Before you even apply for a loan, you need to ask yourself a few important questions.

Can I afford to pay the loan back?
This is the most crucial thing of all to ask yourself, as you should only take out a loan of any kind if you are positive that in the future, you will be able to pay the loan back. Consider your future earnings and financial commitments and only borrow as much as you’ll be able to pay back later.

What happens if I can’t make my loan repayments?
After numerous demands for repayment, a lender could potentially take you to court to recover the money. The court could order you to make repayment (plus any extra costs). You could also end up with a bad credit rating if you fail to make repayments on loans, which could affect you getting any other kind of credit in the future.

What will my commitment be?
Before you take out a loan, you need to fully understand how much you’ll be expected to pay back each month and how long you will need to continue making repayments.

Is there any chance my circumstances will change?
If your work situation, for example, may change before the end of the loan period, you may not be able to make your repayments. You should think carefully about this before taking out a loan.

Cash till payday loans attract a lot on negative publicity due to their high rate of APR which can be anything between 1737% and 5000%.  The amount of loan that can be accessed can vary between £50 and £1000, so of course if you couple this with these rates of APR, it does have worrying implications.  However the economic situation as it is does nothing to discourage customers from turning to payday loans.

Ever since 2007 when the Lehman Brothers collapsed, sparking the beginning of the economic recession, the UK has been plagued by bad news.  The government has announced and indeed put into practise its austerity measures, there have been millions of job cuts, wages have been frozen, hours have been cut and inflation continues to rise.  Recently, senior figureheads of the Bank of England and government MPs have all gone public with their fears that these conditions are here to stay for at least another five years, if not longer.

All of these conditions impact on every single household in the UK.  One in ten workers are unable to make their wages last for an entire month and 12% of these workers turn to payday loans for financial assistance.  According to research up until April 2012, employees were approximately £150 worse off which meant that they were unable to meet their housing, utility and food bills.  People under the age of 25 are most affected.

Whilst payday loans might not be the perfect solution for households who cannot meet their outgoings, it is very difficult to signpost them to another alternative financial solution as banks are simply unwilling to lend in the wake of the banking crisis.  Until the economy stabilises or the financial institutions offer an improved lending service, there will continue to be a demand for payday loans from UK households.

About The Author: Laura Susstance is a content writer from the UK, when not writing on a freelance basis or writing guest blog posts, she regularly writes on her own blog: http://www.fastpaydayloansreview.com

1) Getting a Grasp of When to Apply for an Unsecured Loan

If you’re thinking of applying for a loan, it’s important to first determine if it is the best option for your situation.

An unsecured loan is most beneficial for those looking for a quick cash boost to cover any unexpected or emergency costs; for instance, your boiler breaking down or repair costs for a damaged car. Life sometimes has a way of throwing annoying large costs our way, but a loan may just act as that all important “Plan B” to cover things which your monthly budget couldn’t have predicted.

Remember, loans are best used as an emergency source of funding. If you are able to pay for all of your expenses without the aid of a loan, then it’s better to not take one out at all.

2) Only Take What You Need

All loans come with interest, so it’s crucial to only borrow the money that you need. Loans shouldn’t be used for taking your family out to dinner every night, so make sure that you only ask for the amount needed to cover your emergency costs. Your loan should just cover those costs which you are unable to fund yourself — think of your loan as a short-term solution to an occasional problem, not a long-term solution to an ongoing issue!

3) Work out a Realistic Re-Payment Schedule

Your lender will work out a payment schedule for you, but it’s important that you plan and budget for these payments so that you are able to easily meet them each month. Of course, the payments will depend on the amount you take out, so make sure that you only borrow an amount you’ll be able to comfortably pay back.

Good lenders will allow you to gradually repay the amount in steady monthly instalments, meaning that you’ll be able to comfortably work the payments into your monthly budget so that you won’t have to worry about any nasty repayment surprises.

4) Pick your Lender Carefully!

There are a lot of loan companies out there who promise to give you all the cash you need whenever you want it. Don’t get sucked into this temptation, as making your application without reading the small print first could prove disastrous in the long run! Not all companies have your best interests at heart, so it’s well worth taking the time to find the right lenders.

There are a few features you can look out for in order to sort the good lenders from the bad.  Testimonials offer a great indication of the service you can expect to receive, so be sure to read what others have to say. Also take the time to read the terms and conditions, and find out what you can expect to repay, and over how long. A good lender will have a support team at hand to answer all of your questions, so if no help is in sight it might be best to steer clear….

Now that you’re an expert in when to apply for unsecured loans, you should be able to accurately assess your own situation to decide whether a loan is the best option for you. Don’t be disheartened if you’re not approved with the first lender you try, as each has their own individual terms for approval. With that said, there’s nothing left to say except good luck and happy loan hunting!

Written by Holly Earp, on behalf of Pounds to Purse – a responsible lender of unsecured loans.

You naturally wonder why you were turned down. It is more difficult to get a mortgage today because lenders have tightened the standards they use when deciding who should get a loan. You need to educate yourself about the lending process in order to present yourself in the best possible light to increasingly critical lenders. Read on to discover five reasons bankers decline home loans, and learn how to avoid these problem areas.

1. Too much debt

Financial institutions take a close look at your total debt when deciding whether to give you a mortgage. They prefer that an individual’s housing cost stay at 33 percent of gross income or below. They like to see consumer debt kept under 5 percent of gross income. If your consumer debt, which includes credit card and auto payments, goes over 5 percent, it slices into the 33 percent allocated for housing costs. The higher your consumer debt, the smaller the mortgage you can obtain. Experts agree that those possessing a debt-to-income ratio above 50 percent are courting financial disaster. Take care to keep your credit card debt low by living within your means and your banker will take a more favourable view of your financial record. If you have existing mortgages on other properties you may have to sell a property or spread your exposure out across several financial institutions to secure another mortgage.

