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Who can get a cash advance or payday loan?
Pretty much anyone who has a regular income and a current account can take out a cash advance or a payday loan – as there are often no credit checks involved to apply.
Cash advance and payday loan lenders are regulated by the financial services authority – however, with these loans being so easy to get – and the fees charged aren’t exactly cheap - you should weigh up whether or not you really need to take one out.
Before hitting the apply now button, ask yourself:
- Do you really need the cash right now or can you wait until payday?
- Is your loan use a real emergency, buying a new TV is not a real emergency!
- Can you borrow the money on a short-term basis from family?
Taking out a cash advance or payday loan
Cash advances or payday loans are popular short term loans often used by those looking to borrow money on a short-term basis to tide them over until payday.
There are a number of differences when it comes to payday loans compared to standard loans, and some of the things that you need to bear in mind include:
- You will have to provide proof of income to take out one of these loans.
- You will often be required to hold a current account with a debit card to take out a payday loan – so that the lender can debit the money owed as soon as you get paid.
- These are short-term loans designed to tide you over only until payday.
- There is often no credit check involved with these loans.
- These loans charge a flat percentage fee per £100 borrowed.
The benefits of a payday loan
There are times when we could all do with a financial lifeline to tide us over until payday. Many unexpected situations can lead to the need for some extra cash over the short term, such as emergency repairs, unexpected bills, etc.
Payday loans are short term loans that are designed with this purpose in mind – to enable consumers to borrow smaller amounts of money over shorter periods than with a standard personal loan.
The good thing about payday loans is that there is no credit check involved, and therefore anyone can get this type of loan providing they can provide the documentation required by the lender, such as proof of income, proof if address, and banking details.
These requirements can vary from one payday loan company to another. The amount that you can borrow will also depend on a number of factors, including your income.
When you borrow money in the form of a payday loan you either set up a payment through your bank so that the money can be debited and repaid to the lender on the day that you get paid, or you issue the lender with cheques when you receive the money, which will then be banked on a specified date, after you have been paid.
The interest charged on these loans can vary, and although the APR works out to be very high compared to standard loans, these are short term loans and therefore you will simply pay a flat fee or percentage per £100 borrowed. You will therefore know exactly how much the loan will cost you in terms of fees when you contact or apply to the lender.
You can get further information on payday loan companies and find out more about the fees charged for these short term loans by going to http://www.personal-loan-comparison-online.co.uk/cash-advance/default.asp.
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