When it comes to payday loan lenders there are a number of different resources which are available. Whether you are looking for the ability to borrow a small sum of money until your next pay date or perhaps repayments of the sum over a number of pre-agreed monthly repayments, payday loan lenders are likely to have a resource to match your needs. That said the market which homes payday loans and their lenders has changed quite dramatically in recent years and as such the market which once was, is now functioning in a very different way. Changes to payday loan lenders and their products can be attributed to the Financial Conduct Authority, also known as the FCA, who took control of the entire markets operations in 2014. Since the time of FCA taking charge many payday loan lenders have left the market and those who remain, offer a service and product which specifically meets the FCA’s requirements. This of course is great news for consumers as it means those lenders who were not effectively serving the short term borrowing needs of consumers no longer exist and those who do remain, do so in a professional and focused manner thanks to the FCA’s efforts. All those who are classified as a payday loan lenders must be FCA approved to trade and if approval is not granted, the lender has no choice but to stop trading.
One of the key faults of lenders recognised by the FCA was their inability to correctly assess an applicant in terms of their true ability to afford the resource being offered to them. This highlighted to the FCA a lack of the application of affordability in terms of the approval process adopted by lenders. Instead of looking in-depth at applicants current and previous credit performance and combining this information with the cost of other monthly expenses faced by the applicant, lenders were often approving loans in a somewhat ‘blind’ fashion. This meant loans were granted which, in all honestly, some customers simply did not have the means to then make. When the FCA discovered this fact it gave them the basis for new rules and guidance in terms of better assessing the affordability of each and every applicant. The end result is a lot of hard work and commitment from lenders to adapt their approach to lending and in doing so make better and more evidence based lending decisions. This is fundamentally why nowadays a payday loan lenders application will ask that the customer provide an accurate and honest monthly budget. The budget needs to include all of the customers regular out-goings and then the lender can assess this information as part of the application process. Lenders in todays market will then compare this information to information which is available in the various different Credit Reference Files. The completion of this process is known as an affordability assessment. This check forms the basis for how lenders decide is a loan request is ultimately suitable or not.
If someone is accepted on finance particularly from the financial place, if they take the loans out they must then be repaid. Any person must repay the debt as agreed with the financial lender and they should always do this on every occasion. Failing to make the required repayments on finance will nearly always result in severe negative consequences for that person and most people will then always want to avoid this from ever happening. It will not matter whether someone has borrowed a short term loan, an instalment loan over a potentially longer period of time or credit cards to name a couple, the debts must be repaid. Below is just two common occurrences that will happen if the repayments are not made on the finance when obtained.
If repayments are missed on let’s say short term loans for example then that company who are owed the money can contact the person to get the money. They will have every right to make contact on all the valid contact numbers they have available for that borrower. This can of course include home, mobile numbers and also calls to the debtor’s work place. They will just need to get hold of the person to see why the repayment was missed and also when they are able to make the overdue instalment. Letters and text messages can also be sent to the person to chase the money. It can be common that when a person is being chased for money especially when letters are sent or calls are made to a work place, it could lead to other people finding out about the debt and no one would want this. Being chased for money that is owed in general is often a stressful time for anyone to go through.
If someone has a short term loan or other borrowing type and they miss their required repayment, they will often see their credit score then get negatively affected. This can be a problem for a high number of different people should they then as likely to need to borrow again in the future. If repayments become overdue on short term loans and if they are not repaid for a while the lender who is owed the money can mark it on a person’s credit file that they are behind on the required repayments. If the account is then heavily overdue for a prolonged period of time then the file can be marked with a default and this is the worst case on the file. This can make it harder to approve finance for the future as a lender will view these files before making a decision as to whether or not they can lend to someone. Having this occur can have further importance for people should they at some stage need to borrow money to make a really significant purchase in later life. This could be a real problem for someone looking to borrow a mortgage at some stage or perhaps a new car as required. Lenders who offer such a product can often decline applications if people have bad credit and have struggled maintaining other debts in the past.
If anyone is ever looking to borrow finance that person must always consider a number of different things before they can then look to make any form of application. First of all any potential borrower must always know that they definitely need to borrow the finance in the first place and then if so they must always then only select a realistic amount to then borrow and one that is affordable for them to repay. Once that has been looked into the type of borrowing can then be considered. From the financial market place these days people can often look to borrow both short term and instalment loans for when a loan is required, here people can then borrow a selection of different loan amounts over a number of different repayment terms. Credit cards are another very common way to borrow money. As well as any borrower choosing the type of finance they need they must also select a lender to actually apply through. Some lenders out there are better than others so bear that in mind. Within this article I am going to focus on the lender Lending Stream and what they offer to their own customers.
