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Let’s be honest; even the wealthy might need a £300 loan at any time. That’s because life is always full of small, unpredictable costs that will hit you when you expect the least. So, whether your car has developed an abrupt mechanical problem or your smart TV has packed up, short-term loans (Payday) will always come in handy.
Today, there are hundreds of legit lenders in the UK that are ready to replenish your wallet with a £300 loan in minutes or even seconds. But because these loans have shorter repayment periods and small credit amounts, they typically have higher rates than the typical bank loans.
So before sinking yourself deeper into a quick £300 bad credit loan, I suggest you read this quick guide to arm yourself with what you really need to know about a £300 loan.
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What’s a £300 loan and why you need it
Typically, a £300 loan is an emergency loan that should sort out most of your unexpected bills or expenses. This might be utility bills, fixing your car, fixing a broken window, or any other out-of-nowhere expenditure. In most cases, £300 loan lenders will give you an option to lend between £100 to £2000, although the amount might vary depending on your needs. Overall, a £300 loan should free you pretty fast from those small, unexpected expenditures.
Critical features of a £300 loan:
- High-interest rates
- Short repayment durations
- Quick disbursement of funds
- Paid back via Continuous Payment Authority (CPA)
- Early repayment
How to apply for a quick £300 loan?
When push comes to shove, and you’re finally ready to apply for a £300 loan, there are some easy but essential steps to follow. For starters, you need to shop around for a reliable lender. You’ll have to look at factors such as the reputation, the rates, the disbursement period, and of course, the repayment duration.
Next, you can go ahead and apply for your loan online from your favourite lender. Luckily, most lenders will take only a few minutes to inform you whether your loan application will be approved or not. You will, however, be required to provide your proof of income and a valid government-issued ID. Your credit score is also a critical determining factor in the overall amount that you will get.
After the lender has approved everything, you can sit back and expect the loan in less than one business day. The money will be credited to your bank account. If you physically visit the financial institution, you should get the money on the same day. However, make sure that you read and understand the T & C of the loan before signing up.
The Red Flags
Because personal loans come quick and fast, it can be a bit challenging to find a legit lender. Even worse, financial regulations are often subject to change in the UK and the world at large. So, to avoid unworthy lenders, you’ll have to consider the lending rates and the terms of the loan. Some lenders will slap you with high-interest rates, making the loan repayment process a mountain to climb.
Also, stay clear of pushy lenders as they might tempt you into borrowing more than enough. And yes, think twice when the deal is too sweet to be true, as some lenders might include hidden fees. So the only trick is to review the loan terms thoroughly.
Eligibility requirements for a £300 loan
There are several criteria that you must meet to qualify for a short term £300 credit. To begin with, you must be at least 18 years of age or more. Also, you must be a UK resident with a valid bank account, mobile number, and email account. And of course, you should have a regular source of income. However, meeting these requirements doesn’t automatically guarantee a £300 loan, but rather, your loan application will be considered.
Types of £300 loans
Now that we already know a few things about securing a quick £300 credit, I want us to discuss the various kinds of quick £300 loans in the UK. Let’s dive in!
£300 Doorstep Loans
A doorstep loan, as the name suggests, is a loan that comes right to your doorstep. Some also refer to it as home credit loans. That aside, a doorstep loan is secured after having a face-to-face talk with the lender. These unsecured loans are offered in small amounts between £100 up to £500, depending on the lending company.
You can apply for a doorstep loan by either filling an online form or an agent coming over to your home. The good news, however, is that the agent won’t be the one to determine whether the loan application will go through or not. Instead, they will guide you towards making the right decision. You don’t even have to make an instant decision regarding the loan.
£300 Payday Loans
Payday loans have been on the receiving end of bad raps lately. Some people even demonize them as one of the worst financial practices ever. However, with proper money management skills, the best payday loans can be the long-awaited economic ‘messiah.’
With that said, Payday loans are available to any working person. However, you must repay this loan on your next payday. You can apply for the loan at your local financial institution or online. You can even use fax and emails to apply for a Payday loan. Just be sure to repay the amount within the fixed duration and with interest on top.
£300 Instalment Loans
Instalment loans are quick loans that usually come with long-term, multi-payment terms. They are consumer-friendly because most offer flexible payment terms. With instalment loans, the consumer will choose the loan amount, loan terms, and instalment payments.
