Payday Loans
A payday loan can be an excellent way to solve a short term cash flow issue. There are no administration fees or any hidden charges. So if you’re counting the days until your pay cheque, a payday loan maybe the perfect option.
The pros and cons of a payday loan
On the whole Payday loans are really effective for people in need of quick cash that can afford to pay the money back once payday has arrived hence the term ‘payday loan’.
Payday loans are offered at a minimum of £80 and a maximum of £800. Dependent on the borrower and the lenders discretion, a small number of lenders may consider offering up to £1000.
The borrower has no requirements to disclose what the money is to be used for and need only satisfy the lender that the loan will be paid back on payday. Should unforeseen events occur and the borrower not be able to pay back the loan on payday, the term period may be extended subject to an additional fee.
The interest payable on a payday loan is generally higher than on a long term loan. The majority of lenders tend to charge between £20 - £30 for every £80 borrowed. The interest on a payday loan is a fixed amount and depends upon the individuals’ circumstances and loan provider.
Payday loans are often readily available and borrowers only need meet relatively simple criteria in order to qualify. If you’re considering a taking out a payday loan you will asked to provide bank statements covering a two to three month period, prove your income by way of a pay slip, your address, and signature. A photocopy of your debit card will also be required with all applicants holding an active bank account.