In this article Bertie Buck takes you through often asked questions about loans in general. For more info, you can always visit our Help & Support section.
What is a loan?
At its most basic level, a loan is something that is borrowed. Books are loaned from libraries, for example. When money is loaned – such as payday loans direct lenders or a personal loans – from a commercial lender – it is expected to be paid back with the addition of some interest, which is effectively the charge for borrowing the money.
What is a personal loan?
A personal loan is usually a type of unsecured loan – that is unlike a mortgage or a hire purchase agreement on a vehicle, that is repaid over several instalments.
A payday loan is a short term loan designed to provide a small cash advance, usually to help with cash flow in emergencies, that is repaid on the borrower’s next payday, usually not more than 30 days or so ahead.
Specialise lenders offer payday loans and introducers or affiliates generally offer a matching service between consumer and lender. Every lender that wants to offer payday loans in the UK must have a licence to cover this activity. Licences are issued by the Office of Fair Trading (now Financial Conduct Authority).
What about loans for specific purchases?
Loans for specific types of purchases vary, for example mortgages are loans secured on property, retail credit is sometimes used to enable large white goods purchases from the store selling the white goods. There are many other types of loans, for example, credit cards, pawnbroking loans and cash converters loans, where the transaction requires some form of asset or something of value against which a loan can be advanced.
Loans for bad credit?
At Uncle Buck we try to avoid thinking about “bad credit” as we know everyone’s credit history varies and circumstances can change quickly. Consumers whose credit history has not been smooth and consistent can shop around as lenders’ acceptance criteria varies. Not everyone who wants a loan with bad credit will be successful. At Uncle Buck we consider all circumstances individually.
What is an online lender?
An online lender is a lender that has an internet presence and where in general applications are made through a website, using an online application form. This can be very convenient and private and avoids having to go into a high street branch to apply for a loan. There are many online lenders offering loans to payday and consumers can find out information about the variety of products available by searching the internet. The Uncle Buck website www.UncleBuck.co.uk provides a lot of information about our own payday loan products and we hope you will take time to have a look.