There can be many situations in life when a short-term cash injection can solve financial issues. Perhaps unexpected bills have landed on your doorstep, or some unforeseen emergency has arisen, with payday still a long-way off.
One solution for a ‘quick fix’ is a payday loan. The main point about such an arrangement is that this is merely intended to ‘bridge the gap’ between monthly paydays, so its term should never really extend 30 days.
Because of their transient nature, actually obtaining these loans is relatively straightforward. Applications can be made online, or by telephone, and lenders can confirm your suitability within 24 hours.
Another key aspect is that some payday loan providers are willing to release funds without requiring you to go through a credit check. However, you should bear in mind that many lenders will still expect you to meet some basic conditions in terms of demonstrating that you have regular income, as well as an active current account.
Once you’ve satisfied a prospective lender that you’ll be able to meet the loan requirements, the process is uncomplicated. The fact that applications are made online or by telephone streamlines everything. Since you aren’t required to provide bank statements or salary slips or any of the other paper trails typical for longer-term financing, such as mortgages, the loan can be released directly to your bank account on the same day, or next working day.
Payday loans are generally perceived to come at a high cost – annual percentage rates for interest can seem a very high number but the key element to remember is that this APR would be spread over a whole year. Unless the payday loan has been extended – as it can be with the lender’s consent – it will never usually last more than 30 days.