Based on the loan partners that we work with, the loan application should be made in your name and the loan should be made for you. Only in extreme cases may you apply on behalf of someone else, such as the person having medical impairments or other extenuating circumstances.
There are some applications that require you to apply with the details of another person, otherwise known as joint loans or guarantor loans.
When applying with My Financial Broker, you will be required to provide some basic details including your name, date or birth, address, monthly income, expenses and bank details.
We offer loans ranging from £50 to £50,000, both secured and unsecured. Whilst it is common to try borrow as much as possible, this will also mean paying back the same amount and added interest.
To avoid being stretched financially, it is advised to cost out exactly how much you need to borrow to pay for any immediate expenses and how much money you exactly require - whether it is for rent, credit card bills, food, fixing a broken boiler or paying for car repairs.
Payday loans can be spread over 3 to 24 months, and sometimes longer, depending on the lender.
The longer the loan term, the more expensive it will be, since interest continues to be added month after month and you are paying for the convenience of having the loan open for longer.
However, a long term loan can provide added flexibility and smaller repayments in the short-run.
If you find that you are in a position to repay your loan early, you can do so and save money, since less interest is accrued overall. So you can apply for a loan for 12 or 24 months, and if you find that you have the means to repay early, you will save money.
Your payday loan is typically repaid in equal monthly instalments so you know exactly how much you are repaying each month, right from the start, and can budget accordingly.
You will often use your savings or income from work to make a monthly repayment on your loan. Maybe you were waiting for some commission to come through or for your Christmas bonus, people will mostly use their salaries from work to stay on top of repayments.
You will need to make your repayments on time each month, otherwise you may be charged added fees and it will negatively impact your credit score. If you know in advance that you will struggle to make an upcoming payment, you should contact your lender directly and they may be able to assist you.
Payments are collected through a system known as ‘continuous payment authority’ which is similar to a direct debit. The payday lender that you work with will tokenise your debit card and collect payments each month on the date agreed.
Customers will usually select their pay date from work for funds to be collected, which can be the last working day of the month, a specific day of the month (e.g 25th) or a four-weekly cycle. Some borrowers like to set the repayment date for just one day after, giving your income from work enough time to clear in your bank account.
You can cancel the ‘continuous payment authority’ if you need to, because you may have emergency reasons to do so. You will just need to contact the lender directly.