Same day loans for bad credit are one of the most popular types of loans applied for and approved for people with a less than perfect credit score. They are generally easy to get as the amount borrowed is small and the loan is repaid back quickly. It seems that out of all the UK East London is the capital for payday loans.
Top Three Payday Loan Capitals in the UK
Data has revealed the top three capitals in the UK for payday loans. These are:
Birmingham headed the list and came out on top as the payday capital with residents borrowing over £37 million during 2018 when hit by financial emergencies that could not wait until payday. The data revealed residents had applied for around 146,000 payday loans during 2018.
Romford came in second place with residents applying for same day loans to the tune of £15 million.
Meanwhile, residents of Croydon borrowed £11.8 million in payday loans, coming in third.
Why Are Same Day Loans for Bad Credit So Popular?
Same day loans or payday loans are extremely popular in not only the three cities mentioned here but also all around the UK.
Between July 2017 and June 2018 just under £1.3 billion was handed out to people requesting loans.
According to the FCA people in the age group, 25 to 34 borrow more by way of payday loans. 37% of people were tenants, and 26% lived with parents.
So, why are payday and short-term loans so popular?
There are numerous reasons why same day loans are popular and we are going to look at some of the most popular reasons below.
- They Are Quick and Easy to Apply for Online
Payday loans are extremely quick and easy to apply for online. In most cases, it takes just minutes to make an online application.
If you apply for a loan with our help you simply tell us the amount you want to borrow and how long for.
We can then search with the panel of lenders we work alongside to try to match you with a borrower.
The lenders we work alongside will consider all circumstances and put a focus on verifiable income not just your credit past.
Lenders will check to make sure the loan is affordable and you can repay it.
As everything is undertaken online, this makes applying for same day loans for bad credit considered extremely fast and easy.
- They Are Easier to Find Approval For With a Poor Credit Rating
People with poor credit ratings often struggle to get a foot back on the lending ladder but payday or quick loans are one way of doing so.
Lenders are more likely to approve a small loan than a big one and if paid back as agreed small loans can even help to improve a credit rating.
- You Get an Instant Decision
As the entire application is undertaken online, it means you do not have to wait around for an answer as you get an instant decision.
We know how difficult and stressful life can be if you need a financial helping hand in an emergency, so we will not leave you waiting for hours.
- Fast Payout Often Within Hours
If you need money fast a fast application and an instant decision is all well and good but not if you then have to wait for days for the funds to be paid to you.
Again, this is something that you do not have to worry about with quick loans as if you are approved the money is paid out quickly directly into your bank account.
In most cases, you get money on the same day and often this is within hours of you making your online application.
- A Way to Overcome Financial Emergencies
Same day loans are a good way to overcome financial emergencies that have come about unexpectedly, which you did not budget for.
Many people do not have the luxury of being able to save money on payday. This means if something unexpected crops up and payday is some time away it can cause a great deal of worry and stress. Providing you know you can repay the loan, when payday comes around the same day loan can get you out of a sticky situation.
What Are The Main Reasons For Payday Loans?
Essentially a same day loan can be taken out for any reason, as lenders do not generally enquire why you need money fast.
However, these types of loans are usually associated with emergencies that have cropped up. Some of the most popular reasons why people apply for these loans include:
- Having to pay a bill that you forgot about before next payday;
- Your car breaks down and you need money quickly to call a tow truck and have it repaired;
- A major appliance such as your cooker or fridge has broken down and you need money to repair or replace it;
- Your bank sends you a text telling you that you are now in an unauthorised overdraft and will be charged fees each day until cleared;
- You suffer a water leak and need money to pay for a plumber fast.
Two Popular Types of Repaying Quick Loans
A same day loan is a term vaguely used for different types of loans. All it means is that the loans can be applied for quickly and the payout is fast.
Two types of fast loans are very popular among people with less than perfect credit scores. The most suitable for your needs does depend on how much money you need to borrow and how long you need to borrow.
The Payday Loan is repaid in One to Three Months
For people with a bad credit rating who can repay a loan back fast and who only require a small loan, a payday loan might be the most suitable.
Most payday lenders will offer between £100 and £500 with this loan and the entire loan and interest can be repaid in full on your next payday. However, lenders will allow you to spread out the cost of the repayment for up to three paydays. This, of course, is assuming that you are paid on a monthly basis.
The Faster You Pay the Cheaper the Loan
With payday loans, interest is accumulated daily, so the least amount of time you take to repay the loan the less it is going to cost in total. Of course, while you want to keep down the interest it is also just as important that you can afford to repay the loan in one payment and you are not going to left short of money when that payday comes around.
Lenders will want to know your pay dates so they can take the repayment back on the agreed dates through your bank account.
APR on Payday Loans
APR on payday loans can confuse as this is the annual percentage rate and a payday loan is not taken out over the year.
Loans of this nature generally show APRs of thousands of percent. Do not worry; you will not pay thousands of percent as you are going to repay the loan over one to three months. This means the loan is only going to attract interest for this time.
However, it is important to make sure that the loan is repayable as agreed. If you do have to roll the loan over it can become a very expensive way of borrowing. This is because interest is going to be continually added, along with fees. However, with the loans now being capped you should never pay more than double the original amount borrowed.
The Short-term Loan is repaid in up to 12 Months
A short-term loan generally offers up to £1,000 with the loan repaid for up to 12 months.
This may be a good choice if you are met with a large expense that you had not budgeted for. When considering a short-term loan you need to check the APR as this is the interest rate on the loan over a year. For instance, if the loan has an APR of 35% this is the percentage of interest that would be added to the amount you borrowed when taking out a loan over the year.
Check for Hidden Fees
When considering a short-term loan check to find out if the lender allows you to repay early if you find yourself in a position to do so.
You can save interest this way, but some loans might have an early repayment fee attached. If so this might do away with any savings, you might make, if repaying the loan early.
Applying for same day loans for bad credit with our help is one of the fastest ways to gain access to payday and short-term loans. The panel of lenders we work alongside offer some of the most competitive interest rates along with affordable loan options.
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