In UK payday market, borrowers has two options for payday loan application. First method is to apply with lenders directly, by visiting their shops or websites. Direct lenders are the company or institute who is responsible for loan application processing, approvals, fund disbursement and finally receiving loan repayments as per agreed terms with borrower, means direct lenders are the only source of loan funding.
Second option is to get direct lender through brokers. Brokers also have their offices and web portals like lenders. These brokers are authorised and regulated by FCA (Payday Loan Regulator in UK) for business. Brokers are working with association of direct lenders. One broker can be attached to any number of direct lenders. The brokers generate loan prospects through their online portal and sale these leads to the highest bidder among his group of direct lenders.
The brokers are working as agent of direct lenders and have no role in loan approvals. Brokers provide loan leads through their websites, and if this lead is converted into loan deal between borrower and direct lender, broker will earn a commission for this sale. So brokers are not involved in any direct funding, they are just helping loan seekers in finding the direct lenders. In other words you can say brokers are making the bridge between borrowers and direct lenders without charging anything from borrower.
Why to avoid brokers for payday loans? The main drawback in applying through broker is delay in loan decisions. Because broker will wait and find the lender who will pay him maximum commission for the lead, this will take extra time to reach borrower's application to the direct lender.
Second disadvantage through broker is, increase in loan cost. As we know the broker is a middleman in loan deal, although he get commission from lenders only and charge No Brokers Fee from the loan seekers. But ultimately the lender will recover broker's commission expenses from the borrowers only.
Benefits of payday loans with direct lendersWe can summarise the main benefits in loan with direct lenders. Fast loan processing, chances of direct negotiation in interest rate, cheap loan by elimination of middlemen and high acceptance chances of loan in one to one discussions with lender directly. Payday direct lenders in UK are working with big capital and are equipped with fully automated and computerised mechanism of loan processing to provide quick loan decisions. If anyone is in urgent need of money, for him time factor is of most important.This is the reason that every loan seeker in UK are in search of "High acceptance Loans direct lenders only".
Following points may help you in enhancing acceptance rate of your loan.
If you visit lender's office with above details, your loan acceptances chances will be very high and you can solve cash crunch in sure and timely manner.
Payday Loans UK are advance funding by the direct lenders on the basis of applicant's net wages. These funding are very helpful when you needed additional fund for short term in emergency. In few years ago, the borrowed money is to be repaid on borrower's next payday only that is the reason it is termed as Payday Loans. At present many lenders in UK allow to repay loan in monthly instalments also, so it is also known as instalment loans. The loan repayment term may vary from 7 days to 12 months, this gives new name Short Term Loans. The amount of these loans can be between £50 to £1,000, depends on borrowers loan affordability.
You can search quickly theseloans through our online platform 24/7 from anywhere. Our associated lenders make instant decisions on your applications, based on your given details. If lenders satisfied with your loan suitability and affordability, they may approve loan in few minutes and wire the money in your bank even in the same day (time may vary for different banks). Our loan matching service is fully automated and no paper work is involved, so you need not to visit direct lenders office or to submit any paper manually. We are working with some lenders who have tailor made loan products and fully automated loan underwriting procedure; this may help you in getting instant loan quotes.
The main advantage of online payday loan services is of 24/7 availability with a freedom to apply from anywhere. The employed persons who are working in shifts find difficult to visit lender's office in regular working hours. With online loan search facility one can apply for payday loan from home or workstation even with his mobile phone. This system is saving a lot of time and resources of applicant, and he can easily compare many available loans alternatives within very less time and efforts. Online mode of instant loan search services provide fast cash relief to persons stuck in cash crunch and waiting quick cash on good terms.
Here we are going to elaborate few terminology of payday loan market which will help you in clear understanding of payday loans.
1.No Credit Check Payday Loans Direct LenderAs per general practice all lenders and funding companies in UK have to perform credit checks on every lending and also check suitability and affordability of the borrower. So “No Credit Check Loan Lender” is not a realistic search which is searched by many poor credit applicants. But all doors for payday loans with bad credit are not closed; they can apply for this short term loan. As credit ratings of a person tells about past loan history, so if present employment and wages of a person making his financial status sound and healthy then even bad credit person can apply for payday loan.Read More.
