Payday loans are indeed among the most applied small loan options in the UK. These are convenient borrowing options to obtain cash when you need it urgently and want to repay it early.
Most importantly, the desired funds will be credited to your bank account within a day. Payday loans eliminate the need to submit too many documents while applying, making it the most suitable funding option for everyone.
Small payday loans include many advantages, but you need to check eligibility and fulfil all the requirements to get no refusal payday loans.
Do you need to know why payday loans are worth to be applied over traditional loans? Many individuals think that taking traditional loans from banks is more valuable than same-day payday loans.
Nevertheless, financial institutions have different views on this. Therefore, it is helpful to compare payday loans and traditional loans to find out which one is more worthy to use.
Meanwhile, you should remember that cash loans from traditional financial institutions are more complex than payday loans from online lenders.
Banks prefer to go through the past credit performance of the applicants by approaching credit reference agencies. On the other hand, online lenders consider other factors to give more borrowing space to individuals.
Remember, fetching cash loans from traditional loan providers is difficult if you have an adverse credit history or lack stable income.
What are no-refusal payday loans?
Payday loans are among the smallest version of personal loans. Once applied and approved, you get the lump sum to borrow, which you must repay on your next salary day.
The loan term and amount are relatively smaller than traditional loans. For example, you can borrow up to £800 for the maximum duration from one month to 3 months. However, such figures may vary according to the lender you choose.
These loans free the applicants from submitting any collateral or bringing a guarantor during the loan process. The reason is apparent that these are for smaller amounts, which you have to repay from your monthly income. It may raise the interest rate, and there is nothing wrong with saying that payday loans are high-interest-rate loans.
Despite the high interest rate, these loans also have a higher acceptance rate. No refusal payday loans, unlike traditional loans, work on individual affordability.
Suppose you borrowed £700 and earned enough to repay the loan instalment (including the interest rate). It means you can afford the loan, and the lender has no hesitation to offer you the loan on almost guaranteed approval.
In a nutshell, your stable income will act as the security for the loan amount. Show the proof of it and get 100% acceptance on the loan.
Reasons why to choose payday loan over a traditional loan
Traditional loans are indeed adequate for utilisation during the extreme need for funds. Still, features of payday loans make them superior in getting quick funds with minimum hassles.
Fast process
Payday loans are not only high-interest rate loans but also high-speed loans as well. You only need to submit the online application by mentioning your personal details. Besides, the waiting time is minimal, making it easier for you to get quick funding.
Therefore, these loans have become a relevant alternative to traditional loans, as people get instant solutions to their financial problems.
Immediate fund transfer
The borrowing amount is not so huge that the lender has to verity plenty of documents to give the approval and fund transfer then. Instead, everything is done on the same day.
It is only for rare cases where the approval gets delayed. Most of the time, you get same-day fund transfers. It means you can fund your urgent needs on the go.
Hassle-free application process
Do you need to visit the lender’s office and then apply? Not at all. Unlike traditional loans, payday loans can be applied from any location with an internet connection. You get faster assistance through the online application method.
Meanwhile, going online will also help you avoid any mistakes when sending the loan application. With no delay and no error, you have a higher chance of guaranteed acceptance of a loan.
Everything is quite clear
Many direct lenders offer payday loans. You can compare them online with their interest rates. It makes it easier for you to choose the most appropriate loan deal. You can easily check not only the interest rate but also any upfront charges, establishment fees, and many more loan costs.
It is very important to have transparency because many loan sharks advertise loans at lower interest rates, but the reality is different later.
No barriers for those with poor credit histories
As mentioned above, traditional loan providers are strict to those with poor credit histories. They are not ready to think of them as reliable borrowers. As a result, people with poor credit scores often face rejection from them.
Payday loans have become an effective alternative with minimum chances of loan rejections. You can easily qualify despite poor credit scores because the borrowing amount is small and has a high interest rate.
In fact, if you repay the amount on time on your next payday, your credit score will seek necessary improvement.
No personal guarantee and assets are required
You can quickly obtain approval on payday loans without involving any third person to be your guarantor. Lenders assume that you can afford the loan instalment from your monthly income. Therefore, time is also saved as the lender does not need to verify the details of the guarantor.
Similarly, payday loans are unsecured loans where no asset is needed to be put at risk. Smaller borrowing amounts can quickly be paid back from the monthly earnings. You can use those assets to get a larger loan amount.
Conclusion
Payday loans are often used by those who traditional loan lenders have rejected. Unemployment, poor credit history, or financial emergencies are also why people struggle to approach banks.
In such situations, direct lenders can be their alternative to offering online loans. These institutions do not adopt a strict approach, paving the way for no refusal payday loans. As per the rules, only a few mandatory prerequisites are enough to seek the approach. Nevertheless, the conditions may vary among the lenders.
Hi everyone, I am Lukas Thomas. I am a professional writer and author with having specialisation in the UK financial sector. I have more than 13 years of experience as the financial writer and hope it will continue longer. I have done my post-graduation in Masters of Business Administration (MBA) in Finance. Currently, I am performing my responsibility as a Senior Loan Expert in Fundingpeer, which is the fastest-growing online direct lending company. My job is to prepare borrower-friendly loan deals as per the company’s guidelines. I also write research-based blogs for the company’s official website. You can read them and gain knowledge on any loan product.
