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UK Payday LoansIf you are a UK resident needing cash fast and can’t wait until payday, then payday loans may be a good choice. Payday loans can be an easy way of getting emergency money, even if the borrower has poor credit. Payday loans are the best and the most expedient way of getting quick cash. These loans are strictly short-term have to be paid back promptly to avoid excessive charges. Eligibility requirements are not strict. Borrowers must reside in UK and be above 18 years of age. The borrower must also show evidence of current job and possession of a bank account for more than 3 months. Some payday loan companies require that the borrower have direct deposit enabled on their bank account. Payday loans are a short-term loan solution, which must be remitted within 2 weeks, although the repayment period of the loan may be extended. The repayment amount is the total amount plus a fee, which when worked out into an APR (Annual Percentage Rate) is very high. Usually, ¤20 is paid for every ¤100 that a person borrows. Money made available for loans usually ranges from ¤50 to ¤80 but it can reach up to ¤500 to ¤800. Money given as loan depends on the borrower’s income. The lenders usually requires that the monthly income of the borrower be at least ¤750 to ¤1, 000. Before looking for a loan, borrowers should have the necessary information ready, such as copies of several pay cheques, employer information, account number, bank statement and identification. This preparation ensures that the borrowing process takes place in a smooth manner. There are many advantages to these short-term loans. They are easy to obtain and the time taken for getting the cash after approval is less than 1 day. This fast turnaround means that quick cash can be used for all sorts of unexpected needs that may occur in anyone’s life. Credit checks are not necessary and verifications are much less complicated compared to long-term loans. One outstanding feature of payday loans is that they are available to people who have had a poor credit history or even no credit history at all, whereas the same person will be rejected for long term loans from more conventional lenders. There are also disadvantages to payday loans. The interest rate for these short-term loans are very steep. The interest rate is tremendously high, often over 1000% per year. Like a conventional loan, if the borrower is not able to pay back the loan in time, a penalty is applied and then collection agencies may eventually get involved. Another drawback of payday loans is that only one loan is available at a time. Therefore Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHORThe author runs an advice guide for payday loans and other short-term borrowing options for UK residents who have poor credit or no credit at all. For more info you can visit http://www.payday-loans.org.uk/
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