A payday advance gives you a financial boost

If you have been following the news recently you would know that the Office of Fair Trading had announced that there will be no price controls on certain financial products and services such as payday loans, pawnbroking and home credit. If you review the market for payday advance users, you will see an increase in the number of applications for the same. Even though the government recognizes the need for such high cost services, people sometimes tend do criticize these services, or look at them skeptically. This article gives you some key pointers to consider before making such a biased opinion.

Payday loans are a way of getting some cash when face an emergency or a cash crunch. You should consider the following aspects of these loans before deciding whether you are for the concept or not. A payday advance is meant to be a short term solution, it does lock you into paying a fixed amount every month for a long time period. Payday loans do not require any collateral. You can apply for a payday loan, even with a bad credit history, and expect to get a loan by the end of the day, that is the efficiency of this service. The process of application, verification, approval, notification and transfer of the loan takes place very fast with a payday loan service.

You can get a payday advance, without submitting any documents for verification, this is the no fax payday loans feature that has been introduced by some payday loan lenders, since the service itself is evolving. Genuine payday loan lenders display the terms of the loan and the APR clearly on their websites, and they also inform the customers through a warning-disclaimer that such loans are short-term loans, and should not be considered as a long term financial solution. The typical APR is calculated annually and this mode of calculation is not applicable to these short term loans, which never last for a year. Displaying the APR is just a legality that the payday loan lenders follow. Roll-overs are permitted in the UK, but only when and if you get into roll-overs and extend your loan repayment does the high interest rate affect you. Roll-overs are different from some installment schemes provided by certain lenders. Installment schemes do not follow the same pattern as roll-overs do, in fact they are of benefit to the borrower.

It is very easy to apply for a payday loan and get some payday advance since the eligibility criteria for the same is very basic. Residing in the UK, being an adult, having a regular job and monthly income along with a bank account and a valid debit card is all it takes to apply for a payday loan.