The recession has meant that many types of loan are now difficult to obtain for most people. Pay day loans are thankfully a different story, and remain a quick, simple way to borrow money during a difficult financial time.
The ever-increasing cost of living is squeezing household budgets tightly and it is now difficult for many to find the money for unexpected expenses. A short term online loan is an easy way to pay for those car repairs, or the broken vacuum cleaner replacement that just can’t wait until pay day.
While instant cash loans are useful as a short term bridging measure, those who want to borrow for other reasons may not find it so straightforward.
The Council of Mortgage Lenders recently reported a fall of 12 per cent over this last year, meaning that more people are being turned down for a mortgage.
Gone are the days of 100 per cent mortgages and income multiples of five times a salary. Mortgage lenders are being far more careful with the purse strings to the dismay of many would-be homeowners.
However, there are things that you can do to improve your chances of being accepted for a mortgage.
1: Be realistic
Be realistic about what you can afford to borrow. Applying for a mortgage that is five or six times your annual salary is sure to get turned down, which in turn can affect your credit rating and jeopardise your chances of being accepted for future loans.
It’s far better to do your homework in advance with regards to what your preferred lender is generally prepared to offer. In many cases you will find that this is three times an annual salary.
2: Save, save, save
The bigger deposit you can get together the better; many lenders now insist on you putting down at least 20 per cent against the value of any new home you wish to purchase.
The more you have to put down as a deposit, the more likely it is that your lender will see you as a safe bet; this increases your chances. You are also more likely to be offered preferential interest rates when you have a big deposit to put down.
3 – Be Prepared
Like a good boy scout, it pays to be prepared before applying for a large loan such as a mortgage or a car loan. Ensuring that you have a solid three year address history and are registered on the electoral role is generally essential. A good, provable employment history and wage documentation will also help.
When applying for a large loan it is important to be as prepared in advance as possible, as being turned down for a loan can have a negative effect on your credit rating.
Luckily, with a pay day loan, none of the above is normally required. Applying for a pay day loan is a quick and easy process, with no need to send in endless documentation.
Online Loans offer instant approval with no credit checks to affect your credit history. Normally loans are approved instantly and a 15 minute cash payout is guaranteed.
This speedy way of borrowing cash in the short term means that you get the cash that you need, exactly when you need it.
Therefore you can take the car to the garage without worrying about making your budget stretch until pay day, or replace that Hoover without stressing about going over budget.
A pay day loan is a great way to access cash instantly, when a short term solution to a cash flow problem is needed. Larger loans however, are a different story and those with their sights set on a bigger house or flasher car may find it sensible to wait until the economy is steadier on its feet.
