A financial crisis can affect an individual or family at any time. Unfortunately many people within the UK do not have enough savings to cover emergency situations. This is where crisis loans come in.
Before a loan applicant goes out and gets a crisis loan, they must first understand what constitutes a “crisis”. Financial emergencies are when somebody does not have enough cash to pay for an unexpected expense. Unexpected expenses include car repairs, funeral costs or medical care. In the past the financial industry used to frown upon this type of lending. They believed that people who did not have enough money to pay for small emergencies, did not have the funds to make loan repayments. Thankfully this has now changed. Most financial institutions now recognize there is a need and demand for a short term loan product. These loans are called “payday loans”.
Anyone who has ever applied for a loan at a bank will know that banks and finance companies have strict lending rules. This is not the case when somebody applies for wage day advance. Anybody who is working and is over the age of 18 can apply for a crisis loan and be approved. In fact most loan companies do not even conduct a credit check. This makes payday lending an excellent option for people with bad credit or bankruptcy in their past.
The process of applying for this type of loan is very simple. All applicants need to do is find a loan company which has terms and conditions that are acceptable. Once a suitable lender has been found, the borrower can go to their website to submit an application form. The application will ask the borrower if they are over 18, are employed and have a valid bank account. This is because they want to make sure that applicants can legally enter into a contract and have the means to pay the loan back. They need a bank account number so that the lender can transfer the loan via direct credit. When an applicant has submitted their application, they should receive a decision straight away. If the loan is approved the borrower will need to send in a copy of their identification and bank statement. This can be done via fax or email. Generally crisis loans can be approved and paid out within a few hours. Some lenders can complete the process within a single hour. How long it takes for the client to get the money will largely depend on how quickly they send in their documents and sign the loan contract.
As the interest rates on wage day advances are very high they should not be used on a regular basis. This loan is designed for crisis situations. Those who need extra funds regularly may want to consider getting a loan with a lower interest rate.