People may have to face circumstances which bring about sudden and unexpected expenditure. They may go through diverse situations such as hospitalisation or medical expenses or a vehicle accident that requires immediate repairs to get it running. The biggest facility offered to people by payday loans is that they are accessible online.
Payday loans could be applied for online and they can be used as handy financial instruments in case of financial emergencies. They are short-term loans that allow people to get anywhere from 50 GBP to a 1000 GBP from one pay cheque period to another. The money is lent to them with a heavy interest charge, and a small fee and the loan amount has to be repaid on a stipulated date. The tenure is normally four weeks. Payday loans are ideal for people with poor credit standing and who do not have the time to qualify for bank loans and other standard loan sources. If you face a financial emergency and you need fast cash, payday loans could be the best solution to receive money on the same day that you apply for the loan. See https://www.badcreditsite.co.uk/ for details.
How can you qualify for a payday loan?
The requirements for qualification for a payday loan may vary from one case to another, but there are few fixed guidelines that apply to all that seek payday loans online. One big attractive feature of a payday loan is that the lenders do not give importance to the applicant’s credit score. A borrower with a poor credit rating may also qualify easily for a payday loan. One thing is sure; the payday loan approval will not be based on a person’s credit score.
This is the criteria that help borrowers qualify for a payday loan –
The applicant has to be above eighteen years of age.
The applicant has to be a resident of the United Kingdom.
The applicant must have an open and an active bank account with a valid debit card.
The applicant has to show proof of regular income.
The applicant must provide a valid residential address and a contact phone number for identification.
When these criteria are met, the loan process becomes faster, and the applicant can easily qualify to receive the payday loan amount within a matter of hours.
What happens once the applicant qualifies?
Once the application for the payday loan is approved, in many circumstances, the borrower would be asked to submit a post dated a cheque for the entire loan amount plus the interest and the lending fee. The payday lender will hold on to this cheque until a predetermined date, and this is the day the borrower gets his or her salary. As an alternative, the payday lenders will transfer the loan amount directly to the borrower’s designated bank account and also issue instructions that the bankers give them the credit of the entire loan amount plus the interest and fees on the stipulated date. The bankers would then transfer the amount from the borrower’s account to the payday lender’s account.
The payday loan process could not be easier for the borrowers as all they need to do is to apply online at any time of the day or night as per their convenience. It has been proved that charges for payday loans have remained lower than the unplanned overdraft fees levied by banks. The payday lenders charge a few fees for lending, and there is no issue of arriving at a negative balance on the borrower’s account.
The payday loan is, therefore, a short-term contract which helps bridge the gap between the pay cheques for the person who needs to manage the cash shortfall. Payday loans have served as ideal mediums to receive swift cash to cover emergencies and short-term cash crunches.