What are your options if you do not want a Payday Loan?
The most obvious answer is, of course, an Unsecured Personal Loan over a period of 3 to 18 months.
Affordable alternatives to the traditional ‘Payday’ type of loan (whereby a sum is borrowed and repaid on the very next payday), do exist and can offer some much-needed help for many.
Our Payday Loan Alternative provides a much more flexible approach. It is a loan solution aimed at spreading your repayments more affordably.
One-month loans certainly have their place and are ideal if you know you can repay them within the fixed one-month timeframe or sooner. However, if you are unsure or need a larger sum, then a more flexible loan – an instalment loan – is possibly going to serve your needs better. Instalment Personal Loans are generally cheaper too and can be less stressful as a result.
By definition, an unsecured personal loan does not require any collateral. You do not need to own your own home or provide any form of guarantee. The Application Criteria may vary slightly from Lender-to-Lender but the basic requirements are:
If you meet the basic requirements above, then you are eligible to apply. A successful Application is dependant upon other factors too, mainly your ability to repay the loan.
Can you afford a Personal loan?
The first thing you should do – before you apply – is to work out all your incoming and outgoing finances. Make a list and see what you are left with.
Your list should include most, if not all of the following, as applicable to your situation:
Gas, Electricity, Water, Council Tax, Mortgage or Rent, Telephone, TV and Internet, Insurances, Car loans and running costs, Commuting and Travel, Existing Loan repayments including credit and store cards, Groceries and Weekly Shopping items, Essentials, Clothing, School expenses, Childcare, Pension, Maintenance, Holidays, Personal Care (hairdresser, dentist etc) and Entertainment.
Treat the above list as a Guide, you may have other considerations to add to it but it gets you thinking about what your outgoings are so that you can compare them to your incomings. Then imagine you are a Lender and look at your past 3 months Bank Statements: do they show that you can afford to repay the loan? Remember, a good Lender will want to see that not only do you have sufficient disposable income left over for the loan, but that you still have some funds left for emergencies.
The Lender will very likely also take into account your Credit History. You can check your Credit File with Equifax, Experian and other such Credit Reference Agencies. If your credit history is poor, then you can expect the repayment interest rate to be higher than if it was good – but rest assured, there are Lenders who will accommodate customers with poor credit histories.
Once you have established your Credit Score and your Financial situation, you can then work out using an Online Loan Calculator the amount you can comfortably afford to borrow.
The chances of your loan application being approved is greatly increased by following the steps above; think like the Lender.