There are more payday loan brokers in the UK than actual lenders, brokers will consolidate all lenders into a comparison site. If you are in desperate need of an emergency infusion of cash you may be one step away from your goal. But if your car is sitting in the driveway leaking vital fluids, you may not even have to leave home to take some payday loan as many purveyors of the service are now online.
Before you rush to do a search for “payday loan online” there are a few things you should know about how these types of loans work and what alternatives are available. A payday credit is a short-term small-balance loan that is intended to tide you over till your next payday arrives. They can be conveniently obtained as payday loans do not require a credit check. If all you have are a checking account and two recent paychecks, you may be a customer. But there’s a price.
Payday or payroll advance loans are offered by companies that usually fly under the radar of state and local government consumer protection laws. In countries like the UK, which has the stiffest regulations in the world, payday lenders have been accused of predatory practice and have sometimes been run out of town on rails. In their defense, payday lenders say they provide a much-needed solution to consumers with less than perfect credit and who must have a quick infusion of cash to tide them over till their next payday.
Paul Newan of Rapido Money, believes they provide a much needed solution. “Many customers will have poor credit rating, even though they are in full time employment. We offer these customers a lending solution”.
In exchange for these high-risk loans, payday lenders charge a fixed fee for a fixed period, usually fourteen days and if you happen to miss the fourteen-day deadline, there’s a penalty fee that is added to your charges along with another set of fees to roll over the loan through another period.In short, order, if you borrowed £500 for an emergency situation, you could end up owing as much as £700 if you miscalculated your cash flow and were forced to take a payday loan for a month. That equates to 480% or so per year and on the face of it, looks like a dreadfully large price to pay for a small amount of money. So payday loans are usually a good idea only when you have run out of options entirely.
If your request is satisfied you may be conveyed, via email, your loan agreement proving the amount that will be given to you, the repayment date and the quantity of profit you will pay on the repayment date. Along with the loan agreement, you should also be sent loan circumstances. These credit conditions should outline your rights under the Consumer Credit Act 1974 along with details concerning repaying the loan, dropping the loan also the use the intimate information you outfit while appealing for the payday loan.
Whether you are applying online or in person, you must at least have a checking account. Payday lenders will require you to write them a postdated check for the loan amount plus the finance charges. They will be more than happy to extend the life of the loan if your needs are pressing. And the sheer convenience of payday loans online is difficult to resist. These sophisticated sites require your routing and account numbers from your check book and will routinely deposit money in your checking account almost instantly.