However, missing your monthly payment can be a punishable mistake in this regard. It can lead to poor credit scores, thereby disqualifying you from future instalment loans. Worse, still, some lenders don’t allow early payment of the loan.
£300 Bank Overdraft
In simple words, an overdraft is a credit arrangement between a bank and the customer to deposit extra cash into the client’s account. However, your account value will stay at zero until you deposit money. And unlike the other options, a bank overdraft is not limited to a specific amount of money, although it’s also a short-term borrowing.
A customer can get an overdraft loan by physically visiting the bank’s branch or applying via internet banking. Also, an overdraft is accessed for a lesser duration than the typical bank loans and has no collateral attached. And in addition to that, the interest rate depends on the borrowed amount and not the overall overdraft limit.
£300 Revolving Credit Facility
Revolving credit facility loan is as a combination of credit cards and overdraft loans. Similar to credit cards, you will make repayments monthly to your revolving credit provider. And like overdrafts, the revolving credit facilities have a spending cap that you can’t exceed.
Today in the UK, companies offering a £300 revolving credit facility loan are many. That’s because financial organizations that provide this kind of loans have been around the UK market for decades now. However, be mindful of these loans because they can lull you into thinking that you need them to survive.
£300 Logbook loans
A £300 logbook loan is the money you’ll get after depositing your car logbook as the collateral. In most instances, a logbook loan will give you up to 70% of the overall value of your car. Also, the interest rate is usually lower than those on other loan types. What’s more, you’ll get up to 12 months to repay the loan, and there are no early loan payment penalties.
A word of warning, though; your £300 logbook loan provider won’t hesitate to come for your car if you fail to repay the loan. But first, they will make phone calls or send emails and letters as a reminder. Surprisingly, you might need to refund the money still, if the amount your car was sold doesn’t offset the loan entirely. So, you must research thoroughly before applying for a £300 logbook loan.
£300 Bad credit loans
Finally, you can take advantage of bad credit loans to quickly solve a £300 emergency. Here, you’ll get the loan no matter your credit history. So, if your personal or high street lender turns you away, a bad credit lender should do the trick. They have quick approvals and can go a long way towards improving your overall credit score.
However, taking a £300 bad credit loan has some disadvantages too. First of all, the borrowers ask for high-interest rates because of the high risks involved in unsecured loans. Also, there are many scams out there looking to con the unsuspecting clients. But again, a well-managed £300 bad credit loan can solve most of your emergencies on-the-go.
Where to get a quick £300 loan
Up to here, I’m confident that you’ve already decided on which £300 loan to apply. To help you out, I want to show you the type of financial institutions that offer a quick and easy £300 loan without any fuss. They include:
- Retail and commercial banks
- Internet banks
- Insurance companies
- Investment banks and companies
- Savings and credit associations
- Friends and family
How much does a £300 loan cost and when is it due?
In the UK, the Financial Conduct Authority (FCA) regulates the financial market. Currently, this body has set 0.8% as the maximum daily interest rate that accrues from any high-cost, short-term loan. In simple arithmetic, you’ll have to part with around £72 each month for every £300 that you borrow. Also, you can’t repay twice as much the amount that you had borrowed. So, it all depends on the borrowed amount and the interest rate of your loan.
Moreover, most short-term loan lenders will allow you to clear your loan balance early. However, some dubious lenders might charge you a small fee for doing so. But if you repay your loan sooner, you might end up saving lots of money. That’s because interest rates accrue daily. So repaying, let’s say, a month earlier might save you an entire month of toiling with high-interest payments.
There is also some good news for those who are struggling to repay their loans. The FCA regulations stipulate that late repayments of high-cost short-term loans shall not accrue more than £15.00. Therefore, you won’t pay more than that amount in case you fail to pay any amount of money. It is also advisable to notify the financial lender as soon as possible because they might provide you with some helpful financial advice.
Can I get a quick £300 loan with bad credit?
Generally, short-term lenders would like to know when and how you will repay the loan. You must repay the loan in instalments or full as agreed. It even gets worse because the new law requires lenders to look at your credit score before approving any loans.
One of the surest ways of comfortably securing a £300 loan is by improving your credit score. You can do this by making timely repayments, especially on your credit card. Also, try to shun those tempting credit card loans as much as possible. Additionally, you can secure a meeting with the lending institution to convince them that you are credit-worthy if you have fully repaid all your previous loans.
