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Everything You Ever Needed to Know About Payday Loans But Were Afraid to Ask

Payday Loan blogger

A payday loan is a small short term loan you can use to cover
expenditure until your next payday. You can apply online and the
decision to loan you the money is made almost straight away. In most
cases the whole application can be completed online and the money loaned
can be credited into your bank account on the same day as you make your
application.

A payday loan is an unsecured loan, so it is not dependent on collateral, such as you owning a house or car etc.

Generally
when you make your first application you can borrow any amount up to
�300, depending on your take home pay. You are more likely to be
approved the less you want to borrow, so it is advisable to borrow only
what you need. Once you have successfully repaid loans with one
particular company they may then offer to lend you anything up to about
�750 in subsequent loans.

Payday loans can provide a useful solution for short term cash flow problems.

Who can apply for a Payday loan?

In
order to be eligible for a payday loan you must be over 18 years old
and in employment with a take home wage of at least �750 per month. You
must also have a bank account with a valid debit card.

Even if you have bad credit history you should still be able to obtain a payday loan as long as you fulfil the above criteria.

How do you get a Payday loan?

The
majority of payday loans are available online, so there is no delay
with faxing or posting of documents. The application process is quick
and easy to complete. You will be asked for your name, address, details
about your monthly income and employment, when your next payday is,
along with the amount you wish to borrow and your bank account details.

Once
you have submitted your application you should hear back from the
payday loan provider within minutes. They will email you with their
decision to the email address you have registered with your application.

Payday
loan providers partly make their decision as whether to lend you money
dependent on the amount you want to borrow compared to the amount you
earn. Only borrow what you need, the less you borrow the more likely
that your application will be accepted and the smaller the amount of
interest you will accrue.

If your application is successful you
will be sent, by email, your loan agreement showing the amount that will
be lent to you, the repayment date and the amount of interest you will
pay on the repayment date. Along with the loan agreement you should also
be sent loan conditions. These loan conditions should outline your
rights under the Consumer Credit Act 1974 along with details about
repaying the loan, cancelling the loan and the use the personal
information you supply when applying for the payday loan.

If you
are happy to proceed you sign online by providing details of your name
and answering a security question such as your mothers’ maiden name.
Then, email this back to the loan provider and the money will be
deposited into the bank account you registered at the application
process. The money can be deposited in your bank account on the same day
you make the application, so this is a very fast and efficient way of
borrowing money short term.

How do I repay the loan?

You
will need to repay the loan amount and the interest accrued on the
repayment date as specified in the loan agreement. The repayment date is
usually your payday, hence the name payday loan.

The repayment
will be collected by the loan provider by debiting the bank account you
registered at the application process, which is the bank account into
which you get your wages paid.

Repayment over a longer period

Payday
loans may be extended if you find yourself in a position to be unable
to satisfy all or part of the amount due on the repayment date. If this
happens it is recommended that you contact your payday loan provider as
soon as possible and explain your circumstances to them. They will then
be able to explain your options and how to go about extending your loan.

Even
if you are not able to fully settle the repayment amount, it is
advisable to pay off as much as possible on the repayment date. This
will help to keep the amount of interest you owe to a minimum. Some
companies may charge you additional fees for extending your loan, you
should check if this is the case before you sign your loan agreement.

Regulation of Payday Loan Companies

Properly regulated payday loan companies must adhere to strict laws governing the finance industry.

As with any financial product you apply for it is
always advisable to check that the company offering the loan is properly
regulated. The payday loan company you are applying to should show its
Consumer Credit Licence number within its loan conditions and it should
also be authorised by the Office of Fair Trading. If you are in any
doubt as to whether the payday loan company you are considering applying
to is fully regulated then you are within your rights to contact either
of these bodies for further information.

As long as the payday
loan company you are applying to is properly regulated, there will be a
recognised body to make any complaints you may have to and you can be
assured that you will not be subject to any unfair practices.

What are the benefits of a Payday loan?

Fast

One
of the main benefits of a payday loan is the speed at which the cash
can be credited to you. The money you need can be available to you in
your bank account on the same day that you make the application. This
can provide valuable assistance if you have a short term cash flow
problem and need money in an emergency.

Simple

The
application process is very simple, it takes just minutes to apply for a
payday loan and you do not have waste time posting or faxing documents
to the payday loan provider, as you would with other more traditional
high street loans.

