Everything You Ever Needed to Know About Payday Loans But Were Afraid to Ask

Written by admin on March 24th, 2011

A payday loan is a small, short term loans, you can use to cover expenses until your next payday. You can apply online and the decision to loan money made almost straight away. In most cases, the whole application completed online and borrowed money can be credited to your bank account on the same day as you make your application.

A payday loan is an unsecured loan, it is not dependent of the guarantee, such as you have a house or a car, etc.

In general, when making your request, first you can borrow any amount up to £ 300, depending on your take home pay. You are more likely to be approved may want to borrow, so it is recommended to use only what you need. Once you have successfully repaid loans with a specific company they can offer and then to borrow anything up to approximately £ 750 in subsequent loans.

Payday loans can provide useful solutions for short term cash flow problems.

Who apply for a payday loan?

To qualify for a payday loan that you are 18 years or older must and of employment with a take home pay of at least £ 750 per month. You will also need a bank account with a valid debit card.

Even if you have bad credit history should be able to get a payday loan as long as you meet the above criteria.

How do I get a Payday loan?

Most payday loans are available online, so there is no delay by fax or post documents. The application process is quick and easy to complete. You will be asked for your name, address, details of your monthly income and employment, when your next payday, together with the amount you want to borrow and the data from your bank account.

Once you have submitted your application, you should hear back from the providers of payday loans within minutes. They will email you with its decision to the email address that you registered with the application.

According to the amount you want to borrow and borrow money depend on the amount of payday loan providers, partly because their earning. Your application will be accepted only, the less are more likely to borrow and borrow what you need to accrue to the smaller amount of interest.

If your application is approved you by e-Mail sent to your loan show the amount that will be awarded, will give you the repayment dates and the amount of interest on the repayment date you will pay. Along with legal documentation you should be sent also loan conditions. These loan terms should your rights under the consumer credit provide Act 1974 together with details on the repayment of the loan, the lifting of the loan and the use of personal information that you apply for the payday loan detail.

To continue if you are satisfied online signature to answer questions about security, and provide details of your name mothers images like ‘ maiden name. Money is deposited into bank account then mail this back loan providers, registered in the application process. You can be deposited on the same day the application making money to bank account money short-term borrowing is very fast and efficient way.

Repay the loan to you

You will have to repay the loan amount and the accrued interest to the redemption date as specified in the loan contract. The redemption date is usually your payday, hence the name payday loan.

Repayment will be collected by the providers of loans by debiting a bank account that you registered in the application, which is a bank account that you receive your salary paid.

Return over a long period

Payday loans may be extended if you find yourself in a position to be able to provide all or part of the amount due on the date of payment of debts that are coming. In this case you should contact the payday loan provider as soon as possible and explain your situation to them. They are then they can explain your options and how about extending your loan.

Even if you cannot resolve the number of fully restore, it is desirable to pay off as much as possible, according to the maturity date. This helps to keep the amount of interest you owe as much as possible. Some companies may charge additional fees for the extension of the loan, check to see if this happens before signing the loan agreement.

Regulation of the Payday loan companies

Adjusted correctly payday loan companies must comply with strict laws that govern the industry.

As with any financial product requested always it is advisable to check the company offering the loan is properly regulated. Company loan day of payment that is applied to display his license number of credit to the consumer on their loan conditions and must also be authorized by the Office of consumer protection. If you are in doubt about whether the pay day loan company is considering applying to fully regulated below, you are entitled of for more information, please contact any of these organs.

As long as you are applying for a payday loan company properly regulated, it will be a recognised body, that any complaint you may have, and you can be assured that it will not be subject to any unfair practices.

What are the benefits of payday loans?


One of the major benefits of payday loans is the speed in which you can credit the money to you. The money you need to be available in your bank account the same day when the application is submitted. It can provide valuable help if you have short-term cash flow problems and need money, extraordinary.


The application process is very simple and only takes a few minutes to apply for a payday loan you don’t waste time posting or faxing documents to the payday loan provider, as you would with other more traditional high street lending.

Bad credit History

Payday loans are people with a bad credit history. Because payday loan companies not only your decision to give based on a persons credit history. So long, how to qualify for the application, have a good chance of obtaining a payday loan. For many people a payday loan you are possibly the only way able to receive credit, particularly in the current financial climate, where the majority of lenders unwilling, credits total grant, let alone a person with a bad credit history.

Use the credit money

You don’t have to tell the payday loan provider what you need payday loans. For what you want, you can use the money. You may have money in a crisis that cannot wait until payday for example; emergency medical or dental treatment, to settle a Bill quickly, extra spending money on holiday or even for a romantic weekend away. The choice is yours as long as you do a refund due to the repayment date.

No capital investment

No upfront costs associated with a payday loan. You don’t have to pay anything back until you repay the agreed in the loan contract.

Because the APR is high on payday loans?

Payday loan APR used to at first glance it seems large. This is very confusing, but there is a simple reason why this figure is so high. Is the annual rate of interest and as such is calculated over the whole year (365 days). However, payday loans is usually taken only by a few days or weeks.

APR calculation is not created in a very short period of time, such as loans, payday loans. This objective is in existence for a year or long-term loans. This is really a theoretical figure allows to compare similar products over a long period of the loan, such as mortgages or pending credit balances.

Instead of relying on the APR is preferable to look directly on the loan you want to see exactly how much you will charge interest for the period from payday loans. Some companies of standard interest for the amount you wish to borrow on the validity of this loan. Then it is up to you to decide whether you can be reimbursed for cash advance, you receive the initial and the amount of interest on the date of return.

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