best online payday loans – Guide

16 May

Payday Loans are designed to give you a small, short term, unsecured loan which you repay on your next pay day. Sometimes, waiting for payday to come around can feel like an age, especially if you have prematurely spent last month’s packet! Too often can unexpected expenses arise whilst your account is somewhat sparse, from ‘final demand’ bills, MOT payments, to emergency health care costs. What is unique about Payday loans is not only that they can be used for almost anything, but that they are a quick and easy way to access credit. The majority of payday lenders can now be found online and provide just one simple application form for you to fill out. Providing all the information you enter is accurate and verified, payment is usually received on the same day as your application is submitted. All legitimate online payday lenders have associations with support agents available 24 hours a day and it is always recommended that you speak to a financial advisor to discuss your options before you obtain a payday loan. As Payday loans can be used as funding towards almost anything, they tend to come under various guises from, ‘Cash Loans’, ‘Quick Cash’, ‘Short term loans’ and ‘payday advances’ to name but a few. There are also ‘Low Income Payday Loans’ which are designed especially for individuals with a limited this best online payday loans.
Furthermore, Payday Loans are perfect for individuals with bad credit. Since it is a form of unsecured loan, you do not have to secure it against any collateral. Additionally, payday loans can be generally obtained without any credit checks being made. Nevertheless, there are a few restrictions in order to qualify for this type of loan; you must be at least 18 years old, have a minimum monthly income (usually around £300 or less), be a UK resident and have a UK bank account. Most payday loans can be arranged for anywhere between £80 to £1,500 and this can vary depending upon the lender and the borrowers circumstance. Furthermore, as with most unsecured loans, interest rates are relatively high often reaching 3 to 4 digits. In regards to repayment, this is usually arranged in the agreement with the lender, but usually you repay the loan on your next pay day.
Short term unsecured loans to be repaid by next pay day is now a multimillion pound business, some reports suggesting it’s worth over £900million. According to Consumer Focus, the payday loan market has almost quadrupled since the recession began. UK Lenders have noticed an opportunity to charge as much as 4,400% annual interest. Although, many payday lenders complain that APR is an unfair measure as the loans granted are specially designed to be paid off within 28 days and can be cheaper than most unauthorised overdrafts. Despite the huge interest rates, it’s been recorded that over 1.2million people have taken out short term loans over the last 4 years emphasising that a growing priority within a typical UK household is a ‘quick fix’ to their finances rather than long term solutions. Despite the boom in the payday loan market, the Better Banking Campaign controversially claims that approximately 5 to 7 million people in Britain alone are still denied credit today.