Payday loans are a relatively new thing in Britain. They started out life in America but have become increasingly popular over here, particularly as the credit crunch has continued to bite. Payday loans are short term cash loans for those who suddenly find themselves in financial dire straits; caught in the middle of the month with another two weeks or more to go until pay day and funds are running out. There's bills to pay, shopping to buy, or maybe the kids need new school shoes and there simply isn't the money to cover everything. When all other avenues have been exhausted, like credit cards and personal loans or friends and family, then a payday loan can be a real lifesaver. Nowadays more and more people are turning to these types of loans to help them through a sticky patch. Many people use them when they're late in getting paid or maybe have not been paid as much as they were expecting. In these situations a short term cash loan will tide you over until you get what you're owed with the minimum of fuss and hassle.
How Payday Loans Work
Quite simply they are short term loans for any amount between £80 and £1,500. Applying online is easy. Use a comparison site for the best deal and choose a provider that best suits your needs. For instance, some lenders do not credit check, so if you have a poor credit record then you may want to choose one that ignores this. Once your application is approved, the money will be wired into your account the same day. Then, all you need to do is pay it back on next payday. If you find yourself short come next pay day, then some companies allow you to roll the loan over to the next one. Again, compare lenders to find out which ones allow you to do this, and which ones don't. Once you've received the cash, it's yours to do with whatever you want. There's no restrictions and nobody checks up on you to make sure you're spending the money as they want. Payday loans can be used for anything from paying for car tax to holiday spending money. It's entirely up to you. There's nothing to fax and no complicated paperwork to complete. Just spend the money as you need and repay on the agreed date. Then, if you need to borrow more you can. Easy! The other big advantage with them is that once you do pay it back it helps to improve your credit score and opens up the door to other types of borrowing.
Do I Qualify for a Payday Loan?
Payday loan lenders have a very high acceptance rate, and if you apply to one that does not credit check you've got nothing to lose by trying. Generally the acceptance criteria is:
In employment - not self employed - with a regular wage
Have a UK bank account
Are over the age of 18
So if you find yourself in a financial fix, give a payday loan a go. You may be pleasantly surprised at how easy and convenient they can be.