People looking for a quick loan have historically used payday loans. The amount you can borrow is normally around £80 to £1,000 although some lenders will be willing to loan slightly more if you have built up a good history of lending and paying back quickly.
How fast can you get your money?
The main benefit of a Payday loan is the ability to get your hand son the money very quickly. For example most lenders will provide you with the money within 24 hours of applying. The lender will require you to sign an agreement so you may need to get access to a fax agreement to ensure the paperwork is completed as soon as possible. The money is normally paid directly into your account on completion of all the paperwork.
How can you use the money?
A payday loan can be used for pretty much any purpose. So if you need money for emergency repairs around the house or you need to pay for car repairs or for any reason then most lenders are happy to oblige. There is no real restriction on how you can use the loan so you can be assured that you have an emergency supply of money should the need arise.
How do you qualify?
If you are in paid employment and have your salary paid into a bank account then you can apply for a payday loan. And if you have a cheque book and guarantee card are automatically accepted with a minimum credit limit which is typically around £500.
How much do they cost?
These loans are not known to have low interest rates. Lenders tend to require a quick repayment, typically the next month. If repayment rolls over to following months then the amount of interest payments increases significantly.
It's not unusual for a payday loan from certain lenders to have a 500-1700% APR so hence why it's imperative to pay back the loan as soon as possible.
As an example if you take out a £400 loan you will have to pay £500 on your next payday.
Can I get a loan with bad credit?
Even if you have a County Court Judgement (CCJ) some lenders are still willing to offer payday loans. As along as you can prove you can repay the loan on your payday then most lenders don't care about your credit history. It's unlikely you will have to pay any additional interest rate because of your bad credit.
Do I need to be a homeowner to apply?
As long as you can show you can repay the loan then you can apply if you are a homeowner or you are a tenant. Lenders are only concerned with payment so as long as you meet the criteria of owning a cheque book and guarantee card.
