There are many ways of borrowing money but a payday loan tends to be well-known for the fact that it is a quick way to get money. But is this true?
How quick is a payday loan?
It is good to start by finding out how quickly the payday loan can be arranged. Different lenders will vary in how long it will take them to get you the money. There are some lenders that will be extremely quick and they could get the money to you in a few hours. However, some will take longer, perhaps a few days. These differences could be quite significant for you and so it is worth investigating to see how long each will tend to take. It should say on their website.
The amount of time can be determined by how long it takes you to find the information that you need to give to the lender. They will need some proof of ID as well as your bank details and proof that you get paid regularly. You should be able to get this information but if there is any delay then this could affect how quickly they can process the application.
You may also find that the time of day you apply could make a difference. Some lenders will work right through the night and at weekends so you will be able to get money at any time. However, there are others that will only be available in office hours which could mean there will be a delay in processing your application depending on when you apply.
The application process tends to be very simple as well. This means that it is easier to get the forms done and this can speed up the process of application compared to other loans.
How quick are other loans?
The speed of other loans will also depend on the lender. Some loans will take a long time to approve due to lots of information needing to exchange hands and lots of checks to be done. This tends to happen more for large loans such as mortgages. However, it is worth trying to find out how long other applications might take. You should be able to get an idea if you ask in a branch or talk to customer services.
It might be that you already have a source of borrowing arranged that you could use. If you have a credit card then you could use this right away without having to worry about arranging anything. That is assuming that you have no spent up to your credit limit. The same will apply if you have an overdraft. You might want to take advantage of the fact that you have money available to you already. However, it is wise to compare the costs of the overdraft and credit card to that of the payday loan. If you stay overdrawn for a long time then it could be extremely costly, although UK law will be changing soon to protect borrowers against the excessive overdraft fees that can be charged, particularly for unauthorised overdrafts. If you decide to take a long time to repay these forms of borrowing they can be extremely expensive.
Is speed the most important factor for me?
It is worth also thinking about whether speed is really the most important factor for you. It might be that you will be able to wait a little bit of time. Even if you can wait a few hours it will allow you to have time to compare the different loan types and the different enders to make sure that you get the most suitable loan for you. If you have even more time, then you might be able to find ways to borrow which are perfect for you and your needs. This is not to say that the payday loan will not suit you, but until you have compared all the options available to you, you will not be able to know whether this is a good option or not.
So although there are some loan types which can be quick sources of income if you have already arranged them, if you want a speedy loan from scratch, then a payday loan will be the quickest. Different lenders do vary in the speed that they take though and so if you need it extremely quickly it is worth checking and choosing the very quickest. However, it is important to make sure that you are aware of how they work so that you can decide whether they are the right loan for you. You also need to think about whether you really need it that fast or if you can spare some time to do a bit of research to make sure that you are picking the right type of loan and the right lender.