welcome to GDD Financial!
Deciding to borrow money online is not a decision to be taken lightly. Make sure you carefully check the interest rate, any repayment penalty and all terms before you borrow money online.
Should I borrow money online?
Before you go down this road, make sure will have the ability to repay any money you borrow. Repayment should also be practical within the loans required time scale.
- Budget Planning - The Financial Services Authority (FSA) has provided an online budget planner so you can check your income against your expected outgoings. This is a great way of checking whether you can afford to borrow money online.
- Debt Test - If you already have debts in the form of a mortgage, loans or credit cards then you should be careful about taking on more debt. This Debt Test will give you tips about avoiding unnecessary debt, help you ascertain how much you should borrow and help you tackle any debt problems.
Alternatives to borrowing money online?
It is not always the cheapest option to borrow money fast. Check the following options first and compare the interest rates and risks associated with each type of borrowing money.
- Overdrafts - This is an extension or safety net to your bank accounts current account. Overdrafts are ideal for a shorter period of time where you need to cover imminent bills but have no immediate funds. Interest rates can be higher so an overdraft is not the best option for longer term loans. If you plan ahead then you can set-up an overdraft as a convenient way to borrow money fast when an unexpected bill arrises.
- Loans - Loans are a preferred method of borrowing money for a longer time period. A loan can be secured, which means the lender has the right to sell one of your assets (typically your home) if you donít keep up your payments. An unsecured loan is more risky for the lender and will mean that you will end up paying a higher interest rate.
- Credit Cards - Credit cards can be useful for short term debts where you are able to repay the full balance within a month. If you donít repay the full balance then you will pay large amounts of interest. The Annual Percentage Rate (APR) can be very high and debt can quickly spiral if you are not careful. While not the cheapest form of borrowing money, a credit card is a useful way to borrow money fast and can also offer some protection from the credit card company themselves.
Will I be able to borrow money online?
Online sites such as Wonga.com have been thrust into the public eye and offer unsecured loans that can be in your bank account within 24 hours. The APR of such sites can be around 2689% so it can be an expensive way to borrow money. However, if you are over 18 with a regular paying job, bank account and landline contact details then you have a good chance of being accepted.
To borrow money online you will need to supply some or all of the following details:
- Your car registration number
- Your landline phone and mobile phone number
- You postcode
- Your employment details to show you get paid regularly
- Your date of birth to prove you are over 18
- Your bank account details
Borrow money online: How much and how long?
Borrowing small, unsecured amounts of money online has become popular with many online sites claiming that you can have the money in your bank account within 1 hour of your application!
The amount of money that can be borrowed online with these unsecured loans ranges from £1 to around £750. The length of time for your application to be accepted and you to receive the money ranges from as fast as 1 hour up to around 24 hours.
When you have an expected shortfall in your current months income then it can make sense to take out an online loan. Just be careful.
|Top Articles - Click to read more|