Although most people think of payday loans as being short-term (around 2 weeks), there are other options available. You will find that some private lenders give out payday loans for larger amounts, so you will therefore have more time to pay back the money. If you need to get money right away, you will first need to take a close look at these options. There are quite a few benefits associated with getting a loan with a longer term. When you make an effort to get this information, you can choose the right option to match your needs perfectly.
Why Take Out a 12-Month Payment Loan?
Taking out a 12-month-long payday loan will give you plenty of time to pay back the money you have borrowed. While it is true that you will also pay more interest, it can be well worth it if it means that you aren’t late paying back the money you borrow. You will have a full year to pay off your debt, but you’ll be required to make monthly payments. There is going to be a minimum amount that you will have to pay towards your loan with each payment. Most private lenders will let you pay back your loan early without any penalty fees.
Finding a Lender
Since not all private lenders give out 12-month payday loans, you will need to look for one that does. It is also imperative that you search for a lender that is highly reputable and trustworthy. You absolutely do not want to borrow money from a shady lender, as you will almost certainly end up paying all sorts of hidden fees. The best way to reduce the total amount of money that you have to pay back is to select a lender that is 100% legitimate and reputable. The internet can help you with doing research into these lenders before choosing one in particular.
Assess Your Financial Situation
Even those who need money badly will need to assess their financial situation before applying for a 12-month payday loan. You should first decide whether or not you really need to borrow this money. If you have something very important that you need money for immediately, this type of loan can help you tremendously. Those who take the time to do this will be able to make the right decision.
Short-Term vs. Instalment Payday Loans
The standard short-term payday loan will require you to clear your balance within a couple of weeks, or when you receive your next pay check. Longer-term payday loans will give you up to a full year to pay back the money. While a short-term loan is nice because there is minimal interest, you won’t be able to borrow nearly as much. If you happen to need a lot of money for a sudden and crucial expense, a 12-month term loan could be the best option.
Basic Requirements for Approval
You must meet some basic requirements in order to get approved by a private lender for a 12-month payday loan. If you are not over the age of 18 with an active checking account and verifiable form of income, you will not get approved. Also, the standards for longer-term payday loans are sometimes a bit tighter. A 2-week payday loan term doesn’t require good credit, but a 12-month term might. It is highly recommended that you take a look at your credit score so you know exactly where you stand. A low credit score doesn’t necessarily mean you will get rejected for sure, but it’s still something to keep in mind.
Regulation of Payday Loans
If you are a little unsure about getting a 12-month payday loan, you will need to keep in mind that this industry does have numerous regulations in place. These regulations protect borrowers, but it’s still important that you do enough research to protect yourself. Despite what a lot of people think about these loans, they aren’t all that risky. Payday loans are not regulated in the same way as bank loans, but that doesn’t mean you shouldn’t apply for one.
Applying for 12-Month Payday Loan
You will be happy to know that applying for a 12-month payday loan isn’t very difficult or complicated at all, and it can be done completely online. As long as you have a computer and internet connection, you can fill out and submit the necessary form to get started with this process. Once you have submitted the application, you should get a response from the lender within a few hours. A lot of people in the UK love these loans because the entire process goes so quickly, which can be hugely beneficial if you need money fast for whatever reason.
What Happens if You Are Late Paying Back the Loan?
If you are not able to pay back the loan you take out by the agreed upon date, you will be facing some hefty additional fees. Those who are even one day late with paying back this kind of loan can find themselves in big trouble financially. If you are worried about forgetting to pay your loan back on the appropriate day, you can allow the lender to automatically take the money from your checking account. This will help you avoid spending a lot of extra money on your loan.
A 12-month payday loan can be an excellent option for many people, but you should spend some time thinking about it carefully before making a decision. A longer term for your loan means you will be able to borrow more than you normally would, and you will have a reasonable amount of time to pay it back. A lot of private lenders have started offering these loans with 3 to 12 month terms, so you should therefore explore the options you have. If you need a few thousand dollars, you will definitely want a loan term of at least a few months. Fill out an application today so you can get your money as soon as possible.