If you need some money and you have decided that borrowing will be the best option for you, then you will need to look into all of the loan options that are available for you. Different options will be available to different people and so you will need to know what is acceptable with regards to this. If you are not familiar with the loan type, then you may have no idea of who might be accepted for this sort of loan.
Legal Requirements and Restrictions
It is necessary for any UK borrower to be aged 18 years or older to comply with the law. An emergency lender will also want the borrowers to be UK residents and have a UK bank account. These are the main rules for borrowing money but each lender will have other regulations which are specific to them with regards to borrowing money from them. However, emergency lenders will tend to only have these rules.
Many lenders will require a credit check is done before a person is considered for lending. This will be a specific check to see details of their finances. Anyone can look at their own credit report and it can be a good idea to do this so that you know where you stand with regards to your credit status. If you keep up with lots of regular payments, such as rent or utilities, have always repaid loans on time and have a regular income, then chances are that you will get a decent credit score. However, if you do not has a good status on one of these things, perhaps having debt problems in the past, not keeping up with electricity payments or not having a regular income could mean that you will not do well when it comes to the credit check and will need to consider a loan where credit record is not so important, such as an emergency loan.
Is it Suitable
You may feel that the emergency loan will therefore be the right option for you. However, it is wise to make sure that you find out more details about it before you go for it as it is different to more traditional loan types and you will need to be aware of those differences so that you can plan properly. For example, you will normally only be able to borrow between £100 and £1,000 which may not be enough money for some purposes. Also, some lenders will only let you have a few hundred pounds as they will want to make sure that you are capable of repaying the loan before they lend you large amounts of money. As they do not base whether they lend to you on your credit record they build up trust in a different way and therefore check to see if the borrower is capable of repaying smaller amounts before trusting them with larger ones.
The loan also normally has to be repaid in one lump sum on the day that the borrower is paid. Although this means that they have a bigger chance of being able to repay it, it can be difficult because it means that there may then not be much money left to pay for everything else that they need to buy. So, it is extremely important to make sure that you are confident that you will be able to not only afford to repay the loan but also manage everything else that you will need to pay for as well. It is well worth doing some calculations to check this out carefully so that you can be totally sure beforehand.