2.New Loan LendersIf you are in search of fresh loan from a new lender for short term, then you can use any online loan search platform like ours. As APR and loan terms vary with lenders. So you should search with different websites and compare the interest rates quoted by every lender. Now you can conclude the deal with the best lender.Read More.
3.High Acceptance Lenders
No one in the payday loan market can guarantee for 100% acceptance of payday loan but acceptance rate may vary from lender to lender. For the applicant with bad credit history or past loan defaulter, loan acceptance chances are low and in other hand person with good credit score and past loan repayment history with the particular lender is good then that lender will be high acceptance lender for second borrowing. Read More.
4.No BrokersFor online borrowing there can be two methods, first loan seeker can visit direct lenders website login and apply for loan. Second option is to visit payday loan brokers website and find a lender who can finance him. The search for “payday loans no brokers” is very high because many borrower think that involvement of broker will raise their loan cost and also there will be delay in loan processing. Both of above concepts are not fully true because brokers are getting commission from lenders not from borrowers and secondly brokers will not hold the applicant's information with them, they pass it directly to the panel of lenders via automated tools instantly, so no question of delay. Read More.
5.Cheap PaydayFinancial Conduct Authority has put a cap on payday loan interest. No lender can charge more than 0.8% per day. Actual calculation varies with loan amount and term. So all lenders are offering payday loans with in the above cap, borrower has full freedom to find and negotiate by comparing APR’s of various lenders. Read More.
6.Guaranteed PaydayAs payday loans are unsecured short term loans bearing high risk from lenders point of view that is the reason they charge high interest rates. Payday loans acceptance cannot be guaranteed because loan approval is always subject to suitability and loan affordability of the borrower. For poor credit borrower loan acceptance chances are low and for good credit and employed person payday loan acceptances chances are very high. Read More.
7.No Credit Check LoansConcept of “No Credit Check Loans” does not valid for payday loans. As per regulation every lender have to check suitability and affordability of borrower, before loan approval. So every lender performs a credit check on loan application to evaluate risk involved in funding.
For bad credit borrowers they may charge higher interest rate to cover their additional risk. In case of guarantor loan also lender will check credit score of guarantor, to ensure his loan repayment ability in case borrower becomes defaulter.Read More.
8.Short Term LoansPreviously only payday loans are referred as short term loans as these loans are to be repaid in next payday. Now a days loans are defined as short term loan where loan repayment term is between 1 to 12 month and loan amount ranging £100 to £2000. All regular consumer loans are long term loans for higher sums and well secured so comes with lower interest rates. On other hand short term loans are unsecured and risky for lender bears higher interest rates. Read More.
9. 12 Month LoansIf you are thinking of borrowings for higher sum, then 12 month loan may be fit in your financial plan. As the repayment term increases the loan installment will be less. Of course you have to pay more interest in long span of time.Read More.
10. 3 Month Installment Loans3 month loan is suitable for lower monthly income borrower who will get three paydays to repay loan in three installments. Read More.
There are three credit reference agencies in UK, namely Experian, Equifax and CallCredit. They maintain numerical ratings of borrowers in a three digit number; this score is known as “Credit Score”. The credit score reflects financial history of last six years. When you apply for any type of credit, the lenders will check this score with any one or all above agencies for suitability assessment of the applicant.
Any loan default or county court judgement registration will adversely affect your credit score. Even credit card late payment may also have negative impact on credit score.
A good credit score will help you in getting best deals with lenders, whereas poor score may be the basis of loan denial. This can impact on your life in so many ways, buy or rent a home, mobile or gas connection and even for your employment opportunities.
A study has revealed that in UK more than 67 percent of people age between 25 and 34 do not know their credit scores before their first loan application, this the group which is mostly affected by low credit score or bad credit.
It will be better to check your credit score time to time and be prepared accordingly. You can verify this online with Noodle, ClearScore or Experian for free of cost. If you find poor credit score against you then you have an opportunity to work for improving it. This will help you in future credit applications.
1. Register to electoral roll – Vote registration is a easy way to improve your credit score as it is taken as your identity and address proof by the lender. This will enhance your credibility and may help you in getting low APR loans. So if you are still to register, get in touch with local council and if you have relocated then re-register in new place.
2. Repay loan on due dateAny delay in loan repayment even for one day may impact on your credit score. Use Direct Debit services to pay on time. Your timely repayment shows your commitment for financial management, and Lenders will consider it as positively in next funding.
