Pay day Loans - Want to Know More?
As pay day loans have become a more popular form of money lending it has become vital that accurate information about them is provided. For those considering this type of money lending here is a guide to everything you need to know about these financial products:
What are they?
Pay day loans are a form of short term money lending. They provide individuals with the ability to borrow cash amounts for a short time frame of just one month.
Who offers them?
These loans are offered by a number of different lenders, meaning that they are readily available. Different lenders may offer applicants different maximum amounts and will have different interest rates.
What is the best way to apply for them?
Most applications are handled through online brokers, like us, and this is the best way to apply for them. The online application will only take a few minutes to complete and requires applicants to provide basic personal details.
What does a broker do?
The broker will passes the information provided by the applicant onto different lenders, meaning the borrower will receive a decision within a short space of time. This allows them to make an informed decision, at no obligation, allowing them to effectively compare what is on offer from different lenders.
Who can apply for them?
Whilst anyone can apply for a payday loan only those who meet the criteria will be considered eligible. Luckily, the criteria for these types of loan are minimal meaning that a large number of applicants will often have their applications approved.
What is the criteria?
The criteria for these moneyshop loans are as follows:
- The applicant must be aged 18 or over.
- The applicant must be in paid employment, either full or part time.
- The applicant must be a UK resident and have an active, open UK bank account.
How much are you expected to repay?
Once you have accepted a loan and agreed to their terms you will be provided with information over the repayment. Both the date and the amount of this will be provided clearly, making this an easy process to manage. The amount which you repay will depend on the interest rate in force and the amount of the pay day loan you took. If the repayment is made on time then you will repay the full amount in one transaction. As interest rates vary between lenders there is no fixed repayment amount. However, an average example sees £20 of interest incurred for every £80 of loan, making the APR which is quoted for these loans somewhat misleading.
How are repayments made?
The repayment is made via a single debit card transaction. These card details are provided during the loan application and mean that the borrower is not required to provide additional information for the repayment to occur. Instead the transaction is completed automatically – all the borrowers need to do is ensure that there are sufficient funds in their account on the designated date.
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