Frequently asked questions
What is a Payday Loan?
A payday loan is in the simplest terms a short-term loan of a small cash sum borrowed for any given purpose and repaid next time the borrower gets paid. The service has been designed to fill the gaps and holes left in the financial products offered by major lenders, which have a habit of being large, binding, complicated and a challenge to apply for.
How do I Apply?
Application is as simple as filling out a brief form online, awaiting the instant decision from the lender and the cash then being transferred into the designated account. All in all, the application process can take no more than ten-minutes from first loading the web page to having the cash ready to spend.
How Much Can I Borrow?
Loans are on offer from £100 up to £1,000 and no more – the sums are kept small to keep the application, payout and repayment processes as easy as possible. Those applying for a payday loan for the first time will usually be limited to around £500 at the most, while those that have proven their responsibility and ability to repay on time will for future loans be offered the full £1,000 limit.
What are Payday Loans For?
Payday loans can be used for literally any purpose at the discretion of the borrower – it is their cash to do whatever they want with. However, payday loans are more often than not used to bridge unwelcome gaps between pay days and cover unexpected bills, food shortages, cars running short on fuel and a million and one other examples that go hand-in-hand with everyday life.
Who is Eligible for Payday Loans?
Payday loans are much easier to apply for than standard High Street loans and thus the vast majority are welcome to apply.
The payday loan application is open to anyone who is:
- A permanent resident of the United Kingdom
- 18 years of age or older
- Employed with a guaranteed regular source of income
- In possession of a valid UK bank account with direct transfer facility
That’s it – tick all of the above boxes and a payday loan could be yours in ten-minutes.
Can I Extend my Repayment Period?
It is always possible to extend the repayment period of a payday loan, though this must be arranged ahead of time and authorized by the lender. Be warned however – an extension of the repayment period will result in further charges being added to final balance for each month or part thereof. As such, in order to save escalating costs it is always advisable to repay the loan as early as possible.
How do I Repay the Cash?
Once the loan has been approved, arrangements will be made to collect the outstanding balance in full from the designated bank account on the day you yourself specify. In order to ensure complete and total financial comfort however, we always recommend repayment take place on your next payday.
What if I Cannot Repay On Time?
Borrowers that cannot repay on time for genuinely unavoidable reasons should contact the borrower as early as possible to discuss options. Those leaving repayment problems until the last-minute or not bringing them to the attention of the lender will face steep penalties and additional interest charges.
Why is the APR So High?
The APR attached to a payday loan appear high because APR represents the Annual Percentage Rate of any given loan. As such, this is the amount of interest that would be charged if the loan were to go on for a full year – NOT the one-month of less over which a payday loan is taken out and repaid. As scary as the figure may look, a payday loan will more often than not be charged at a flat rate of £25 for every £100 – not a penny less and certainly not as unreasonable as the tabloids like to make out.
Can I Take Out two Payday Loans at Once?
No – lenders make every effort to rule out irresponsible borrowing and therefore you will not be allowed to take out another payday loan until your previous balance is cleared…even if the loan was from another lender.
Can I Apply with a Poor Credit Score?
Absolutely – payday lenders are only interested in whether the loan can be comfortably repaid this time around and therefore credit histories are not brought into the equation.