Whenever we face a financial crisis, we think of taking a loan. Many a time, we may require cash in hand for immediate use to meet some emergency situation. During such circumstances, we search for lenders who will easily accept our loan application. But most loans take a long time to get approved. Loans that are approved without much hassle are called easy acceptance loans.
A payday loan can be called an easy acceptance loan as they take very less time to get approved. The entire processing period of the loan takes less than 20 minutes and the loan amount is credited to your account in a matter of just 24 hours. You do not have to go through credit checks and lengthy application processes. You might be required to fill in details regarding employment, income and bank account; but you will not be required to fax any document. A payday loan allows customers to get cash for a short time period against their next paycheck. A customer with an active checking account, direct deposit and a job can receive funds in their account within a short time.
Payday loans are typically given in cash and are secured by the borrower’s post-dated check that includes the original loan principal and accrued interest. The maturity date usually coincides with the borrower’s next payday. On the maturity date, the lender processes the check traditionally or through electronic withdrawal from the borrower’s checking account. Some lenders charge a flat fee regardless of the length of the payday loan, while some lenders vary the interest rate depending on the length of the payday loans. Most payday loans lenders and affiliates of payday loan lenders offer clients the option of “rolling over a loan, meaning that the loan is extended to the next payday and the subsequent fees are doubled. The larger and more reputable online lenders will allow a client to roll over payday loans no more than one to two times.
The flip side to such loans is that you cannot borrow large sums. Your borrowing amount is restricted to £1,000. These loans are short-term and basically meant for emergencies. These loans have rather high loan fees. Also, if you do not repay the loan timely, you may face rising debts. You need to be regularly employed and have a bank account with direct debit facility to avail such loans. So, in case you do not meet these requirements, it might be difficult for you to get such a loan. So, before you sign up for an easy payday loan, be sure you have or will have sufficient funds in your bank account to pay back the easy payday loan in the future. Failure to pay back the easy payday loan, bulk amount or interest, can cause you more problems than avoiding the easy payday loan from the beginning.
Apart from payday loans, secured homeowner loans can also be called easy acceptance loans as compared to unsecured loans. These loans are appropriate if you need to raise amounts over £25,000. As the borrower places his home as collateral, the risk factor for the lender is less and the loan is easily accepted and also rate of interest is low.
Depending on the amount that you want to borrow, you can decide on the type of easy acceptance loan that you wish to take. Before taking any loan, remember to compare quotes from various lenders to get a suitable rate of interest. Also ensure that you thoroughly understand the terms and conditions.