What Is a Payday Loan
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| Thursday, 14 May 2009 |
About Fast Cash Payday Loans
What are they?
A fast cash Payday Loan is a short term cash loan of up to £1000, normally paid into your bank account on the same day. The loan is provided on the basis that it’s repaid in full automatically when you receive you wages from your employer, usually within 1 month, however some lenders allow you to extend the loan and only pay the interest each month. Most people take Payday Loans because of unforeseen and unavoidable bills such as car repairs which they simply don’t have the money to pay. A Payday Loan can be a valuable quick fix in this kind of scenario. Alternatively, the loan could be for a more enjoyable reason such as an impulsive holiday with friends which you would repay when you get paid.
Many leading companies have now introduced a fax-less service, which means no ID documents have to be posted or faxed. This means your loan could be paid into your bank account within hours of your application. Payday Loans offer a very fast service - so you get the money exactly when you need it. Companies that provide Payday Loans are responsible - only lending you a percentage of your spare money / disposable income. This ensures you don’t borrow too much and can afford to repay the debt.
Payday Loans are ideal for people with an adverse credit history, including CCJs, as they can be obtained without any credit checks. If you meet the criteria stated on the Payday application, you’re guaranteed to be accepted for the loan. Usually, these requirements are that:
· you are over 18 and working in the UK;
· you have a bank account with a Switch, Solo, Visa Electron or Visa Delta card.
Payday Loans are not just for people with bad credit. In fact, a high percentage of customers taking a Payday Loan have good credit and hold a high street bank account - they use the loan as a quick fix rather than going through lengthy loan and credit card applications. Remember, to get a Payday Loan you must be employed and have a bank account and many people who meet this requirement have a good credit rating.
Pros
No credit checks carried out on so a poor financial history does not exclude you from applying and being accepted. Loans are provided very quickly, often on a ‘same day’ basis. Simple application process arranged by responsible lenders.
Cons
Due to the specialist nature of this type of loan service, your interest charges are higher than that of a standard term loan from a bank or building society. If you’ve a very poor credit rating, you may be asked to fax back up documentation such as utility bills, which will delay the loan payout. A Payday Loan is a ‘short term fix’ and not to be used as a solution to any longer term financial difficulties.
Compare UK Payday Loan Lenders
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