Loans Choice
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An instant pay-day loan gives you a quick source of cash.
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Pay-day Loans. What are they and how to get one?
Pay-day loans are short term emergency loans that give you some extra cash until the end of the month when they must be repaid. The loan can normally be used for any purpose but you should check that no special terms or conditions apply. You can often borrow up to £800 or half your monthly salary but individual lenders terms vary in this respect.
You will only be considered for a pay-day loan if you are over 18 years of age and have a bank account. You will need to satisfy certain conditions and produce a number of documents; a typical list is given below.
- You must have had a current bank account for at least three months.
- You must have a valid debit card, some lenders also require you to have a cheque book.
- You must have been employed for at least 2-3 months or have some proof of a source of regular income.
- You will need to produce at least 2 recent pay slips.
- You will need to produce at least 1 recent bank statement.
- Proof of identity is needed such as a photo id card.
- Proof of address such as a utility bill (gas, electricity etc) will be needed.
Not all lenders require all the information given above, but it will give you a good idea of what details are needed to get a pay-day loan. If you have difficulty in fulfilling all the details required, some lenders may still consider you. For example, if you do not have a debit card not all is lost but you may end up paying a greater rate of interest. The more evidence that you provide to prove that you are a good risk, the lower the interest rate is likely to be.
Many of the best deals will be found online but if you are in a hurry a local lender may be more suitable as the necessary documents listed above can be more easily supplied. However, only use a reputable lender with some sort of permanent presence such as a high street shop.
Get at least 3 quotes from different lenders and make sure that there are no special conditions or extra fees such as insurance to be paid. Then choose the pay-day loan with the lowest interest payment that fulfills your needs.
Things to Watch Out For
- Some companies advertise Same Day Loans. This is usually misleading. What they mean is that they will approve or disapprove your application in 24 hours. The money reaches your account the next day.
- Bad credit rating is not usually a problem but high rates of interest are payable. You will not usually be quoted an APR, just an extra lump sum that must be added to the amount borrowed when repayment becomes due.