Poor Credit History

Payday
loans are available to people with a poor credit history. This is
because payday loan companies do not solely make their decision to lend
based on a persons credit history. As long as you fulfil the application
criteria you have a good chance of obtaining a payday loan. For many
people a payday loan may be the only way they are able to obtain credit,
especially in the current financial climate where the majority of
lenders are unwilling to provide loans altogether, never mind to a
person with a poor credit history.

Use of the Loan Money

You
do not have to tell the payday loan provider what you need the payday
loan for. You can use the money for whatever you want. You may need
money in an emergency which can not wait until payday for instance;
emergency medical or dental treatment, to settle a bill quickly, extra
spending money on holiday or even for a romantic weekend away. The
choice is yours as long as you make the repayment due on the repayment
date.

No Upfront Costs

There are no upfront
costs associated with a payday loan. You do not pay anything back until
the repayment date you have agreed to in the loan agreement.

Why does the APR appear high on payday loans?

The
APR applied to payday loans appears at first glance to be high. This is
very misleading, but there is a simple reason why this figure looks so
high. APR is an Annual Percentage Rate, and as such is calculated over a
whole year (365 days). However, a payday loan is taken usually only
over a number of days or weeks.

The APR calculation was not
designed to apply to very short term loans such as payday loans. It was
designed to apply to long term loans in existence for a year or more. It
is really a theoretical figure than enables people to compare similar
longer term loan products, like mortgages or ongoing credit balances.

Rather
than relying on the APR rate it is more advisable to look directly at
the loan agreement to see exactly how much interest you will be charged
for the period of your payday loan. Some companies have a standard
interest charge for the amount you wish to borrow regardless of the
duration of the loan. It is then up to you to decide whether you will be
able to repay both the cash advance you receive initially and the
interest amount on the repayment date.

To Conclude

Many
people do not have savings or access to credit cards or more
traditional loans and so the convenience of a regulated payday loan
provides piece of mind should the occasion arise that they need some
money quickly.

If you need money in a hurry, can not wait until
payday and are confident that you can make the necessary repayments on
the repayment date, this could be the ideal solution for you.

Overall,
payday loans are convenient, easy to access and offer a viable option
for people who require money quickly for whatever reason.

Payday Uk Review A Payday Loan Lender Review

Payday Loan blogger

Payday UK, also known as MEM Capital is one of the leading payday loan lenders in the UK. They are one of the most prominent and no matter where you apply online you always seem to land on their website. They lend to a wide range of applicants and the maximum loan amount is 750. They charge 14.50 for every 50 you borrow and if you borrow 100 for example, you will repay 129 on your next payday.
PaydayUK allow you to apply online on their website or by phone. They provide a freephone number to apply, but applying online is quicker and you get an instant decision.
You can use the funds for anything, with most people taking out loans from PaydayUK using them for final demand bills, emergency childcare and MOT repairs. They also allow you to defer your loan to the next month if you need to use the money for something else. And to defer your loan, you call them on the freephone number they provide on their website or you visit the website to login.
PaydayUK eligibility requirements are:
be over 18 years old
be employed full-time
earn at least 900 per month
have a bank account with a valid debit card
There are many online reviews on comparison and review sites about PaydayUK. Most reviews as we’ve seen are written by customers with a mixture of both positive and negative ones. Many of the complaints relate to them asking some of their new customers to send their documents for verification by fax. This is also common with other lenders when they can’t verify details online.
There are pros and cons associated with PaydayUK and we’ve included the major ones below:
Pros
1. They help you build your credit rating by working with nationally recognised credit reference agencies.
2. PaydayUK have no hidden charges or fees. They keep the whole process simple and include all the details on their website.
3. They have a loan calculator which helps you calculate the amount you will need to repay on your next payday.
4. They allow you to apply by phone, which many lenders dont provide and they provide a freephone number so you arent charged.
5. They allow you to defer your payday loan.
6. They have a Live chat service.
Cons
1. PaydayUK have recently changed their terms and applicants now have to earn a minimum 900 to be approved for a loan. The industry average is about 750 for all applicants.
Summary
Overall, PaydayUK is one of the top payday loan lenders in the UK and they have a similar service with Wonga and Payday Express. They are a responsible lender and their popularity in the UK market is a testament to this.

How To Get The Best Rates For A Payday Loan Online

Payday Loan blogger

Sometimes we can get into a situation where we need cash fast but payday isn’t for another week or two. Sometimes it can be an unexpected bill like a car repair or an appliance breaks down.

In these situations when you have nowhere else to turn such as family, friends or traditional loans like personal loans, line of credit or overdraft protection we have payday loan companies to turn to.

