For a long time, finding short term loans was typically something of a struggle.
Some conventional lenders were far happier dealing with larger loans borrowed over a longer time period of several months or even several years. Asking to borrow money for just a few weeks or so was sometimes met with a fairly stony or even disinterested response.
Short term loans were typically only available through bank overdraft facilities or credit cards.
Both of these routes have their issues. Banks are perhaps typically less keen to advance overdrafts than they were in the past and you will need an account with them. If you accidentally go overdrawn without an agreement, you may find yourself on the sharp end of some often very high charges.
In the case of credit cards, not everyone is happy using them due to the risks of getting into more and more debt. It may also be not that easy to get one unless you have a very good credit history record.
Today though, you have an alternative source for short term loans and it is called the payday loan.
Payday loans work quickly and simply. Typically:
· you apply online and receive a very fast decision;
· if approved, the money will be sent directly to your bank account where it may arrive in as little as 2 hours – or by the following morning if it is a working day;
· on your next payday or the one immediately following it, the loan provider simply debits your bank account to recover the loan plus their agreed charges.
If you are wondering what use a same day loan may be (sometimes also called a payday loan) then here are a few ideas.
- An urgent financial injection to help you cope with an unexpected bill. Perhaps your car has just broken down, your washing machine has blown up or you simply miscalculated how large a tradesperson’s bill was going to be.
- Perhaps your holiday or someone’s wedding is pending and you have just realised that your clothes are perhaps not what they should be for the trip or event.
- Maybe you have just learned that you will be having some unexpected guests and need a little extra just to cope with the additional expense that is going to be required.
- The weather has just turned bad and you realise that your kids’ coats are just not going to last another few weeks until you next get paid.
- Possibly someone has just offered you a never-to-be-repeated bargain but they are insisting on immediate payment or they will offer it elsewhere.
Whatever the reason, a same day loan may be able to help.
One of the interesting things about payday loans is that unusually, the loan providers typically do not ask you to explain the reason for the loan. They regard that as being entirely your business as a mature adult.
All you will typically need in order to obtain this type of loan is to be in recognisable permanent employment and have a bank account with an associated bank debit card.
As the loan amounts are typically smaller (perhaps £100-£250) and only advanced over a short period (typically until you next get paid) you may find that you will still be able to obtain a same day loan even if you have some forms of credit history problems.
You may occasionally find that the days running up to your next payday seem to be never-ending. Payday advance loans may help bridge that gap and make things a little bit easier for you.
What they are
Payday advance loans are short-term loans of typically fairly small sums of money. £100- £250 are fairly representative amounts.
The cash is borrowed for a period of days or weeks and is then paid back in one lump sum together with agreed interest and charges. The repayment date is planned to coincide with your next or next but one payday.
Fast cash loans are designed to meet a short-term cash flow problem rather than form part of any longer term lending strategy.
Uses for payday advance loans
- You may perhaps have had to deal with an unusually large bill early on in the month so are running a little low now.
- A friend may have asked you to join them on an unexpected weekend break but you need to pay the deposit immediately.
- Your car may need some emergency repairs.
- Your favourite shop may be running a special one-day only sale.
All and any of these are perfectly valid reasons (and there are many more) for applying for a payday loan. The fact of the matter is that no one but you may be interested in what you want to use the money for.
You may have heard of the payday cash loan – a relatively new form of loan covering typically smaller amounts of money (perhaps £100-£250).
Short term loans
These loans are designed to help with an urgent fast need for cash for a specific one-off reason. That may be simply to do with an unexpected bill or trying to grasp the opportunity for a bargain that is not going to wait around.
The application is made online and if approved, it may result in the loan being in your account within as little as 2 hours.
Then, one your next payday (or next but one – it may depend upon the exact calendar dates involved) the loan provider recovers the loan plus their agreed charges by debiting your bank account.
The exact basis and cost of a payday cash loan can only be established by looking at the details of the loan provider’s offer.
However, there are a few points that are worth keeping in mind.
The payday loan is designed as a short-term loan to help overcome a cash shortfall in a given month. It is not designed for use as a long-term loan facility.
This means that trying to consider its cost based upon the Annual Percentage Rate (APR) may be misleading because the loan is repaid typically in approximately one month not over 12.