Hemingford Lending – Your Lending Guide

Are There Alternatives to Urgent Loans?

October 5, 2020 October 5, 2020 Joshua No Comments

Urgent Loans

It is always a good idea to make sure that you think carefully about any financial decision that you make. You will find that there are a lot of questions that you need to ask yourself and one of these things is about whether there are any alternatives. The reason for thinking about this is because you need to make sure that you are making the very best decision for you and your finances. Therefore, it is wise to think about everything that you might be able to do to help your situation and then you will know that you have made the right decision.

Not Buy the Item

It is good to start by considering whether you really need the item that you are considering buying. It might be that it is something that you urgently need, perhaps food because you have none or you need to pay a bill. However, people do borrow for all sorts of reasons and so if you can go without the item, then perhaps it is worth going without the loan. It is good to think about whether it is something that you really need or whether you will be able to go without it and still manage fine.

Use Savings

If you have savings then it can be best to use these to repay a loan. This is because the savings will earn very little interest but the loan will cost you money. You can always use the money that would have repaid the loan with to replace the money in your savings account anyway. It is understandable that you might be reluctant to use your savings but it can be a lot cheaper. If you are saving up for something specific it might feel hard having to use some or all of that money. If you have worked hard to save then it may feel hard too. However, you need to remember that it could make a significant difference and if you are savings for a rainy day or an emergency, this is the time to use the money.

Save Up

If you can wait a while until you get the money and save some up each month, then this will be cheaper than borrowing. Loans can be expensive and so you do want to try to avoid paying for one if you have to and so this could be a good way to do it. Of course, it is very likely, that if you are considering urgent loans, that you will not be able to wait.

Borrow Money

If you do not have the money, have no time to save up and have no savings to use for it, then you only option is to borrow the money. This is an option which may not be cheap but it will be helpful. If you need the money really quickly, then there will only be certain loans that will be helpful to you. Many take too long to arrange or are not suitable for buying anything you wish. Your main options will be a credit card, overdraft or urgent loan. The first two will only work if you have already arranged them and you will normally need to have a good credit record in order to do this. Therefore, you may need to look at the option of an urgent loan which could provide you with enough money to help you out. You can borrow up to a thousand pounds normally, depending on the lender and you will be able to have the money until you next get paid, when you will be expected to repay it in full.

Is it Worth Using Urgent Loans?

October 5, 2020 October 5, 2020 Joshua No Comments

Urgent Loans

It is always worth thinking about whether you should be using certain types of loan. This is because there are always advantages and disadvantages of every decision that we are making and we need to consider both. It can be too easy to just focus on the advantages but it is important to make sure that we see the other side of things too.

Advantages of Urgent Loans

An urgent loan is a way to get money really quickly. It is a payday loan and that means that you will normally be able to borrow between £100 and £1,000 and some lenders will be able to get the money to you within a few hours, although this will depend on the lender. Some lenders will also be able to offer money at weekends and overnight which means that you can get it even outside of normal banking hours. As the lenders do not worry about your credit score, it means that the loans are available to most people. This means that anyone who need money in a hurry is likely to be able to get the help that they need by taking out a loan like this, when other lenders will not be keen to let them have anything. The loan also gets repaid very quickly. You will need to repay it when you next get paid and this means that you will be able to clear the debt very quickly. This can be really handy for anyone that does not like to be in debt for very long. The amounts that you borrow are also small, between £100 and £1,000 which means that you have a better chance of being able to afford to repay compared with larger loans for much bigger sums of money.

Disadvantages of Urgent Loans

This type of loan can be expensive. This is because the lenders are taking on a high risk as they lend to those with a poor credit record. Therefore, they charge extra money in case the borrowers do not manage to repay the loan. However, you may feel that it is worth the cost because you need the money but you should make sure that you find out how much the cost will be so that you are prepared. It can be easy to try and guess the cost, but as most loans are charged using a mix of interest and fees it can be complex. It is therefore wise to ask the lender how much the cost will be so that you are clear on this. You need to work out whether you will be able to afford it because if you do not repay in time there will be extra fees to pay. The repayment is in one lump sum which means that it will be repaid quickly but does also mean that you will need to find a lot of money in one go. This does go out on the day that you are paid which should help with this but you need to make sure that you will have enough left to pay for everything that you need. You will also find that you can only borrow between £100 and £1,000. While this has the advantage of being easier to repay, it could mean that you will not be able to borrow enough for what you need. You may even find that if you are a new borrower, then the lender might want to try you out with borrowing a much smaller amount before they will then lend you more money, so it is possible that you may be even more likely to not get enough.

When Should I Use Emergency Loans?

October 5, 2020 October 5, 2020 Joshua No Comments

Emergency Loans

There are quite a few lenders that offer emergency loans, but you may wonder when you should be using them. The loans did come about to help people who have an emergency and need money quickly, which is why they can be arranged so fast. They are also designed to help those with a poor credit record as the lenders will not necessarily worry if the borrower has a poor credit history. However, because of this, they are expensive and this means that you have to be very careful when you use them. It is worth considering under what circumstances you should be considering them.

If you Have no Cheaper Alternative

The first thing to check is what alternatives there might be for you. It could be that there are cheaper loan types that you might be able to use, for example. You may also find that you might have some savings that you could use which would be a cheaper option for borrowing. It is also good to think about whether you might be able to raise money by selling things that you own and no longer need or do some work that will pay you quickly and get you the money that way.

When it Will Improve Your Financial Situation

It could be the case that a loan will improve your future finances. A mortgage will do this because you will eventually own the home and no longer have to pay out monthly in the way that you would if you rent. You might find that this is the case with an emergency loan, if you pay for a repair, for example that would more expensive to fix if you waited.

