If you want to borrow a small amount of money it can actually be quite difficult to do so if you look at personal loans, for example. They will tend to insist on your borrowing a large minimum amount which could be a lot more than you want to borrow. Even loan such as overdrafts and credit cards can tend to offer you a large credit limit. Obviously you do not have to use it all, but it can be very tempting to do so. There are some people that feel that it is there to spend and cannot resist spending it all and then only paying back the minimum. These two loans can actually be very expensive. If you do not repay them quickly or keep borrowing using them, the costs can really add up. A credit card, for example can take years to repay if you only repay the minimum and then if you spend on it again, once some money is paid off, you could end up being in debt forever. If you added up the interest payments for all of that time it would be extremely expensive. An overdraft will be paid back once money goes into your current account, but if you have an unauthorised overdraft for a long period of time, you will end up paying extremely high charges. You could even find, that if you keep borrowing using an overdraft, that when money goes into the account, it will not be enough to repay it all.
If you just take out a small loan, you will only have to borrow the small amount of money that you need. This means that you will not be tempted to spend more than you need and once you pay it back, that will be the end of the loan. When you arrange a small loan you will be shown exactly how much you will need to repay. This will allow you to know exactly how much it will cost you. As long as you make the repayments when required, this is all you will have to pay. The small loan will also be paid back quickly and so you will not have a debt hanging over your head for long. So in summary small loans –
Representative Example: £400 borrowed for 90 days. Total amount repayable is £561.92 in 3 monthly instalments of £187.31. Interest charged is £161.92, interest rate 161.9% (variable). Representative 305.9% APR. We are a broker not a lender. We don't charge fees. We don't sell your personal information.
Small loans including longer term 6 month loans tend not to be available from conventional lenders. This means that it can be more difficult to find them as you cannot just go to your high street and pop into bank branches and ask. It would be a lot easier if you could go to your bank or another one that you have heard of, but they do not offer this sort of loan. This means that you have to search yourself. Many are available online and so you can find out about them there. The problem is that there are a lot of lenders that offer small loans these days and so choosing between them can be tricky. It is never a good idea to just use the first one. Although this is the easiest option, of course, it could mean that you will be signing up to something that does not fit your requirements. Especially if you need a guarantor. However, looking at all of the options is time consuming and can be difficult too.
This is where websites such as Omacl can come in useful. They work like a comparison website for small loans. You can enter how much money you would like to borrow and they will match you up with lenders that will let you borrow that amount. You will then be able to pick between the ones that they suggest. It is still wise to do some research about them in order to make sure that you are happy with them, but it can save you a lot of time in researching lots of different lenders.
It is very simple to take out a UK payday loan. You just have to give them a few details so that they can check your identity and let them know how much you would like to borrow. There is no credit check and so most people who apply are accepted which means that as long as you fit their criteria of having an income and being over 18 you are really likely to be accepted for one. They are very quick at processing applications and some will get you the money the same day.