Are you looking for a personal loan company who will consider candidates with terrible credit? If this is the case, it may be worthwhile to examine the benefits of Everyday Loans. The lender offers loans ranging from £1,000 to £15,000, with payback durations ranging from 24 months to 60 months.
Although the lender is somewhat flexible in who it lends to, you are likely to incur a high interest rate. In reality, the platform provides a typical rate of 93.6% APR, which is not only costly, but also similar to that of a payday loan (Learn more about the best payday loans here).
What exactly are Everyday Loans?
Everyday Loans is a personal loan provider that operates online. The platform, which was launched in 2006, allows you to complete the initial application procedure from your desktop or mobile device. Having said that, because Everyday Loans operates a variety of branches throughout the UK, you will need to complete the application process in person. Nonetheless, the site can provide personal loans ranging from £1,000 to £15,000.
Although Everyday Loans does not advertise itself as a bad credit lender, the interest rates it charges reflect this. At a sample rate of 93.6%, for example, this is an absurd amount of money to be paying on a long-term loan. High-street banks, on the other hand, offer comparable loan packages with interest rates below 5%. However, this is subject on the borrower having a decent or excellent credit score.
An example of how Everyday Loans function
As a result, if you need a personal loan but have a bad credit history, you may be obliged to contact a lender like Everyday Loans. The website allows you to borrow funds for a minimum of two years and a maximum of five years. Your monthly installments and interest rate will always be fixed during the length of the loan.
Everyday Loans offers unsecured loans, which means there is no obligation to be a homeowner. Furthermore, there are no application costs or origination fees levied by the lender. Everything is instead incorporated into the underlying APR. Finally, and perhaps most crucially, when you first apply, Everyday Loans performs a mild credit inquiry. As a result, you have nothing to lose by obtaining your personalised interest rate.
What are the Benefits and Drawbacks of Payday Loans?
Everyday Loans Advantages:
Fees are transparent.
Suitable for folks with less-than-perfect credit.
Personal loans ranging from £1,000 to £15,000
Loan durations ranging from 24 to 60 months
When you first apply, a mild credit inquiry is performed.
Cons of Payday Loans:
A representative rate of 93.6% is extremely high.
It is necessary to complete the loan application in-branch.
How Do Payday Loans Work?
Everyday Loans, like its fellow personal loan equivalents Satsuma Loans and Cash Float Loans, allows you to begin the loan process online. As a result, you’ll need to visit the Everyday Loans homepage to get started. When you click the ‘APPLY NOW’ option, you will be prompted to submit a variety of personal information.
Your full name, address, date of birth, and national insurance number will be included. You will also need to specify your employment status, take-home pay, and payment frequency. After providing the necessary information, you will be able to choose how much you want to borrow (£1,000-£15,000) and for how long (24-60 months).
The most important thing to remember is that your initial application with Everyday Loans will not be reported to your credit bureau. As a result, you have nothing to lose by learning about the available prices. Simply walk away if the rates are too expensive.
After you submit the application, the Everyday Loans system should respond in less than 30 seconds. If the lender believes you are qualified for financing, you will be given loan terms. This will indicate the amount of money it is willing to lend you as well as the underlying interest rate. You are under no obligation to continue with the application at this point.
The application page for EveryDay Loans
If you are satisfied with Everyday Loans’ financing terms, you will need to visit your local branch to finalise the arrangement. This is a significant issue because most lenders in the space allow you to complete everything online. However, after signing the physical loan agreement, you should receive your loan funds within one working day.
Will Everyday Loans require documentation?
When you visit your local Everyday Loans location, you must carry a number of documentation with you. These must be genuine copies.
Everyday Loans demands that you bring one form of identification with you. This must be a passport or driver’s licence. If you are self-employed and operate in the construction industry, you must also produce a photographic registration card (form C1S4).
Proof of Residence
You must also bring documentation proving your residential address. A recent power bill or bank statement can be included. Everyday Loans will also take a TV licence renewal letter or a DVLA car tax statement.
Evidence of Earnings
You must bring a copy of your most recent pay stub. This must be from within the last 60 days. Everyday Loans will accept the prior year’s audited accounts or a self-assessment return if you are self-employed or manage a business.
Outgoings on a regular basis
You must show the lender your regular outgoings in order for the lender to decide whether or not you can afford a personal loan. This includes rent or mortgage payments, phone bills, and utility payments. As a result, Everyday Loans will require bank statements for the last two months.
What Kinds of Loans Does Everyday Loans Provide?
