It’s essential to know the full details when it comes to taking out a loan so you can be sure it’s the right loan for you and your financial situation. To help you understand the facts about payday loans, we’ve put together this handy guide to explain what is meant by payday loans, why you would get a one, the advantages and disadvantages, and how Sunny can help.
What are payday loans?
Payday loans are simply a “catch-all” way to describe short-term, unsecured loans. They can also go by the names of ‘payday advance’ or ‘cash advance’ loans. Payday loan lenders can help with financial woes by bridging the gap until payday and lending what is usually a small amount, stemming from around £50 to £1,000. The amount borrowed is usually to be paid back within a month, when your wages come in.
Payday loans are most often required to solve a sudden financial setback and tide you over until more money comes in. For example, if any essential home repairs arise or unexpected bills appear, a payday loan may seem like the best solution if your money cannot stretch far enough.
Payday loans online
The process of applying for a payday loan today is usually very quick and straightforward, which is part of their appeal. Applying for payday loans online does not typically involve paperwork. You’ll just be asked for your address, bank and employment details so the lender can run through a quick online credit check to see if you are eligible for the loan. A decision regarding the loan is then usually received instantly and money is transferred the same day.
Why would you choose a payday loan?
Payday loans are usually required to cover emergency expenses and unexpected payments. For example, an unforeseen car repair or a boiler breakdown may be a costly but crucial job. They are generally best suited to a situation in which you need money straight away and you are sure you will have sufficient funds by payday. However, it’s advised to only take out a payday loan when completely necessary. Also, try to avoid taking them out on a regular basis, as your debt could stack up.
What are the advantages and disadvantages of a payday loan?
The main advantage of a payday loan is the shorter repayment period when compared to other loans, as you can repay your debt come payday and you are not tied to a long-term contract. However, because of this shorter length, even the best payday loans usually come with a higher Annual Percentage Rate (APR) and a smaller credit limit, which could cost you a lot more in the long run.
Although payday loans are easy to apply for, be wary of certain payday loans that seem too simple, like those you see referred to as ‘no credit check payday loans’. While they skip a lot of the application process of traditional loans, the checks carried out in traditional loans are intended for customers’ safety and you could be putting yourself at risk by bypassing them.
Does Sunny offer payday loans?
At Sunny, we don’t consider ourselves to be a payday loan company. However, we do offer other short-term loan options that provide more benefits and security than a standard payday loan. We offer instalment loan sizes ranging from £100 to £2,500, over a variety of terms. Therefore, there is likely to be one that is suitable for you and your specific financial situation.
For example, if you take out a loan with us of £250, on loan term of 6 months, your total repayable amount with 1291% APR would be £440.05, which can be paid in instalments of £73.35 a month. The amount however, can be repaid early at any time, which will save you money on interest fees.
Why choose Sunny?
At Sunny, we provide quick and secure loans with flexible repayment options, meaning you can adjust your schedule and payments on your terms. We differ from other loan companies because we have no extra fees guaranteed. This means you do not have to pay extra for administration or application fees. Most importantly, you won’t be charged a fee for late repayments. In short, we offer a completely transparent pricing structure and the one of the most flexible emergency financial solutions in the UK.
Applying for a Sunny loan is very straightforward, via our simple online application, which delivers a decision in minutes. If your loan is approved, the money you borrow will be sent to your bank in as little as 15 minutes. However, we also give you 5 days to change your mind and repay the principal amount with no added fees and no interest, just to give you further peace of mind.
Honesty, transparency, and fairness are deeply ingrained in our business, which is why we’ve designed our loans to be as straightforward and flexible as possible to put borrowers in control of their finances. We aim to be a lifeline to help customers work towards a better financial future. So, if customers are still having trouble making their repayments, we urge them to contact us so we can work with them.
As with any other purchase, it’s important to fully examine your options, in this case, each type of loan, before you apply. With so many lenders and loan types to choose from, thoroughly researching your options could help you save a lot of money in the long term. Therefore, we encourage you to compare our loans to other short-term lenders.
If you have any additional questions regarding payday loans or our flexible loan options, please visit our Frequently Asked Questions. Alternatively, you can contact us using our online live chat.