Lending Stream are a large UK based financial lender who aim to provide to their customers short term loans. They are a massive lender in this industry and they help to aim to supply these loans to a high number of different people. I have found that more and more people are turning to this way of borrowing money so Lending Stream will be frequently used. They allow people the chance to borrow amounts ranging from £100.00 to £450.00 for first time applicants or repeat can apply for amounts up to £1500.00. People are then required to repay the debt back over a standard repayment term of six months. This is the basic term offered on their short term loans but people can of course at a reduced rate repay the debt earlier if they wish to.
Lending Stream can offer flexibility on their loans which I believe is always going to be a benefit to most people. It varies from payday loans where the full balance is required to close any account in full. Another benefit of using this lender will be the fact that people with bad credit can apply for this finance and on occasions this can be very useful as they may not have many other borrowing options. People can also get these loans quickly for when cash is needed. People can apply for the loans online in a quick and simple process that should only then take a matter of minutes to complete. If that same application is then approved from the lender that person can then often expect their money that very same day. In fact most people will be funded in their chosen bank account within a matter of quick minutes. People can honestly look to borrow money that quickly and this is probably one of the biggest benefits that they offer.
If anyone is ever looking to borrow money from the financial market place, they will always have to consider a number of different things before they can then look to even apply for the finance. First of all they must know that they definitely need to borrow the money in the first place and then if so they will always have to choose a realistic amount. Any amount if obtained must then be affordable for that person so they can be able to repay the debt. Once this has all been looked into the type of finance can then be considered. For example would short term loans or instalment loans be considered. Here people can often look to borrow a selection of different loan amounts for repayments then due back over a number of different repayment terms. Credit cards are another common way people tend to use when they need to borrow. As well as the type of finance being looked in to the lender must also be chosen. It is the actual lenders people use that I will explain now about in more in detail. I will focus on the financial lender Lending Stream and what these offer to borrowers.
Lending Stream are a large UK based financial lender that can help people obtain short term loans for when this way of borrowing is required. This is a common way people use to obtain loan amounts usually ranging somewhere between £100 and £500.00 for people to then repay the debt over a short time frame. Lending Stream do fall under this borrowing category as they can offer first time borrowers amounts up to £450.00 or good returning customers can look to borrow amounts up to £1500.00. They then offer repayment terms up to six months for people to use that time frame to clear the debt. People can of course repay the debt up until the six month time frame and any early repayments can save the borrower on interest. This certainly gives people flexibility on the finance when any amount is borrowed.
I do strongly like the flexibility that these loans offer as people can budget the loan over a time frame that certainly suits them. With some short term loans such as payday loans, once borrowed they are required to be repaid back to the lenders in full just as soon as a person is paid form their employer but this is not the case with Lending Stream. It is also common that people with bad credit can look to apply to this lender. Lending Stream do offer their finance often to people with bad credit who may then have limited other borrowing options. That is another great benefit to this borrowing as people with bad credit can often need to borrow but major lenders such as banks will not be able to help. However, having said that it can be common that this lender could help. Always remember with this that some bad credit loans could turn out to be expensive.
If anyone is ever looking to borrow money, that person regardless of what they need any amount of money for, they will have to consider a number of different options before they can then look to make any form of application. First of all the potential borrower must be certain that they need to borrow money in the first place and then only a realistic amount can then be looked into. When applicable any amount obtained must then be affordable for the person to then repay the debt. The type of finance can then be looked into for example, is someone looking to borrow a short term loans perhaps or maybe an instalment loan in looked into as a loan borrowing alternative. Credit cards as well are another very common way of borrowing money. Then as well as considering the type of finance the lender must then be chosen to apply through in the first place. Within the financial market place there is a very high number of different lenders and some will certainly be better than others in what they offer. That is another thing to always bear in mind.
