Payday Loans Quick FAQ
What are payday loans?
Payday loans are quick cash advances paid directly into your debit card account sometimes on the same day you apply. They are small loans under £1000 and usually around £200 to help with some small financial emergency such as unpaid bills or for repairs to your car. You must be employed in order to qualify for a payday cash advance. As the name 'payday' suggests, they are to be repaid on your next payday.
How does it all work?
When you have selected a provider, you will be asked to complete an online form with your contact and employment details. Once this is complete you will get a decision immediately online with some providers and later with others via email. When you have agreed to the terms of the loan, you will be asked to enter your debit card details so that your loan can be transfered to your debit card account usually on the same day you apply. On your next payday you will need to repay your loan in full.
How do I choose a payday lender?
It all depends on your needs and circumstances. All payday lenders have different rules to decide who they will lend money to, so if your first choose doesn't work out, try the next.
As a guide ask yourself the following:
- Will I get an instant decision online?
- Do they credit check my application?
- How much do they lend?
- Are the loans paid on the same day I apply?
- Can I sign for my loan online or by email?
- Do I have to fax any documents through?
Logbook Loans Quick FAQ
What are logbook loans?
Logbook loans or v5 loans are a type of secured loan, using your car or other vehicle as security for the loan. If you have problems getting the money you need fast then this could be a good option for you. Loans range from around £500 to £5.000 although some providers are willing to lend up to £50,000 depending on the amount of equity you actually have in your vehicle and so you can only get a logbook loan if you have paid for or almost paid for your car ot other vehicle. Loans are usually paid within 24 hours of applying.
How does it all work?
Choose a lender and apply online giving your contact number and details about your vehicle. You will then be contacted by an advisor who will go through your application and let you know how much you can borrow and where your nearest branch is. When you visit your nearest branch(usually the next day ), you will be asked to present your V5 logbook and I.D. and then you will be given your loan in cash or cheque. You can then drive away with your loan. Your loan can then be repaid in manageable monthly installments and when your loan is completed, your logbook will be returned to you.
How do I choose a logbook lender?
It all depends on how much money you need and where you live. All logbook lenders have different rules to decide who they will lend money to, so if your first choose doesn't work out, try the next.
Logbookuk.co.uk is a good place to start as it has a list of all logbook lenders based on location accross the UK.
Personal Loan Quick FAQ
What are personal loans?
Personal loans are general purpose loans which do not require you to provide any security against your loan, such as your house or car as with logbook loans. They are usually repaid over 2 to 4 years and so the repayments and more manageable and affordable. They are a good choice if you don't need money in a hurry and can wait a few days.
How does it all work?
Choose a lender and then complete an online application form. As personal loans are not for an emergency such as with payday loans, you may have to wait a week or so for your loan application to be processed and money to be transfered to your bank account or a cheque to be sent out to your address. You will usually be given your loan decision in writing and have to write back to sign for your loan, before your loan can be deposited into your account. Personal loans are a good choice if you don't need your cash in a hurry.
How do I choose a personal loan provider?
As a general guide, choose a lower APR and over the same loan period, such as 2 years, you will repay less interest on your loan. If you are refused a loan from a provider with a low APR, try a higher APR and you will have a better chance of being approved.
Prepaid Cards Quick FAQ
What are prepaid cards?
Prepaid cards can be used just like credit cards, except that prepaid cards must be topped up with cash before they can be used. The idea is similar to using pay as you go mobile phones. They can be used online, instores and to withdraw cash from ATMs.
Why use a prepaid card?
Prepaid cards have many benefits such helping you to manage and control your spending. They are a great alternative to travellers cheques when travelling abroad and come with many of the benefits of regular credit cards. Check with individual providers as the 'extras' are very different from card to card. Some prepaid cards such as Sterling Card have some really useful benefits, Sterling Card allows you to pay your wages into your card account and so you don't even need a bank account. This is very usueful if you have been refused credit or have recently moved to the UK and haven't built up a credit rating yet. Check out Sterling Card for more details.
How do I choose the best card?
This will depend on your needs as all prepaid cards have different benefits. As a general guide, ask yourself the following:
- What is the set up cost for the card?
- What is the monthly fee and what does it cover?
- What will I be charged for using the card?
- How can I top up my card? Online? In stores?
- Will I be able to pay my wages into my card account?
- Does it come with Chip and PIN security and purchase protection?
- Can I get extra cards printed for family and friends?
- Can I use it on holiday or to send money abroad?
- Can it help me rebuild my credit rating?
Debt Management Quick FAQ
What is a debt management company?
Debt management companies will help you manage your debts by negotiating with the people who you owe money to. If you have built up debts which are getting increasingly difficult to manage, then the sooner you contact a debt management company the better. Debt management companies will try to negotiate more manageable repayments with your debtors and work to get you debt free within a given period of time.
What is an IVA?
An IVA or Individual Voluntary Arrangement is a scheme run by the government, to help people with serious debt problems get out of debt. By using an IVA, you could be debt free within 60 months and have up to 70% of your debts written off. An IVA differs from a debt management plan in that an IVA is legally binding and once the repayment period, such as 60 months has finished, all outstanding debt is written off.
Debt Consolidation Quick FAQ
What is a debt consolidation loan?
A debt consolidation loan can help you reduce your monthly loan repayments by 'consolidating' your debts, that is replace all your existing debts for one monthly payment. You may owe money to various credit card and loan companies who each require a monthly repayment. Debt consolidation loans combine all these debts into one and so can lower your monthly repayment as a whole. This may lengthen the term of the loan, but allow you to repay it in one more manageable monthly payment.