Santa is Coming
Christmas is one of the most expensive times of the year so it is little wonder that many people feel that they need to borrow money. The cost of Christmas can mean that you have no money left over for essentials. If this is the case then a payday loan may be something that you are considering. Payday loans can end up being fairly expensive if they are not repaid in time and so there are several things that you may want to think about.
Repayment Period
Payday loans usually have to be paid off within thirty days. There may be an option to take them out for a longer period than this but this may incur extra charges. When it comes to Christmas loans the best choice is usually to have them repaid. If possible within twelve months so that you are not still paying for it when next Christmas comes around. You should choose the shortest repayment period that fits with your budget so that the loan can be paid off as soon as possible.
Affordability
The charges on payday loans can increase very quickly if you are not able to repay them on time. Therefore you need to be sure that you can afford the repayments before you make the application. If the loan can be repaid over a period longer than one month, then there should be a calculator on the site that will tell you what the different repayments will be for different repayment arrangements. When working out your affordability you should think about trying to save a small amount of money each month. So that next Christmas is more affordable and you may not have to rely on borrowing money.
When To Apply
Payday loans can usually be arranged in less than twenty four hours. So you will still have time to apply even if there are only a few weeks to Christmas. When your loan is approved the money will usually be paid into your account on the same day. In most cases the loan will be approved on the day of the application, if the lender can verify all the information that you have provided. However, if they are not able to do this then you may have to provide additional information. This can slow the process down a bit. Therefore, it is recommended that you apply for a loan as soon as you are sure that this is the right decision. With Bad Credit History accepted by some lenders this may be the only option open to some people.
How To Apply
There may be lenders local to you where you can apply for a loan in person. However, most payday loan companies now operate online. In whichever way you choose to apply for a loan the process is likely to be the same. You will have to provide your personal information and details of your incomings and outgoings. You will also need to give details of any other forms of credit you have outstanding such as loans or credit cards. All of this information should be on the application form which you will fill in and then submit. You may be asked to provide supporting documentation such as your wage slips and copies of bills. It is always useful to have this information to hand anyway when you are making your application. This it will ensure that you are using the correct figures.
Checks The Lender Will Make
The lender has a responsibility to make sure that you can afford to repay the loan. Therefore so there are several checks that they will need to carry out. A credit check will be carried out so that they can see if you are already over committed on credit which could make repayments difficult. This credit check will also show whether you have fell behind with repayments on other loans that you have had in the past.
The lender will also need to be sure that you are who you say you are. If you are applying in person then you will be asked to provide ID such as a driving licence or passport. When you are applying online the lender can carry out verification checks to confirm your identity. Should you need to provide more identification then copies of these can usually be uploaded directly to the site.
