Payday loans: A quick fix
Payday loans are small, flexible loans designed to cover urgent and short-term cash flow problems. They work by providing a small amount of cash (usually less than £1,000.00) which can then be paid after a short time – usually after 30 days, or once your next paycheque is received.
The first time someone takes out a payday loan: 69% use it to cover a recurring expense. An example of this would be, utilities, credit card debt, rental/mortgage payments, food, education. Also; 16% take a payday loan after experiencing a financial emergency, such as medical bills, car repairs or fixing a broken appliance you use frequently.
Traditional bank loans are available primarily to individuals who can proficiently demonstrate they have a good credit rating. This is normally exhibited through credit history, employment status, bank statements, etc. A credit rating is calculated from a person’s total debt, public records and age of their accounts.
A good credit rating can be difficult to achieve but its a prerequisite for being eligible for most bank loans. Payday loans, by contrast, don’t discriminate as harshly between good and bad credit – a factor which makes them a viable alternative to bank loans. At least in the short term.
Online payday loan lender’s do have some protective measures in place to ensure that they only tend to people who can pay the money back. To qualify for a short-term loan of this sort you need to be in current employment, have an active credit card and provide an address. We follow all these regulations except we can cater to any individual, including unemployed, collecting benefits, or with bad credit rating.
How Does It Work?
Firstly, you need to apply for a payday loan online through our website. You select the amount you would like to borrow, the term to repay and that will subsequently tally a quote for the total amount you will owe. Most quotes include a flat fee on top of the amount borrowed or have hidden costs in the terms.
Once an application is approved, receiving funds is very quick – most payday loan lender’s guarantee to transfer the money to a bank account within 48 hours and as little as 15 minutes. The most customary way to pay back a payday loan is through your credit card which is called a ‘continuous payment authority’ (CPA).
As the payday lending process is online, there is no paperwork or calls required, making for a less invasive procedure than conventional lending.