Frequently Asked Questions (FAQ) About Payday Loans
What is a payday loan?
It is a short-term loan provided to you when you are in emergency need of cash until you receive your next paycheque. It is similar to getting a cash advance since you provide a post-dated check or pre-approve debiting your account for the full loan amount plus interest.
Do I need to have a good credit rating?
No. One of the main benefits of a payday loan is that people with all types of credit can apply. Even if your credit is poor or you have no credit, you will be approved if you meet the application criteria.
What is the application criteria?
You need to have stable employment or a regular source of income, be 18, or over the age of 18, reside legally in the United Kingdom and have an open bank account that you maintain in proper standing.
What do I need to do to apply?
You should locate the application on the website and fill it out in full. Once you submit your application, it will be reviewed immediately and an email will be sent to you with a loan decision. You can expect to be approved for a payday loan as long as you meet the established criteria. The email will include the amount of loan you are approved to receive, which is typically between £100 and £1000.
Do I get sent a cheque when I am approved?
No. It is required that all applicants have an established bank account because the money is sent to your account using direct deposit. This is a faster and safer way to receive your money.
When should I expect my money?
If you apply in the morning or early afternoon, you may have the funds in your bank account the same day. Applications received during the evening, on weekends or on holidays will be processed the next business day and you will receive your money at that time.
When is my loan repayment due?
Most payday loans are due as soon as you receive your next pay cheque from your employer. However, you may have the option to extend your loan by paying an additional fee. If you feel you are not going to be able to repay your loan on time, contact the lender immediately to make alternative arrangements.
What is the interest rate?
There is a lot of confusion and misunderstanding about payday loan interest rates, this is because the definition of APR is Annual Percentage (interest) Rate. A payday loan is based on roughly 31 days, and so is paid back within a month, and NOT annually! This is how the interest rates can look massively inflated - it's because it's (wrongly) being calculated over a whole 12 months, when in fact a payday loan is paid back in one month.
Here's a simple table that shows how much you can borrow and how much you'll roughly have to pay back:
|Amount borrowed||Interest in £||Tota amount payable|
Your annual percentage rate is determined by several factors, including your monthly income and whether you have other payday loans that you have not paid off yet. Your individual annual percentage rate will be disclosed to you when your application is approved. Keep in mind that it will be around £25 per £100 borrowed. So on a £1,000 loan, you would pay back roughly £250. You are under no obligation to accept the loan or to accept the entire amount offered to you.
Do I have to fax you anything?
In most cases, no. While payday loans used to require faxing in your paycheque stubs or a statement from your bank account, that is no longer required. Most of your information is verified when you submit your application online. If further verification is needed on anything, the lenders will contact you directly for more information, but it is usually not necessary.
Is my application secure?
Yes. The privacy and security of payday lenders customers is taken very seriously. When you apply for a loan, the system used automatically encrypts all information that you enter so only application processors can read it.
How we help you
By applying for a payday loan through paydaylenders.org.uk, you are giving yourself the best chance of being accepted for a quick loan - we put your application in front of a panel of 20+ lenders to assure the highest acceptance rate. If you have:
- Bills that need paying and haven't got the funds
- An emergency and need quick cash today
- Money worries such as not being able to afford something but you know you can pay it back when you get paid
Paydaylenders.org.uk can help you with securing a short term loan to tide you over until your next pay packet.