Applying For A Personal Loan? Check These Pointers!

A personal loan is a short-term advance that doesn’t require a collateral. If you are dealing with unexpected financial mess or too many unpaid bills, a personal loan will help in consolidating the same. Before you apply, we have a few things that may help in considering the options.

Payday loans or personal loans

Both payday and personal loans are unsecured forms of finance and can be applied online. Check websites like luckyloans.co.uk, and you can complete the application in less than five minutes. Approvals are also instant for both. However, in case of payday loans, the maximum you can borrow is around £3,000, while with personal loans, you can borrow as much as £25,000. The repayment terms are also different. Personal loans can be repaid over a period of time, while payday loans are repaid on the next pay day. With that said, everyone has different requirements, and depending on the amount you need, you can take a call.

Are there any disadvantages and advantages?

Both personal loans and payday loans are easy to get, which remains the prime advantage. You don’t need an asset, and your personal details are always safe. The requirements for the application approval are also simple. You just need to be of 18 years or more, must have a secure job and an active bank account. Also, you must be a UK citizen. The loan is basically secured against the salary of the applicant, which is why many lenders are not keen on knowing the purpose of the loan or getting a credit check done.

On the flip side, personal loans are expensive, with interest rates being very high. As such, you may to repay the loan on time, or eventually, you may have to deal with additional consequences, charges, fines and penalties, which are also high. With personal loans, you need to understand that the debt is just shifting from your current situation, and therefore, you cannot use such loans to mask your spending. The costs remain high, but despite that more than £170 billion personal loans and unsecured advances are taken in UK alone.

Final word

You can apply online instantly for payday loans, and the approvals are instant. In most cases, people get the money in just a day. If you don’t want to wait for a bank loan, this is the best possible option you may have. Just check the terms and conditions and make sure that the repayment terms are acceptable to you.