More Things You Shouldn’t Take out UK Payday Loans for

Payday loans UK are a great way to get some emergency funds for various purposes. On the other hand, there are certainly some things you shouldn’t spend it on because they’re not really emergencies. They include gifts, repaying friends/family, and vacations. Here are some other things you probably shouldn’t spend money from such short-term loans on:

1. Preventing pawning

It can be a tough decision whether or not you should pawn electronics, family heirlooms, etc. as a last resort. However, studies show that people who take out payday loans to avoid taking that step usually end up end up implementing the last resort anyway. The key is to find other sources of income that don’t involve loans. 

2. Business investment

There’s nothing wrong with investing money in business, and in fact it can be a wise move. However, you probably shouldn’t spend emergency money from UK payday loans to fund them. The main reason is that business investments are usually long-term, while payday loans are the opposite. If you’re planning to invest in a particular business, you should probably consider getting the funds from a different source. For example, you could consider other types of loans besides pay day loans, or even wait until you have the cash to make the investment

3. Gambling/Casino

One of the main problems about gambling is that it’s often difficult to beat the house, and especially when playing games such as slot machines. However, even with that fact, it’s highly advisable not to take out short term loans such as pay-day loans  in order to gamble money at the track, casino, etc. These are certainly not emergencies, and spending money for such items can result in you getting into debt, or adding more gambling debt to an existing one.     

4. Paying off other payday loans

This can put you into a vicious cycle of debt. There’s nothing wrong with taking out a payday loan from time to time if you need some emergency cash. However, considering the rates can be quite high, you can get buried in debt if you take out another payday loan to pay off the first one. It’s better to find other ways to make your payments.

5. Avoiding overdraft fees

You certainly should try to avoid overdraft fees, and similar types of fees/penalties. However, you should also keep in mind that the cost of such fees is relatively small compared to the highest interest rates charged for payday loans.

You can save a small fortune by simply taking other fees to avoid paying overdraft fees. In particular, look for ones that will charge lower interest rates. Paying high rates for somewhat low fees isn’t a good move, and can result in you digging yourself a pit of debt.

One of the best steps to take is to avoid needing to pay overdraft fees to begin with. If you’re having financial problems it can be tough. However, by doing your homework you can likely find ways to prevent not spending more money than you actually have, and thus avoid potentially major debt. 

http://ift.tt/29byTzE

Things You Need to Prepare to Approve Your Loan

When a person is in need of a loan but has no idea as to what is needed to be prepared before hand, u have things may not go as planned. If you have applied for a loan before but unfortunately, have been rejected, it is possible that some errors have been made on your end that made the lender second guess and ultimately, decline your application.
So, in connection to that, here are four ways to help you prepare for a loan in the future.

1. Have all specified requirements ready

Having all the requirements ready when applying for a loan plays a vital role in increasing the borrower’s chances of having his or her loan application granted especially when you are looking for a certain loan category in your chosen lender’s website. Mistakenly choosing a type of loan without studying the details and requirements of that category will not only create damage on your application but will also mess up your reputation as a capable and reasonable borrower.

2. Know the APRs
High APRs can and will increase your repayment higher than what it is supposed to be. It will definitely do you good if you opt to discuss the details of the APR with your specific lender. If not, your loan will only be a burden on you instead of making your financial life easier.

3. Get a better credit score
Lenders take your credit history to heart, and by all means you should too. Your credit history will make or break your loan application. If you have applied for numerous loans before, have been declined more than once for a variety of reasons, or have a long history of missed or late payments, your credit record will definitely need polishing.
To improve your credit score, make it a habit to check your current credit rating. This will help you know where you are financially and know which areas you need to improve. Get your credit report from agencies such as Callcredit, Experian or Equifax.
Never forget to pay on time. Late and missed payment dues are recorded will stay in your credit record for years. You will also need to stop making too many credit applications. When you have an unreasonably high number of credit applications in the past, lenders might see this in a negative light and will increase the likelihood of declining your current application.

4. Make sure you are not being scammed
It is not a secret that there are unauthentic lenders all over the world. A certified lender will see to it that you understand the ins and outs of your intended loan. They make sure procedures are well tackled and none will be left out.
Lenders who are out to make a fake deal with you will rush through the process just to secure cash out of you. So be careful in scrutinizing the details and reputation of your chosen lender.

There are so many other sure fire ways to guarantee you a loan, but the tips above are the very basic guidelines one can use to have your desired loan. Just make sure to follow the necessary steps above and you will be well on your way to getting your dream house, car or holiday. Also see payday loan if you are in need of emergency money.

http://ift.tt/29byAEJ