2. Changing jobs

Financial institutions look for stability and consistency, especially when it comes to your employment, and changing jobs might make it more difficult for you to obtain a home loan. Lenders prefer to see that you stayed at your job for at least two years. If you have moved to a better-paying job in the same employment area or a similar area, your chances of obtaining a mortgage should not suffer. Be careful, though, if you are thinking of moving to self employment from a salaried position. When you become self employed, you no longer have any degree of salary consistency to demonstrate on your loan application. Lenders are more careful about lending money to self-employed mortgage seekers and employees who rely heavily on sales commissions in their work.

3. Wavering credit score

Several months may elapse between filling out your mortgage application and finalising the loan. Make sure you make all payments on time during the mortgage application period. Your financial institution may make more than one check on your credit during this time. Do not open any more lines of credit. When you take on more debt, you make the lender question your financial stability. Do not apply for credit cards, since credit inquiries will affect your credit score. Before applying for a mortgage, check your credit report, there are many websites that will do this for you for free. If you find errors, report them to the agency in question. Resolution may take several months.

4. Missing mortgage payments

Missing a mortgage payment is a red flag to a mortgage lender, so it is vital that you make all of your major payments while applying for a new home loan. Any payment made 30 days after the due date is considered past due. Financial institutions will regard you as a credit risk if you fail to keep up with your current mortgage. A steady job and low expense ratio may allow you to get conventional financing if you have had just one late payment in the previous 12 months. Make more late payments, though, and financial institutions may turn you away. Discuss any payment problems with your current mortgage holder so that you can work out a solution.

5. Overlooking details

Study every form you encounter during the application process very carefully. Take the time to understand the forms in front of you and what you are filling out on them. Provide only complete and accurate information. Do not leave blank spaces or miss any details. You are seeking to borrow a very large amount of money, so your financial institution wants to know everything about you and your financial history.

Bio

Andrew Potter has been an estate agent for over ten years and regularly contributes articles to the UK finance and real estate arena. Andrew runs My Online Estate Agent one of the fastest growing online estate agents in the UK. My Online Estate Agent provides all the tools and guides you need sell or let a property for a one off fixed fee.

Interest Rate Regulations
All states have differet regulations regarding payday loan interest rates. Some states cap interest at a certain dollar amount per $100, like $10 per $100 borrowed. Other states impose graduated fees based on the dollar amount borrowed: $20 for the first $100, $15 for the second $100, $10 for the third $100, and so on. Still other states that legalize payday lending cap lenders at a percentage of the loan amount, like 20% of the total amount borrowed. Some states like Rhode Island impose very strict annual interest rates at 36% or less. Rhode Island has the lowest interest rate cap in the country at 28% annual interest. They also have the lowest number of payday lenders, which hurts consumers by taking away their financial choice.

Loan Amount Regulations
Many states limit the amount of cash that payday lenders can offer to $500. Some states allow lenders to provide loans up to a certain percentage of a customer’s income, while a few states don’t impose any restrictions at all.

Regulating loan amounts is meant to benefit consumers, protecting them from borrowing more cash than they can afford. Payday loans are designed as small, short-term loans, not meant to exted past the customer’s next paycheck. Writing laws to keep loan amounts small – at $500 or less – ensures that consumers won’t abuse the loans that payday lenders provide.

Payment Plan Regulations
Plenty of states that legalize payday lending ban rollovers, as they’re often seen as debt traps that do consumers more harm than good. Many states require lenders to offer some kind of installment plan in addition to full payment and rollover options.

Make sure you know and understand the payday loan laws in your own state before borrowing a cash advance of your own.

In a serious financial situation and need cash fast? Check out CashAdvancer.com and MyPaydayLoanCash.com for any cash advance or payday loan needs

Interest rates on payday loans are significantly high and if you already have access to an overdraft facility with your bank that would be a much cheaper option. Payday loans can come with an interest rate of up to 2100% meaning they should only ever be considered as a short-term solution.

Payday loans have a couple of distinct advantages to counteract their high interest rates:

• Eligibility is straightforward: All you need is an open UK bank account with a debit card / cheque facility and a steady provable income.
• There are no credit checks: If you have a poor credit score or CCJs then you will still be eligible for a payday loan as there are absolutely no credit checks.
• Fast way to access some cash: Most providers bacs the cash directly into your account the same working day. The amount you can borrow will depend upon what loan provider you choose but you should expect to be able to borrow between £80 to £1800 depending on your income each month. If you are paid weekly you are still eligible – Most providers make the cash advance payable after the fourth payday.
• There are no awkward questions: Most providers will not ask you what you want the loan for, they are only concerned with whether you are able to pay back the loan when agreed.
• Self employed? – There will be more checks to confirm you do earn a regular income but this should not affect your eligibility.
• Loans are confidential: Your employer should not be contacted and nobody will know that you have taken a payday loan unless you specifically agree to your personal data being shared.

Providers will detail what documentation you need to show to be entitled for a payday loan but generally they will ask for: your latest 3 month’s bank statements, wage slips, proof of address and your debit card.

Payday loans should be repaid when you get your next wage but if something unexpected happens your loan provider may let you just pay your first month’s interest, charge a small additional fee and let the loan roll over to the following month. You can only take out one payday loan at a time.