If all don’t go according to plan, the UK market has lots of bad credit lenders who will offer you a No Credit Check Loan easily. Here, your credit status won’t determine if you’ll get the loan or not. The available institutions include payday lenders, direct lenders, and even well-established high-street loan companies that offer this service. In most cases, you’ll get a repayment period of up to 3 months, which should give you some breathing room going forward.
How to repay the £300 loan
If you’re lucky enough to land a £300 credit, you and the lender will thrash out the loan details, including the repayment date. And if you want a payday loan, the repayment date will always coincide with your payday. That ensures you have enough funds to repay the loan when it’s due.
All those aside, it’s always a great idea to repay your loan on time. You can achieve that by applying for small loan amounts with small instalments. Also, you should borrow what you need and not excess. And don’t forget to settle for a cheap lender with favourable terms. But all in all, timely repayment is the key.
Pros and cons of a £300 loan
Now that we already know the ins and outs of getting a £300 credit, let’s now discuss the advantages of securing a £300 loan, despite the few negative consequences:
- Easy to access: The primary goal of applying for a small loan is because you need to sort out some minor financial emergencies. Most of them support online applications, so you don’t need to travel to the institution to fill papers. Also, payday loans are available within a day and a week, depending on the lender.
- Fewer loan requirements or conditions: Most commercial banks and other traditional lenders will need lots of information and proof. You might need to provide your photo ID, proof of income, a credit check, and your social security number to process loans. However, payday or personal loans are “fast cash” loans. You only a government-issued ID, an active bank account, and prove your source of income.
- No credit checks: Getting a £300 loan doesn’t need your credit history, unlike the traditional loans that need high credit scores to be approved. However, most of these loans won’t increase your credit score, except in rare cases. Nonetheless, early repayment is paramount.
- Unsecured loans: Most personal or payday loans are unsecured, meaning that you don’t need any form of collateral to collect the loan. So if you default, the lender won’t seize your property.
- They are expensive: Repaying a £300 loan might turn out to be an uphill task because they come with higher interest rates. These loans are usually unverified and with no credit checks. So to cover the risk, the lender applies high-interest rates.
- Addictive: Because they are easy to get, small loans can trap you in a debt cycle. Each time you make a rollover, the lender will charge you additional fees, making the repayment process tedious.
- The lender can sue you: If you default, the lender has the right to sue you in a court of law. And if the judgment goes against you, you could land in prison or face wage garnishment. Fortunately for you, legal battles are expensive in terms of money and time. In the end, taking a £300 loan dispute to court might be a bad investment to both parties.
Have you already decided to apply for that £300 loan? If yes, go ahead because such an investment can soothe your financial pains for the short term. Also, you don’t need to go through the tedious paperwork process of applying for a typical loan because most payday or personal loans are approved online.
It is, however, vital to note that these loans feature high-interest rates, despite the many advantages. In addition to that, you should be careful not to trap yourself in the vicious loan cycle. But as they say, a stitch in time usually saves nine. So make a wise decision!
What is a £300 loan?A £300 credit is a quick, short-term loan that requires minimal paperwork to process. In most instances, this fund should pull you out of unexpected financial situations like sudden utility bills, a broken-down car, and more. In short, it's not intended for long-term financial solutions.
Where to get a £300 loan?There are many £300 lenders in the UK market today. You can get the loan from commercial banks, lending apps, insurance companies, and more. Just don't forget to review the T & C carefully.
Do you need a high credit score to secure a £300 loan?Although your credit score is fundamental, there are many other factors that lenders evaluate before approving a personal or payday loan. They can look at your employment history, pay date, and many other things. So getting a bad credit loan is now easier than ever.
What information is needed when applying for a £300 loan online?You will most likely need to fill the online form with information such as your employment history, contact info, bank account, income, expenditure, and government-issued ID.
Can I clear my £300 loan early?Yes. It is possible to pay back your loan earlier than the due date. Doing this will raise your credit score as well as save you some interest money. However, some lenders don't allow this. So it's advisable to read the small print carefully.
What is the £300 loan interest rate?In an ideal world, the rate might vary, depending on the lender. However, the Financial Conduct Authority (FCA) stipulates that you shouldn't pay more than 0.8% as the daily interest rate. In addition to that, the law prevents the lender from charging you twice as much as the loan amount.
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