Payday Advance Loans in the United Kingdom

Advance Payday Loans have been widely available in the US for many years but are a relatively new phenomenon in the United Kingdom. Payday Loans are designed to be short-term emergency loans which you can apply for and receive quickly but that you must repay in full on your next pay day.

Because payday loans are short-term the amount you can borrow is usually limited to £1000 but you can borrow as little as £100. Although the APR for payday loans is high it is not very relevant as an APR based on the Annual Percentage Rate whereas the loan period for a payday loan will not exceed 31 days or 1 month.

Typically the only lending criteria for a payday advance loan is that you have a UK bank account, are a resident in the UK and that you are employed and receive either a monthly salary or a weekly wage. Usually no credit checks are made just a verification of your identity. Therefore applying for a payday loan is usually a very fast process which can be done by completing a simple online payday loan application form - Once you've completed the payday loan online application form you will usually receive an instant decision and then the money will be transferred into your bank account within just a couple of hours but nearly always on the same day.

For every £100 you borrow you will usually have to repay an additional £25 so if you were to borrow £200 you would repay a total of £250. The advantage to this is that there are no hidden charges and it very easy to understand the repayment terms which is not the case when in comes to traditional loans or credit cards.

A couple of examples of when an advance payday loan might be beneficial are as follows:

1. You are struggling to manage your debts in a month because of unforeseen circumstances and want to avoid unnecessary charges  - For whatever reason your monthly expenditure has risen during unforeseen circumstances and you can no longer have enough funds within you bank account to cover a couple of direct debits due to come out of your account in the next couple of days. For the sake of this example lets say that the direct debits are for £75 each, if you default on them you will usually be charged a £25 missed payment fee for each one by each of the company's you were due to pay plus a further £25 fee for each one by your bank. This would result in £100 worth of charges plus your credit rating would also usually be adversely marked as a result of your missed payment. If you were to get a payday short-term emergency loan of £200 you would only have to repay an additional £50 (so £250 in total) which is half of what you would have to pay in missed payment charges plus there's no danger of your credit rating being adversely affected. Not only would you be able to pay off the £150 you owe but you would also have an additional £50 extra should any other emergencies arise before payday. 

2. You have an emergency which caught you off-guard -  Let's say that you get paid weekly and your washing machine breaks down unexpectedly and you need to get a new one. You can't afford to purchase one on just one week's wage but need a replacement straight away. You know that if you put some money aside from each wage over the next four weeks you can afford to buy a replacement so an instant payday advance loan gives you the flexibility to do just that. You can buy a replacement washing machine on the day that it breaks but pay for it in four weeks time when you've been able to save enough money for it. Yes you will also pay the fixed rate of £25 on every £100 you borrow but you avoid having to take out a long term loan or get into a long term expensive lease or hire purchase agreement. The payday loan instantly solves your problem and because it is short-term avoids you making life anymore complicated in the long-term.

Advance Payday Loans provide short-term emergency cash loans to UK residents, get an instant decision and the money you urgently require on the same day you apply.

A financial emergency can impinge upon you, without any prior notice. In the present expensive environment, monthly salaries are not ample enough to take care of all your requirements. There may be a car accident, repair of home, medical expenses or any unavoidable need. For all such occasions, there are emergency cash loan configured to meet urgent financial requirements of the people suffering from shortage of funds. Emergency cash loan is certainly different from other sorts of loan. Before applying for emergency cash loan, you need to know all significant details about emergency cash loan.

Advance Payday Loan is issued for a shorter term, as compared to any other loan. For this very reason, this loan comes with high interest rates. The best thing about emergency cash loan is that it facilitates fast approval. Sometimes, you can have the amount at the very same day. All you are supposed to offer for emergency cash loan is proof of you regular income, current bank account details and some such details. This will give the lender a general idea of your repayment capability.

The loan amount that you can have with emergency cash loan depends on your particular need, financial state and other such factors. Your credit record does not matter much, when it comes to approval of emergency cash loan. Yet, if you have a good one, it serves as an added advantage. You need to make the repayment of the loan amount within 14 days to a month. Any delay in the repayment can lead to adverse effect on your credit record. So, be very sure that you repay the loan amount on proposed time. An online search can help you to locate emergency cash loan with ostensible interest rates.

When they need cash quickly, many people turn to payday personal loans. Some bad lenders end up putting borrowers in a bad financial situation. For loan lenders online or in person, you want to be responsible with your money. A bad economy has helped the online loan industry. While this seems like a positive result, it also opens the door for bad businesses to take advantage of potential borrowers. An essential rule is to use a lender who practices transparency.

If you’re not sure what your obligations are, your lender may not be completely open. Also, you should know what choices you have. Being aware of the process ensures that you won’t be surprised by anything when your loan is due. Learning about a special charge too late can put you in financial trouble. You should trust your lender to be honest and forthcoming. Internet safety is also an important factor. It’s important to only work with lenders with safe sites.

Your money and personal information are worth protecting however you can. Determining whether a lender employs fair lending practices for their cash advances is also important. People who frequently abuse the loan system are not the best example of customers. Misuse negatively affects the borrower and the lender. You certainly don’t want to further damage your credit history.

Remember that incentives and grand claims could be too good to be true. Instead look for lenders that show they have significant experience and that have displayed a strong track record. It’s important to do a little studying online to look into the business of payday loan lenders. You can easily find information about online money lenders by doing a little research. Reading what former customers have to say is also a valuable way to get the scoop on what’s going on. Good lenders are open to you if you look for them.