Short-term lending is a relatively new idea. Before your payday, you can face an emergency and be in need of cash. If you had such situation few years ago, your only viable option would be personal loan or credit cards. Even though, these options have many benefits, they have also their issues. Credit cards come with high interest rates while personal loans are sometimes not easy to obtain.
If you do not want the hassle or are not able to get a credit card, short-term lending or payday loan is your safe alternative. Short-term lending is popular and many consumers use it. The process is very easy and quick. Within thirty minutes, you can apply for the loan and receive the money into your bank account. You apply online and you will usually fill your personal details before to click on two sliders. Then, you have the cash.
You can borrow a little amount of money according to your need. Some online lending firms can lend you as little as £50 if you need it. This is not the case with standard banking products. The high street bank sees such amount as not worth the investment and a waste of their time. You do not have a long term issue with short term lending because you will have to pay back the loan within a month. Therefore, you do not have to worry about a long debt.
If you have a poor credit score or a bad payment history, standard banks will be reluctant in approving your application. However, payday lenders are willing to take risk with consumers. This is why they lend a limited amount to repay in a short time. This way, they reduce the financial risk and are able to meet the needs of many consumers.
The lenders state clearly all fees and charges. This means that you know exactly the amount of money you will pay back without unexpected payments or secret fees.