Introduction: When Is a Loan Not a Loan?
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Payday loans are in effect advances on your salary. They need to be redeemed at the end of the month when your money comes in. Make sure that you can stick to the timescale before you apply for one of these.
When payday loan lenders are researched by you, it must be understood that they vary from the normal loans that you used to obtain from your bank. In the first place they are not loans at all with a comfortable long-term repayment period, but a cash advance against your next pay packet.
It is true that they also differ in the sense that minimal questions are asked of you and no credit checks are carried out against your name. They are purely given out with your bank account as the central security.
For these lenders the risk is greater as the finance is unsecured which will be reflected in the amount you will have to pay back when the month is up. If you pay the loan back faster the amount charged on top is not going to go down. The amount stays the same whatever happens.
So you can see that the charge is not interested at all but a set charge. You will see that if you convert this amount to the usual APR a bank would charge then the amount looks very steep indeed. You must realise, however, that when taken over a month, it is no dearer than an unauthorised overdraft fee.
A plus of this type of advance is that if you keep your nose clean and pay amounts off promptly you can improve your credit rating if it is bad. You may then improve your chances, in the future, to obtain a cheaper form of loan with a more advantageous repayment period.
If you are really with your back to the wall financially this form of loan is paid to you very swiftly indeed to get you back on the financial track.
With the government trying to crack down on the bad boys, it is prudent to choose your company carefully. Have a look if they have clearly stated their charges; some of them don't. Make sure that you know what will happen if you miss your repayment date. Some of the rogues employ aggressive tactics in getting their money back.
You should also ensure that you have some redress in times of financial meltdown. You could ensure that the firm you choose is a member of some consumer association that will give you advice if you need it.
When you have satisfied yourself that the company you are dealing with is one of the best, the next step is surely to investigate your own history of repayments. If you are not good at keeping to deadlines, then perhaps you should not approach these lenders.
If, however, you are fastidious in keeping track of your budget, there is no harm to tide yourself over with an advance such as this.
Remember that many well-meaning borrowers have come a cropper in these nasty financial squeezes that we are all suffering from. Many stresses arise from having taken a pay cut in order to stay employed, or our wages not keeping up with inflation.
Why not begin to look at payday loan lenders by visiting our site at Handycash.co.uk.
When payday loan lenders are researched by you, it must be understood that they vary from the normal loans that you used to obtain from your bank. In the first place they are not loans at all with a comfortable long-term repayment period, but a cash advance against your next pay packet.
It is true that they also differ in the sense that minimal questions are asked of you and no credit checks are carried out against your name. They are purely given out with your bank account as the central security.
For these lenders the risk is greater as the finance is unsecured which will be reflected in the amount you will have to pay back when the month is up. If you pay the loan back faster the amount charged on top is not going to go down. The amount stays the same whatever happens.
So you can see that the charge is not interested at all but a set charge. You will see that if you convert this amount to the usual APR a bank would charge then the amount looks very steep indeed. You must realise, however, that when taken over a month, it is no dearer than an unauthorised overdraft fee.
A plus of this type of advance is that if you keep your nose clean and pay amounts off promptly you can improve your credit rating if it is bad. You may then improve your chances, in the future, to obtain a cheaper form of loan with a more advantageous repayment period.
If you are really with your back to the wall financially this form of loan is paid to you very swiftly indeed to get you back on the financial track.
With the government trying to crack down on the bad boys, it is prudent to choose your company carefully. Have a look if they have clearly stated their charges; some of them don't. Make sure that you know what will happen if you miss your repayment date. Some of the rogues employ aggressive tactics in getting their money back.
You should also ensure that you have some redress in times of financial meltdown. You could ensure that the firm you choose is a member of some consumer association that will give you advice if you need it.
When you have satisfied yourself that the company you are dealing with is one of the best, the next step is surely to investigate your own history of repayments. If you are not good at keeping to deadlines, then perhaps you should not approach these lenders.
If, however, you are fastidious in keeping track of your budget, there is no harm to tide yourself over with an advance such as this.
Remember that many well-meaning borrowers have come a cropper in these nasty financial squeezes that we are all suffering from. Many stresses arise from having taken a pay cut in order to stay employed, or our wages not keeping up with inflation.
Why not begin to look at payday loan lenders by visiting our site at Handycash.co.uk.
