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Payday Loans
Defined as follows:
A payday loan (also called a short term loan, paycheck advance or payday advance) is a small, short-term loan that is intended to cover a borrower's expenses until his or her next payday.
If you're paid a monthly salary some months are and some just seem longer than others! From time to time you get unexpected expenses or something that you hadn't budgetted for and you find yourself with a cash flow problem until you get paid.
If this happens there is a solution - you can apply for a same-day short term loan, usually lasting for up to 31 days. Loans of this kind are basically cash advances on the salary you're expecting.
They were invented in the USA and are normally available for amounts between £100 and £1,000 and can be used for purposes other than bridging the gap until your next pay cheque – as long as you can pay them back once your expected income arrives.
Unlike standard unsecured and secured personal loans, payday loans are short-term borrowing solutions aimed at those facing an immediate financial difficulty. I stress - they are SHORT TERM SOLUTIONS ONLY and, used correctly, a short term, payday loan can help you out of a tight spot when you need it most.
Sometimes criticised for making borrowers’ situation worse due to the high rates of interest applied, Short-term borrowing on a payday loan has no impact on your credit rating and it is not necessary to discuss the details of your situation with a bank or lender.
The interest rates on short term loans are much higher than those on most other types of borrowing, however, at 31 days the terms of these loans are much shorter than those on standard unsecured lending. You don't have to worry about administration fees with payday loans, and while you should always check the small print carefully, there are normally no hidden costs as long as you use a reputable provider.
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Pros – solves short term financial needs
Payday short term loans are elegant solutions to short term financial needs. You can get yourself sorted without calling on friends or family without taking on a long term debt. Payday loans DO NOT affect your credit rating and you will not be asked any awkward questions about your personal circumstances.
Cons – should be avoided for long term lending
Payday short term loans will have comparatively high rates of interest when compared with regular loans over periods such as 12months or more. Whilst a payday loan will likely save you money over the short term, if you roll them over more than say 3 months they will not be cost effective.
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Where can I get a short term loan and is it right for me ?
There are many many lenders now offering payday loans in the UK today, so it's important to shop around to get the best deal to suit YOU and your circumstances. Most Payday Loan providers offer very similar products and terms and hence are very similar. To narrow your search www.BadCreditLoans.gb.com particularly recommend the following:
As long as you have a regular income and an active bank account with a debit card, a payday loan could be suitable for you.
A short term payday loan can also provide a very fast solution as most payday loans are paid into your bank account immediately, (next day at the very latest), so they are also popular with those needing an instant cash injection for whatever reason.
The loans are also suitable for both tenants and homeowners - it makes no difference. People with a less than perfect credit rating or bad credit history are also likely to be accepted for payday loans.
Some short term loans firms will, however, require you to write a post-dated cheque which will be cashed by the lender as soon as your salary is paid into your bank account.
Alternatives to a Payday Loan that may be worth considering:
1: A cash doorstep loan of between £50 & £500 paid back weekly. May take slightly longer to be paid to you the advantage is that it can be paid off over a longer period of up to 52 weeks, Click here or the banner below for more info:
2: An unsecured loan from Loan Finders, any amount over £200. Again, it may take slightly longer to be paid to you but the big advantage is that it can be tailor made to your needs - the amount you need over the best repayment period for you, Click here or the banner below for more info:
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Payday Loans
