You never know what’s just around the corner – life can throw us curveballs that we’re not expecting. These situations can be particularly difficult to manage if money is tight. Issues like a broken boiler, an urgent car repair or a vet’s bill are not something that can be put off, no matter your financial situation. This is where a payday loans direct lender can help. When you need funds in a pinch, these lenders can offer small amounts to help you when your income won’t stretch as far as you might like. Read on to find out more about navigating the maze of payday loans.
What are direct payday loans?
Direct payday loans are typically offered by online lenders and can be used as quick access to cash when faced with an emergency expense. These loans are short-term and require repayment on the borrower’s next payday. These loans differ from other types of finance, like personal loans, as they only cover small amounts. They don’t require a credit check, and most lenders base approval on affordability, which makes them an option for those with low credit scores.
How do they work?
As mentioned above, payday loans are most commonly offered by online lenders. To obtain one of these loans, the borrower must fill in an application form online. This process is typically quick and easy and allows borrowers to explore their options at their leisure. Lenders will ask for documentation such as valid ID, proof of income, and bank details. The lender will review the application and make a decision in as little as 24 hours. The money will then be transferred into the borrower’s account.
What are the benefits?
There are a few benefits that come with applying for payday loans when faced with an emergency expense that your monthly income will not stretch to cover, such as:
- Quick access to funds: Unlike other types of loans, payday loan direct lenders can provide access to the amount of cash you need quickly, which is imperative when dealing with a time-sensitive emergency.
- No credit check: If you have a low credit score, obtaining traditional bank loans can prove difficult. But direct payday loan lenders have more lenient requirements, and therefore those who have struggled to manage their money in the past can still benefit from funds in a pinch.
- Easy application process: With payday loans, borrowers can apply from the comfort of their own homes. There’s no need for visits to the bank to present various documents – the process can be completed quickly and easily online.
Tips for managing payday loans
Here are a few tips to help you navigate the world of payday loan repayments and management:
Only borrow what you need
Only borrow the amount you need. Resist the urge to apply for more cash just because it’s available to you. You must remember that you will need to repay your loan in as little as a few weeks, so applying for more than you need increases interest and the overall cost of the loan, making it more expensive and potentially harder to manage.
Understand terms and fees
Never enter an agreement with a lender before you fully understand the terms and additional fees you may be charged. Be sure to read the small print featured on your lender’s website to get a clear idea of what is expected from you. This will allow you to determine the total cost of the loan, as well as the terms on which you will be expected to pay back the amount.
Repayment plans
Create a repayment plan before you take out your loan. Because your payday loan will require payment in a short amount of time, look at your budget for the month and see if you can make any necessary cutbacks on expenses. Alter your budget where possible to ensure you can afford to pay back your loan – including interest – on time and in full.
Explore alternatives
Before making your decision, make sure you’re aware of other options before you apply. You could use any savings that you have put to one side, ask family or friends for a small loan when you’re faced with an emergency, or seek assistance from local agencies. Make sure you’re aware of all your options before you enter into a payday loan agreement.
