What is a Payday Loan?

 A payday loan is a specialist loan which allows you to borrow money quickly.  Sometimes referred to as a ‘fast cash loan’, the payday loan is designed to cover a person until they reach their next payday.  Therefore, the term (length) of a payday loan is generally between two weeks and a month.  They are freely available in the United Kingdom, with adverts calling out payday loans no credit check on the television and internet. 

 Indeed, payday loan lenders rarely operate a credit check system and don’t ask for much information during the application process.  Most will offer a quick online form which can be filled out in less than a minute or two, asking whether you have a regular income and that you are a full UK resident.  The decision is made instantly in most cases, and money is transferred to the borrower’s designated account within 24 hours.  Payday lenders, due to the fact that they do not require excellent credit histories from their customers, are often targeted by groups who claim that they are homing in on poor income households who will be stuck in a repayment hole thanks to large interest rates on the loans.  However, many borrowers disagree, saying that they are happy that there are lenders on the market who do not require a perfect track record.  After all, at the latest count it was estimated that over half of loan applications in the United Kingdom are rejected by the lender.  Payday lenders rarely turn down applicants, usually claiming that around 85% are approved.  In order to find a good payday loan offer, it is recommended to shop around and compare offers.  There are so many to choose from, with varying loan amounts, terms and interest rates.  There are some which have much more flexible rules than others (such as the option to ‘roll over’ the loan up to three times), so it is worth taking a bit of time before choosing one.