn’t easy! For those times when your income refuses to stretch far enough to cover your needs, wage day advances can help close the gap. These loans often follow more lax credit requirements than traditional loans, smaller borrowable amounts and shorter repayment terms. This option is available to virtually anyone who meets age, employment and residence requirements.
Instant access to extra funds does come at a bit of a price. Wage day advances tend to carry higher interest rates than some other loans. Most insist the advantages more than make up for the extra cost. Just be sure to exercise good judgment. Be careful to make your payments on time and only use this option on an as-needed basis. Doing this will put you in a good position to reap the benefits without setting yourself up for financial hardship.
If this sounds like the solution you’re looking for, contact MoneyBoat. Fill out the form we’ve provided, and let our lending team get your wage day loan today!