Payday loans, also called cash advances, are the easiest and fastest method for solving short-term cash-flow problems. For people who are faced with a financial crisis, and who have less-than-stellar credit, and are not able to obtain a loan through traditional outlets these can be a Godsend. If they do not have friends or family members from whom they can borrow money, these people end up coming to payday loan companies.
Of course, there are some individuals who consider turning to pawn shops to borrow money against their personal possessions. However, pawn brokers give little money on most items. Wise consumers realize a better alternative lies with payday loans. People prefer getting a payday loan over pawning a valuable item. UK payday loans are not only helpful but also easy and discreet.
While mostly everyone who turns to payday lenders needs money fast, some people may be in even a bigger hurry. Those with pressing financial needs are able to apply for a loan on the Internet; many companies offer online applications. Going through the loan process online as opposed to in person is much faster and convenient, allowing most people to get their loan either the same day or the next day.
Those who do decide to complete the application process online will appreciate the fact that they are not restricted to traditional business hours. Instead of taking time off of work or spending money for fuel in order to drive back and forth to the lender, potential borrowers can hop on the Internet at their convenience. People who seek a payday loan need to know that there could be a delay when money is transferred if the transaction occurs on a public holiday or weekend.
It is not too difficult to qualify for a UK payday loan. An individual’s credit history has no bearing on their eligibility to get a pay cheque cash advance. The only requirements applicants must meet are making a certain amount of money per month and having a valid current account. All payday loan customers are charged a nominal fee to borrow money. The fee is based on how much money they borrow as well as their total monthly income.
Consumers are encouraged to research their rights and responsibilities as cash advance customers. There are fees and other ramifications incurred by people who pay off their loan late or worse, default on their loan altogether. As long as the customer pays their loan on time, and only borrows an amount they can comfortably afford to repay, they will not enter into a devastating debt cycle. Consumers should also be aware of the various marketing tactics used by payday lenders that may entice them to borrow too much money.
What to Do to Get a Payday Loan
Payday loans have experienced tremendous growth over the past 2-3 years. These loans have become a popular choice for people who want a quick, convenient way to get a short-term loan. The entire process can be completed with little stress and the payout time is rather fast. Sometimes, a loan can be given the same day an individual applies.
There are numerous lenders throughout the United Kingdom who offer payday loans. The maximum amounts and applicable interest rates will differ from lending company to lending company. Generally, a person can expect to receive anywhere from £75-£1,500, depending on their personal situation. It is typical to be charged anywhere from £25-£40 for each £100 borrowed. And while some payday lenders conduct “soft” credit searches, the applicant’s credit status will not affect their ability to obtain a cash advance loan.
There are several points an applicant must meet in order to get a payday loan. However, each lending company will have their own specific set of rules, all of which slightly differ. Regardless, most people have to be a full-time employee who is 18 years or older. In addition, they must hold a current account at a banking institution; their pay cheque should be direct deposited into this account. Most lenders insist that loans should be repaid in less than a month but some places will extend the repayment period for a fee.
Some lenders also require applicants hold a valid cheque card and have monthly earnings of at least £1,000. This last qualification is the most important because the lender needs to be reassured that the applicant makes enough money to repay the borrowed amount. Those who meet all of the conditions listed above should not have an issue getting a payday loan.
Those who are interested in applying for a payday cash advance should first search the Internet to locate all of the companies in their area that provide this service. There are also many Web-based lending companies that have an online application process, eliminating the need to see a lender in person. Online institutions generally have faster processing times. While a signature will be require on all application and loan documents, the borrower can do so electronically.
Thanks to the instantaneous nature of online payday loan companies, it usually takes a few hours from the time of application to the time of a fund deposit. Those who do not have Internet access, and do not have time to travel to a physical cash advance business, can locate a lender who allows people to apply over the telephone. However, it will take longer to obtain a loan because the borrower will need to mail or fax the required documents.