An Alternative To Payday Loans When You Need Cash Quick

*This is a collaborative post about an alternative to payday loans

Life is pretty expensive and if the last year has taught us anything it’s that you can’t plan for everything. Some things happen in life that you can predict, and sometimes those things can cost a lot of money. Having an emergency fund is one of the most important savings tools you should have. But what happens when you don’t have enough in your emergency fund? Or if you have to use it and something else happens before you’ve replaced the money?

Loans are there to help with financial difficulties and come in many different forms. But not all of them are going to be good for you in the long fun, like payday loans. But there is an alternative to payday loans that I’ll come onto later.

What are payday loans?

A payday loan is a small loan (normally up to £1,000) and they have very high-interest rates. They’re generally given out in agreement that they’ll be repaid over a short period of time. And most of the time they’re billed as something you pay back on your next payday. Although sometimes they can be paid back over 2 or 3 months. But the longer it takes you to pay back, the more interest you’ll be paying.

For most people, they’re seen as a quick fix when you have an emergency. Perhaps your car breaks down and you need money to fix it. Or your washing machine breaks and you need a new one.

The payday loan credit model was adopted worldwide in the 1990s when the industry boomed. In the UK payday loan lenders are regulated by the Financial Conduct Authority (FCA) and lenders have rules they must stick to. For example, the maximum a payday loan can cost in the UK is £24 per £100 borrowed. But that’s a whopping 24% interest.

An alternative to payday loans

Polar Credit is a payday loan alternative that is available to people looking to borrow money without going through a broker. As they’re a direct lender they make all their lending decisions themselves.

They do still have the positives that come with payday loans such as the super quick and easy online applications. And you’ll know straight away if you’ve been approved for credit, including how much you’ve been approved for. But the thing with Polar Credit is you get a credit limit, but you don’t need to use up the full credit amount. You may realise you need less money than you think so you can take out that amount instead. And you’ll only pay interest on the money you physically borrow, not how much you apply for.

How does Polar Credit work?

As an alternative to payday loans, Polar Credit offers the perks that come with payday loans without friction. Once you’ve applied and you know how much you can borrow the account will let you withdraw funds whenever you need it. The money is transferred into your account within minutes. So while you’re saving for an emergency fund or for something last minute it’s a good backup to have, just in case.

As long as you make your payments on time you can continue to access the money if you need extra funds for everyday spending. And you won’t need to reapply every time you want to borrow.

You may think a payday loan is your only option, but it really isn’t. And a brand like Polar Credit charges a lot less in interest! As mentioned above you’d pay £24 interest if you took out a £100 payday loan for 30 days. With Polar Credit, you’ll only pay £6.60 interest to borrow £100.

Like with any loan, please borrow with caution and keep up with repayments. For more information, visit Polar Credit.

Have you ever taken out a payday loan?