Payday loans are an ideal solution if you are stuck for money in between paydays. Often there can be instances when we need money to cover unexpected costs such as a car repair, a vet’s bill or a home emergency problem. You might be lucky enough to have some savings or you may be able to get an overdraft from your bank but for those with a poor credit history or low income, payday loans can offer a solution.
One of the main advantages of payday loans is that you can get instant approval, meaning you can get your money quicker. The way payday loans work is that the financial service offering the loan will take a post dated cheque from you and you are expected to pay the money back before that date.
It really is that simple; you can usually apply for your loan and get a decision instantly. This is much better than applying for a personal loan as the process is shorter and fewer checks are made. This is because the payday loans companies have got their system working efficiently. This is what they do and they do it well. They have the capability of carrying out instant checks meaning that you will get your money much sooner.
Some of the criteria that you will need to qualify include:
- Are you over 18?
- Are you in employment?
- Do you have a debit card and a bank account?
- Are your wages paid into your bank account?
If you can say yes to the above questions then you will more than likely be approved for a payday loan. A credit check will be carried out, but even if your credit history is not the best it does not preclude you from payday loans.
The cost involved with payday loans is higher than personal loans or an overdraft. The critics of payday loans say that low income families are being targeted by money lenders with the promise of getting money quickly but that the costs they have to pay don’t make it worthwhile. For example if you borrowed £80 you would typically repay £100. This is the choice you will have to make.
While there are costs involved and the interest is higher than other money lending options the loan is very short terms so the amount of interest that can be accrued is minimal. That isn’t to say that it is a cheap option, but it is a good options for those months when ends won’t meet and can often be in your bank account the same day.