£50 Payday Loan: How It Works
What is a £50 Payday Loan?
As the name states, a £50 payday loan is a small loan that amounts to 50 pounds. Small payday loans are relatively easier to obtain and are designed for borrowers experiencing a financial emergency that cannot wait until their next paycheck.
Applying for small payday loans in the UK can be quick and easy. The borrower must pay back the £50 plus interest to the lender on the due date. The loan is typically paid back in a lump sum after a short period of time.
What Can I Use a £50 Loan For?
People often borrow a £50 loan to address emergency expenses. The most common emergency £50 expenses include:
Unexpected small bills
Emergency home repairs
Minor car repairs
£50 Payday Loan Requirements
Applicants who wish to get a £50 loan must undergo a credit check to ensure they are eligible for the loan. To be eligible to apply for a small loan, borrowers must meet the following payday loans direct lenders criteria:
- Be at least 18 years of age
- Be a UK resident with a permanent address
- Be in employment with a regular income
- Hold a UK bank account and debit card
The loan providers may have additional requirements. For example, in many cases, some payday loan direct lenders may refuse to lend to an applicant who is currently bankrupt. On the other hand, many different lenders may still be willing to work with a person who is unemployed but has a steady source of income.
Average Interest Rates
Quidable is not a direct lender. Hence, we do not set APR or loan terms. However, the lending companies we partner with have 7-day to 84-month loan terms with 18.7% to 1,576% APR.
Moreover, our lending partners follow the rules and regulations set by the Financial Conduct Authority (FCA). According to the FCA, interest caps on short-term payday loans must be capped at 0.8% per day of the amount borrowed. Also, under FCA law, interest and default charges must not exceed the initial loan amount. Nevertheless, it is always good practice to pay back loans as soon as possible to save money and avoid paying more interest. Consider the following example: if you were to borrow a £50 payday loan with a fixed interest of 292% over one month, your total debt, including interest, would be £62.17. Whereas if you were to pay back that same amount with the same interest over three months, your total would be £76.09.
£50 Loans for Bad Credit Borrowers
Even if you have a bad credit score, you may still qualify for a £50 payday loan. Even though our trusted network of lenders performs a full credit check, your credit score is not the only factor they take into consideration. Our £50 loan bad credit direct lenders may assess your current affordability and circumstances and offer a flexible payment plan. Some lenders may also consider income when assessing an applicant’s eligibility for a loan.
The lenders we partner with may use a risk assessment model that adds more weight to your income than your credit score. For example, if the lender sees that you generate enough revenue to pay off a loan, they may be willing to lend to you even if your credit score is low. This can be especially true for small short-term loans due within a couple of weeks.
Benefits of £50 Loans
Getting a £50 payday loan has many advantages, especially when faced with an emergency expense. Below are the many benefits of taking payday loans from direct lenders.
- Easy application
- Quick funding
- Available to many credit types
- Higher acceptance rates
- Flexible repayment options
How Much Would You Like to Borrow?
What Should I Consider Before Applying?
Can I Get a £50 Payday Loan with No Credit Check?
Am I Guaranteed a £50 Payday Loan?
How Do Repayments Work?
What Happens if I Don’t Repay the Loan?
How Can I Save Money on My Payday Loan?
What Are the Best Practices for Paying Off a Small £50 Loan?
Bring extra cash: To have more money in your budget, you must earn more income or cut expenses. They are both very effective ways to pay back your loan on time and even earlier. If possible, try to find extra short-term work. If doing so is challenging, consider selling something you own. If you are unable to bring in extra cash, try to reduce your spending and cut unnecessary costs until you have enough money to pay back your small loan.
Consolidate debt: If you are unable to pay back your small loan, you may be able to roll your existing loan into a new one. Consolidation can provide you with a more affordable loan, better terms, and lower interest rates.
Get a co-signer: If you can’t get approved for debt consolidation, consider asking a close friend or family member with good credit to cosign for the loan. However, only ask for such a favour if you are confident that you will pay back your loan on time. If you don’t, it will become your cosigner’s responsibility to pay off that loan. And if you default on the loan, your cosigner’s credit may be damaged.