UK Payday Loans a Great Credit Solutionby Niall p. Full-time writer and social entrepreneur
Whether you have bad credit or are simply looking for a less strenuous way to access credit then payday loans instant decision could be the best option to look at. A payday loan in the UK is a small short term loan, covered by the borrower's pay packet. They are quick and easy to apply for and are normally offered by cash advance businesses which are often not concerned by the borrower's credit history. For this reason, they have become a popular choice of credit among UK citizens.
Payday loans online are actually unsecured loans, since you are not required to provide any collateral in exchange for money borrowed. For this reason, most lenders will only loan small amounts of money which are meant to repaid using your next pay packet.
To be eligible to apply for a payday loan you need to be over 18 years of age with a regular source of income and a current bank account. UK payday loans typically charge a higher rate of interest as compared to traditional financing institutions such as banks. This is due to the high rate of default, around 10 to 20%, according to current studies. That said, most applications are done within 24 hours, and virtually guaranteed as long as you are able to meet all the terms and conditions stipulated by any given payday lender.
UK payday lenders often have borrowing limits set for the minimum and maximum amounts they are able to lend. These figures range from £100 to £1500, but can vary from one lender to another. There are limits set for first time borrowers - normally around £500. As soon you have finished paying off your first loan, you can always go back and borrow more money, at higher limits. But, with that said, you should always be cautious with your borrowing habits. Apply some level of financial prudence to ensure that you are able to make your payments within the stipulated time provided by your lender.
Most UK payday lenders have flexible terms which allow you to 'rollover' the loan, so that just in case you are met with any unexpected financial emergencies you can extend your payments into the following month. But, since at that point you will have extended the period expected to pay off the loan, your lender is likely to charge you interest for that extended period, and additionally request you to pay off a portion of the loaned amount. While borrowing money you should make allowances for this type of scenario and borrow wisely.
While searching for the cheapest payday loans online uk make sure to consider certain factors such as the interest rate charged, fees, charges and the repayment periods and methods as stipulated by the lender. These factors will vary from one payday lender to the next and could greatly affect the cost of the loan, as well as the convenience and ease of payments for borrowers.
Short term payday advances online are the best solution for someone in need of a quick and easy way to access credit.
Created on Feb 9th 2015 19:12. Viewed 1,509 times.