Payday Loans side by side
Your guide to all Payday Loans
Payday Loans are suitable whatever your credit rating may be, and are useful in times when you need a relatively small amount of cash (less than £1000) which you are able to pay back over a short period of time.
Feeling insecure: Lenders begin to close the net on unsecured loans as they look to seek reassurance in tough times
Lenders are being to become more stringent on how they lend money to consumers. As financial times become more challenging to the consumer, small loan companies are looking to ensure handouts are secured against collateral to keep business strong.
Currently, it is an excellent time to be a lender in the scheme of things. With redundancies in the UK at a high of 2.3m, money is beginning to become an elusive word for many with some struggling to last the month on their income. Hence, consumers are looking for ways to get quick money to repay later on, without consultation of their credit rating.
But, the status quo that the borrowed amount should be payable back to the lender within two to four weeks with no questions asked is beginning to tire. Lenders are beginning to look for more reassurance that the investments they make are safe and that there is minimal risk involved.
Quickly-arranged payday loans of small amounts of cash are becoming more and more common, as some consumers simply cannot meet the criteria which are needed to participate in an unsecured loan agreement. The collateral that provides the security to the lender in a secured loan ensures that the borrower has an interest in paying money back as soon as possible, which is needed considering the consumer’s volatile circumstances.
The volatile circumstances at hand go beyond a bad credit rating, which is very rarely checked by loan companies that lend amounts usually between £60 and £750.
For example, one reason that secured loans are having a surge in popularity in such situations is because more and more unemployed people are lending money from loan companies. Because of their occupational status, it is usually found that they are unable to meet the requirement that customers have a minimum regular income. This is why such borrowers are unable to arrange an unsecured loan agreement.
Clientele profiles are helping finance experts to establish that the majority of people who take out loans from companies are in extremely difficult circumstances. With some companies stating that customers for unsecured loans must have lived in a fixed address for more than a year before being considered, victims of home repossession are also consumers who are only candidates for secured loans in the current climate.
Policies can vary from company to company, with accepted types of collateral also varying amongst lenders. Tough times have reduced the amount of trust held between lender and borrower, with some cases meaning a secured loan is the only way for desperate consumers to obtain the money that they require.
Regardless of whether a loan is unsecured or secured, credit ratings are not taken into consideration with small loans. However, dependent on how severe the circumstances that you have found yourself in are, you may find that you have to disclose more information, jump through more hoops and give collateral to a lender if you are in need of quick money.