The easiest way to get a payday loan is online. There are lenders cropping up all over the net. How do you find a decent loan provider? Shop and compare rates and loan duration by browsing the web. You can use review sites also. These sites have done the research for you already.

There are no credit checks or documents needed when you take a payday loan online. Usually you fill out a simple form on their website and if you qualify, you can receive the cash by the next day deposited into your account. To qualify for a cash advance you have to be over 18 years old, employed for over 6 months, earn an income of $1000+ a month and have a checking account.

Remember these loans are for emergencies and are supposed to be paid back usually within a week or two. The fees aren’t bad for this service. Between $15 – $30 per hundred borrowed. The trick is to pay it back in full by the time it’s due. If you fail to do this the balance will be renewed into a new loan and you will pay the fees again. If you drag these types of loans on instead of paying them back promptly the expenses will be staggering. This is where people end up in trouble, you don’t want to keep paying fees on the same loan.

Take a online payday loans only if an emergency rises and you have no other means of coming up with the money you need. Shop and find the best rate that you can. Pay the loan back in full when due. If you follow these rules you will have absolutely no problems as a result of taking a cash advance.

Minnesota The Payday Loan Process

Payday Loan blogger

If you are a resident of Minnesota and you find that you have fallen short on a household expense or an unexpected expense comes up, you may want to consider applying for a payday loan. Here at PaydayLoansCashAdvance, we understand that unexpected expenses occur at some of the worst times. For this primary reason, PaydayLoansCashAdvance offers great cash advance services to you.

Before you can apply for a cash advance, you will need to acknowledge the basic requirements for the state of Minnesota. The basic requirements for this state include:

Proof of income
Valid bank account
Be at least 18 years of age
U.S. citizen or equivalent
If you meet all of the criteria that is stated above, the chances of you being approved for a cash advance are perfect. In general, the payday loan application process can take anywhere from 5 to 10 minutes to complete. At PaydayLoansCashAdvance.com, we protect all of your private information that you provide.

As far as the state of Minnesota is concerned, there are not any upfront fees. The only costs that will need to be acknowledged are the funds that you agree to repay once you have received the loan.

At PaydayLoansCashAdvance, we want to make sure that your loan experience is excellent. For this reason, we have three alternate methods that you can use to apply for a loan. In this instance, you will be able to apply for a loan via telephone, in person or online.

Everyone goes through rough patches during their life from time to time. At PaydayLoansCashAdvance.com, collateral is not a concern. Many people are concerned about their current credit rating when they apply for a cash advance. Here at PaydayLoansCashAdvance, your credit score is not an issue. Whether you have poor, bad, average or excellent credit, it does not make a difference. Any type of credit that you have is welcome at PaydayLoansCashAdvance.com.
Once the payday loan process is complete, and we approve your loan, you will receive your funds within a 24 hour time frame.

Payday Loan Default Consequences

Payday Loan blogger

Defaulting on a Payday Loan- Can I Be Arrested?

Many people wonder if they can be arrested for defaulting on a payday cash advance loan. Although this is not a good predicament in which to find oneself, the good news is: No, one cannot be arrested in the case of a payday loan default. As a matter of fact, under the Fair Debt Collections Practices Act (FDCPA), it is absolutely illegal for any lending institution to threaten a borrower with the prospect of being arrested for non-payment of any kind of debt. No matter how many threats you receive for not repaying a loan, it cannot happen, as there is no law allowing one to be arrested for not repaying payday loan debt. As a result, you have no reason to worry about being arrested if you find yourself defaulting on a payday loan or cash advance.

So What Is There to Worry about?

Even though you cannot be arrested for defaulting on a cash advance loan, there are other matters of which to be concerned. These worries may not quite compare to facing a prison sentence, but nevertheless, they are not situations in which anyone wants to find themselves. For starters, non-payment of debt will result in the skyrocketing of penalties and fees. The more you delay in repaying the loan, the more these fees and interest will accrue. In time, this will undoubtedly make repaying the loan that much more difficult.

Aside from fees, penalties, and interest piling up, delaying the repayment of an advance loan will steadily have a negative impact on your credit score. The longer you allow payday loan debt to accrue, the more and more your credit score will plummet. Your credit rating will be even more negatively affected the larger the loan is. Therefore, anyone taking out a large payday loan and then delaying its repayment can expect their credit rating to look horrible within a matter of months.

To avoid any of these situations, it is very important for you to think very carefully about whether or not taking out a payday loan is right for you, and if so, if you will be able to repay the debt by the next paycheck period.