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Need help managing an unexpected expense? There are plenty of options available in the UK, including personal bank loans and payday loans, but how do you know what’s best for your needs?
However, while personal bank loans may appear to be the most comfortable option, they aren’t always the best choice. Instead, a payday loan could work as a more suitable alternative to bank loans for resolving your current cash crisis if you are only looking for a small sum short term loan.
Bank Loans UK
Whether it’s to help get your business off the ground or to cover the bills through a tight month, bank loans have a variety of uses. While on the surface bank loans and payday loans may appear similar – an amount is applied for, which if approved is repaid in instalments – there are a couple of key differences between the two.
Banks generally offer loans for a variety of purposes, such as personal loans or overdrafts, while payday loans are typically intended for short-term expenses.
Why Choose a Payday Loan Over a Bank Loan?
Compared to the cheapest bank loans, the interest rates of payday loans can seem high and are an expensive form of borrowing. However, payday loans do offer a number of other benefits that can make them a more appealing short term option depending on your circumstances.
Quick Money Transfer
Traditionally, bank loans can take anywhere from a day to a few weeks to be approved. This can obviously be an issue when you require the money urgently.
Payday loans are often a lot quicker from the time between approval to the transferring of money, with many approved applicants receiving their funds within an hour. At Uncle Buck, we typically transfer the money to your account within 15 minutes if the loan application is approved during our funding times of 6am to 11pm.
Bad Credit Options
A poor credit rating can often be a stumbling block when applying for a short-term loan as most banks will likely turn away applicants who have a bad credit score. This isn’t necessarily the case when applying with a payday lender as many are willing to consider poor credit applicants depending on their circumstances and wider financial situation.
At Uncle Buck, we believe that simply looking at your credit score isn’t always the fairest method for assessing your suitability for a loan. We prefer to look at the bigger picture, and if we believe that one of our loans could work as an affordable option, then you could be considered.
Unsecured Loan Options
While many banks also offer unsecured loans, their loans often have strict credit requirements and can take at least a week before the cash is available.
However, with an unsecured loan from Uncle Buck, approved applicants could have their money transferred to their account in as little as 15 minutes.
When it comes to loans, payday lenders often provide a much more flexible approach than that of banks. The borrowing period for bank loans is usually a number of years, rather than months like a payday loan, so you could be left repaying your loan long after you originally needed it.
Short-Term Uncle Buck Loans
As a short-term direct lender, we provide unsecured loans without the need for a guarantor to customers across the UK.
If approved for an Uncle Buck loan, you could:
- Apply for an amount of up to £1000
- Borrow for either a four or six month period
- Repay in accordance with your pay frequency
Our short-term loans are not intended to manage long-term expenses or to pay off pre-existing debt. If you require assistance with another form of credit, then there may be cheaper, more suitable options available for your needs. This form of borrowing is expensive and is unsuitable for supporting sustained borrowing for long periods. It is not an appropriate form of borrowing if you are in financial difficulty. Missed or late payment may incur additional costs and are reported to credit reference agencies; these records may be seen by other lenders and may make getting credit more difficult in the future.
At Uncle Buck, we’ve been offering short-term loans since 2004 to borrowers from across the UK. If you are interested in applying for a loan today, simply click the Apply Now button.
If you have any questions regarding our loans, you can contact us at firstname.lastname@example.org
Prefer to speak with a member of our friendly UK-based customer service team? Then call us on 01959 543 400. We are open seven days a week Monday to Friday, 08:00 to 21:30 and on Saturdays & Sundays from 09:00 – 18:00.