In an Emergency

Of course, these loans are specifically designed for emergency use and so if you have one, then they could be a good solution. However, you should make sure that there is no cheaper alternative and think about whether you can repay it, before you take it out.

As Long as you Can Repay it

It is important to make sure that you find out whether you can repay the loan before you take it out. This is because, if you miss the repayment you will face extra charges and no one wants to pay unnecessary expenses if they can help it. Luckily, it is not too difficult to work out if you can afford it though. You will firstly need to find out how much you will need to repay and when. The lender will be able to let you know and so it is a good idea to ask them. It is not wise to try to guess it because you will find that it can be pretty difficult to guess something like this and you could end up making a very wrong estimate. Once you know the amount that you will need to repay, you will be in a position to be able to work out whether this is something that you will be able to afford. You will find that if you look back at bank statements, you will be able to work out whether you feel that you will be able to afford the repayments. It is good to look at how much money you have coming in and how much you have to pay out for your necessities. Then you will be able to calculate whether you will be able to afford it. If you cannot, then you could try to think of some ways that you might be able to. Perhaps if you are able to you might reduce what you are paying on your essentials by buying them in cheaper places. You might also be able to find some ways to get some extra money to help too.

Are Online Loans Easy to Get?

October 5, 2020 October 5, 2020 Joshua No Comments

Online Loans

There are lots of different loans available to us and some of them are easier to get than others. It can be useful to know which might be the easiest though as we might need a loan quickly and want to make sure that we are not hanging around waiting for it or we might be worried about being rejected when we apply due to our credit record and the rejection not only slowing things down but making our credit record even worse. There are some loans though that are easier to get than others and it is a good idea knowing which these are so that we can use them if we need to.

Online loans might be a type of loan that you do not know much about and so it might be necessary to get a better understanding of how they choose their borrowers and how they work so that you can decide whether they will be easy for you to get.

Who are They for?

Online loans were set up with particular borrowers in mind. The lenders observed that there were some people that found it very difficult to borrow money ad felt that this was not fair. Therefore, they set up their loans so that they were available to most people regardless of their credit record. Therefore, they only were interested in whether the borrow was an adult, a UK resident with a UK bank account and address and had a regular income. If people met these criteria then there were happy to take them on as borrowers and it meant that those people that could not normally get a loan, were able to get one. However, despite being designed for this situation, the loans are available to anyone at all that fits their broad criteria so you do not need to have a poor credit record, for example, in order to be able to take one out.

How do They Select Borrowers?

So, the lenders just do some ID checks to select their lenders and they will then take on most people. So, if you are interested in this sort of loan, it is very likely that you will be able to have one.

How Fast are They?

It is worth noting that these loans can be arranged very quickly as well. Due to the fact that they were designed to help people in emergencies, it was seen that there was a need for urgency when arranging them. Therefore, lenders tend to have money available within a few hours of receiving the completed application. This is very quick compared to more traditional lenders. The time they take will vary though so if you do need money that quickly it would be wise to check that the lender can make it available for you. Some lenders are also available to provide loans outside of normal banking hours and this can be extremely useful as well. It can mean that a borrower can get money over the weekend or overnight, when normally they would not be able to. This means that they can be a lot faster.

So, you can see that online loans can be extremely easy to get. They can be very quick to arrange and you can get the money easily, but they also make the loans available to most people which means there is a very tiny chance that you will not be able to get one from them. This is good news if you suddenly need money fast as they will be able to provide you with the help that you need.

What are Payday Loans?

October 5, 2020 October 5, 2020 Joshua No Comments

Payday Loans

There are many people that do not know what a payday loan is or they have an idea of what they think it is but they are not completely correct. It is a good idea to make sure that you are aware of exactly how they work so that you know whether they will be suitable for you. This is because a big part of making sure that you have a good borrowing experience is that you will need to make sure that you take out a loan that will enable you to be able to borrow in the way that is most suitable for your individual needs. All loans differ and therefore it is a good idea to think about what the main features are that are different to other loans and you will then be able to more easily determine which is the best loan for you.

How Much You Can Borrow

It is important to start by making sure that the loan that you want to take out will be for enough money. You should know how much you will want to borrow and then you will be able to see whether the loans will give you enough. The amount lent will vary between lenders but a payday lender will normally lend between £100 and £1,000. It is worth noting that some lenders will lend you a lower amount, the first time that you borrow form them and so you may need to check this out in case you need a larger amount and may struggle to get it.

How You Repay it

It is good to know how you are going to repay the loan as well. Many lenders will expect you to pay monthly repayments but there are loans which have different methods as well. With a payday loan you will normally need to make one repayment on the next day that you are paid. This will be a lump sum which includes the money that you have borrowed and the interest and fees that you have been charged. There will be a direct debit set up so that this money leaves your account automatically and you will therefore not forget to do it.

How Quickly it Can be Arranged

Some loans will take longer than others to arrange. If you are not in a massive hurry then it will not really matter when your loans will be ready, but sometimes you want the money quickly and it may even be an emergency. With a payday loan, the time will vary but there will be some lenders that will be able to get you money within a few hours and this means that you will be able to get the money extremely quickly.

If There are Credit Checks

All lenders have to do a credit check and therefore you will not be able to escape this. However, it can very as to whether the lender will be really concerned about your credit score or not. A payday lender will tend not to be that concerned about your credit score as they will allow you to borrow money regardless. This means that you will be able to use them without worry about having to have a check on this.

You can see that some of these features are quite different to normal loans and this means that you should make sure that you are aware of them. Then when you are in a position to need a loan, you will be able to make sure that you pick the right loan for your needs because you will know what lenders have available and therefore can match it up. It is important to know this beforehand if possible because then it makes finding a loan much easier, especially if you are in a hurry and do not have a lot of time for research.