Tag Archives: loans
Unsecured Tenant Loans: No issues with assets.
It is well known that getting approved for fast financial loan is not a cake walk for the tenants as they are unable to pledge collateral against their loan amount. Its the reason why the tenants avoid going for loans and use other alternate monetary aids. To make life easier of the tenants the lenders in UK has formulated a specialized unsecured tenant loans. With the aid of this scheme anyone can easily apply for the finances on the desired amount without the need to mortgage any asset.
To be eligible for a quick loan from a lender you need not place any asset as security against your borrowed amount. Thus, any person can simply apply and get approved for the money. You might end up paying higher interested rate for these financial schemes as they are of unsecured nature. These rates are negotiable, so you need not stress out on this ground.
With the UK unsecured tenant loans service you are only required to complete a simple online form with general details like name, address, contact no, employment, email id etc. at the lenders website. You can easily finish the whole process of application of the financial aid without facing any issue. After the submission of the complete online form the desired amount to be borrowed will directly be wired electronically to your bank account.
The amount of money you can borrow falls in the ranges of £1000 to £25000 over the tenure of 1-25 years. The amount of money to be borrowed is decided by you, depending on your requirement, financial ability and salary. You should remember to do the repayment on the set time as it will save you from additional penalties and gives a good impression on your credit score.
If you are suffering from a poor credit problem and your credit history reveals that you are affected with foreclosure, arrears, bankruptcy etc. it does not make a difference you will be approved for the funds still. With the borrowed funds you can satisfy your multiple needs such as credit card payments, household bills, holiday expenses, education expenses, etc.
Why not to use a Payday Loan to pay for a Vacation
We all run into those financial emergencies at one point in our life. Some people have money saved for these occasions, others use credit cards, and others again use a payday loan to fill the financial gap for the 15 to 30 days where we need the cash. This is what a payday loan is for. Be able to make it to the next paycheck. Pay for the car repair because without a car you will be out of work soon. Situations like this are where the payday loan does its duty.
However, some payday loan lenders advertise their loans to be used for normal consumer needs. Needs? Well, not really. These lenders play with your desire for having a new TV, a new iPhone or iPod, or to go on vacation. Sure, we all like to treat us to those nice things in life, but we need to be able to pay for it and not necessarily to buy these items on credit. Especially, not to buy these items on very expensive credit.
While this article is mainly written with the payday loan situation in mind, it also applies to using a credit card to pay for these items. In both cases you put a consumer purchase onto a very expensive credit account. The initial interest fee on the credit card might be lower, but statistics show that consumers easily need 18-24 months to fully pay off their purchase. That is very expensive at 18%-27% if you ask me. A payday loan is even more expensive, but it forces the customer to re-pay the loan much faster, which is a good thing. The initial interest rate for this type of loan is higher, but the time between when the loan is taken out and when it is paid back is much shorter.
So, while these are the basics the real story is that both types of loans are not designed to be used for normal consumer purchases. We all have seen what the last recession has done to consumers who were in debt way over their head. The number of foreclosures and bankruptcy filings has sky-rocketed. While some blame goes out to the banks and mortgage companies, a lot of blame has to go to those consumers who financed non-critical purchases with very expensive loan type. Everything is good while you have a job, but when the money gets tight these loans are going to destroy your financial status.
Conclusion: Payday loans are a financial product that is designed to be used in a financial emergency. It is expensive, but payday loans are granted faster than a normal bank loan + they do not affect your normal credit history. A fast payday loan is not to be used for normal consumer purchases for gadgets, TVs, iPhones, or cars. Used with the proper understanding of how these loan work is essential to your financial well being.