Payday Loan FAQ
Frequently asked questions about Payday loans or Payday advance
Prior to visiting this website, you may not have heard about payday loans or payday advance, much less know anything about how they work.
Here are the answers you’ve been looking for:
What is the general idea behind a payday loan?
Payday loans or payday advances were created to give the consumer a fast and easy route to borrowing money for no more than a few weeks. They’re cheaper than many bank overdrafts – especially if you don’t have an authorized one.
Why not just get a regular loan from a bank?
If you only need some money to bridge the gap until your next pay cheque arrives, a loan may not be practical. It takes a fairly long time to apply and get approval for a regular loan. By that time you would have applied for an instant payday loan, got the money, spent it and maybe even repaid your payday loan. In terms of speed, a quick payday loan is unbeatable!
How long does a payday loan last for?
A payday advance requires you pay back the money on your next payday. So you would normally be borrowing the money for no more than a month.
Can I extend that term if I want to?
Some payday lenders will allow you to roll your loan over for another month or two, but you will incur more interest if you do this. Always check in advance to see whether it’s a possibility and how much it would cost.
Why does the APR look so huge?
APR (which means Annual Percentage Rate) looks big because it is what you would pay if you had the loan for a whole year. APR is the way the law requires firms to show their interest rates.
Instant payday loans don’t work that way though; they are only held for a month, during which time they are actually a much cheaper option than any other solution you might find. The APR is misleading in this sense – it is the actual amount of interest you will pay in cash that is relevant.
Do I need to provide a lot of paperwork?
Not usually. It depends on the company, but most payday loan providers will consider your application online and approve you within minutes of applying.
What if I’m unemployed?
You’ll need to be in regular employment to be considered for a payday loan. Some companies will also accept self-employed people; again, it’s wise to check with each individual company before applying.
What if I don’t own my own home?
That doesn’t generally matter. Because the decision on whether or not to offer you a payday loan is taken according to how much you earn and what your financial record is like. It doesn’t matter whether you own your own home or not. So long as you can provide your home address that’s all they need to know.
Will they ask me why I need the money?
No. Why you need the money is not the concern of the payday loan company. What they need to know is whether you qualify under the eligibility criteria so as to ensure that you will be able to pay back the loan on time.
What if I have a poor credit history?
Most payday loan companies will still lend to you if you have a poor credit rating. They tend to judge you purely on whether or not you will be able to pay back the loaned amount at the agreed time.
Is a payday loan or payday advance the best option if I just have a temporary lack of funds?
Yes! It is designed to be a solution to a short term lack of cash, not long term debt problems. If you need something just to bridge that gap for a few weeks, then a payday loan is the solution you are looking for.
The amount borrowed will be repaid through Debit Card and you can defer the repayment.
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