One common way people still use in order to borrow money would be that of payday loans. Payday loans and other short term loans in recent years have certainly become much more common in recent years. It just seems that more and more people are turning to this way of borrowing when they need loans. This can be a common way people use to obtain small amounts of cash encase of a financial emergency. Never should payday loans ever be used as a long term borrowing solution. People here tend to borrow amounts ranging between £100.00 and £500.00 and people will then repay the debt over a short time frame of a matter of months. With the payday loan, people borrow a set amount and then they are due to repay that debt with interest just as soon as they are paid again from their employer. These loans especially payday loans are often by many seen as an expensive way to borrow money for a very short period of time.
In contrast these days the same payday lenders can offer people instalment loans which will act as a very common borrowing alternative. Here people can borrow similar amounts to that of payday loans but then they can repay the debt over a longer time frame. Some of these loans be the considered short term loans as they are still repaid back to lenders within the maximum twelve month time frame however, other instalment loans can then be repaid back over a longer period of time should they choose to. Such as the flexibility that this finance offers, there can also be some borrowers who will look to obtain higher loan amounts and then repay these debts over much longer period of time. With some of these loans a really high amount can be borrowed for example a mortgage is actually a type of instalment loan.
There can certainly be times when a high number of different people at some stage need to borrow money. This can be down to such a high number of different reasons and some people may also need to borrow larger amounts than others for different reasons. For example someone may be looking for a large amount of cash as they need to make some form of expensive one off purchase of some kind. This could possibly be for a new house perhaps or maybe someone is looking to borrow money for a car etc. There can then be in contrast others who only need a small amount of money to possibly pay an unexpected bill perhaps or they could just need some additional funds to help tide their funds over until they are next paid from their employer. Now regardless of what anyone ever needs any amount of money for, if they have this saved away they can look to use this as required to pay for what they need. Some people may then have enough outright to pay for whatever they need and want. If that is not the case then people will have to look at borrowing the money. Instalment loans to name one example are a very commonly used way of borrowing.
I think it will be fair to say that when most people are looking to borrow money they will firstly look to approach friends and family to get the money this way. This can be much more common if only a small amount of money is needed. They know that they can borrow money quickly this way and then just repay back the debt as soon as they have the required funds to do so. They will also only pay back exactly what they borrowed in the first place making it interest free borrowing. If financial lenders such as payday lenders amongst others interest is charged on any amount borrowed and some borrowing works out to be expensive such as payday loans. This loan is often by many seen as a way to borrow money albeit quickly but expensively and only a small amount of money is usually then obtained and then repaid over a very short time frame.
Instalment loans are the commonly used alternative to payday loan borrowing. These instalment loans are actually the most common type of financial borrowing located in the financial market place. Here people can borrow such a wide range of different loan amounts and people can then repay the debt back over a number of different repayment terms. Some of these loans can be for small amounts and similar to what payday loans are lent such as amounts up to £500.00 or other lenders can offer instalment loans for amounts up to many thousand pounds. Some of the debts are then repaid over many years. A mortgage is a very common type of instalment loan borrowing so just from there people can see how common these loans really are. These loans can often be applied for quickly and when people are approved they can often receive the money in their chosen bank account that very same day. When most people aim to borrow they will most likely want their cash quickly and at their disposal as soon as possible and here instalment loans can almost certainly help with this.
If anyone is ever looking to borrow money and they are looking to do this from the financial market place, that person must always consider a high number of different things before they can then even think about making any form of financial application. First of all they for instance must know that they definitely need to borrow money in the first place and then if so they should always only look to borrow a realistic loan amount. Any amount when obtained must then be affordable for that person so that they can then make sure the debt is repaid. Once all that has been looked into that person can then look to choose the type of finance that they wish to borrow. For example to name just a couple of borrowing type’s people can look at both short term and instalment loans if a loan is required. Credit cards are also common as a way to borrow finance. As well as people considering the borrowing type they must then also choose the lender to apply through. Once all of this is considered then people can then look to submit some form of application.
In this article I am going to focus more on instalment loans and explain what these offer for borrowers. These are actually the most common type of financial borrowing in the market place as so many people from all over the world have or have had one of these before. They can be a common way people use to borrow such a wide range of different loan amounts. People can borrow usually small amounts if they just need a small cash loans for amounts for let’s say somewhere between £100.00 and £500.00. Other people may then need to borrow higher loan amounts and these situations people can often look to apply for this. Some instalment loans can be obtained from high street lenders for example for many thousand for when a larger amount is needed. A mortgage as well is actually another commonly borrowed instalment loan.
