How To Find A Reliable Money-Lending App That You Can Use On The Long-Term?

Online services that allow you to borrow money for a short period of time have been around for several years, however, their popularity is limited by the fact that most individuals do not trust them. Some are afraid that these companies might try to slip extra taxes and charges into their agreements, or that they will steal personal and financial data. Others do not know enough about how they work in order to understand that they can be trusted.

We’ll take a look at the basics of how borrowing money online works, and also at how you can make sure that you find a service that will always put the interests of its clients before its own:

Understanding exactly how online money-lending services work

Online loans work somewhat similar to banks, with the exception that all the money comes from private creditors and all transactions are handled by the platform itself. In other words, when you borrow money, your request must be approved by the online service, not the creditors. The online company does not follow the same structure as a bank and will often have fewer restrictions in terms of who can get a loan.

Generally speaking, most online lending companies will not even perform a credit score check in order to determine if you are eligible or not for a loan. This, however, only happens if you want to borrow a small amount of money for a short period of time.
This having been said, requesting a loan is done by filling in an online form and uploading copies of personal documents such as:

• Driver’s license;
• Work contract;
• Last utility bill;

It is important to note that all of these UK companies are heavily regulated by the government. As a result, all the private information that you upload as part of the application process cannot be disclosed to third parties without your consent.

Furthermore, the money that you borrow will not show up on your bank statement as a loan, but as a regular transfer and will not have any impact on your credit score. Depending on the amount of money, you may also not be required to have a guarantor. Once your loan request is approved, you receive the money in a matter of minutes. After this, you will have to pay it back in monthly installments, according to your agreement.

One part of the whole service that is not regulated by the government is the limit of the monthly interest rate, which can vary greatly from one platform to another.

What to look for when choosing which service to use?

Finding a reliable online money lending service that you can use means more than choosing one that has a low-interest rate and as few additional fees as possible. If you intend to borrow money for an extended period of time, you will have to look for a platform that:

• Has a good trust rating – Look at websites like TrustPilot that contain reviews from individuals who have used the platform in the past. If the score is OK and most testimonials show that previous users have had a good experience, you will as well;
• Has no hidden fees – Read all the documentation presented on the platform’s website and make sure that you understand what each fee is for and if it applies to your loan or not. This will ensure that you won’t be surprised by having to pay more than what you expect;
• Can transfer money to your accounts – Most services will be able to transfer money to all the major banks in the UK, however, only a limited number can send it to other platforms such as PayPal;
• Fits your needs – Some companies require that you have a guarantor in order to borrow money for an extended period of time, however, there are also some that will only do so if you need more than a couple of hundred pounds;
Most money-lending platforms do not perform credit checks, however, there are some who do. If you have a poor credit score or do not the loan to be marked on your permanent financial records, make sure that the service that you borrow money from does not report the transaction to any of the main credit registers in the UK.

Conclusion

Money lending apps and services are faster and less restrictive than banks, however, you do need to know what to look for before agreeing to borrow money from one. Look at the tips in our guide and always make sure that you understand all the fees that you must pay.

As a rule of thumb, once you find a reliable service that you like using, stick to it. There is no use looking for another one if you’ve had a good experience in the past.

7 Reasons Why People Opt For a Payday Loan

Life is full of surprises and uncertainties. You do not know when an emergency would arise that might require an amount that you do not currently have. If you need money to buy medicine or pay a utility bill, you cannot wait for the next payday. You must have the money now. The question is where to get it instantly.

With the advent of the internet, finding instant cash for your dire needs has become fast and straightforward through what is called a payday loan.

Understanding Payday Loans

For someone new to online lending, it is essential to understand first the kind of credit that you are applying. There are many lenders online, and each of them is different in terms of the period of approval, documents that are needed, the maximum amount that a borrower can borrow, interest rate, payment method, and manner of releasing.

Because the payday loan is considered as a cash advance, you must repay it on your next salary schedule or when your next check is coming. The interest rate is quite high because lenders consider it high risk. The amount you can borrow is minimal, but during a time of crisis, it can be a big help.

Reasons People Opt for a Payday Loan

There are several reasons why this type of borrowing has become popular in many countries.

1. No Credit Rating Required

Most lending companies require borrowers a good credit rating. When you pay your credit without delay, you can get a high credit rating. When you apply to borrow money from an institution, a high credit rating could mean getting more significant amounts and a faster approval. If you have been delinquent in your payments, your credit rating could go down.

With cash advances, the lender would still lend you money despite your bad credit rating. However, you might only receive a small amount at a higher interest rate. Nevertheless, you are allowed to borrow, and if you pay on time, your credit rating can improve. You can also reapply and get approved for bigger loans.

2. Personal Presence Not Necessary

Applying for a cash advance or payday loan is done through the internet. All you have to do is to download an app, complete the form, and submit online. Some lenders would approve your application after a few hours to one or two days. The lender deposits the proceeds into your bank account. You do not have to go to the office of the lender to apply, get your money, or pay. Since you do this online, it becomes highly convenient.

3. Confidentiality

Since there are no co-makers or guarantors required, nobody would know that you borrowed money. You do not even meet the lender or his staff personally. Some people are afraid to borrow from financial institutions because they are embarrassed when other people know about it. With an online cash advance, only you and you alone now know how much you borrowed, how much to pay back, and if you are delayed in paying or not.

4. Use the Money Any Way You Want

Some lending companies ask you how you are going to spend the amount that you borrowed. With a payday loan, you can use the money for whatever purpose you deem necessary. Use it to pay your medical bills, pay your other debts, or even to travel. You decide what to do with it, which differs with different lending companies that allow you only to use it for the purpose that you specified in your application.

5. Set the Payment Schedule

In the application form, you must indicate when and how you shall repay the loan. Make sure to think about this well. Remember that delayed payments have penalties. Make sure that you can pay the amount on the date that you indicated in the application form.

6. Use It to Improve Your Credit Rating

Since a payday loan comes in small amounts, it is one way of improving your credit rating by paying on time until you have paid up in full what you owed plus the interest. Once you get a high credit rating, you can apply for bigger loans from banks and other financial institutions. The proceeds would be enough to buy a car or make a down payment for a house of your own, or to put up your own business.

7. Easy to Access

The fact that even low-income groups can apply for a cash advance has made it one of the easiest to get credit in countries where it exists. Some states, the interest rate is regulated to make sure that people would continue to avail of it.
If you are in a dire situation today, and you need cash immediately, you can download the app and fill the application form. Once you have submitted it, you can get approved within a few hours and see the funds in your bank account in a short while.