PAYDAY LOANS

Find out all you need to know about Payday Loans below!

What is a Payday Loan?

Payday loans offer one of the easiest ways to borrow money. They are designed to tide you over until your next pay day, when you are short of cash.

Maybe you need to pay for something unexpected like a bill which can't wait, or maybe you really want to buy a holiday? A payday loan is designed to bridge that gap, give you the money you need and once pay day rolls round you can pay it back. That means usually the loan lasts between 2 weeks and a month.

Who can Apply?

This is one of the best parts of payday loans: almost anyone can apply. As long as you are over 18 and a UK resident, you are likely to find a payday lender who will take you on. Here are some basic standards you might need to meet (though lenders do vary):

• Be at least 18
• UK resident
• Have a working bank account (to receive the loan)
• Have some form of regular income

The last point is variable – some lenders take on unemployed borrowers. Here are borrowers who can generally apply:

• People with arrears
• People with defaults
• People with CCJs
• Students
• Anyone with a bad credit rating
• Unemployed
• New UK habitants

Are there Credit Checks?

In most cases, no. We never like to generalise and say that no payday lenders carry out credit checks, because there might be exceptions – but in the majority of cases there are no credit checks.

This is why people who are usually turned down by the mainstream lenders and banks can get a payday loan. Just to be sure though, check before you apply – just have a look at the terms of each lender.

Where can you get a Payday Loan?

Getting a payday loan is pretty easy. All you need to do is find the right lender – use our comparison area dedicated to payday loans to check the main pros and cons of each one. Once you have found one, you are ready to apply!

Most payday loan companies operate an online service, making this a very simple process. A short online form followed by an instant decision means that most applicants get the loan that they want.

What are the Benefits of Payday Loans?

Payday loans are ideal for people who have problems getting a loan from the 'mainstream' route and need cash quickly. Many payday lenders will transfer the money the same day, so there is less waiting around. This is especially useful if you need the money for an emergency situation.

Are there Any Disadvantages?

As with any type of loan, there are a few things to consider before taking a payday loan. Remember that this loan is only designed to cover you for a short period of time (usually around 30 days) so repayment day is not far away.

There are some lenders who allow you to 'roll over' the loan for up to 3 months but this could end up costing you more. Payday loans generally carry quite high interest rates so they should really be viewed only for desperate situations – there are other loans on the market with lower rates. Have a look through our loan pages to see what other options are available.

Remember that if you are bad at repaying your payday loan, your credit rating could be adversely affected.