There can be some people who have bad credit and as a result of this they find obtaining finance difficult to come by. Some lenders such as payday lenders or payday loan lenders can still look to offer finance to these such people. Some actually offer their financial products towards people who struggle to obtain finance elsewhere. This can be useful for when someone needs cash yet they have limited other options available. Another benefit of instalment loans is the fact that most lenders who offer this can aim to provide people with the loans quickly. When everyone borrows money from the financial market place, the chances are they will want the cash quickly and at their disposal as soon as possible. Most instalment loan providers can provide this in such cases. People apply for the loans online during a quick and simple process that should only take a matter of minutes to complete. If that same application is then approved that person can often look to get the money in their chosen bank account the very same day.
If someone is ever looking to borrow money, regardless of the amount needed and for what purpose, that person may then be interest as to what happens once they submit their application. This can vary but most of the time the process will be similar. No matter whether a person has submitted an application for short term loans, or instalment loans for a potentially higher amount, credit cards to the stages should be similar. Below is further information regarding this.
When a potential borrower is looking to apply for loans such as short term loans for example, they will be required to complete a part of the process regarding their personal information. They can often need to supply details regarding their name, their address, employment details as well as their contact numbers such as home, mobile and work contact numbers. They can also be asked to confirm their bank and card information for any financial underwriter to review this information. It can be common that before a lending decision is made all this information will be reviewed by the payday lenders and then if they need to verify the details then documentation at this stage can be required. Just two examples of these would be a bank statement or a driver’s license among others.
Another common part of applying for finance through payday lenders is the credit check completed by the lender. This is when a lender calculates the chances of someone repaying a debt should they be approved for the finance. The lender can carry out a credit check on any applicant and this can then often show them how the potential borrower has fared with other debt payments in the past and over the last few years. They use this information and often the applicants credit score to see if they can offer them a loan or other borrowing type. If someone has good credit then they are far more likely to be accepted for finance than someone who has poor credit and a low credit score as a result of this. Some payday lenders however. Having just said that can offer short term loans or other loans to people who have bad credit and who may struggle to get money elsewhere.
The final stage on any financial application will of course be the final decision from the lender. This is when the customer finds out whether or not they have been approved on their application. If someone is declined then they can should they wish to apply elsewhere to try to get the funds approved. If on the other hand they are approved, that person can then look to liaise with the lender to see how long it will take for them to get the finance paid out into their chosen bank account. There are so many factors on top of the above elements that can determine whether or not an application can be approved. Once the final decision is reached the lender also does not have to explain the reasons why they came to it. They can for instance just say unfortunately we are not willing to accept the application.
There can certainly be occasions when a high number of us want money and this can definitely be down to a high number of different reasons. There can be some people who are only after a small amount of money to possibly just have some help paying a bill perhaps or instead they could just need some help just making their wages last until they are paid again by their employer. Other people in contrast may require a large amount of money as they are looking to make some form of expensive purchase. This could then be a new car perhaps or maybe someone is looking to put money towards home improvements among other purchases here. Now no matter what anyone ever needs the money for or no matter how much is required if people have this saved away they can then use it as required to then pay for what they need. Some people may then even have enough saved to pay for their requirement outright. If that is not possible to use savings then the people may need to borrow the money. Below is information regarding what direct lenders can offer to potential borrowers.
The financial market place can really look to offer people so many different borrowing options. It can be because of this that no one should ever rush into applying for finance until they have fully explored exactly what options they have available. For instance a potential customer with good credit is far more likely to be approved for finance than someone who has bad credit as has missed similar financial requirement payments in their past. If a loan is required from the market place then both short term and instalment loans could be borrowed from a range of different direct lenders. This is useful as people can then look to borrow such a wide range of different loan amounts for them to then repay the debts over a number of different repayment terms. It is likely with the latter instalment loan can potentially be borrowed for higher amounts and then can as a result of that be repaid back over a longer period of time. Instalment loans are actually the most common type of borrowing.
Some direct lenders can offer people credit cards as a way to borrow money. These are often a solid substitute if a loan is not needed. So many people from all over the world have or have previously had a credit card previously. These allow people the chance to pay for different items as well as withdraw cash on credit up to a set limit via the use of the card itself. People are then billed for the card at a set date of the month and then they will be required to make a minimal payment, the full balance or someone in-between. They can repay the debt as soon as they are paid again from work. These are flexible as people can pay for what they can afford and can pay additional amounts should they wish to. Some credit cards are better than others in what they offer regarding benefits and interest charges etc.