Payday loans are advances on your next pay packet from a third party, which are to be repaid on your next payday.
Either online or at a physical office, you apply for payday loans for between £80 and £1,000 (this upper limit is usually only for existing customers), in general, by giving the company your personal information, usually including: names, birthday, e-mail and physical addresses, insurance numbers, home and mobile phone numbers, employer?s name and phone number, source of income, frequency of pay, pay dates, monthly salary amount, and bank name and account.
Take note that you must earn a minimum monthly amount to be eligible for payday loans in the first place and that this amount is somewhere around £750 per month, after taxes. Often, you must also have a bank account with a debit card, get paid via direct deposit, and be over 18 years old.
Many of these payday loans are legitimate and offer secure and fast online transaction methods. But before supplying any of your personal information, such as what is listed above, be sure to check the service with the Office of Fair Trading. Using only those services offering payday loans for which you have positive personal references is also a good idea.
Once you have supplied all of the necessary information, the company will most likely research your record at a credit and/or fraud prevention agency. If ample information on your financial history is found during this search, you will be quickly approved for payday loans and the money will be transferred into your account within 24 hours.
Once you do get your next paycheck, the payday loans company will then withdraw the amount that you borrowed, plus any interest and fees, directly from your bank account. You can defer the repayment of payday loans, but this is not advised.
New charges will be incurred for every month the payday loans are deferred. Payday loans can help when you are in need of some cash fast, but do bear in mind that the interest rates are usually extremely high. Therefore, if you are in any danger of being unable to pay back the money on the agreed date, you should use another type of credit instead.
If you are in financial trouble, you are advised to see this page