Payday loans are short term loans, these loans have been designed to see you through if you need that extra bit of cash before your next payday arrives. With most lender you can choose to pay back on the date of your next payday, or within a timeframe that suits you.
There are many advantages to taking out a payday loan:
- A great solution to cover any unexpected circumstances or unforeseen expenses that arise.
- Gives people with a bad credit score a chance to successfully apply for a loan.
- Rebuild your credit score if you have a bad or no credit history.
- Its a simple application process that can be completed within minutes.
- Repaying early allows you to save on interest of longer term loans.
Payday loans are a fast way to get a cash advance that will help you out until your next pay day. You may need to apply for a payday loan if you need money for bills or other expenses that require immediate attention. The amount in which you can borrow will depend on the lender and your monthly income. Applying for a payday loan is much easier than applying for a traditional bank loan, and a bonus to payday loans is how quickly you’ll receive the cash in your bank. The process to apply and be approved for a loan from your bank could take weeks or even months, so as you can see, applying for a payday loan has many advantages.
Another advantage over a traditional loan, is that pay day loans will only require minimal information in order for it to be approved. Generally, the following are required from a payday lender:
- To hold a bank account
- Sufficient income to repay the loan
- Proof of identification and/or employment
- To be aged 18 or older
In order for the money to be placed into your account, you will have to provide the lender with your bank account information, either electronically or by using a post-dated check. Keep in mind that most payday loans do not have long-term repayment plans (usually two weeks), although in some cases, you may be able to extend this due date if required.
As with any loan, it is important to understand the risks before taking out a payday loan. The cost of these loans, especially the payday loans are much higher than the cost of other loans. Despite the ease of taking out a payday loan and the low requirements needed, the borrower should only apply when they are fully aware of the total financial cost. What may appear as the perfect solution to money trouble, may end up leaving you with more debt.
There are many companies who will be able to offer you payday loans. PiggyBank provide payday loans that are intended to cover your expenses until your next payday. A short-term loan normally lasts between 7 to 35 days, borrowing £100 to £1,000. Simply fill out our application form, and if successful, we aim to have the money delivered direct to your bank account within an hour of being approved.