PAYDAY LOANS INFORMATION

Below you will see information on Payday Loans.

PAYDAY LOANS

A payday loan, otherwise known as a fast or easy loan is a short term loan or cash advance that is generally used by individuals who need some money prior to when they get paid at work.

Unlike traditional bank loans, these can be for small amounts, although they should usually be paid back within a month. SO if you're really in need of some cash to pay a bill or unexpectedly need to pay for something such as a car repair or a dental emergency.

These loans can be applied for directly online and you will receive instant notification of approval.

To receive a loan, you generally need to have the following:

  • Be over 18
  • Be a UK citizen
  • Be employed
  • Have a valid bank account

What are they & how do they work?

Sometimes the unexpected can happen, and you need cash quickly; payday loans offer short term cash to 'tide you over' to payday. They are based on a personal check which will be cashed in the future or by electronic access to your bank account on a certain date. As a borrower you write a personal check for the amount you wish to borrow PLUS the charge for the loan (called a finance charge) and then receive the loan amount in cash. Or, if you choose the electronic option, you sign over access to your bank account to receive and subsequently repay the loan.

The lender holds the check up to the next payday, when you must pay the total amount. The lender will then either cash the check, or you can redeem the cheque by paying the full amount in cash. You may also just pay the finance charge to roll over the loan to next month's payday.

Payday Loan Terms

Payday loan terms will vary from provider to provider. Generally speaking the loan term is about two weeks, and as a short term loan they tend to have higher APRs. From 1st February 2011, thanks to new rules, you will not see ‘typical’ APR displayed next to loans. Instead, you will see something called representative APR. Representative APR only needs to be offered to 51% of loan applicants – so the rate you actually receive might be quite different to what is displayed. Usually, APR is decided individually depending on your individual circumstances. Payday loans are not there to offer a value for money loan, simply a way to get through a tricky period.

Can anyone get a Payday loan?

Lenders don't carry out a full credit check, but in order to qualify for a payday loan, you need an open bank account in relatively good standing, regular income, and identification (i.e. Passport or driving licence.)

Where can I get a payday loan?

Payday loan shops, check cashers and pawn shops all offer this kind of short term loans, there are online companies too.

Are there risks?

Short term, high interest loans can trap some vulnerable people into ever escalating borrowing cycles. So it's best to be careful when thinking about a payday loan, and whether you will be able to handle the repayment. For instance, if the lender cashes a check and it bounces, you will incur a bank charge AND a charge from the lender, a cycle which can easily spiral out of control.

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TEXT PAYDAY LOANS

Text phone loans are short term loans that allow individuals to borrow small amounts of cash when they need it quickly. Unfortunately life has unexpected twists and turns that leave us in sticky financial situations, mobile text loans are a new type of loan that enable you to get money in to your account within minutes simply by sending an SMS message. Although the mobile phone loan amounts and terms are relatively small, usually the maximum amount that is leant is around £100 and it is recommended they are repaid back within seven days, they have an advantage over loans from traditional banks as you can get money quickly to pay for an unexpected bill such as the dentist or a broken boiler.

In order to be eligible for a mobile phone you generally must:

  • Have a phone
  • Be over 18
  • Be a UK citizen
  • Be employed
  • Have a valid bank account

What are they and how do they work?

Text phone loans are a new, simple and quick way of taking out a loan. The typical way a mobile phone loan works involves you initially registering on a mobile phone lender’s website, the company then verifies whether you are an eligible customer or not and if you are successful you are then able to send an SMS from your registered mobile phone with the loan amount you want. The loan is usually then credited in to your accounts within minutes. It is recommended to repay a mobile phone loan within a week otherwise the interest rates on the types loans often start to increase steeply.

Text Mobile Phone Loan Terms:

Text Phone loans are short term loans, the term lengths differ from lender to lender but usually mobile phone loans are designed to be paid back within a week. The maximum term is often two weeks to a month in length however it is not advised to put off repaying your mobile phone loan for more than a week as the loan tends to become very expensive.

Can anyone get a mobile phone loan?

Generally mobile phone lenders do not take your credit history in to account however they do tend to require you to be earning a regular income and to have a bank account in order for the money to be transferred easily and quickly to you.

Where can I get a Mobile phone loan from?

There is a wide array of text loans online that offer you these types of loans.

Are there any risks?

Mobile phone loans are short term loans, with high interest rates and it is therefore advisable to make sure that you can repay the loan before taking one out. If an individual cannot make the repayment after a week then interest rates on these types of loans tend to climb and can trap vulnerable people.

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