Instant cash advance loans are more reliable than bank overdrafts

When it comes to borrowing cash suddenly and on a short notice there are very few choices you have. Most people have at one time or another taken an overdraft on their bank account. Most people know how costly an overdraft turns out to be. Hefty overdraft charges have been finally focused on in the recent news by BBC. When the big banks are charging unauthorized overdrafts at 167% interest and authorized overdrafts at 32% interest, inspite of the advertised rates of around 19% interest, then getting an overdraft when you are in a cash emergency is out of question. The only option in such times are online cash advance loans.

The research on overdraft charges also revealed that banks make a huge profit on penalty charges. Big banks have been accused of charging 4 figured effective annual rates of interest for an overdraft of even 10 GBP. You must be wondering that the payday loan lenders who offer online loans also offer them on an effective annual percentage rate (APR) also have four-digit figures. What you have to know is that the APR value is an annualized calculation, and it cannot be applied to cash loans. The idea of getting a payday loan is that it has to be repaid with the next paycheck. Since that is the case, you will be clearing the loan within a month. This does not happen in the case of a bank overdraft, because the banks keep charging you for the overdraft, till you decide to end the tenure. Genuine lenders who offer online loans make sure that you repay the loan on time because they follow a responsible lending policy.

Instant Cash advance loans offered by online lenders are easily available. People tend to misuse this facility, and end up depending on these loans for their long-term financial needs, which leads them into debt. By providing online loans to people who are in need, payday loan lenders are improving the process of lending, by leveraging and making the right use of the advent of internet. Whether you want to get an overdraft on your bank account or whether you want to apply for an online loan is your choice, what is more important is that you do not get into debt at any point in time, using any of these services. You are eligible to get a short term loan if you have a UK citizenship, a regular job with a minimum monthly income of 750 GBP, and if you have a bank account with a valid debit card.