Consumers who have an emergency cash-flow situation, but who are plagued by bankruptcy or bad credit have the option of obtaining a new cash advance product - guaranteed payday loans. Some UK lenders specialise in loans that allow people to borrow an average maximum of £1,000 against an upcoming pay cheque. These loans do not require a prior credit review for approval. The lender will offer a loan amount based on the individual's ability to repay, which is determined by their bank account information and verified payslips.
Payday Loan Terms
After obtaining guaranteed payday loans the recipient will have to repay the money when they receive their next pay cheque. The typical loan term lasts anywhere from 14-21 days and comes with an applied interest rate. Because UK payday lenders do not perform a credit review or ask to secure collateral, they tend to charge above-average interest rates. But, in comparison to the traditional loan process, such as through banks or finance companies, obtaining a payday loan is quick and easy. Some lenders even allow customers to complete an application online, saving them an extra visit to the payday-loan store.
Fast Approval Process
Those who seek UK payday loans are usually approved quickly. The majority of lenders will file and approve an application within a 24-hour time period. Once approved, the customer can either pick up a cheque at the loan office or opt to have their borrowed funds directly deposited into their bank account. The fast approval process allows recipients to quickly take care of their financial issue quickly - sometimes the same day they are approved. There are various reasons that prompt British consumers to get payday loans. Some of these reasons include vehicle repairs, medical bills, utility bills, mortgage payments, rent payments and overdue bills.
Repaying a Payday Loan
While the specific terms will vary according to the lender, loan repayments are typically made in one instalment. Most of the time, the lender will require the borrower to set up an automatic deduction from their bank account before or on the agreed-upon due date. It is imperative that the consumer ensures there will be enough funds to cover the repayment on the deduction date; otherwise an extra fee will be charged for the declined transaction.
A Word to Consumers
Although obtaining online loans is an extremely easy process, it is necessary to compare the interest rates offered by various lenders before selecting a payday loans online company. Each lender has their own fee structure that widely differs from company to company. Regardless, the extended fees for late payments, declined transactions and other anomalous charges are rather high in comparison to other lenders. Therefore, consumers are advised to repay their payday loan on time.