Payday Loans vs Bank Loans revisited
Banks have become very careful as to whom they lend cash and those with poor to medium credit reports are not able to access the credit deals they once were. That is fine for people with great credit reports and no money worries but for many Payday UK workers who sometimes need a little extra cash before payday, that can be tough. As well as being ever choosier, banks are also slow to award loan funds and can often have lengthy loan application procedures which may take weeks before the funds are made available. That makes Payday loans a faster, simpler and more accessible option for many UK borrowers.
If you are considering a loan and look at loans online, you can compare the interest rates charged on them on comparison sites. As well as the longer period loans, payday loans are increasingly being added to comparison sites so you can see what's on offer from reputable companies throughout the UK. It is also a good idea to check out the lenders websites directly.
On their website, reputable lenders should show that they are governed by the Financial Services Authority (FSA) and offer a FAQ (Frequently Asked Questions) or Questions and Answers section to clear up any confusion potential borrowers might have. Once you have found a reputable loans company, taking out small loans, is incredibly simple.
Taking Out Loans Online
The way that companies make money from loans is by charging interest and most payday loans have in the region of 25% interest charged on them. That means if someone borrows £400, they have to pay £500 back on the repayment day (when their salary reaches their account) because it includes 25% interest. It's simple to make the repayment, however, because the payday loan company can take the amount out of the borrower's bank account on the specified date. Although interest charges on payday loans can seem high, they're actually relatively cheap payday loans when you consider how many late charges and missed payment charges could be added to a mainstream loan over the course of the repayment period. Unlike with credit cards and overdrafts, payday loans are also paid back in full within a couple of weeks of being taken out. Meanwhile other forms of lending can take months or years to pay off and it's sometimes too easy to spend on frivolous purchases.
If you do choose to take out a payday loan and have any concerns or problems, it's advisable to call a lender and talk to them. Remember that it is a bad idea to take out a payday loan unless you are certain you can afford to repay it but in cases where you know your direct debit will bounce, calling the lender and re-negotiating payment is essential. As with all loans, if you fail to repay on time you could have to pay late payment charges or other fees for not sticking to the contract.
If you're at least 18 years old, resident in the UK, and have your wages paid into a UK bank account, you're eligible to apply for fast payday loans. It's simple to apply, as all you have to do is enter some straightforward information, including your home and work contact details and your salary and bank account details. It's possible to fill this form in within a couple of minutes, and you'll then get a speedy decision with no obligation. If you are accepted, and then you accept the agreement that is sent to you, the cash will be transferred to your account within 48 hours - and usually the same day. Even one hour loans are sometimes available, although they do come with an extra charge.
See more payday loans new on our Payday Loans News section.
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