What you need to know - If you are in need of extra cash until pay day, you may want to consider applying for payday loans. Pay day loans can be obtained online and with no credit checks so bad credit should not disqualify you from qualifying for a payday loan. You can use the money for what ever purpose necessary and the money can often be deposited into your bank account the very same day you apply. Generally all you usually need is a current account with a debit card, and a steady source of income. Many companies no longer require documents to be faxed and you can complete the whole process online.
Payday Loans are normally between £50 - £1000 and amount you will be lent is normally calculated as a percentage of your disposable income (money left after all bills have been paid). Most loans tend to be around £300. Most reputable companies restrict customers to a maximum of four payday loans per year. The most common reasons for applying for a payday loan include; temporary cash shortage, unexpected bill such as a car repair or a last minute holiday with friends.
Payday loans are designed to fulfill your short-term financial needs and should not be used as a regular lending source, it's a short term fix. The interest rates charged for pay day loans can be higher than a traditional loan from your bank and should only be used to solve temporary or emergency financial crisis. The high interest rate also reflects the fact that the loan is paid over a very short period of time that distorts the APR rate (annual percentage rate).
The loan is paid back on the day you are next paid and normally taken automatically from your debit card.
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