Payday loans earned themselves something of a bad name some years ago. However, this was before the loans were regulated when some lenders were adding on huge fees and interest, meaning the loans skyrocketed well above twice the amount borrowed. Times have now changed and loans such as these can work in the way they are intended to work, providing the borrower ensures they are affordable. We have provided you with a complete guide to payday loans no guarantor needed, so everything you could want to find out about the loans is right here.
We will discuss the following:
- What a payday loan is;
- Eligibility for loans in the UK;
- The terms of a payday loan;
- 12-month payday loans;
- How to apply for payday loans
What Are Payday Loans No Guarantor?
A payday loan is a specific type of loan offering a small sum of money that is paid back quickly. People met with an unexpected financial outlay generally take out loans of this nature and they do not have enough funds in the bank to cover it.
Payday loans are quick to apply for and come with an instant decision and even people with less than perfect credit ratings find they are easier to be approved for than other loans.
Reasons for Taking out a Payday Loan
Payday loans can be applied for, for just about any reason. However, they are generally considered emergency loans to be taken out when you have depleted the funds in your bank and a financial emergency has cropped up.
Popular reasons why they are applied for include:
- Paying off a bill that comes in unexpectedly or which you forgot about;
- To pay for new tires or repairs to a vehicle;
- To replace or repair household appliances that have broken down;
- To get yourself out of the red and back into the black with your bank account to stop unauthorized overdraft fees.
Borrow Between £100 and £500
Lenders will usually offer between £100 and £500 with payday loans. Lenders will check your credit rating but they generally don’t look as deep into it as they might with personal loans.
Payday loans are usually repaid within a very short space of time, usually within one to three paydays. When your payday comes around the total sum of the loan is repaid, along with any interest gained. If you are taking the loan over three paydays the interest will be added and the loan broke down over three paydays.
Interest is added on Daily
The interest rate on payday loans without guarantor may seem extremely high at first glance, as they can be in thousands of percent. With personal loans, it is generally in two figures. However, bear in mind that the APR is the percentage rate over the year. You are repaying the loan within months.
Interest is added onto the loan on a daily basis, so the longer you take the loan over the more it will cost you in the end.
Eligibility for Payday Loans
All loans have some eligibility requirements attached to them and the payday loan is no exception. The eligibility requirements for payday loans include:
- You are 18 years or older;
- You have an address in the UK;
- You have a regular monthly income;
- Have a bank account in your name;
- Have a debit card attached to that bank account.
Have You Considered 12 Month Payday Loans No Guarantor?
While the majority of payday loans are repaid within one to three months some lenders offer 12-month payday loans no guarantor needed. These loans are often called short-term loans by some lenders.
As the name suggests a small amount of money is offered, however, some lenders may offer up to £1,000.
As the amount borrowed with 12 month payday loans no guarantor is more than with the typical payday loans, lenders generally allow you to spread out the cost of borrowing for up to 12 months. When considering the term of the loan bear in mind that the longer you take the loan over the more interest it is going to accumulate.
Loans of this nature may be taken out for just about any reason and the lender generally does not ask why you want the money.
Applying for Payday Loans without Guarantor
One of the easiest and fastest ways of applying for payday loans no guarantor is with our help.
Access a Huge Panel of Lenders
We do not offer loans ourselves, instead, we work alongside a huge panel of lenders in the United Kingdom who offer some of the best interest rates on the market along with affordable loan options.
Lenders Check for Affordability
Lenders will check your credit rating as all lenders have to in the UK but they also consider your current circumstances. Lenders will also undertake an affordability test when you apply for your loan so they will want to know the amount of income you have coming in each month and what you pay out.
One Application Multiple Searches
As we work alongside a panel of lenders, there is more chance of us finding you a loan. If one lender turns down your application, we simply move to the next lender. This means that you only need to make a single loan application to be in a position to search with multiple lenders but multiple searches are not made on your credit file.
Multiple searches can go against you when noted on your credit file.
To get your application started you need to tell us how much money you need to borrow and how many months you want to spread the loan over, between one to 12 months.
Give us a few details and we will search with the lenders we work with and give you an instant decision.
If approved you can check out the details of the loan on the lender’s website, including how much the loan is going to cost in total, the amount of interest you will pay and how much you have to pay each month.
If happy with the details, you can go ahead and sign up for the loan with the lender.
Finding payday loans no guarantor with our help is fast and easy and if approved you could have the money paid into the bank on the same day, often within hours of you applying.