Payday Loans – What Are They?

Payday loans are small cash loans which are normally borrowed for around a month. Depending on the lender, you can usually apply for anything from £50 all the way up to £1250, which is typically repaid on your next payday. They are usually used to help cover the costs of urgent expenses like a high utility bill or a broken washing machine, but people also use them for less urgent costs like holidays.These loans are generally called anything from ‘cash advance’ to ‘emergency loan’, and have steadily become more popular in Britain over the past two years. Originating from the USA, these short-term loans have gone from strength to strength, making billions over the last 20 years over the pond.It’s really easy to be able to get yourself one of these payday loans. All that needs to be done is:

  • Enter in your details into the quick and easy online form and receive a loan decision.
  • Once you have been approved for the loan, check through the terms and conditions.
  • If you’re happy with everything, then just sign your agreement online.

It’s really that simple. Once this easy process has been completed, you then just have to wait for the cash to arrive in your account. This will usually be on the same day of applying, and in 60 minutes in the majority of cases.

payday loan

Another reason why customers like this form of short-term credit is because of their confidentiality. When applying for the loan, you will not be asked what you reasons are for taking out a payday loan. Not only this, but they are available to people who might suffer from an unfavourable credit rating. If this is the case, they might not have been able to get other loan types. The reason why bad credit isn’t taken into account is because the lender will look more at you ability to pay the loan back, rather than any difficulties that you might have experienced before.

Despite the fact that these short-term loans are a fast and simple way to be able to get extra money to help with emergency expenditures, it doesn’t mean they should always be used. They aren’t always the cheapest credit option so you should make sure that you would be able to afford the repayments. Also, they should not be used to help with long-term debts as they are only supposed to be used to ease temporary cash flow problems.