24 Hour Loans – Can Direct Lenders Do This?
We all know what it’s like when a sudden expense comes up, but you’re short on cash, and you’ve got no savings to fall back. When there’s no one to turn to, a loan seems to be the best solution for situations like these.
When the need for cash is so urgent, you want a loan that is fast and hassle-free to obtain. Lenders saw this need as an opportunity, thus 24 hour loans are made available. From its name alone, you’ll know that 24 hour loans are an easy way to get your hands on extra cash immediately. For whatever reason you may need the money for, you’ll surely get it covered in no time.
When you take out a loan from a bank, the application process often takes days and even weeks. And, if your credit score is low, a bank loan might not be suitable for you because banks require a healthy credit record.
What are 24 hour loans?
24 hour loans are small borrowings in which you can pay over a short period. Since these loans are small amounts, they are unsecured type of credit. This means you don’t need a guarantee or collateral to get one. The lender grants you a loan with the trust that you will make repayments on the agreed schedule.
24 hour loans come in handy for those who are in the middle of unexpected situations such as a financial emergency, urgent home or vehicle repairs, and medical bills. You won’t be asked what you need to money for though, and you can even use it for groceries, short trips or just for the sake of having cash in your pocket.
24 hour loans often have loan terms as short as two to four weeks. 24 hour loans like these usually fall on the category called payday loans. However, there are lenders who offer longer repayment period, typically three to six months. You’ll be expected to repay the entire loan amount, which comprises of the amount borrowed or the principal, the interest, and other fees.
With the speed and convenience you get from 24 hour loans, you should expect that the interest rate of these loans are extremely high, especially when you have a low credit score. Since 24 hour loans are unsecured, the loan is only dependent on the your creditworthiness. This means that the decision of the lender to offer you a loan, the amount the lender will allow you to borrow, the rate of interest, and other fees are based on your credit score. The higher your score, the better deal you get.
Other requirements for 24 hour loans are general such as being a permanent resident in the UK, being over 18 years old, having an active UK bank account, and other personal and financial details. Your employment history may also be checked as well as your address, and proof of identification.
Benefits of Online 24 hour Loans?
- Speedy Transaction
Unlike traditional loans and credit cards that take a long time to process, 24 hour loans are so quick to process. There’s no arguing to that, as its name suggests. With no filling out of lengthy forms, sending piles of paperwork, and no waiting for several days, you can absolutely expect to get your money within the day.
Majority of 24 hour loans can be obtained online. The convenience you get from applying online is the main advantage of 24 hour loans. You can apply for a loan remotely with only the internet and your computer or mobile gadget. You just click through the lender’s website, and you can submit your loan application from your own home or office with only minimal paperwork involved, if any. You don’t have to visit the lender’s local branch or make calls and appointments.
- Lenient and Flexible
Most 24 hour loan lenders do not do a hard credit check, and loan approval is based on other factors. Traditional loans require collateral or a sort of guarantee, but you don’t need one for 24 hour loans. Even if you have a low credit score or if it’s your first time to borrow and you have no credit yet, you can still get a loan approval. What the lenders want to see is for you to have a an income and that you are capable of repaying the loan.
- Helps rebuild your credit
As the law set by FCA mandates every lender, lenders pull out and assess your credit record each time you apply for a loan. So, it is an understatement to say how important it is to maintain a good credit rating as much as possible. Banks and traditional lenders most often refuse to offer loans to people whose credit scores are low.
Fortunately, you can qualify for 24 hour loans even with a poor or bad credit or having no credit at all, as long as you have a sort of income whether it’s from employment or benefits. Once you get a loan, you can improve your credit record by paying the monthly repayments on the agreed timeline.
Understanding How 24hr Payday Loans Can Help You!
Online applications for 24 hour loans get an almost instant feedback and quick approval as long as you provide all the details needed. The loan application of 24 hour loans is a fast and simple procedure. You can submit an application in minutes, and will immediately know if your loan application is approved or rejected.
In taking out 24 hour loans, all the interaction involved takes place online. Since it’s online, these lenders operate even beyond business hours, so you can submit a loan application straight from the comforts of your own home or office at any time of the day or night.
Once you get a loan approval, it takes as little as a few hours to have the money transferred to your bank account. You can definitely expect to get the funds you need within the day, hence its name “24 hour loans”.
305.9% APR. £400 borrowed for 90 days.
Total amount repayable is £561.92 in 3 monthly instalments of £187.31.
Interest charged is £161.92, interest rate 161.9% (variable)
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