Before the advent of online banking and Internet 'secure' sites, arranging even a small loan was a fraught business - with reams of paperwork required and a waiting time of days or even weeks for a final decision from the provider. Thanks to modern banking and finance systems, the financial landscape has changed beyond recognition and it is now possible to get instant approval for a wealth of financial products, including Payday Loans.
Payday Loans differ from other loans in that they are small loans paid against your monthly salary. They are particularly useful if you suddenly find yourself a little financially short mid-month and need quick access to funds for an unexpected bill or to buy a loved one a birthday present, for example. Payday loans can vary in size from as little as £80, but the upper limit is usually a maximum of around £800. This is because the loan is then recovered against your next regular pay cheque, so it can never be more than your regular monthly income.
Payday Loan lenders carry out 'responsible lending' which means that all loan requests are carefully considered to ensure that the borrower will be able to repay the loan without leaving them in a financially difficult position the following month. Credit and identity checks are carried out, both to ensure that the borrower is not a credit risk and to assist with fraud prevention.
If you do decide to apply for a Payday loan you must meet certain criteria before your application will be considered. You must be over 18 years of age and a UK resident, you must have a bank account, and you must also be able to show that your regular salary is paid by direct transfer into your account on a weekly, fortnightly or monthly basis.
Modern Payday Loans are often referred to as 'no faxing Payday Loans' or 'no fax Payday Loans' because they do not require the borrower to send or fax copies of documents to the lender. Instead, most applications are filled out online, which cuts the waiting time for a decision down from days to minutes. This makes Payday loans convenient and easy if you want a short-term cash injection in the middle of the month. They're not just for the less appealing things in life either - yes, they can be a lifeline if you get an unexpected bill mid-month or the car needs repairing. But they can also be ideal for putting a deposit on a spur of the moment break away or buying a special treat for someone you love.
As a no fax Payday Loan is specifically designed to be repaid with your next regular pay cheque, you do need to think about how much you need and how much you can afford to borrow. Making sure that the extra repayment of the loan doesn't leave you short financially the following month is a key factor in your planning. If you are looking to spread the repayments out over a longer period, it may be worth considering an alternative such as a standard loan from your bank rather than a Payday Loan. But if you are confident that the repayment is easily achievable, Payday Loans are a useful financial tool to help deal cope with any little unexpected expenses during the month.
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