Payday Loans: The Basics

Juggling your budget when you’re three weeks away from payday is no fun, particularly if you’ve encountered some kind of unexpected disaster e.g. the boiler’s packed up and the cold’s creeping in, or perhaps your work vehicle is experiencing problems that is preventing you from getting to work or being able to operate your business properly.

Quick loans, however, are a great way of covering unexpected expenses. Unlike with banks, you can qualify and receive a quick loan within 24 hours.

Payday Loans

What do I need to be able to qualify?

The minimum requirements to apply for a loan are as follows:

  • You need to be at least 18 years of age
  • You need to have a working UK bank account
  • You need to have regular, predictable income

How does it work?

If your application is successful, the cash will be deposited into your account within a day. It will allow you to manage your expenses until your next payday, which is when you will return the loan.

During your meeting with the lender, they will ask for evidence that you have a steady flow of income each month, by looking at your bank statement or your last payslip. The date for repayment will be agreed upon – which will usually be on or just after your payday at work.

Repayment and T’s & C’s

If for some reason you find yourself unable to repay the loan on time, it is of paramount importance that you notify the lender, ideally as far before the repayment day comes around as is possible. As long as the lender you’ve chosen to go with is a reputable, responsible one, they will try and work with you as best they can to ensure that the money comes back.

Usually, this will involve some kind of late payment fine. Be sure that you go with a thoroughly transparent lender who will take measures to ensure you are a hundred per cent aware of all the terms and conditions involved in your loan.

Keeping things simple

Borrowing doesn’t have to be as complicated as the banks make it out to be. Banks simply do not cater to those who have minor money problems that require urgent attention. Rather than waiting around for approval (or not, as the case may be) before finally approved far too late to make any difference to your situation, you could always just do things the simple way and take out a payday loan.

As long as you’re realistic and confident about being able to repay the loan on your next payday, your unexpected expenses will vanish soon enough.

It’s always advisable to read a few reviews on the lender you’re considering going with. A quick Google search should bring you some background information about the lender too. As long as they are responsible (in setting the amount you’re allowed to borrow) and you are sure you’ll be able to return the money, you’ll have nothing to worry about.