The convenience of payday loans makes them one of the most sought-after deals online. In fact, most of the borrowers of payday loans are those with low credit score or unstable source of income. Many people living on benefits or part-time or self-employed income also use payday loans as a gap fill loan arrangement. However, being a student, you need to be wary of payday loans. The convenience of payday loans makes them one of the most sought-after deals online. In fact, most of the borrowers of payday loans are those with low credit score or unstable source of income. Many people living on benefits or part-time or self-employed income also use payday loans as a gap fill loan arrangement. However, being a student, you need to be wary of payday loans.
If you are less than 18 years, you should never borrow payday loans for students. In order to loan for their very urgent cash requirements, a student should be at least minimum of 18 years of age and hold some source of income to repay the loan. A lot of loan sharks are always on a lookout for easy victims for loan scams. You need to be wary of them. For, they work on your emotional, social and psychological factors and offer too-good-to-be-true deals.
Being a student who has some source of temporary income, if you want to borrow a small amount, say to fund your university project or to update your personal website or for any other project, it is recommended to deal through a registered or experienced loan broker only. For, a lot of fake companies also thrive on the internet.
Who are brokers? Brokers are not the lenders themselves. They are the loan advisors who act in conjunction with you to search for the most affordable deals. They will help you find a low-cost deal at the best price. They will help you compare if you need payday loans or short-term loans for students UK. When you borrow with professional help you are less likely to make common borrowing mistakes.
Here is a quick list to identify loan sharks or loan scams for students online:
1. First Point of contact where did you meet the loan provider? The first point of contact is very important. For, most loan sharks are spread out to public places to search for their victims. According to a recent news report public places including game zones, clubs, pharmacy shops and even school gates are not spared by loan sharks. Being a student, you may welcome a bigger financial fiasco if you borrow from a fake firm or an individual. A lot of private brokers run special support groups to help students find the best alternative to borrow at less price. You can fill a form and they get in touch as soon as they receive the request. A legitimate firm will never make the first point of contact.
2. No document or only verbal contract. A scam would always miss the essential documents. There will be no or minimal paperwork to prove the deal. They may offer you very less rate of interest, without an accord. In most cases, they charge very high late payment charges wherein unpaid debt becomes almost impossible to bear.
3. Interest Rate always finds out how much is being charged an interest rate. Currently, the FCA has placed a cap of £24 on £100 payday loan for a month. Make sure you are not charged more than this amount on the name of interest.
4. Loan Repayment Schedule A legitimate lender would also share a repayment schedule after finalising the loan agreement. If you do not get a clear loan repayment date, it is bound to be a trap. Typically, payday loans are offered to people on fixed income only and are expected to be repaid on or before the next payday. If the lender asks you to apply for payday loans on instalments or payday loans for 8 weeks or more, beware of these frauds.
A professional loan broker’s support works like a shield to protect you from fake loan offers prevalent online. Besides you can use these handy tips and learn how to locate a fair loan deal online.