3. Have a credit historyOne third people in UK below 35 do not have credit history because of no loan history, so when they apply for first loan they find difficult to prove how they are managing funds. So if possible this group should have at least one credit card and pay monthly balance regularly on time.
4. Verify your credit reportsVerify your credit score with all three agencies and if any discrepancy is there, contact to the concern lender and credit agency for rectification. You are entitled to raise “Notice of Correction” which will be visible to lenders who are searching your credit history regarding your unavoidable circumstances for late repayment like your illness.
5. Avoid frequent relocation Frequent change in accommodations creates bad reputations for borrowers. At least hold on the home till your applied loan is being under process.
6. Minimise your loan applicationsYour each application for loan is recorded in your credit report, even if your loan got rejected. This information will be there for next 12 month, and will affect your borrowing prospects adversely. So limit the frequency of your loan applications.
7. Put your rent on recordIf you are in rented accommodation then build your credit score with agencies through free services, and update your rent payment details regularly. This will be added in your credit score positively like on time loan repayments.
8. Limit credit balanceAs big your credit balance your financial status will be considered in lower side by the lenders. Because high credit balance indicates that you have used your optimum financial resources and will not afford additional loan.
9. Avoid partnership lending Joint lending or bank account with bad credit partner will also affect your financial status and also future lending prospects.
10. Allow some accounts to matureComplete term of borrowing and regular on time repayment, helps to improve your credit scores; in comparison to premature closing down the credit account.
We at Payday Loan Site provide you fully online search service of payday loans across all Cities of UK. Our loan matching services are totally free and you have to pay nothing as brokers charges means here you will get payday loans no brokers charges in direct lenders search. Following are few traits which makes us different from others who are working in this field
Instant Decision on Payday Loan application- If you choose to apply with us for payday loans search, you can get instant decision on your loan application from our associated direct lenders if you pass their suitability and affordability check. Quick submission of your details is forwarded instantly to a panel of lenders, who take fast decision about loan funding. If any one lender is interested in your loan approval, he will inform you via text message or through email promptly. They may ask few more details to ascertain loan affordability. Once they satisfy with details, they will send you the terms and condition of loan. If you agreed upon these conditions, instant payday loan disbursement process will start and your bank account will be credited in very short span of time.
Bad Credit application accepted here- If you have poor credit ratings then also apply here for payday loans with bad credit. Our associated direct lenders try to give instant decisions on your payday loan application. If you pass their affordability and suitability checks, they may approve your loan.
Payday loans are regulated by the Financial Conduct Authority of UK. This authority has put all checks and balances to save borrowers exploitation from lenders. As payday loans are short termunsecured loans and often bears higher interest rates so these loans should not to be used as regular funding. For every financial trouble if you seek for instant cash loans help, they may cause serious money problems also.
Before signing loan deal you should read their terms and conditions carefully and keep in mind following facts.
Always keep loan amount in lower side which is enough to solve your present cash problems, as payday loans are costly affairs.
Go for payday loans if you think that applied loan will be easily repaid by you on time. Because any loan default will harm you in two ways, first lender may charge additional fees for non-repayment. Secondly if you fail again and again to repay the loan, the lender may add recovery charges on your loan. In addition to this he may forward your name to credit score agency to decrease credit ratings, this will affect your future lending.
generally it is observed that the persons often needed emergency funding belongs to a group of unstable financial status, may require some guidance in breaking the loan cycle. In order to give best possible assistance to our customers we have added following information which may help payday loan borrower in controlling their finances. This will help you in finding loan alternatives as well as in getting out from loan trap.
Financial OmbudsmanIf you have lost you night sleep because of financial mismanagement then you can take the help of UK Financial Ombudsman. Also if you are getting any unfair treatment from lender or its loan collection persons then you can approach this authority, they will help you in getting proper compensation.
Stepchange Free Debt Management Plan The website free debt advice called StepChange is ready to help you in debt management planning so that you can come out from loan cycle. These services are free of cost.
Money Advice Service You can avail services of The Money Advice Service free of cost. They will help you in finding best financial option when you are unable to repay your loan and guide you till you become financial stable.
Citizens Advice Sometimes short term cash solutions may bring long running loan trap. To educate about your rights Citizens Advice is there. They can guide you in issues like loan solutions and its related problems.