The interest in obtaining a payday loan has grown tremendously all over the world. Many consumers are off the beaten track and applying for one short term loan after the next. There are no restrictions on the amount of interest that can be charged on instant loans. However, payday loan companies are required by law to reveal the effective annual percentage rate. The typical borrower is approved for a loan amount of around £300. Studies show that nearly two-thirds of the people approved by payday loans have yearly incomes that are less than £25,000.
A payday loan, typically referred to a paycheck advance, is a type of short term loan that can help you make it through to your next payday. Instant loans like these are payable in full on your next paycheck. Originally you were required to write a postdated check to the lender of the short term loan in full and include any fees. Once the loan matures, you would be expected to return to the lender to repay the loan in person. If you did not return to the lender, your check would be cashed. And, if you did not have enough money to cover the check from your work, you would be faced with bounced check fees from your bank as well as the cost of the loan and additional fees.
Nowadays, you can apply for your payday loan online and receive approval in less than twenty-four hours. This kind of short term loan is attractive to a lot of people because there is no credit check. It provides an opportunity for anyone with bad credit and a checking account to receive an instant loan, hassle free. Usually the lender will require that your income be verified through faxing of pay stubs and bank statements. But some lenders offer paperless payday loans as long as you receive direct deposit of your paycheck into your checking account.
Other requirements are standard, such as you must be at least 18 years old or older to apply for the loan. You must be a resident of the country and be currently employed. And as stated earlier, you must have a checking account where your salary is deposited directly into it. Some lenders even require that you have a debit card. Once your loan has been approved, the funds can be transferred into your account by the next business day in most cases. And although the average loan amount is £300, many lenders will loan a customer up to £1,500 once a good repayment history has been established.
These are tough times and if you are faced with an unexpected bill or car repairs, a payday loan can make all the difference in the world. So forget about bounced checks, outrageous overdraft charges and steep fees by choosing a trusted source to get your short term loan from. And by all means, remember to stick to the agreement that you have with the lender. If you fail to repay instant loans on time, the additional interest charges and lay payment fees can be astronomical. When every dollar counts, it's good to know that you can rely on a payday loan to get you through the difficult times.
