Payday loans are short-term credits that are designed to help tide borrowers over to cover their financial shortage until their next payday. While most lenders expect borrowers to pay the principal and the interest on their next payday, or by the end of the month, there are lenders that may allow borrowers to choose their preferred term.
How Payday Loans Work
Lenders can lend between £100 to £1,000, though this can vary from lender to lender. Considering how this is a short-term loan, expect that the interest rates will be generally high. However, the fast processing time and the lenient requirements have made these loans the go-to among many a borrower, especially those whose credit records aren’t especially spotless.
The funds, once the loan is approved, is typically paid into the borrower’s bank account. Usually, this is within 24 hours of the loan approval with some even releasing the funds a few hours upon approval. Repayments are usually taken from the borrower’s bank account once due. Typically, lenders charge £24 for every £100 that is borrowed.
Requirements for Payday loans
There are basic requirements that potential borrowers will need to meet to get approved for a payday loan. A borrower needs to be 18 years old and a UK resident. He must have a working bank account as well as this is where the lenders are going to deposit the funds directly. This is also the same account that they will be deducting the payment from come the loan’s due date.
In addition, a borrower needs to have a steady source of income too. He need not be employed, but must prove that he gets a steady source of regular income to ensure that he can pay off the debt by the time it is due.
Benefits of Payday Loans
The speed in which one can take out a payday loan is also one of the many reasons it has grown in such popularity among the borrowing public over the years. The requirements tend to significantly easier, more lax, and lenient compared to standard bank loans. In addition, most lenders do not require a hard credit check when assessing prospective borrowers, which makes it possible for those with bad credit to get access to emergency funds. Applying for one is convenient too, since most lenders offering this credit are operating online. So, you can choose to send your application through this medium.
Payday Loans For People With Bad Credit
What do you do when you need money fast but your credit is bad? One of the harsh realities of life is that without a good credit score, you won’t be able to get financial help from a traditional UK lender or bank.
Damaged credit history makes you unappealing to conventional lenders and banks. Fortunately, there are companies online who offer bad credit loans to borrowers with imperfect credit scores. Because the online lending industry is very competitive, you can obtain a loan for a variety of purposes regardless of your credit condition.
UK online lenders offer the utmost convenience when it comes to payday loan applications. Just go to a reputable lender’s website and complete the loan application form. After submitting your loan request, the lender reviews your application to see whether you qualify for a payday loan. Compared to the loan process of banks, online lenders will immediately give you feedback so you don’t have to wait for days or weeks for results.
UK Payday Loans for Bad Credit
After assessing your information and the lender sees that you can afford a payday loan, the funds will be quickly transferred to your account in an instant. You don’t need to go to the lender’s office since everything is done electronically, including the signing of the loan contract. Payday loans must be repaid by your next salary date and this will be indicated in the terms of the loan agreement. Once you have repaid your loan, your credit score increases which will help you get a regular loan with better rates someday.
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The payment is sent immediately to your checking account upon approval. So there’s no need for you to visit banks to get the money that you have requested. It will be deposited to your account within minutes after being approved.