There are many scenarios where you need instant cash before your salary day. Sometimes, these unavoidable circumstances arise from medical bills, unexpected hospital charges, utility bills, or tuition fees for you or kids. Whenever you need cash right away, you either take out money from savings or borrow from friends and family. For how long do you think friends and family can help? What happens to those who don’t have any savings?
Short term loans are meant for those who are suddenly in a financial crunch. This financial burden can be related to any due payment before the salary day, any unavoidable medical emergency, education-related payment, etc. Getting short term loan is easy, simple, and fast, unlike those traditional financial institutions that take months to approve a loan. Also, they keep the borrower in the queue for hours to approve just a few documents.
Loan Pig is a Payday Loans Provider | Direct UK Lender. They charge a minimum interest of 0.8% per day. Their application process is fast, easy, and simple. They keep their customer’s information secret even if you’re dealing with them online. In case your application doesn’t get approved, they’ll look for the best lender that can provide payday loans matching your criteria.
Many people avoid short-term loans due to high-interest rates. It is a simple calculation that we generally get confused with. Moneylenders, traditional or non-traditional, run a business and they have to earn profit out of it to stay in the market. When you request a loan from a bank, it is generally on long tenure with a low rate, which of course looks fascinating. However, when you calculate the entire amount paid till the last month of installment, you’ll realize you’ve paid more than what you owed. It is the same with short-term loans because the tenure is short, so the rate is high.
Similar, to the above-mentioned reason, there are many other queries that people have and were always given misinformation. Today we want to discuss all those myths that have got attached to the short term loans –
- Payday loans may be of a small amount, but it isn’t only for people in low income but anyone can avail of the facility as long as they have requested documents and credit score. It is a form of temporary relief which can happen to anyone.
- You might be told by people that they were charged more regardless of what was promised. It is a myth because there aren’t any hidden charges with loans if the lender is regulated with FCA because they will get fined for not keeping transparency with customers.
- Even when there are any changes in the FCA regulations, the lender cannot add any new charges to the continued loan.
- Many lenders provide loans to bad creditors as well, but before providing any loan, lenders go through your credit score. When you make payments regularly, and within a time frame without defaulting, it automatically improves your credit score, which can be beneficial for the future.
- If the loans get granted quickly, it doesn’t mean that the verification process is irrelevant. Lenders scrutinize everything minutely, and the application assessment time is lengthy.
There have been many cases when loan applications have been rejected by lenders. It means they too follow certain regulations and not carelessly offer money to everyone. There is a difference between loan sharks and payday loan lenders. Choose FCA licensed lender wisely to get a loan.