UK Payday
Loans
Information About Instant Cash Options For Consumers
Due to the loosening of lending restrictions, UK residents now have the option of taking out payday loans. This borrowing option is convenient when quick cash is needed and there is other available way of getting the emergency cash. For many with bad credit who cannot get a credit card or obtain an overdraft of your bank account, those borrowers can still get payday loans. Eligibility requirements are usually not particularly strict. The two main requirements are residing in the UK being over 18 years of age. The borrower needs to show currently employment and ownership of a bank account for more than 3 months. Some companies require that the borrower's regular pay be directly deposited into the borrower's bank account.
Frequently Asked Questions About Payday
Loans
How do payday loans compare to longer-term loans?
How do they compare to a cash advance on a credit card?
How do they compare to a checking account credit line?
How are payday loans regulated?
What are the disadvantages of payday loans?
Have payday loans been around a long time?
What is the history of these loans?
Are payday loans like a pawn shop?
What are other people saying about this short-term loan option?
Do people think payday loans are regulated enough?
Is this kind of lending usury?
Difference between payday loans and paycheck loans?
Do most people pay off the loans on time?
Are there penalties for not paying off the loans on time?
Where else can I get advice about payday loans?
What are the reasons borrowers need quick cash?
Is short-term borrowing different in other countries?
The
amount of money available from payday loans varies but typically ranges
from L50 - L80 but can be as much as L500 to L800.
The borrowed amount is based on the borrower's earnings.
Many payday loans lenders will expect the borrower's monthly income to be at least L750 to
L1,000.
Typically,
these loans are for a very short time frame, usually being repaid in two
weeks time. The repayment
timeframe can vary and can be extended if necessary.
The borrower give the loan agent a check for the
loan total. The total amount of the loan to be repaid is the initial
amount borrowed plus a fee. This
fee works out to an APR (Annual Percentage Rate) which is usually quite
high. You can expect to pay
about L25 for every L100 that you borrow.
Payday loans can be a convenient way to get quick cash, however, it should not be regarded as a long term loan. These loans should be paid back promptly.
Payday
loans are different from regular loans that most of us are used to.
With payday loans you borrow a certain amount and the fee
(interest) is added to the amount you owe for a total amount of pay back
due within a very short time, usually one pay period.
If you are paid every two weeks, the total is due then, on your
next payday. Usually the loan is due in no more than a month’s time. You
may be able to extend the time of the loan slightly, however, there will
be additional interest fees that will be added.
With
this type of short-term loans, you do not have to go through a long, tedious background
check. There is also no
credit check. There are few
requirements for you to pass. The
two main requirements are that you be a UK resident and that you are over
18 years of age. Most lending
agencies also require that your paycheck be regularly deposited into your
bank account. Many will ask
to see bank records showing this automatic deposit for the last two or
three months. When filling
out the request form there is no need to tell them the reason for the
loan.
When
you are approved for a payday loan, the amount you borrow is usually
obtained within a day, most often as a deposit into your bank account.
You must write a check from your account to the lender for the
total payback amount, and post-date the check to the date the loan is due.
The lender then holds the check for deposit on the due date.
This
type of loan is made for those in need of strictly short-term funds.
Although there is no actual APR (annual percentage rate) noted for
your loan, there is a large percentage interest fee added to payday loans
that must be paid back. There
are no processing fees. In general, you can fill out an application and
find out if you qualify for payday loans and if so, how much money you can
borrow, in a matter of minutes on the internet.
This makes payday loans a very convenient way of getting quick cash
to meet an immediate need.
Payday
Loans
Copyright
2005 UK Payday Loans Guide
89 High Street, Harlesden, London NW10 4NT
All rights reserved Articles By SpencerWriting
Payday Loans
Yahoo
Guide To Payday Loans UK
Net Guide To Payday Loans