UK Payday Loan – What’s Involved?

Where do you turn when faced with an unexpected bill that requires immediate payment? For instance, let’s say that your car breaks down and there are insufficient funds in your bank account to write a cheque for the repair. You could ask a friend or family member to loan you the cash, or you could try to arrange an overdraught with your bank. In my experience, asking to borrow money from friends or family is always embarrassing and it can take time for your bank manager to make up his or her mind. If you need the car to get to work, you just don’t have time; you need the car back as soon as possible.

This is where a payday loan could come in handy. There are several UK payday loan companies around. A quick search using your favourite Internet search engine will bring forth a whole host of UK cash advance lenders. All eagerly awaiting your application.

Most of these loan companies will allow you to borrow between £80 and £1000 (usually, the lender will cap the amount available to a first time borrower) on the understanding that you repay the amount in full, inclusive of the interest, when your next wage/salary is paid into your bank account. Your debit card details are taken at the time that you apply in order to facilitate this.

How it all works.

Once you’ve found a suitable lender and read and understood their terms and conditions, the next step is to fill out the online application form. Within a few minutes you will receive an email with the payday loan company’s decision. If your application is accepted, full instructions on what to do next will be found within the communication. If you accept the loan the monies will be directly deposited into your bank account within a few hours. It’s as simple as that to get a payday loan in the UK. And if that isn’t as near as you can get to an instant pay day loan, I don’t know what is.

That sounds too easy, why is it so fast compared to other types of loan and how much does it cost?

The reason that the approval process is so fast is that thorough credit checks aren’t carried out on the applicant. Which means that people with a poor credit rating or even no credit rating at all can apply for one of these loans and get approved.

The interest rate on a cash advance of this nature can be anywhere between 20% and nearly 30% per month and the mainstream loan companies seem to charge 25% per month (£25 for every £100 borrowed).

We’ve gathered together a few of the UK’s top cash advance lenders and posted them on our review page. Please click here to be taken there now.