Payday loans are a simple and effective way for you to get the help you need in certain circumstances. It could be that you’ve been hit with an unexpected tax bill, or utility bill that was larger than anticipated, or that you need to pay for a repair to your car urgently. If these matters occur at a time when you are in between pay cheques, a short-term instant loan is the perfect solution.
Of course, they are only a solution should you choose to acquire a loan from a reputable and responsible lender. Payday loan providers might have a bad reputation in some quarters but there are plenty of services out there that do lend money in a responsible fashion. Do your research first before going ahead with applying for a payday loan of any kind. A good payday loan provider will be completely up front about all costs, fees and interest attached to the loan you wish to take out, as well as offering you a clear repayment option so that you have the flexibility and choice of how to repay the loan. They will also only allow you to take out a loan if you can afford to do so, and not if it means that you will soon be in further financial problems as a result of the short-term loan.
There will be a few eligibility criteria for you to fit before being successfully accepted as a payday loan borrower. You must be over the age of 18 to begin with, and have a bank account. A payday loan provider will transfer the loan amount direct into your bank account a few hours after an application has been approved. A direct debit is the most popular way of setting up repayment terms, so your bank account is required for this part of the process also. This limits the risk from the lenders point of view and allows the borrower to relax, as they know the transfer will be made without them having to do anything extra.
Many payday loan services now utilise technology in order to process applications, so not only will you most likely have to apply online, using the company website, but you will also be asked to enter your mobile phone number in order to be given access codes and other verification processes through your own personal number.
Proof of income is a necessity for obvious reasons. The last thing a responsible lender will do is to hand out loans to absolutely anyone who is asking for one. You will have to prove that you are employed (usually 16 hours+ per week as a minimum standard), and show that your bank account is active with plenty of ins and outs over recent weeks and months. Without this, you cannot apply for a payday loan, as you will not be accepted. If you do not have the means with which to repay a short-term loan, a responsible lender will not offer you any terms at all.
If you are sure that you satisfy the eligibility criteria that most reputable payday loan providers will put forward, ensure you do your research fully and choose a service that fits your needs without getting you into further trouble.