Getting A Payday Loan In UK FAQ

Many people have heard of the term payday loan UK. However, most of them are unaware of how this loan can help them. Discussed below are some frequently asked questions about payday lending in the United Kingdom.

What is a Payday Loan in UK?

A payday loan is a loan designed for emergency situations. Due to this, these loans are easy to qualify for.  They are also processed very quickly. 

What Can a Payday Loan in UK Be Used For?

As stated above these loans are for out of the ordinary situations. As the interest rates on this type of lending are high, they should not be used for everyday expenses. Some examples of how people tend to spend payday loans are listed below.

• Car repairs.
• Overdue bills.
• Buying groceries.
• Funeral expenses.
• Spending money for special occasions or holidays.

Who Can Apply for a Payday Loan in UK?

Generally anyone who is employed and over the age of 18 will be approved for a loan. Those who are bankrupt will be declined as they are not legally permitted to take out new loans. As people who are under the age of 18 cannot legally sign a contract, they will also be declined. 

Most lenders will decline to lend money to people who are unemployed. However, some companies will take on these borrowers if they are on a government benefit. As these lenders are few and far between, beneficiaries may have to try a few loan companies before they find one willing to lend to them.

How Can People Apply for a Payday Loan in UK?

The only way to apply for one of these loans is to go to the website of the lender. Once there, borrowers will be asked to enter their date of birth, address and income details. The majority of people who apply for these loans are accepted.

How Long Does it Take to Get the Money From a Payday loan in UK?

Generally cash advance loans can be processed within a matter of hours. Once a loan is approved, the applicant will be asked to send in proof of their identification and income. Applicants can do this by scanning the documents and emailing it to the lender. If the lender is satisfied with the documents, they will put the money through. The longer clients take to send in their documents, the longer it will take to get their money.

How Long do Customers Have to Pay Back Their Payday Loan in UK?

Most lenders expect these loans to be paid back within a month. Some lenders such as 100 day loans starts to pay back in 14 days. People who are having trouble making repayments should contact their lender straight away. Those who fail to make timely repayments may be charged late fees and default interest.

Overall, these loans are great for when people are facing unexpected financial emergencies. Because most lenders will accept any working applicants, they are taking on a huge risk. As a result, interest rates and fees on these loans are high. Consumers should check rates and compare them to find the best payday loans  before they sign a loan contract.