Everyday Loans specialises in personal loans, but it also provides money for specialised reasons. This includes the following:
Loans for Individuals
Loans for People with Bad Credit
Loans for Debt Consolidation
Loans for Married Couples
Loans for College Students
Loans with a Guarantor
How Much Are Everyday Loans?
Everyday Loans, as we said previously in our assessment, has a sample rate of 93.6% APR. However, like with other representative rates, this is only the APR that the lender intends to publicise. As a result, the particular interest rate that you are offered will be determined by a number of factors. Furthermore, you will not know the pricing until you complete the initial application.
Everyday Loans will, however, base your interest rate on the following variables.
The amount you must borrow
How long do you need to borrow the money?
Your current credit rating
How much money do you make?
Describe your debt-to-income ratio.
Your typical expenses
Although Everyday Loans allows you to apply with a soft credit inquiry, if you accept the terms given, the lender will need to do a hard credit check. In order to estimate how much a loan will cost you in pounds and pence, we’ll use the lender’s sample rate of 93.6% APR as an example. Assume you want to borrow £3,000 over the course of two years. You’d have to make 24 fixed monthly payments of £231.78.
This indicates that your £3,000 loan will cost you £2,562.75 in interest, for a total of £5,562.75. This is a staggering amount of interest to pay, which is why Everyday Loans should only be used as a last choice.
Having said that, Everyday Loans does provide a top-rate APR of 30.5%, which is significantly lower than the typical rate. However, even compared to high-street lenders, this is still a significant amount of interest to pay on a personal loan. The greatest interest rate you could pay at Everyday Loans is 249.5% APR.
Finally, Everyday Loans has no application or origination costs, which is a plus.
Is Everyday Loans Financing Available to Me?
Everyday Loans is quite liberal with who it lends money to, as one would expect from a lender with such high APR rates. This is why the lender requests various supporting documents, as it does not base its choice just on your credit score.
Make certain that all of the information you give during the application process is correct, since you will be required to verify it in person before the loan is approved.
However, not everyone will be qualified to borrow funds from the lender, therefore we’ve outlined the essential requirements below.
Everyday Loans will consider whether or not you are employed full-time as one of the most important factors. If you aren’t, your application will almost certainly be rejected.
A source of income
In addition to full-time employment, Everyday Loans will consider how much you make after taxes. The lender does not specify the minimum income criterion, thus this will be weighed against other aspects of your financial situation.
Age and place of residence
You must be at least 18 years old and a UK resident.
Everyday Loans must ensure that you can afford the personal loan you wish to obtain. They will accomplish this by looking at your usual monthly outgoings.
Current Debt Position
The lender will also need to analyse your present financial responsibilities. As a result, if you still owe money on credit cards and loan agreements, you may not be eligible for Everyday Loans.
Everyday Loans customer service
You can contact a member of the Everyday Loans customer support team by calling your local branch or sending an email. You can get the relevant phone number by entering your postcode on the lender’s website. Emails must be sent through the online contact form.
Phone: Dial Your Local Branch
Email: Contact Form Online
Everyday Lending Limited, Secure Trust House, Boston Drive, Bourne End, Bucks SL8 5YS, In Writing
In conclusion, Everyday Loans has many advantages. You can borrow between £1,000 and £15,000 from the lender, with loan durations ranging from 24 months to 60 months. Furthermore, the initial application is not only simple, but it is based on a light credit inquiry. As a result, determining your personal loan terms is essentially risk-free. Everyday Loans, on the other hand, has faults.
The APR rates charged by the lender are at the forefront of this. A £3,000 loan over two years would cost you £2,562.75 in interest based on its representative rate of 93.6% APR. This is prohibitively expensive, and there are undoubtedly cheaper lenders available.
That being said, if you currently have a low credit report, you may have little alternative but to choose a high-APR lender like Everyday Loans.Having said that, if you’re considering using the lender for your personal loan needs, we recommend reading our Everyday Loans Review first. We cover everything from qualifying to APRs, loan terms, late payment penalties, and more.
What is the lowest APR rate available with Everyday Loans?
Although the benchmark rate touted by Everyday Loans is 93.6% APR, loans as low as 30.5% APR are available. However, this is still quite costly.
How much money can I get from Everyday Loans?
Everyday Loans allows you to borrow as little as £1,000 and as much as £15,000. Even if you are authorised for a loan through a lender, you may be provided less than what you requested.
How will I receive my Everyday Loans loan funds?
Once your application has been approved, the loan amounts will be deposited to your UK bank account. However, you must first visit your local Everyday Loans branch to submit a number of documents before signing the loan agreement.
Is there an origination fee charged by Everyday Loans?
Everyday Loans does not impose origination fees, unlike the majority of personal loan providers in the UK lending industry.