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During the course of this article we will introduce to you the workings of the instant payday loans UK (the information contained here refers to the structure of payday loans in the UK, if you want to know about loans in other countries then we recommend finding an alternative article that relates to that particular country as the rules may vary).

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We hope that you will find this article informative, and that it will help you to make an informed decision if you considering a payday loan.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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What is a payday loan?

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• A payday loan is an unsecured loan – this means that you do not need to guarantee the loan with one of your assets; you are protected against losing any of your belongings should you get into trouble in repaying the loan (or not repaying it as the case would be).
• Payday loans UK are short-term loans. The average length of the loan is 25 days.
• Payday loans are small-value, ranging from £75 to £1000.
• Payday loans are intended for use during a cash emergency. This could be anything from needing to pay vet bills to wanting to pay for a holiday. Unlike traditional lenders, payday lenders will not ask you about the purpose of the loan. You can literally obtain a loan for any purpose whatsoever – providing that you meet the lender’s criteria.
• Most lenders require the following:

     o That you are in full-time employment
 

     o That you receive a monthly income of at least £750
 

     o That you have an adequate credit score (beware of lenders who do not perform a background credit check as they will lend to anyone, including people who cannot afford the repayments. The credit check is there to ensure that you do not run into financial difficulties.)
 

     o That you have a UK bank account with an associated debit card

 

• Payday loans must be repaid on the payday following the receipt of the loan. 
• Payday loans incur fixed costs – usually £30 per £100 borrowed. The lenders express the cost in the form of an APR. This can give the impression of exceptionally high repayments. However, the APR reflects the cost were the loan to be taken out over the course of the year, but as they are short-term, these figures are misleading. they are required by law to give details of the APR on the loans were they long term; this is why they show the APR on the site.

Why Would You Need a Payday Loan?

There are times when people do not have enough money to cover certain costs. For example, imagine that you manage to save a decent amount of money each year, but in one particular month your boiler packs up, your washing machine breaks down and your dog needs to go to the vet. You may have the money to cover two of these costs, but not the other. At times like this, you will need to borrow money simply to live well. This is where a payday loan can help. Providing that you can repay the loan on your payday, without falling further into debt, then an instant payday loan will help. They are meant for use for short-term cash flow problems.

 

If you would like further information about payday loans UK, or you would like to apply for a loan, then please visit Handycash.co.uk.